Professional Documents
Culture Documents
Project Packaging 1
Project Packaging 1
Project Packaging 1
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLMENT FOR THIRD YEAR OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SUBMITTED BY
(SAMYAK SINGH DEO and ROLL NO. 38)
2022-23
DECLARATION
I, the undersigned, hereby declare that the Project Report entitled
--------------------” written and submitted by me to The Savitribai Phule
Pune University in partial fulfilment for Third year of Bachelor of
Business Administration (BBA) under the supervision of Ms. Arati
Kothawade is my original work and the conclusions drawn therein are
based on the data collected and observation made by me.
Place: Pune (Samyak Singh
Deo)
Certificate
INDEX
PARTICULARS Page
No.
Activity/Project Project Title --------------
1. Name of the Organization
1
1.1.1 Abstract
1.1.2 Introduction with what is marketing , its practices , introduce about
the topic also
1.1.3 Background - Brief explanation of the company/organisation
1.1.5 Methodology
1.1.8 Conclusions
1.1.9 Bibliography/ Webliography
ABSTRACT
In today’s world marketing itself is a very wide term which is not easy to understand in a
simple definition. Marketing has many folds which needs to be studied for better
understanding of any topic which comes under marketing. Marketing is the function that
links the consumer, customer, and public to the marketer through information—information
used to identify and define opportunities and problems; generate, refine, and evaluate actions;
monitor performance; and improve understanding of it as a process. It specifies the
information required to address these issues, designs the method for collecting information,
manages and implements the data collection process, analyses the results, and communicates
the findings and their implications. In this project I have studied about what is marketing and
the most important 7 P’s of marketing which includes Product, Price, Place, Promotion,
People, Process and Physical evidence. We will come to know about how these 7 P’s helps in
the functioning of the business process.
Promotion is an integral part of marketing. Promotion includes each and every activity which
helps the customer know about the product, its uses, its abilities, work, benefits, availability
of the product and services and so on. The companies use advertising to promote their
product and services. But for advertising there are certain rules and regulation, laws and
instruction which are needed to be followed while advertising these rules, regulations, laws
and instructions in advertising are known as Legal and Ethical Aspects in advertising.
Sometimes when the companies do not follow these laws, they attract criticism,
controversies, loss of goodwill and end up in court trials. These controversies and criticism
effects the companies drastically, sometimes these controversies results in shutting down of
these companies.
Hindustan Unilever (HUL) also faced such controversies in one of its ads for GLOW &
LOVELY, formerly known as FAIR & LOVELY. It was a television advertisement where it
focused on colour of the skin and promoted colour discrimination and racial discrimination
due to which the company had to face criticism and controversy. Many cases were filed
against the company and it was bound to do whatever was needed according to the law. Fair
and Lovely had to face the consequences of such situation, it lost its market share , lost its
goodwill, had to pay fine to various court of laws, lost a lot of money in court proceedings
and it had to change the name of the product from Fair and Lovely to Glow and Lovely.
MARKETING
Marketing refers to activities a company undertakes to promote the buying or selling of a
product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a
company.
Professionals who work in a corporation's marketing and promotion departments seek to get
the attention of key potential audiences through advertising. Promotions are targeted to
certain audiences and may involve celebrity endorsements, catchy phrases or slogans,
memorable packaging or graphic designs and overall media exposure.
At its most basic level, marketing seeks to match a company's products and services to
customers who want access to those products. Matching products to customers ultimately
ensures profitability.
Marketing Research
In today's world, research has become an indispensable activity in any field of business. As
research solves various problems that arise in the business environment, it is imperative that
companies undertake intensive marketing research to meet their goals of profitability and
prosperity. The marketing environment is changing at speedy rate, so the need for real time
market information is critical for the growth of the business.
The purpose of carrying out marketing research is to find out the change in the consumer
behaviour due to the change in the elements of the marketing mix (product, price, place,
promotion).
The marketers need to research about the changing trends in the market viz. Changes in the
customer's tastes and preferences, the new products launched in the market, prices of the
competitor's product, substitute products, etc. This information will facilitate to develop an
effective marketing strategy to reach out to the target customers to understand business
opportunities and threats. Hence marketing was defined as Marketing Research is the
systematic gathering, recording and analysis of data about the problems relating to the
marketing of goods and services.
