MGM COLLEGE OF COMMERCE

A
A PROJECT REPORT ON :

Role of Packaging in sales of FMCG products

IN PARTIAL FULFILMENT OF
BACHELOR OF MANAGEMENT STUDIES
(BMS)
ACADEMIC YEAR
2015-2016
SUBMITTED BY
RATHIN KUMAR BHATTACHARYA
TY BMS, ROLL NO 26 (SEMESTER V)

UNDER THE GUIDANCE OF

PROF.SATARUPA NAYAK

SUBMITTED TO
UNIVERSITY OF MUMBAI

ACKNOWLEDGEMENT

It was an immensely pleasurable experience in working on this project on

the Topic - Role of Packaging in sales of FMCG products. However, my
efforts alone could not have been sufficient for completion of this project.
Invaluable advice & suggestion from large number of people have gone into
this project. I am extremely grateful to all these people who have helped me
in collecting valuable information & helping me in completion of project.

(2)

Index
Contents:
Page No:
1. Introduction to Packaging
13

5-

2. Packaging Industry:
19

14 -

History
Overview
Major Players in the Market
3. Packaging Types
21

20 -

4. Functions of Packaging:
23

22 -

Protective Function
Sales Function
Promotion Function
Service Function
Guarantee Function
5. Packaging and Marketing
25

24 -

6. Waste Management of Material used in packaging

26

7. Overview of FMCG Industry

29

27 -

8. Marketing Strategies adopted by FMCG

31

30 -

9. Role of Packaging in FMCG

36

32 -

10. Factors Influencing Packaging Decisions

37

11. Packaging Expenditure

38

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Contents:
Page No:
12. Packaging as a Medium to Increase Sales
44

39 -

13. Trends of Packaging

47

45 -

14. Case Study: Coca Cola

50

48 -

15. Survey on:

54

51 -

- Consumer Behaviour towards Packaging of FMCG Products

Statement of the Problem
Objective of the Study
Hypothesis
Significance of the Study
Methodology
Sample Design

16. Questionnaire Analysis and Research Findings

64

55 -

Tabulation
Pie-Diagram
Interpretation
Recommendation
17. Conclusion
67

65 -

18. Bibliography

68

19. Annexure:
70

69 -

Questionnaire
Terminology

(4)

1. INTRODUCTION
JO DIKHTA HAI WOH HI BIKTA HAI
The earlier approach to marketing was simple enough: make sure the
product is

visible - on store shelves and through mass media advertising - and it will
more or less sell itself. With the evolution of modern retail, though, the
emphasis is shifting to in-store displays and promotions - probably also
because for the first time, the space for such initiatives is available.
But manufacturers no longer have the last word on what will happen at the
store. "Modern trade has a significant say in promotions, perhaps because it
offers far superior results with a much faster lead time," says Future Group's
Mall.
Cadbury India's Sethi points out that retailer are more open to brand
promotions and displays - including posters, gondolas and danglers - when
manufacturers back up their ideas with shopper insights. "There will be a
shift from traditional media to increased communication at the point of
purchase," he says.
Initiatives that help grow the category as a whole are particularly welcome,
say
analysts, since that boosts the retailers' revenue. And many FMCG
companies
are
predicting that spends on promotion, in-store and point of purchase displays
will
increase significantly from the present 20-30 per cent share of the marketing
budget.
Consumer goods companies need to make several changes - in strategy and
in attitude - if they are to achieve the same level of success with organized
retail as they have with traditional formats. Printing barcodes on their
products would probably be a good place to start.

SHOW YOUR PRODUCTS TO CUSTOMERS :

Buyers spend lots of energy in buying and developing the merchandise
before it finally hits the stores. Sometimes, however, it is forgotten that one
very critical aspect is the way the product is presented to customers in the
store and overlook issues such as packaging and in-store display.
The importance of the saying JO DIKTA HAI WOH BIKTA HAI cannot
be overestimated. Proper display and presentation can make all the
difference between achieving or not achieving sales targets. Remember the
following:
1. Visual Merchandising: Be involved in the planning of the in-store
presentation of your merchandise. Adequately plan the MDQs (Minimum
Display Quantities).
2. Communicating Ideal presentation standards: Effectively communicate to
the store staff on how the merchandise should be displayed and the
ideal presentation standards. This could be by way of talking to sales staff
directly, sending mail before the merchandise arrives at the stores or
making a detailed manual at the beginning of each season.
Remember to look for ways in which the job of the sales staff can be made
easier by improving packing and display methods of the product.

Meaning :
Packaging is the science, art and technology of enclosing or protecting products
for distribution, storage, sale, and use. Packaging also refers to the process of
design, evaluation, and production of packages. Packaging can be described as
a coordinated system of preparing goods for transport, warehousing, logistics, sale,
and end use. Packaging contains, protects, preserves, transports, informs, and sells.
The wrapping material around a consumer item that serves to contain, identify,
describe, protect, display, promote and otherwise make the product marketable and
keep it clean.
Packaging is more than just your product's pretty face. Your package design may
affect everything from breakage rates in shipment to whether stores will be willing
to stock it. For example, "display ability" is an important concern. The original
slanted-roof metal container used for Log Cabin Syrup was changed to a design
that was easier to stack after grocers became reluctant to devote the necessary
amounts of shelf space to the awkward packages. Other distribution-related
packaging considerations include:
Labeling: You may be required to include certain information on the label of
your product when it is distributed in specific ways. For eg, labels of food products
sold in retail outlets must contain information about their ingredients and nutritional
value.
Opening: If your product is one that will be distributed in such a way that
customers will want to--and should be able to--sample or examine it before buying,
your packaging will have to be easy to open and to reclose. If, on the other hand, your
product should not be opened by anyone other than the purchaser--an over-thecounter medication, then the packaging will have to be designed to resist and reveal
tampering.
Size: If your product must be shipped a long distance to its distribution point,
then bulky or heavy packaging may add too much to transportation costs.
Durability: Many products endure rough handling between their production
point and their ultimate consumer. If your distribution system can't be relied upon to
protect your product, your packaging will have to do the job.
7

History :
From the very earliest times, humans consumed food where it was found.
Families and villages made or caught what they used. They were also selfsufficient, so
there was little need for packaging of goods, either for storage or
transportation.
When containers were needed, nature provided gourds, shells, and leaves.
Later,
containers were fashioned from natural materials, such as hollowed logs,
woven
grasses and animal organs. As ores and chemical compounds were
discovered,
metals and pottery were developed, leading to other packaging forms.
Packaging is used for several purposes:
Contain products, defining the amount the consumer will purchase.
Protects products from contamination, from environmental damage and
from theft
Facilitate transportation and storing of products.
Carry information and colorful designs that make attractive displays.
For each product's needs, there are good packaging solutions. Though
packages are often taken for granted, they are the result of many years of
innovation -- in some cases accidental. A brief review of the more popular
packaging developments is included in this fact sheet:

Paper and Paper Products :

One way of placing packages into categories is to describe them as flexible,
semi flexible, or rigid. Flexible packaging includes the paper sacks that dog
food comes in, the plastic bags that hold potato chips and the paper or plastic
sacks in which we carry home our purchases.
An example of semi-flexible packaging is the paperboard boxes that cereal,
many other food products, small household items, and many toys are
packaged in. For many non-food items, the packaging is made more rigid by
formed packing materials that slip inside the box and hold the product and
its accessories or components in place.
Forms of rigid packaging include crates, glass bottles, and metal cans. Cloth
or paper may be the oldest forms of flexible packaging.

