Packaging

Nearly all tangible products (i.e., goods) are sold to customers within a container or package that, as we will discuss, serves many purposes including protecting the product during shipment. In a few cases, such as with certain produce items, the final customer may purchase the product without a package but the produce marketer still faces packaging decisions when it comes to shipping to the store. Thus, for many products there are two packaging decisions:

1. Final Customer Package
2. Distribution Channel Package

   Packaging: Final Customer Package

   This relates to the package the final customer receives in exchange for their payment. When the final customer makes a purchase he or she is initially exposed to the Primary Package – the outermost container that is seen and touched by the final customer. This primary package can be further divided into the following:
   

   • First-Level Package - This is packaging that holds the actual product (e.g., Tylenol Bottle). In some cases this packaging is minimal since it only serves to protect the product. For instance, certain frozen food products are sold to consumers in a cardboard box with the product itself contained in a plastic bag found inside the box. This plastic bag represents the first-level package. In other cases frozen food products are sold in the plastic bag that contains the product. In these cases the plastic bag is both first-level package and the primary package for convey product information.
   • Second-Level Package – In some cases the first-level package is surrounded by one or more outer packages (e.g., box holding the Tylenol Bottle). This second-level package may act as the primary package for the product.
   • Package Inserts - Marketers use a variety of other methods to communicate with customers after they open the product package. These methods are often inserted within, or sometimes on, the product’s package. Insertions include information such as instruction manuals and warranty cards, promotional incentives such as coupons, and items that add value such as recipes and software.

   Labeling

   Most packages, whether final customer packaging or distribution packaging, are imprinted with information intended to assist the customer. For consumer products, labeling decisions are extremely important for the following reasons.

   • Labels serve to capture the attention of shoppers. The use of catchy words may cause strolling customers to stop and evaluate the product.
   • The label is likely to be the first thing a new customer sees and thus offers their first impression of the product.
   • The label provides customers with product information to aid their purchase decision or help improve the customer’s experience when using the product (e.g., recipes).
   • Labels generally include a universal product codes (UPC) and, in some cases, radio frequency identification (RFID) tags, that make it easy for resellers, such as retailers, to checkout customers and manage inventory.
   • For companies serving international markets or diverse cultures within a single country, bilingual or multilingual labels may be needed.
   • In some countries many products, including food and pharmaceuticals, are required by law to contain certain labels such as listing ingredients, providing nutritional information or including usage warning information.