PRODUCT
The first P represents a brand's physical products or services. Physical products require
considerations, such as appearances and features. Often, services focus on quality and
customer relations. This section allows consumers to determine how the brand's products or
services can solve their challenges and why it's the best one for them to choose. To showcase
your products in the digital marketing mix, consider using SEO, writing blogs or articles or
incorporating influencer marketing. Product refers to an item or items the business plans to
offer to customers. The product should seek to fulfil an absence in the market, or fulfil
consumer demand for a greater amount of a product already available. Before they can
prepare an appropriate campaign, marketers need to understand what product is being sold,
how it stands out from its competitors, whether the product can also be paired with a
secondary product or product line, and whether there are substitute products in the market.
PRICE
Price refers to the pricing strategy a company establishes for products or services. Marketers
apply the principle by researching competitors, analysing costs and establishing product
prices. When choosing product prices, it's also helpful to think about what the consumer may
expect to pay for the product. For your marketing mix, consider creating a subscription
opinion for the products or services that provide a discount or using email marketing to offer
coupons and discounts to the consumer. Price refers to how much the company will sell the
product for. When establishing a price, companies must consider the unit cost price,
marketing costs, and distribution expenses. Companies must also consider the price of
competing products in the marketplace and whether their proposed price point is sufficient
to represent a reasonable alternative for consumers.
PLACE
The place principle focuses on where a company makes its products available, such as at a
physical storefront or on an e-commerce website. Marketers determine where to promote
products to the organizations' target customers by analysing the consumers' purchasing trends
and how it influences their buying cycle. The buying cycle is the consumer's awareness of
their challenge, researching products or services to solve it, considering their options based
on their research, choosing and purchasing a product or service and assessing if the purchase
helped their problem and if the consumer may return. Place refers to the distribution of the
product. Key considerations include whether the company will sell the product through a
physical storefront, online, or through both distribution channels. When it's sold in a
storefront, what kind of physical product placement does it get? When it's sold online, what
kind of digital product placement does it get?
PROMOTION
Marketers use the promotion principle to determine where and how to advertise relevant
products and services to target customers. For instance, promotional tactics and customer
relations activities are important to consider when choosing where to promote products or
services. For the company's marketing mix, you may choose a variety of in-store and online
promotions to capture the consumer's attention Promotion, the fourth P, is the integrated
marketing communications campaign. Promotion includes a variety of activities such as
advertising, selling, sales promotions, public relations, direct marketing, sponsorship,
and guerrilla marketing.
Promotions vary depending on what stage of the product life cycle the product is in.
Marketers understand that consumers associate a product’s price and distribution with its
quality, and they take this into account when devising the overall marketing strategy.
PLACE(Physical Distribution)
Physical evidence refers to creating proof or reputation, promoting a brand's image, product
and service qualities, and building overall brand awareness among consumers. Brand
awareness is the ability a consumer has to recall a company when deciding where to make a
purchase to solve their challenges. You can garner physical evidence by creating business
cards for the company and handing them out to others when it's appropriate. The physical
evidence may also refer to a consumer's proof of purchase, which includes digital and
physical receipts, follow-up emails to the consumer asking about purchased products and
invoices. Marketing examines the physical distribution methods to be adopted from timr to
time, so that if needed, alternative methods may be introduced to ensure the distribution
function is more effective.Various sales outlets or territories, channels members, transport
warehousing and logistics facilities are to be examined in terms of sales outcome.
PEOPLE
Excellent customer service not only converts to sales, but can increase your customer base
by referrals. Acquiring these referrals by people who love your brand can also be a great
example of how your marketing efforts can support your sales process.
It’s important that everyone who represents your brand or deals with customers – including
the non-human chat bot variety! – are fully trained sales professionals with an intimate
knowledge of your product and how it will improve the lives or solve the problems of your
customers.
PROCESS
The process refers to the flow of activities or mechanism that takes place when there is an
interaction between the customers and the businesses. A consistent of marketing research
needs to be undertaken to improve the process in business in business and thereby maximize
the profits.
The process of delivering your product to the consumer should be designed for maximum
efficiency and reliability, but may also include features that are in line with your brand, such
as being environmentally or sustainably focused.
With the rise in online shopping, digital partnerships and logistics have become an essential
part of the marketing mix.