Glass:
Although glass-making began in 7000 B.C. as an offshoot of pottery, it was
first
industrialized in Egyptian 1500 B.C. Made from base materials (limestone,
soda, sand and silica), which were in plentiful supply, all ingredients were
simply melted together and molded while hot. Since that early discovery, the
mixing process and the ingredients have changed very little, but the molding
techniques have progressed dramatically.
At first, ropes of molten glass were coiled into shapes and fused together.
When the blowpipe was invented by the Phoenicians in 3000 B.C., it
speeded production. Colors were available from the beginning, but clear,
transparent glass was not discovered until the start of the Christian era.
The split mold, which was developed in the 17th and 18th centuries, further
provided for irregular shapes and raised decorations.
As techniques were further refined in the 18th and 19 th centuries, prices of
glass containers continued to decrease. Owens invented the first automatic
rotary bottle making machine, patented in1889. Suddenly, glass containers
of all shapes and sizes became economically attractive for consumer
products, glass containers dominated the market for liquid products.
As a type of "rigid packaging," glass has many uses today. High weight,
fragility and cost have reduced the glass markets in favor of metal and
plastic containers. Still, for products that have a high quality image and a
desire for high flavor or aroma protection,glass is an effective packaging
material.

10

Metals:
Ancient boxes and cups, made from silver and gold, were much too valuable
for common use. Metal did not become a common packaging material until
other metals, stronger alloys, thinner gauges and coatings were eventually
developed. One of the "new metals' that allowed metal to bemused in
packaging was tin. Tin is a corrosion-resistant metal, and ounce-for-ounce,
its value is comparable to silver. .
The term 'tin can' referred to a tin-plated iron or steel can and was
considered a cheap item. Today many still refer to metal cans as 'tin cans'.
In 1764, London tobacconists began selling snuffing metal canisters, another
type of today's "rigid packaging." But no one was willing to use metal for
food since it was considered poisonous.
The safe preservation of foods in metal Containers were finally realized in
France
in the early1800s. In 1809, General Napoleon Bonaparte offered 12, 000
francs
to
anyone who could preserve food for his army. By 1866 the first printed
metal boxes were made in the United States.
Although commercial foils entered the market in 1910, the first aluminum
foil containers were designed in the early 1950s while the aluminum can
appeared in 1959.

11

Plastics:
Plastic is the newest packaging material in comparison with metal, glass,
and paper. Although discovered in the 19th century, most plastics were
reserved for military and wartime use. Plastics have become very important
materials and a wide variety of plastics have been developed over the past
170years.Several plastics were discovered in the nineteenth century: styrene
in 1831, vinyl chloride in1835, and celluloid in the late 1860s.
However, none of these materials became practical for packaging until the
twentieth century. Styrene was first distilled from a balsam tree in1831, but
the early products were brittle and shattered easily. Germany refined the
process in 1933 and by the 1950s Styrofoam was available worldwide.
Insulation and cushioning materials as well as foam boxes, cups and meat
trays for the food industry became popular.
In the interim, polyethylene film wraps were reserved for the military. In
1933, films protected submarine telephone cables and later were important
for World War II radar cables and drug tablet packaging. Other cellophanes
and transparent films have been refined as outer wrappings that maintain
their shape when folded. Originally clear, such films can now be made
opaque, colored or embossed with patterns. One of the most commonly used
plastics is polyethylene terephthalate (PETE). This material only became
available for containers during the last two decades with its use for
beverages entering the market in 1977. By 1980, foods and other hot-fill
products such as jams could also be packaged in PETE.

12

A Review:
From containers provided by nature to the use of complex materials and
processes, packaging has certainly changed. Various factors contributed to
this growth: the needs and concerns of people, competition in the
marketplace, unusual events (such as wars), shifting lifestyles, as well as
discoveries and inventions. Just as no single cause influenced past
development, a variety of forces will be required to create the packages of
the future, but a very important factor will always be consumer choice.
Ultimately, only the packaging that our society demands is produced. We
choose by the products we purchase.
Current packaging designs are beginning to incorporate recyclable and
recycled plastics but the search for reuse functions continues.

13

2. PACKAGING INDUSTRY
A. History :
In preindustrial society, packaging of food was far from being unknown. It
was used for food storage at home and for transport from the production
place, the farm, or workshop to the local or regional market. Examples are
the transport of cereals or flour in bags, tea in wooden boxes or tinplate
canisters, and oils in jars. At the household level, people salted meat and
pickled vegetables and preserved them in jars. In groceries at the end of the
nineteenth century, most commodities were still unpacked and sold in bulk.
Products such as tea, coffee, sugar, flour, or dried fruits were weighed out in
front of the customer and wrapped in paper or put into a bag. In major cities
in the 1880s, the milkman came around with a dipper and can to deliver
milk, which was often dirty.
Origin of Modern Packaging and Canning:
Early methods of sealing jars included waxed paper, leather, or skin,
followed
by
cork stoppers and wax sealers. The beginning of modern food technology
started
with the experiments of the French confectioner Nicolas Appert (17501841). In 1795, the French government offered a prize of 12,000 francs to
anyone who could find a way to preserve food because Napoleon Bonaparte
needed to provide the military with a safe food supply. (The requirements of
providing
adequate
food
supplies for armies and navies have been of great significance in the history
of
modern packaging and food preservation.) After fourteen years of
experimentation, Appert developed a method for preserving foods by
heating.
The food, meat, or vegetables, was first cooked in open kettles and placed in
glass jars. After removing as much air as possible, the jars were carefully
sealed with corks wired in place and then submersed in boiling water. In

1810 Appert published his prize-winning essay on food preservation and the
French emperor Napoleon awarded the 12,000-franc prize to him.

14

Canning :
Two individuals in England are given credit for applying and improving
Appert's invention, Bryan Donkin and Peter Durand. Bryan Donkin, an
associate of John Hall's at his Dartford Iron Works, realized in 1811 that iron
containers could be used instead of the fragile glass, and in 1812 the factory
began to produce canned food such as meat. In 1810, Peter Durand patented
the use of metal containers, which were easier to make and harder to break
than glass jars. He covered iron cans, which were prone to rust, with a thin
plating of tin (which is not adversely affected by water), and invented the
"tin can." By 1813, Durand was selling canned meat to the Royal Navy. The
British admiralty bought these foods as part of the medical stores for
distribution to sick men as well as to supply expeditions.
By 1819 canning had arrived in the United States, but no one wanted canned
food until the Civil War started. In 1821, the William Underwood Company
in Boston introduced commercial canning in the United States. For a long
time, people regarded canned foods with suspicion, and for good reasons. In
the middle of the nineteenth century, the foods produced by the canning
industry were as likely to spoil as not because of inadequate heating
techniques. Then, beginning in 1868, first in the United States and later in
Europe, handmade cans were replaced by machine-cut types. The new
technology made it possible for giant meat-canning firms like P. D. Armour
to emerge in Chicago and Cincinnati.
Under difficult circumstances, people learned that canned foods such as
condensed milk can be tasty and nourishing. The invention of practical can
openers at the end of the nineteenth century made cans easier to open,

making them even more convenient for consumers. In the early twentieth
century, the heavy cans were replaced by those made of lighter materials,
and manufacturers could stress that their products were hygienically
processed. As food technology advanced, numerous chemical additives were
developed to control or speed up food processing and to increase the keeping
quality of canned foods.

