Download Packaging and Labeling Products

Agribusiness Library
Lesson L060032
Packaging and Labeling Products
1
Objectives
1. Describe the growing importance of
packaging.
2. Explain package design considerations.
3. List the important information on labeling.
2
Key Terms









compliant products
family packaging
intermediaries
label
labeling
packaging
shelf life
tampering
universal product code (UPC)
3
What is the importance of packaging?
Packaging involves enclosing and protecting
products for distribution, storage, sale, and
use through the use of technology and art.
A package label is the written or graphic
communication on or in the package.
Information Resources Inc., an international
sales and marketing research firm, reported
that “75 percent of the individual UPCs
introduced between November 1996 and
November 1998 failed within two years of
introduction.”
4
What is the importance of packaging?
UPC stands for Universal Product Code
and is the unique bar code found on products
throughout the United States and Canada. For
customers to see and recognize products at
the store, companies must make them stand
out from the competition. Therefore,
packaging has several goals.
5
What is the importance of packaging?
A. Protection—The product within the packaging
must be protected from vibrations, compression,
temperatures, water vapor, dust, and other
outside forces. Protection also keeps products
clean and sterile for their shelf life—length of
time that food, medicine, and other perishable
items are given before they are no longer good
for sale or consumption. Most shelf life dates are
guidelines based on normal product handling.
6
What is the importance of packaging?
B. Restraint—It is easier to have many small
objects restrained in packaging rather than
transporting or handling them individually. Items
like pencils, napkins, pasta, and LEGO® bricks
are best sold in some type of restraint
packaging. Liquids and powders also need to be
contained.
7
What is the importance of packaging?
C. Communication—Packages and package labels
communicate what is included in the package;
any product warranties or pertinent warnings;
and how the products should be used,
transported, disposed of, or recycled. For
medicine, food, and chemicals, governments
require certain information to be shared on the
product label.
8
What is the importance of packaging?
D. Marketing and sales—The package design,
individual components that compose the
package, and the label information work
together to encourage customers to purchase
the product. Today, more than ever, the graphic
design on a package attracts attention. Wellplanned designs create an image of quality or
“coolness” and support the company’s brand.
9
What is the importance of packaging?
D. Marketing and sales— (cont’d) Many companies
do this effectively, but each company takes a
different approach. If the package design is not
carefully considered, the company misses an
opportunity to maximize revenue and to develop
a repeat customer base.
10
What is the importance of packaging?
E. Security—Packaging can keep products safe and
secure in shipment and sale. Tampering—
changing a product without authorization—
results in lost profits for a company. As a result,
companies work to make their packaging
tamper-resistant so damages and shoplifting are
minimized.
11
What is the importance of packaging?
E. Security—(cont’d) For example, designers may
attempt to make packages tamper-proof by
adding extra layers of packaging (e.g., elements
that require tools to open the product), making
the packaging extra strong, and incorporating
seals that easily identify if someone has tried to
or has opened the packaging.
F. Convenience—An overall good package design
ensures that it is handy in transporting,
handling, stacking, displaying, selling, using, and
reusing.
12
What considerations must be made
when designing a package?
Companies and design teams must consider
many aspects when developing packages,
including brand consistency, cost, functionality,
intermediary needs, and environmental
responsibility.
13
What considerations must be made
when designing a package?
A. Brand consistency—If the product packaging is
not consistent with the company’s brand, the
product ultimately does not help build company
recognition. To promote an overall company
image, a firm may decide that all packages must
be similar or must include one major design
element. When this approach is only used for
certain lines of products, it is called family
packaging. Criteria that aid in building brand
consistency and recognition for the product
include:
14
What considerations must be made
when designing a package?
A. Brand consistency (cont’d)
1. Differentiation—The product must be different
than that of the competition. It should stand
out on the shelf at the
store and should be eye
catching.
15
What considerations must be made
when designing a package?
A. Brand consistency (cont’d)
2. Attractiveness—The target audience should find
the design appealing and appreciate the colors
and text used in addition to the shape of the
packaging.
16
What considerations must be made
when designing a package?
A. Brand consistency (cont’d)
3. Legal requirements—Rules must be followed to
make legally compliant products (products that
conform to legal requirements). This could include
any number of things, depending on the product
type. Examples are the product name, company
name and address, net weight, ingredient and
nutrition labels, and product claims.
17
What considerations must be made
when designing a package?
B. Cost—Customers will pay for improved
packaging, but there is a limit. If the product is
high end, customers will pay more. If the
product is of low quality, customers will not pay
much for packaging.
18
What considerations must be made
when designing a package?
C. Functionality—If the product is not functional,
the customer will likely be dissatisfied with the
purchase. Specifications that lend functionality to
product packaging include clear instructions;
easy to open elements; and resealable, storable,
unbreakable, sanitary, and light-weight
packaging.
19
What considerations must be made
when designing a package?
D. Intermediary needs—Intermediaries are the
individuals and companies responsible for
handling a product after it is manufactured and
before it is in the hands of the customer.
Examples of intermediaries are wholesalers,
transportation companies, and retailers.
Concerns that intermediaries have must be
taken into consideration through the design
process:
20
What considerations must be made
when designing a package?
D. Intermediary needs (cont’d)
1. Will the packaging provide protection through
the distribution, shelf life, and consumption of
the product?
2. Is the packaging strong enough to allow for
stacking?
3. Can the product be delivered in bulk? Resellers
may refuse to carry a certain product if the
packages are cumbersome or if they do not
protect the product because consumers will not
buy damaged products.
21
What considerations must be made
when designing a package?
E. Environmental responsibility—Companies must
balance consumers’ desires for convenience
against desires to preserve the environment.
Nearly 50 percent of all garbage consists of
discarded plastic packaging. For the most part,
the packaging is not biodegradable. For this
reason, many companies are exploring
packaging alternatives, recycling more materials,
and using packaging options made from
recycled materials.
22
What information may be found on
product labels?
Labeling is the process of providing consumers
with important information on a product or its
packaging. Companies can provide two types of
information on labels: information that makes
the product more convenient for the customer
to buy or use and information that is required
by government agencies. For the required
information, the regulations are aimed at
protecting the consumer from misleading
product claims and from improper product use.
23
What information may be found on
product labels?
A. Examples of information that may be included on
a product label:
1. Brand name and mark
2. Registered trademarks (® or ™) or copyright (©)
symbols
3. Package size and/or contents
4. Product claims
5. Directions for assembly and/or use
24
What information may be found on
product labels?
A. Examples of information…product label (cont’d)
6. Safety precautions
7. Ingredients
8. Name and address of manufacturer
9. Company logo
10. UPC
25
What information may be found on
product labels?
B. Examples of information that must be included
on certain types of products:
1. Garments must be labeled with the name of the
manufacturer, country of manufacture, fabric
content, and cleaning instructions.
2. Any food product for which a nutritional claim is
made must have nutrition labeling that
follows a standard format.
26
What information may be found on
product labels?
B. Examples of information (cont’d)
3. The ingredients of food products must be listed in
order, beginning with the ingredient that
constitutes the largest percentage of the product.
4. Nonedible items (e.g., shampoos and detergents)
must carry safety precautions as well as
instructions for use.
27
Review




What part of the packaging impacts the shelf
life most?
What can a company do when designing their
packaging to promote their overall image?
Name some criteria important for building
brand consistency.
What types of product must have safety
information on the label? What other types of
products have requirements for their labels?
28