PHYSICAL EVIDENCE
Physical evidence refers to creating proof or reputation, promoting a brand's image, product
and service qualities, and building overall brand awareness among consumers. Brand
awareness is the ability a consumer has to recall a company when deciding where to make a
purchase to solve their challenges. You can garner physical evidence by creating business
cards for the company and handing them out to others when it's appropriate. The physical
evidence may also refer to a consumer's proof of purchase, which includes digital and
physical receipts, follow-up emails to the consumer asking about purchased products and
invoices Physical evidence incorporates aspects that proves your brand exists and that a
purchase took
place. Examples of proof that your brand exists can include things like a physical store or
office for your business, a website if your business operates solely online, and printed
business cards that you exchange when meeting people. Examples of proof of purchases can
include physical or digital receipts, invoices, or follow-up email newsletters that you send to
customers as a retention exercise.
Types of Marketing Strategies
Marketing is comprised of an incredibly broad and diverse set of strategies. The industry
continues to evolve, and the strategies below may be better suited for some companies over
others.
Digital Marketing
The marketing industry has been forever changed with the introduction of digital marketing.
From the early days of pop-up ads to targeted placements based on viewing history, there
are now innovating ways companies can reach customers through digital marketing
Search Engine Marketing: This entails companies attempting to
increase search traffic through two ways. First, companies can pay search engines for
placement on result pages. Second, companies can emphasize search engine
optimization (SEO) techniques to organically place highly on search results.
Packaging
Packaging means the wrapping or bottling of products to make them safe from damages
during transportation and storage. It keeps a product safe and marketable and helps in
identifying, describing, and promoting the product.
“Packing is the preparation of product or commodity for proper storage and/or transportation.
It may entail blocking, bracing, cushioning, marking, sealing, strapping, weather proofing,
wrapping, etc.”
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.
In short, 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, in many countries it is fully integrated into government,
business, and institutional, industrial, and personal use
Packing means packing or wrapping goods to look attractive as well as secure safety i.e., (a)
holding together the contents (b) protecting product while passing through distribution
channels. Again packaging refers to “all the activities involved in designing and producing
the container or wrapper for a product” (Stanton).
Recently, term packaging is being used interchangeably to mean both ‘packing’ proper as
well as ‘packaging’. Traditionally, ‘packaging’ referred to retail or consumer container and
‘packing’ to transport container. Consumer packaging has significant marketing implications
while transport containers are more important from logistics standpoint.
Ecommerce
Amazon.com is an ecommerce platform that sells many product lines, including media
(books, movies, music, and software), apparel, baby products, consumer
electronics, beauty products, gourmet food, groceries, health and personal care products,
industrial & scientific supplies, kitchen items, jewelry, watches, lawn and garden items,
musical instruments, sporting goods, tools, automotive items, toys and games, and
farm supplies and consulting services. Amazon websites are country-specific (for
example, amazon.com for the U.S. and amazon.fr for France), though some offer
international shipping.
Visits to amazon.com grew from 615 million annual visitors in 2008, to more than 2
billion per month in 2022. The ecommerce platform is the 14th most visited website in
the world.
Results generated by Amazon's search engine are partly determined by promotional fees.
[51]
The company's localized storefronts, which differ in selection and prices, are
differentiated by top-level domain and country code
Merchant partnerships
In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with
Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us
would be the exclusive supplier of toys and baby products on the service, and the
chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys
"R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys
"R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the
service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court
ruled in favour of Toys "R" Us, giving it the right to unwind its agreement with
Amazon and establish its independent e-commerce website. The company was later
awarded $51 million in damages.
In 2001, Amazon entered into a similar agreement with Borders Group, under which
Amazon would comanage Borders.com as a co-branded service. Borders pulled out of
the arrangement in 2007, with plans to also launch its own online store.
On October 18, 2011, Amazon.com announced a partnership with DC Comics for the
exclusive digital rights to many popular comics, including Superman, Batman, Green
Lantern, The Sandman, and Watchmen. The partnership has caused well-known
bookstores like Barnes & Noble to remove these titles from their shelves.
In November 2013, Amazon announced a partnership with the United States Postal
Service to begin delivering orders on Sundays. The service, included in Amazon's
standard shipping rates, initiated in metropolitan areas of Los Angeles and New
York because of the high-volume and inability to deliver in a timely way, with plans
to expand into Dallas, Houston, New Orleans and Phoenix by 2014.