15

B. Overview :
The global packaging industry is approximately a $433 billion market. The domestic
packaging market, which is the major focus of this report, represents approximately
29%, or $124 billion of the global market. The industry consists of four general
segments classified by material type: paper and board, plastics, glass and metal. The
largest segments of the industry are paper and board and plastics, which account for
36% and 35%, respectively, of the global packaging market. The packaging industry
is a large, fragmented market with thousands of competitors.
While packaging companies serve a variety of markets, the largest end markets for
packaging products are food and beverage. Food packaging accounts for
approximately 40% ($175 billion) of all packaging applications. Beverages represent
approximately 18% or $80 billion. These end markets are stable, non- cyclical,
steadily growing markets that are attractive, regardless of the economic climate.
The growth rate of the packaging industry is primarily driven by growth rates and
market trends within various end markets. Growth rates vary from a low of 3.2%
for beverages to a high of approximately 5% for health care products. The largest
end market, food, has historically grown at slightly less than 4% annually.
While the beverage market has generally been a low growth market, the bottled water
sub segment of the beverage market has recently achieved very strong growth. Due to
FDI in retail sectors, the Retail Sector in India is expected to grow by 20 % in the
next 10 years. These developments will give a boost to all the sectors, Packaging
Industry in particulars and open up tremendous opportunities in the packaging
Industry.

16

Indian Packaging Scenario:

1) Indian Packaging Industry is worth Rs. 2, 00,000 crores with growth

rate varying from 5% in some sectors to as much as 20% in Sectors like
Flexible Packaging, compared to 3% in developed countries.
2) Most of the basic raw materials needed for Packaging Industry such as
Paper, Board, Plastic, Glass, Metal and others are available in
abundance.
3) Packaging Machinery Sector involved in making Packaging Converting
Machines, Product Packaging Machines and allied equipments have
adopted modern technology are exporting the machines even to
developed economies of the world.
4) Over 40% of Export is done by small and medium Sector Industries
where Packaging Industry has its major presence.
5) A number of State of Art Package Converting and Manufacturing plants
have been set up in the country; some of them are exporting to
developed countries.

17

C. Major Players in the Market :

1. Flexible Packaging:
a. Industry : Consists of typically multilayered laminated sheets or a combination of various
subtracts such as polymers, aluminum fibers and paper.
Market around Rs. 2000 crores (US $ 465 mn.)
Laminated sheets are generally a combination of polyester films, BOPP,
Polyethylene, etc. Others - metallic packaging, co-extruded fibers, lamination.
BOPP and polyester film are major raw materials - account for 60% of the raw
materials cost.
b. Players : Paper Products, Akar Group (Akar Laminates, Sharp Industries, Vishnu Vijay
Packers, Orient Press, India Foils, Flex Industries, RT Packaging, Mukund
Flex Pack, etc.
2. Films:
a. Industry :
Market around Rs. 400 crores (US $ 90 mn.).
Polypropylene is the basic raw material for BOPP films.
Indias share of the world market of 2 mntpa (million tones per annum) is very
low <5%

b. Players :
Segment dominated by Cosmo Film (14500 T) and Gujarat Propak (11500T).
Others - Sharp Industries, Max India, Supreme Oriented Films, MM
RubberCo., Hindustan Adhesives, etc.

18

3. Polyester Films:
a. Industry:

Market around Rs. 850 crores (US $ 195 mn.)

First segment to enter packaging
Initially polyester films were imported
Now packaging polyester films are made from polyester films which are in turn
made from Di methyl terepathalate (DMT), Purified Terapathalic Acid (PTA) or
Mono ethylene Glycol (MEG)

b. Players:
Garware Polyester was the first to set-up a unit in 1981
Major players in this sector are Garware Polyester, Polyplex Corporation,
Ester Industries, Venlon Polyester, Siltap Chemicals, Jindal Polyester, Jalpac
India, Amco Vinyl, etc
4. Laminate Tubes :
a. Industry :1. Market around Rs. 750 crs. (US $ 175 mn.).
2. Tubes are of two types - laminate tube and seamless tube.
3. Laminate tube comprises of 5 layer printed laminate where as a seamless tube body
comprises mono or multi layered extruded.
4. Seamless tubes (no seam in the tube) was first introduced in 1996.
5. Properties of these tubes can be varied by using a variety of polymers - HDPE,
LDPE, HMHDPE, etc.
6. Popularly used in cosmetic, dentrifice, pharmaceuticals, etc.
b. Players
Sector dominated by Essel Packaging.
Others - Paper Products; Akar Laminates .

19

3. PACKAGING TYPES
Protecting goods is very important. Food, electronics, clothes, furniture and
other consumer goods all come in packaging meant to protect them during
transportation and storage. There are different types of packaging solutions
and materials. Packaging can be standard or custom made, for instance.
Paper and Carton Packaging:
Paper and carton packaging is used for different types of goods (food,
electronics, toys, shoes, kitchenware and even other packaging materials).
Paper and carton packaging companies produce wrapping paper, inflated
paper, sheets, boxes, tubes, pallets, interlayers, corners edges and custom
protective systems (depending on the dimension and shape of the packed
good, the carton is cut and modeled to fix and protect the product). Paper
can be used to laminate other materials in order to make them stronger. There
is also anticorrosive paper that can be used to wrap goods or to laminate
other materials.
Film Packaging:
There are multiple types of films used in the packaging industry, most
commonly polyethylene (PE), polypropylene (PP), polyolefin and polyvinyl
chloride (PVC) films. The films usually come on a roll and are used to wrap
goods, cover goods, protect boxes and make other packaging products (such
as bags, tubes, bubble wrap and sheets). Films can be used for lamination,
printed or perforated. They can be anticorrosive, antistatic, shrinkable or non
shrinkable, and slippery or non slippery.
Foam Packaging:
Foam used for packaging can be produced on a roll or in sheets of different
thicknesses. The foam is used to wrap goods or make bags (usually
laminated with high-density PE), corners, edges and custom systems. The
corners and edges are used to protect flat glass, furniture and sharp edges.
Foam can be cut and modeled on the product's shape to fix and protect it. It
can be antistatic and has good insulation properties.