In June 2017, Nike agreed to sell products through Amazon in exchange for better
policing of counterfeit goods. This proved unsuccessful and Nike withdrew from the
partnership in November 2019. Companies including IKEA and Birkenstock also
stopped selling through Amazon around the same time, citing similar frustrations over
business practices and counterfeit goods.
In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned
by Patni Group which has recorded a total income of US$ 104.44 million (₹ 759
crore) in financial year 2017–2018.
As of October 11, 2017, AmazonFresh sold a range of Booths branded products for
home delivery in selected areas.
In November 2018, Amazon reached an agreement with Apple Inc. to sell selected
products through the service, via the company and selected Apple Authorized
Resellers. As a result of this partnership, only Apple Authorized Resellers may sell
Apple products on Amazon effective January 4, 2019.
Private-label products
Amazon sells many products under its own brand names, including phone chargers,
batteries, an diaper wipes. The AmazonBasics brand was introduced in 2009, and now
features hundreds of product lines, including smartphone cases, computer mice,
batteries, dumbbells, and dog crates. Amazon owned 34 private-label brands as of
2019. These brands account for 0.15% of Amazon's global sales, whereas the average
for other large retailers is 18%. Other Amazon retail brands include Presto!, Mama
Bear, and Amazon Essentials.
Third-party sellers
Amazon derives many of its sales (around 40% in 2008) from third-party sellers who
sell products on Amazon. Some other large e-commerce sellers use Amazon to sell
their products in addition to selling them through their websites. The sales are
processed through Amazon.com and end up at individual sellers for processing and
order fulfilment and Amazon leases space for these retailers. Small sellers of used and
new goods go to Amazon Marketplace to offer goods at a fixed price.
Affiliate program
Publishers can signup as affiliates and receive a commission for referring customers
to Amazon by placing links to Amazon on their websites if the referral results in a
sale. Worldwide, Amazon has "over 900,000 members" in its affiliate programs. In
the middle of 2014, the Amazon Affiliate Program is used by 1.2% of all websites and
it is the second most popular advertising network after Google Ads. It is frequently
used by websites and non-profits to provide a way for supporters to earn them a
commission.
Associates can access the Amazon catalog directly on their websites by using
the Amazon Web Services (AWS) XML service. A new affiliate product, a Store,
allows Associates to embed a subset of Amazon products within another website, or
linked to another website. In June 2010, Amazon Seller Product Suggestions was
launched to provide more transparency to sellers by recommending specific products
to third-party sellers to sell on Amazon. Products suggested are based on customers'
browsing history.
Product reviews
Amazon allows users to submit reviews to the web page of each product. Reviewers
must rate the product on a rating scale from one to five stars. Amazon provides a
badging option for reviewers which indicates the real name of the reviewer (based on
confirmation of a credit card account) or which indicates that the reviewer is one of
the top reviewers by popularity. As of December 16, 2020, Amazon removed the
ability of sellers and customers to comment on product reviews and purged their
websites of all posted product review comments. In an email to sellers Amazon gave
its rationale for removing this feature: "... the comments feature on customer reviews
was rarely used." The remaining review response options are to indicate whether the
reader finds the review helpful or to report that it violates Amazon policies (abuse). If
a review is given enough "helpful" hits, it appears on the front page of the product. In
2010, Amazon was reported as being the largest single source of Internet consumer
reviews.
When publishers asked Bezos why Amazon would publish negative reviews, he
defended the practice by claiming that Amazon.com was "taking a different
approach ... we want to make every book available—the good, the bad and the ugly ...
to let truth loose".
There have been cases of positive reviews being written and posted by public
relations companies on behalf of their clients and instances of writers using
pseudonyms to leave negative reviews of their rivals' works
Physical stores
In November 2015, Amazon opened a physical Amazon Books store in University
Village in Seattle. The store is 5,500 square feet and prices for all products match
those on its website.[86] Amazon will open its tenth physical book store in 2017; media
speculation suggests Amazon plans to eventually roll out 300 to 400 bookstores
around the country.
In June 2018, it was reported that Amazon planned to open brick and mortar
bookstores in Germany.
In August 2019, Amazon applied to have a liquor store in San Francisco, CA as a
means to ship beer and alcohol within the city.
In 2020, Amazon Fresh opened several physical stores in the U.S. and the United
Kingdom. In September 2020, Amazon launched Luxury Stores on its mobile app,
where Oscar de la Renta become the first and only label to partner with the firm.