20

 Textile Packaging:
There are some goods that are best protected by textiles. For example, there
are custom-made textile insertions used in the automotive industry to protect
car parts during transportation. The textile insert is put on a metal frame that
fits into a metal container. There is also textile material used for box covers.
Plastic Boxes and Containers:
Multiple types of plastic boxes and containers are used in all industries. For
example, in the food industry there are plastic containers for goods like
ketchup, yogurt, milk and juices. Plastic boxes are mainly used for
transporting goods and are reusable. They can be stacked, folded when
empty to save storage space and recycled.
Packaging Systems:
Packaging companies offer different types of systems that can be divided
into two categories: special solutions and packaging machines. The special
solutions are used for valuable products that don't have a regular, simple
shape. For example, parts of airplanes or expensive decorative glass objects
need special solutions to be packed. The goods fit perfectly into the
packaging and are protected against damages. Packaging machines are used
for wrapping (wrapping the stretch film on the pallet), strapping (applying
and sealing straps on boxes), sealing (with tape for boxes and with heat for
films) and shrink wrapping (applying PVC or polyolefin film on products or
boxes). There are also machines that inflate film, paper and instant foam.
Other Types:
Adhesive tapes are also considered packaging materials, as they help seal
boxes. They are usually made out of PE or PP film that has acrylic or solvent
glue applied to it and that can be printed on. Strapping tapes are usually
applied on boxes or pallets. They are made out of PE or PP and can be
printed with one color. The standard colors are black and clear for PP and
green for PE.

21

4. FUNCTIONS OF PACKAGING
1.

Protective Function :
The protective function of packaging essentially involves protecting the
contents from the environment and vice versa. The inward protective
function is intended to ensure full retention of the utility value of the
packaged goods. The packaging is thus intended to protect the goods from
loss, damage and theft.
In addition, packaging must also reliably be able to withstand the many
different static and dynamic forces to which it is subjected during transport,
handling and storage operations. The goods frequently also require protection
from climatic conditions, such as temperature, humidity, precipitation and
solar radiation, which may require "inward packaging measures" in addition
to any "outward packaging measures".
The outward protection provided by the packaging must prevent any
environmental degradation by the goods. The packaging must furthermore as
far as possible prevent any contamination, damage or other negative impact
upon the environment and goods.

2.

Sales Function :
The purpose of the sales function of a package is to enable or promote the
sales process and to make it more efficient. It is rightly said that packaging
works as silent, salesman. It catches the attention of customers, who pick up
the product, go through its description and are induced to purchase the
product. Self service is becoming more and more common in the field of
shopping, where the customer picks up the product himself and makes its
payment on the counter. Packaging in these circumstances promotes the

sales.

22

3.

Promotion Function :
Promotional material placed on the packaging is intended to attract the potential
purchaser's attention and to have a positive impact upon the purchasing decision.
Promotional material on packaging plays a particularly important role on sales
packaging as it is directly addressed to the consumer. This function is of subordinate
significance in transport packaging. While product awareness is indeed generated
along the transport chain, excessive promotion also increases the risk of theft.

4.

Service Function :
The various items of information printed on packaging provide the consumer with
details about the contents and use of the particular product. Examples are the
nutritional details on yogurt pots or dosage information on medicines.
The package may also perform a further function once the contents have been used
(e.g. storage container, toy).

5.

Guarantee Function :
By supplying an undamaged and unblemished package, the manufacturer guarantees
that the details on the packaging correspond to the contents. The packaging is
therefore the basis for branded goods, consumer protection and product liability.
There are legislative requirements which demand that goods be clearly marked with
details indicating their nature, composition, weight, and quantity and storage life.

23

5. PACKAGING AND MARKETING

Thousands of new products are introduced every year, more than 15,000 to be exact.
How can your product compete, not only with established brands but with the
plethora of new products that are being introduced? The answer of course is THE
PACKAGING. The right packaging with the right message will rise above the
competitive landscape. But how many companies understand the value behind
packaging as a marketing tool ? Most just look at as a way to convey the product or
recycle tired images and product packaging that doesn't work.
Rank these attributes for your product and then the nearest competitive product or
a product that you recently purchased that was outside your normal buying pattern.

Is it new and innovative ?

Is it fulfilling a need ?
Is it easy to use and convenient ?
Is it a good value ?
Does it make the consumer happy ?
Does it inspire consumer trust and loyalty ?
Is it safe and secure ?
Does it compel you to want to know more ?
So how does your product stack up in solving a consumer want or need ?
Would your package make someone desire to take a closer look ?

Branding and packaging are two of the most important components of marketing.
Branding is a term used to describe the name, description and design of a product.
Branding differentiates a company's product from their competition. Packing is a
marketing tool used to reflect the brand. A company uses packaging to sell the
product inside. The colors, fonts, descriptions and logo are designed to drive
consumers to buy the product.

24

Sales :
The entire focus of a marketing department is to strategize methods to sell
the company's products. Branding and packaging are two of the most
effective ways to do this. Advertising, the company website and product
packaging must all present a cohesive brand or image. In successful brand
campaigns, customers recognize the company's product packaging and
purchase because they identify with the brand.
Branding :
When a company brands a product, they determine its "personality."
Creating a brand that is instantly recognizable and perceived positively is the
ultimate goal. Branding integrates components such as color, style and
visual imagery to distinguish a company's products from the competition.
Developing logos, slogans and tag lines are all ways that marketers
communicate a specific brand.
Slogans :
One of the most effective methods of branding is the use of slogans.
Companies often identify a specific characteristic that sets their product
apart from the competition. For example, Nike has effectively marketed both
their logo and slogan "Just do it" into an easily recognized brand.
Packaging :
Packing is designed to capture a customer's attention and it can directly
effect whether they buy the product or not. Innovation and creativity come
into play when it comes to packaging. A well-marketed product is packaged
in a way that compels the customer to pick it up and take a closer look,
descriptions and graphics must be clear.
Company Image :
Branding and packaging are created by a company. While these efforts are
used to market products, they in turn market the company itself. Branding
reflects the image that the company seeks to project.
For example, IBM takes on a more conservative, well-established corporate
image while Apple brands itself as a hip and cutting edge company. These

images reflect the market that the company has identified as target
customers.

25

6.

WASTE MANAGEMENT OF MATERIAL

USED IN PACKAGING

Package development involves considerations for sustainability,

environmental responsibility, and applicable environmental and recycling
regulations. It may involve a lifecycle assessment which considers the
material and energy inputs and outputs to the package, the packaging
process, the logistics system, waste management, etc.
Prevention :
Waste prevention is a primary goal. Packaging should be used only where
needed. Proper packaging can also help prevent waste. Packaging plays an
important part in preventing loss or damage to the packaged-product.
Usually, the energy content and material usage of the product packaged are
much greater than that of the package.
Minimization :
The mass and volume of packaging can be measured and used as one of the
criteria to minimize during the package design process. Usually reduced
packaging also helps minimize costs. Packaging engineers continue to work
toward reduced packaging.
Reuse :
The reuse of a package or component for other purposes is encouraged.
Returnable packaging has long been useful for closed loop logistics systems.
Inspection, cleaning, repair are often needed. Some manufacturers re-use the
packaging of the incoming parts for a product as packaging for the outgoing
product.
Recycling :
Recycling is the reprocessing of materials into new products. Emphasis is
focused on recycling the largest primary components of a package: steel,
aluminum, papers, plastics, etc. Small components can be chosen which are

not difficult to separate and do not contaminate recycling operations.

Energy recovery :
Waste-to-energy and Refuse-derived fuel in approved facilities are able to
make use of the heat available from the packaging components.
Disposal :
Incineration and placement in a sanitary landfill are needed for some
materials. Certain states within the US regulate packages for toxic contents,
which have the potential to contaminate emissions and ash from
incineration. Packages should not be littered.
26

7. OVERVIEW OF FMCG INDUSTRY

The FMCG industry manages consumer packaged goods
production, distribution to marketing. The Indian FMCG
industry is the fourth largest industrial sector that has
stayed recession-resilient and shows signs of bright future.
The Fast Moving Consumer Goods (FMCG) industry primarily deals with
the production, distribution and marketing of consumer packaged goods, i.e.
those categories of products that are consumed at regular intervals.
Examples include food & beverage, personal care, pharmaceuticals, plastic
goods, paper & stationery and household products etc. Global leaders in the
FMCG segment are Sara Lee, Nestl, Reckitt Benckiser, Unilever, Procter &
Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.
Performance :
In India, the FMCG industry is the fourth largest sector with a total
(organized) market size of over US$15 billion, as per ASSOCHAM, and can
be classified under the premium and popular segments. The premium
segment (~25%) caters mostly to the higher/upper middle income
consumers while the price sensitive popular or mass segment (~75%)
consists of consumers belonging mainly to the semi-urban or rural areas that
are not, and cannot afford to be, brand conscious.
The market growth over the past 5 years has been phenomenal, primarily
due to consumers growing disposable income which is directly linked to an
increased demand for FMCG goods and services. Indeed, it is widely
acknowledged that the large young population in the rural and semi-urban
regions is driving demand growth, with the continuous rise in their
disposable income, life style, food habits etc. On the supply side, the wide
availability of raw materials, vast agricultural produce, low cost of labor and
increased organized retail have helped the competitiveness of players.
According to the recent reports by Zeus Consulting, India's FMCG industry
has so far been resilient to the slowdown in the economy and a dip in
consumer.

27

FMCG eyes 15% growth this year :

The Rs. 96,000 crore FMCG industry is expected to witness a lot of action
in 2012. With the economy showing signs of revival, the industry is
expected to register a 15% growth in 2012 as compared to the previous year.
Despite the rise in input costs, FMCG industry is likely to sustain its robust
growth momentum aided by increased rural incomes, taxation benefits and
gradual shift from the unorganized sector/regional players.
Scope of the Sector :
The Indian FMCG sector with a market size of US$13.1 billion is the fourth
largest sector in the economy. A well-established distribution network,
intense competition between the organized and unorganized segments
characterizes the sector. FMCG Sector is expected to grow by over 60% by
2010. That will translate into an annual growth of 10% over a 5-year period.
It has been estimated that FMCG sector will rise from around Rs. 56,500
crores in 2005 to Rs 1,00,000 crores in 2014.

28

Indian Competitiveness and Comparison with the World Markets:

The following factors make India a competitive player in FMCG sector:
Availability of raw materials:
Because of the diverse agro-climatic conditions in India, there is a large raw material
base suitable for food processing industries. India is the largest producer of livestock,
milk, sugarcane, coconut, spices and cashew and is the second largest producer of
rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash,
which are required for the production of soaps and detergents. The availability of
these raw materials gives India the location advantage.
Labor cost comparison:
Low cost labor gives India a competitive advantage. India's labor cost is amongst the
lowest in the world, after China & Indonesia. Low labor costs give the advantage of
low cost of production. Many MNC's have established their plants in India to
outsource for domestic and export markets.
Presence across value chain:
Indian companies have their presence across the value chain of FMCG sector, right
from the supply of raw materials to packaged goods in the food-processing sector.
This brings India a more cost competitive advantage. For example, Amul supplies
milk as well as dairy products like cheese, butter, etc.

29

8. Marketing Strategies adopted by FMCG

Marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive. A marketing strategy should be
centered on the key concept that customer is the main goal.
SWOT Analysis Strategy:
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural
areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of
scale, especiallyin small sectors.
2. Low exports levels.
Opportunities:
1. Untapped rural market
2. Rising income levels i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure

30

FMCG PRODUCT LINE

31

9. ROLE OF PACKAGING IN FMCG

PRODUCTS
The importance of packaging design as a vehicle for communication and
branding
is growing in competitive markets for packaged FMCG products. This
research
utilized a focus group methodology to understand consumer behavior
toward
such
products. The challenge for researchers is to integrate packaging into an
effective purchasing decision model, by understanding Consumers behavior
towards the packaging of FMCG products.
Packages also deliver brand identification and label information like usage
instructions, contents, list of ingredients or raw materials, warnings for use
and directives for care of product.

Packaging is the container for a product - encompassing the

physical appearance of the container and including the
design, color, shape, labeling and materials used
Packaging has a huge role to play in the positioning of products. Package
design shapes consumer perceptions and can be the determining factor
in
point-ofpurchase decisions which characterize the majority of shopping occasions.
In recent years the marketing environment has become increasingly
complex
and
competitive. A products has strong potential to engage the majority of the
target market. This makes it an extremely powerful and unique tool in the
modern marketing environment.
Fast Moving Consumer Goods (FMCG), also known as Consumer
Packaged Goods (CPG), are products that are sold quickly at relatively
low cost. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large quantities, so the cumulative profit on such

products can be large.

32

Examples of FMCG generally include a wide range of frequently purchased

consumer products such as toiletries, soap, cosmetics, teeth cleaning
products, shaving products and detergents, as well as other non-durables
such as glassware, light bulbs, batteries, paper products and plastic goods.
FMCG may also include pharmaceuticals, consumer packaged food products
and drinks.
Some of the best known examples of Fast Moving Consumer Goods
companies include:
Nestl, Hindustan Unilever, Procter & Gamble, Coca-Cola, Pepsi,
Wilkinson and Mars.
Unlike other economy sectors, FMCG share float in a steady manner
irrespective of global market dip, because they generally satisfy rather
fundamental
as
opposed to luxurious - needs.

33

The Relevance of Packaging as a Marketing Tool:

Never underestimate the importance of packaging. The way that consumers
react to unbranded products that packaging plays a huge role in reinforcing
consumer perceptions. Packaging helps to drive the way consumers
experience a product. Yet, we spend little time researching the connections
between packaging and the direct experience of the product. What relevance
does packaging have in the marketing world of today?
Reaching the target market :
In recent years the marketing environment has become increasingly complex
and competitive. Although advertising can be a highly effective, reaching the
entire target market for most products is generally not a feasible prospect.
Media fragmentation has meant that it is becoming increasingly difficult and
expensive to reach and communicate with customers and potential
customers, forcing marketers to adopt more innovative means of reaching
their target market.
Winning at the First and Second Moment of Truth:
Packagings dual role is what makes it a truly unique marketing tool. The
packaging has to provide consumers with the right cues and clues - both at
the point of purchase and during usage.
1. The first moment of truth is about obtaining customers attention and
communicating the benefits of the offer.
2. The second moment of truth is about providing the tools the customer
needs to experience the benefits when using the product.

34

1. The Point Of Sale :- The 1st Moment Of Truth

The importance of making an impact at the point of sale cannot be underestimated. A
recent Point of Purchase Advertising Institute (POPAI) survey in the UK found that
over 70% of all purchasing decisions are made in-store at the point of purchase.
a. Cutting through the clutter - actually getting the consumer to notice/see
the product
b. Communicating marketing information
c. Stimulating or creating brand impressions
d. Providing various brand cues :
Value
Quality
Safety
The most brilliant and creative packaging is useless unless it is seen. Creating a
powerful shelf presence so that the brand stands out from the crowd and is actually
noticed is the first and most vital step for any product on a shelf.
What this fact illustrates is that todays consumers have to sift through a vast amount
of products to choose what they want and not surprisingly they end up ignoring most
of what they pass. To generate initial consideration, two things are key :i.
ii.

Shelf placement - ensuring that your product is placed on the shelf in the
area most likely to be seen by customers.
Packaging that creates a visual contrast

35

2. Usage :- The 2nd Moment of Truth

Unlike advertising exposure which can be relatively brief, packaging continues to
build brand values during the extended usage of the product and can drive brand
equity and loyalty.
After purchase, packaging plays both a functional and a marketing role.
i. Functional Role :
From a functional perspective, packaging is often part of the usage/consumption
experience not only is it a means of providing any necessary information, but it can
also form part of the actual product and provides functional benefits. If packaging is
unwieldy it can hamper the relationship with the brand.
For instance if it breaks easily, doesnt fit in the fridge, can cut the consumer, etc., the
experience with the product can be negative.
ii. Marketing Role - Brand Identity and Differentiation :
As the only part of the marketing communication that the consumer takes home,
Packaging plays a key role in communicating and reinforcing brand values over
time. Packaging has the power to make, but also to break brand relationships.
Although a non-favorable advertisement might be quickly forgotten, poor packaging
provides a continual reminder of the brands perceived failing. Likewise, favorable
packaging can be a means of continually reinforcing the brands appeal.

36

10. FACTORS INFLUENCING PACKAGING

DECISIONS
Packaging decisions are important for several reasons including:
1. Protection :
Packaging is used to protect the product from damage during shipping and
handling, and to lessen spoilage if the product is exposed to air or other
elements.
2. Visibility :
Packaging design is used to capture customers attention as they are
shopping or glancing through a catalog or website. This is particularly
important for customers who are not familiar with the product. Packaging
designs that standout are more likely to be remembered on future shopping
trips.
3. Added Value :
Packaging design and structure can add value to a product. For instance,
benefits can be obtained from package structures that make the product
easier to use while stylistic designs can make the product more attractive to
display in the customers home.
4. Distributor Acceptance :
Packaging decisions must not only be accepted by the final customer, they
may also have to be accepted by distributors who sell the product for the
supplier. A retailer may not accept packages unless they conform to
requirements they have for storing products on their shelves.
5. Cost :
Packaging can represent a significant portion of a products selling price.
Developing new packaging can be extremely expensive. Smart packaging
decisions can help reduce costs and possibly lead to higher profits.
6. Long Term Decision:
When companies create a new package it is most often with the intention of
having the design for an extended period of time. Changing a products
packaging frequently can have negative effects since customers may be
confused if the design is altered.
7. Environmental or Legal Issues:

Packaging decisions must also include an assessment of its environmental

impact. Packages that are not easily bio-degradable could draw customer
and possibly governmental concern. Also, caution must be exercised in order
to create packages that do not infringe on intellectual property, such as
copyrights, trademarks or patents, held by others.
37

11. PACKAGING EXPENDITURE

Packaging is often criticized on the grounds of cost and of being a waster of
natural resources and energy.
The food packaging industry has always been anxious to conserve resources
due to economic pressures. This has been achieved by using less packaging
material, or by turning to cheaper, more abundant materials. In addition,
recycling and package reuse/refilling schemes have been introduced
voluntarily to save materials and energy and to protect the environment.
Prices of packaging materials such as aluminum foil, Kraft paper, and
adhesives for corrugated boxes and packaging plastics have increased up to
25% forcing companies such as Marico and Dabur to talk price hike in a
marketplace where increasing prices and cutting advertising spends could
prove fatal.
FMCG companies, working with extremely low margins after absorbing
most of last years rise in raw material prices and higher logistics costs due
to fuel price
hike, are also exploring innovation in packaging and hedging materials to
retain
profitability.
Packaging costs typically account of 8-10% of the total costs in a FMCG
company.Increase in packaging costs has put pressure on FMCG companies
which are
already working with low margins. Prices of packaging materials such as
Kraft
paper, adhesives for corrugated boxes, aluminum foil and packaging plastics
have increasedThis has put pressure on companies to either increase the
price of processed food and some other products or to absorb the cost which
would affect their margins.

38

12. PACKAGING AS A MEDIUM TO INCREASE

SALES

Catching consumers attention is the first step in making

the sale
Packaging plays an important role as a medium in the marketing mix, in
promotion campaigns, as a pricing criterion, in defining the character of new
products, as a setter of trends and as an instrument to create brand identity
and shelf impact in all product groups.
The top ten requests about packaging :Good starting points for improvements, changes, innovations which
optimize the features of packaging that determine buying decisions and thus
generate new market potential can be summarized in consumer's top ten
requests about product packaging :
1. Eye-catching appearance :A distinctive, unmistakable and eye-catching appearance is a signal at the
POS to which all consumers and particularly the younger ones respond
positively. Whatever stands out clearly in the monotonous competitive
environment, whatever is surprising scores points with the consumer.
2. Design, shape and color :The purpose of well-considered design, creative printing and finishing is to
entice the consumer to devote attention to the pack and its contents at the
POS. Aesthetics and attractiveness are major distinctive features and are in
fact essential in some product segments, beautiful packaging design is of
central importance Consumers like to buy agreeably designed and decorative

products.
3. Functionality :Functional aspects are the basis for all successful packaging and for thus
greater product success too. Product and aroma protection, hygiene and
tightness, environmental responsibility and practical handling in both use
and storage are important here

39

4. Innovation :Novelty has exceptionally strong appeal. An innovative pack can even make
"new products" out of familiar ones. Unusual solutions, functional new
developments and originality not only set design trends but also boost sales.
Material :What is printed on board is read particularly willingly, while what is
packaged in
board sells particularly well. Sustainability, easy disposal and, great design
variety are particular features of the material.
6. Efficient communication :The packaging is the credible medium at the point of sale and is consulted
willingly and intensively. This makes it an efficient means of
communication. If several of his senses are appealed to as well, he can be
persuaded particularly successfully.
7. Multisensory appeal :Anyone who approaches consumers via several of his senses attracts greater
attention, intensifies perception and stimulates interest in buying. Packaging
that can be felt, smelled and heard as well as looked at wins the customer's
favour. So much so that he is willing to pay a higher price for this
multisensory appeal.
8. Appropriateness :-

For the product Packaging is considered to be an important indicator of

quality. The quality of the product therefore has to be communicated by
good packaging and not just by promises of quality made in the text on the
packaging. A credible "overall work of art" is created as a result, in which
the contents and the packaging are coherent and the consumer is convinced
by their consistency.
9. Value Packaging :It is an excellent way to communicate sophistication, class and value. This
makes it an ideal strategic option for expressing premium positioning as well
as being the instrument of choice when a product needs to be upgraded or a
brand needs to be revitalized. Products in classy packaging are particularly
popular presents too.
10. Additional benefits :Successful packaging not only combines what is pleasant with what is
functionally useful but also provides additional benefits. For example, as a
gift or for presentation, with entertaining components or simply by making it
possible to continue using the
40

Increase Sales with Functional Packaging:

The next time you buy a product, consider the work that goes into
its packaging. There are several aspects that make up the packaging,
but often consumers do not realize the amount of thought that goes
into the design, manufacture, and role it plays in marketing.
Prior to the advent of the modern supermarket and department store,
manufacturers shipped merchandise in bulk containers such as barrels,
sacks, and tubs. Retail merchants repacked the contents into smaller,
more convenient packs to meet customer needs. With the growth of
mass merchandising and self-service, manufacturers realized the value of
packaging as a marketing tool. Today, it is a vital part of a firm's
product-development strategy; a package may even be an integral part

of product itself, for instance, the aerosol spray can for insecticide.
The Changing Role of Packaging:
Product packaging has evolved in its role in marketing strategy. For many
years, packaging received little, if any consideration as part of the product. It
merely provided a storage function. Then, when marketers understood that
brand associations related to packaging are held by consumers. Thus,
packaging became part of brand building efforts, with notable examples
being Coke's contour bottle.
Today, packaging takes on an even more prominent role and can actually be
a point of differentiation. Packaging can enable product use in different
situations product easier to use (e.g. Heinz ketchup in bottles designed for
refrigerator doors), or shape a brand image that can command a price
premium.

41

The Importance of Packaging:

Packaging is a very important marketing strategy to glamorize your product in order
to attract the consumers attention. Sometimes packaging is so important that it cost
more than the product itself in order to lure the consumers to buy it. Packaging
should definitely be included in the 4 major Ps of marketing. Most consumers judge
a product by its packaging before buying. So it is logical to say attractive packaging
is crucial in order to get the first time buyers to buy your products. Without attractive
packaging, who would buy it in order to try it? Your first step to enter the market is
crushed if the packaging is ugly. Converting first time buyers into loyal customers
should be the main goal of your business and packaging is the door to it.
Role of packaging on consumer buying behavior:
I have no doubt whatsoever that packaging influences consumer behaviour. The
question, however, asks whether the degree to which packaging influences consumer
behaviour is significant. This makes for a more interesting debate.
If we consider packaging as a communications medium, which we surely must as
companies spend as much money developing innovative new packaging solutions as
they do on many other elements of the marketing mix, in order for it to be successful
it must deliver on both a functional and an emotional level. Content without
creativity is just plain boring, but creativity in the absence of content is simply noise.
Given the choice of two options, one with an easy-to-open, re-sealable container, the
other that takes 10 minutes and a tool box to extract the product, I know which one I'd
go with. On a simpler level, the physical state of packaging influences our buying
behavior.
If we are looking to purchase an unfamiliar product, packaging can play an important
role - what information does the packaging contain, in what language? A lack of
familiarity with a product leads to an increased level of risk associated with the
purchase - clearly labeled contents with an image of the contents can help offset the
risk.

42

CASE STUDY :
Bru : Happiness Begins with Bru
Brand : Bru
Company : Hindustan Unilever
Bru is a power brand from the HUL's stable. A brand which pioneered the
instant coffee category in Indian market in 1969 is also an example of many
successful marketing practices. According to HUL. Bru is the market leader
in coffee segment with a value share of 46.9 %.
HLL decided to phase out Dilkush and Cafe brands. It then consolidated the
coffee brands under the Masterbrand Bru.
Bru before becoming the family brand was positioned as a coffee that tasted
just like filter coffee. But after the elevation to master brand, Bru took the
positioning around happiness.
Bru was synonymous for instant coffee and had an astounding 21% market
share in the first year of launch itself. All these years, the brand has been
fighting for the numerous positions with Nestle whose iconic Nescafe brand
was the market leader. But in 2008, the brand pushed Nescafe to the second
position.
The Success factor is:
1. Innovation in Product
2. Innovation in Packaging
3. Aggressive Advertisements
Nestle lost out because of lethargy. The company failed to consistently
invest in its Nescafe brand.
HUL's marketing acumen is vivid in the rise of Bru as the market
leader. It has never stopped innovating for this new brand.
Bru was able to give new offerings to customers on a regular basis. One of
the successful new products was the cappuccino packs. The new flavor gave
the brand a new thrust in the market. The new flavors even prompted
hardcore tea lovers to try out these flavors. The best part was that these
cappuccino was available in single serve sachets which prompted consumers
to test the flavors.

Another innovation was the cold coffee. Bru launched the cold coffee
variants which again captured the attention of the consumers. The coffee
section is full of various flavors and packs of Bru which itself creates a
positive vibration for the brand.
43

Bru is positioned on the theme of happiness. The brand has the tagline
Happiness begins with Bru ". The positioning and communication has been
consistent with the brand's promise of kick starting one's day with a Bru.

For the Bru Cappuccino, it had roped in the Bollywood Director Karan
Johar to endorse the brand.
Another critical factor that aided Bru's success was the innovation in
packaging. The brand made the entry barrier low by launching small
affordable SKUs. There are single serve and large packs at different
price points making the brand affordable.
Recently the brand has yet again come out with a customer centric
innovation
in
the form of a flavor lock. Most of the customers worry about losing the
flavor
of
coffee powder once the pack is cut open. The flavor lock is a plastic clip
which
will lock the flavor from escaping. More than actually locking the flavor,
the
lock
gives a psychological belief that the flavor will not be lost.

This little plastic lock also gives more convenience to the home maker.
Typically when buying powders in packs home makers have to transfer
the powder to a container to preserve it for long. This lock effectively
eliminates the need for such a container.
Bru is a brand which has reached the commanding position
following methodologically all the critical elements for marketing success
: customer centric innovation, aggression and new product development.

44

13. TRENDS IN PACKAGING

Consumers' tastes and preferences are changing rapidly, whilst consumption patterns
are seeing a radical shift. As a result, marketers have to respond to this changing
environment. Innovation in product packaging is central as they offer benefits beyond
just being a medium to withstand storage and distribution challenges. Riding on the
rapid shift in consumer graphics and spectrum in India, food packaging emerged as
the new value differentiator for the FMCG companies in India.
In the last couple of years, Indian FMCG sector has been marked with receding
margins on the back of steep increase in the input prices as well as aggressive price
competition at the retailing front.
Consumers have become more informed, discerning and price sensitive. Their
lifestyle transformed and lifestages have become much more complex and
overlapping. As consumers have become more mobile and crunched for time, they
have started seeking a number of auxiliary benefits such as convenience of
consumption and usage.
The 'Great Indian Retail Revolution', initiated at the break of the current century, has
gained momentum all along the first decade. The organized retailing industry in India
is at the threshold of mass adoption. The advent of organized retailing has also
brought about the 'shelf war' amongst the FMCG manufacturers.
India is seen somewhere at the middle of the evolution stage in terms of food
packaging when compared with the developed economies such as Japan, Germany
and the US.
Data monitor analyzed the global scenario in the past one year to assess various
packaging trends across the globe. Their analysis revealed four prominent trends
driving the packaging innovations :a) convenience of usage
b) freshness and improved shelf life
c) sustainable and environment-friendly
d) packaging as a tool to position and promotes the brand.

45

Data monitor predicts a multi-dimensional shift in food packaging in India in the next
five years. Advanced packaging techniques and concepts such as aseptic packaging
and retort-able packages, although coming into existence, are yet to make a mark in
India.
However, with the consistent rise in the adoption of 'Ready to Eat/Drink' products
amongst Indian consumers, it is expected to be only a matter of time before Indian
FMCG market would be filled with products using advanced packaging technologies,
primarily aimed at enhancing the shelf life of the products and to offer additional
convenience to the consumers in terms of storage, consumption and portioning.
Traditionally, product packaging has not been seen as a vehicle to promote the brand
while it is changing now. For example Kissan Jams, targeted at the kids segment, is
now using tube packages with catchy graphics to appeal the target audience.

46

Packaging Trend: The Future Outlook

The packaging industry is going under transformation almost everyday and new
technologies that are better than before are taking their place. Consumer behavior,
product demand and the current level of global warming are all going to have a direct
impact on the future of packaging The future of the packaging market is certainly
looking bright. Following are some of the key trends that if implemented are going to
keep this industry on its prime :-

The Convenience for Society:

Convenience seem to have emerged as an important characteristic in life of the
people. Various changes in the societal outlook viz, structure of the family, number of
working women rising, longer working hours and increase in commuting time, have
also contributed to the need for convenience. Thus, the need for those kind of
packaging, that enables the adult as well as children to open them, has risen. Also the
future will see a great rise in the kind of packaging that allows one to indulge in
multitasking,
Health and Nutrition:
With the people becoming more and more cognizant about their health viz obesity,
low carbohydrate, less fat etc. , the manufacturers are deemed to introduce packaging
that delivers the various information regarding the product in a convenient, easy to
read manner.
Green Trends:
With the rate of green house emissions touching the skies, there is an urgent need
to change the packaging trends that have been followed. The fact that even the people
have become more sensitive towards the need of green technology, will surely helped
in making the future of packaging more eco friendly.

47

14. CASE STUDY : COCA COLA

Introduction:
As the world's largest manufacturer, distributor, and marketer of nonalcoholic
beverage concentrates and syrups, operating in more than 200 countries, the firm
supplies many products in addition to its flagship brand. These include fruit-based
and other carbonated beverages tailored to local tastes as well as newer variants of
the main brand, such as Diet, Cherry, and Vanilla Coke. Although carbonated
beverages represented 85 percent of worldwide sales volume in 2002, increased
market share for the Coke products Dasani bottled water, PowerAde sports drink, and
Minute Maid orange juice have demonstrated growth in the noncarbonated sector.
History of Coca Cola:
Coca Cola, re-branded India in 1993, after having withdrawn from the country in the
late 1970s in the wake of Foreign Exchange Regulation Act (FERA) of 1973. India
has the worlds largest middle class, secondly to China. Coca cola cited this as an
opportunity. Coca Cola was the leading Soft drink brand in India Cokes acquisition
of local popular Indian brand including Thumps up Maaza, Citra, and Gold spot
provided not only physical manufacturing, bottling and distribution asset but also
strong consumer preference. In 2000 the company launched the Kinley water brand
and in 2001 Shock energy drink.

48

Branding and Packaging of Coca Cola

Branding:
From the Three As to the Three Ps
Coca-Cola used to focus its strategy on the three As: availability, acceptability, and
affordability. While these provided for tremendous growth, they also led to lowered
entry barriers. Today, Coca-Colas mantra is the three Ps: preference, pervasive
penetration, and price-related value.
The Power of Brand Accessibility
If you were another soft drink company, you might define your competitive frame of
reference as the cola market or the soft drink market or even the beverage market.
But Coke thinks of its business and its market share in terms of share of human liquid
consumption. This makes water a competitor.
Coca-Cola is Serious about Brand Building
Each month, Coca-Cola tests 20 brand attributes with 4,000 consumers to measure
movement. The company also compensates (bonus and other compensation
components) a large portion of its senior managers based on brand preference.
One Final Coca-Cola Fact
A recent Coca-Cola annual report reported that the second most recognized
expression in the world after OK is Coca-Cola

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Packaging:
The Coca-Cola bottle is probably the most easily recognized containers in
the
world. It was described by the 'Pop' artist Andy Warhol as, the 'design icon
of the decade'. The smooth, organically shaped bottle was originally
conceived in the early 1900's. It was a time when both the packaging and the
actual Coca-Cola product was being imitated.
In response to this the company, in 1916 set a brief , which was to find: 'A
CocaCola bottle which a person will recognize as a Coca-Cola bottle even if
he feels it in the dark. The Coca-Cola bottle should be shaped that, even if
broken, one could tell at a glance what it was'. The bottle shown below is the
192ml size bottle. It is still sold in many countries throughout the world
today. The bottle design was re-launched in Britain as recently as 1997.
Coca-Cola conducted research which confirmed that consumers still
preferred to drink Coca-Cola from a glass bottle.
Bottling/Packaging Trends of Coca Cola:
Coca-Cola originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a strong
bottling system developed that Coca-Cola became the world-famous brand it
is today.
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek
brands that honor local identity and the distinctiveness of local markets. As
was true a century ago, strong locally based relationships between CocaCola
bottlers,
customers and communities are the foundation on which the entire business
grows.

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15. SURVEY ON : CONSUMER BEHAVIOR

TOWARDS PACKAGING OF FMCG PRODUCTS

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Formulating the Research Problem:

Understanding Consumer
Behavior towards the Packaging of
FMCG products

Objective of the Study:

Important attribute in our research Convenience,

Materials, Aesthetic, Information.
To find out these Attributes affect Consumer
Behavior Significantly.
Is there any significant difference between the
Variables as there is change in Products?
To find out the Consumer Attitude towards the new
Packaging of Preserved Products.
Is Packaging Influence Consumer to switch from

one to another Brand?

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Significance of the Study :

The aim of this survey is to find the role of
packaging on consumer buying behavior. The basic
purpose of behind it is to find out how such factors act
behind the success of packaging. According to this
research I try to find the positive relationship between
independent variable and dependent variables. For
collecting the data I will use the questionnaire.
The significance of the study, its delimitation and
limitations are discussed. The consumer buying
behavior is dependent variable. The packaging is the
most important factor. Packaging elements like
Packaging color. Background Image, Packaging

Material, Font Style, Design of wrapper, Printed

Information and Innovation is taken as predictors.
Due to increasing self-service and changing consumers
lifestyle the interest in package as a tool of sales
promotion and stimulator of impulsive buying behavior is
growing increasingly. So package performs an
important role in marketing communications, especially
in the point of sale and could be treated as one of the most
important factors influencing consumers purchase
decision.
Literature analysis on question under investigation has
shown that there is no agreement on classification of
package elements as well as on research methods of
package impact on consumers purchase decision.
By this article we seek to reveal elements of package
having the ultimate effect on consumer choice. Taking into
consideration that package could be treated as a set of
various elements communicating different messages
to a consumer; the research model was developed and
tested in order to reveal impact of visual and verbal
package elements on consumers purchase decisions.

Methodology:
The methodology for the survey on Consumer Behaviour
towards Packaging of FMCG Products is the Questionnaire
method where in questionnaire are answered by 100
respondents of 4 age groups.