Subsidiaries
Amazon owns over 40 subsidiaries, including Amazon Web Services, Audible,
Diapers.com, Goodreads, IMDb, Kiva Systems (now Amazon Robotics), Shopbop,
Teachstreet, Twitch, Zappos, and Zoox.
Amazon Web Services
Main article: Amazon Web Services
Amazon Web Services (AWS) is a subsidiary of that provides on-demand cloud
computing platforms and APIs to individuals, companies, and governments, on a
metered pay-as-you-go basis. These cloud computing web services provide distributed
computing processing capacity and software tools via AWS server farms. As of 2021
Q4, AWS has 33% market share for cloud infrastructure while the next two
competitors Microsoft Azure and Google Cloud have 21%, and 10% respectively,
according to Synergy Group.
Operations
Logistics
Supply chain
Amazon first launched its distribution network in 1997 with two fulfilment centers in
Seattle and New Castle, Delaware. Amazon has several types of distribution facilities
consisting of cross-dock centers, fulfilment centers, sortation centers, delivery
stations, Prime now hubs, and Prime air hubs. There are 75 fulfilment centers and 25
sortation centers with over 125,000 employees.[142][143] Employees are responsible for
five basic tasks: unpacking and inspecting incoming goods; placing goods in storage
and recording their location; picking goods from their computer recorded locations to
make up an individual shipment; sorting and packing orders; and shipping. A
computer that records the location of goods and maps out routes for pickers plays a
key role: employees carry hand-held computers which communicate with the central
computer and monitor their rate of progress. Some warehouses are partially automated
with systems built by Amazon Robotics.
In September 2006, Amazon launched a program called FBA (Fulfilment By
Amazon) whereby it could handle storage, packing and distribution of products and
services for small sellers.
ROLE OF PACKAGING
Protection
Containment
Most products must be contained before they can be moved from one place to another. To
function successfully, the package must contain the product. This containment function of
packaging makes a huge contribution to protecting the environment. A better packaging help to
maintain the quality of the product and reachability of the product in the consumer's hand
without spillages It gives better image to the organization
Communication
A major function of packaging is the communication of the product. A package must
communicate what it sells. When international trade is involved and different languages are
spoken, the use of unambiguous, readily understood symbols on the distribution package is
essential. It is the interest further that to get appropriate communication to the consumer about
the product, how to use it and other utility information. Packaging protects the interests of
consumers. Information includes quantity; price; inventory levels; lot number; distribution
routes; size; elapsed time since packaging; color; and merchandising and premium data.
Types of packaging
Rigid Boxes
We return to our friend the Apple iPhone box. It’s made from a type of cardboard called a ‘rigid
box.’ It isn’t only Apple that uses this style of packaging, though. Many premium smaller items
such as watches, jewelry, cosmetics, and fashion accessories will come in one of these rigid
boxes which are often configured as you see in the example to be a kind of ‘gift box’ including
different types of containment for multiple parts.
rigid boxes
They’re made from highly condensed paperboard that is 4 times thicker than that used in a
standard folding carton (which will likely be a plain brown collapsible type of box which is
noticeably quite light in weight). You’ll notice that they usually have a very rigid structure when
you knock on them; they’re also noticeably dense and heavy.
They benefit importers by being highly customizable, as they are able to be printed, have a
glossy/ matte lamination exterior, be given an AQ coating, varnished, have flocking, be gold /
silver hot-stamped (with foil), and/or embossed.
In terms of cost, design and protection come at a price and they’re one of the more expensive
packaging types in comparison to corrugated cardboard boxes and paperboard boxes, hence
being used for premium items.
Benefits
Strong
Premium ‘look’ and ‘feel’
Can be made by hand and doesn’t require machinery to construct
Possible to configure to include containment features like platforms, windows, lids, hinges,
compartments, domes, and embossed patterns or lettering
Great for products and goods of almost any shape and size
Drawbacks
Expensive
Usually not collapsible (therefore more volume to ship which increases costs)
Not packaging that would be used alone, it would typically be product-packaging with additional
transit/export packaging to protect it
Paperboard
Paperboard is most similar to thick paper rather than cardboard and is an affordable packaging
choice for small products.
This is why it’s seen used in anything from fast food packaging, to product display boxes used in
supermarkets for boxed packaged goods.
What it lacks in rigidity, it makes up for in its readiness to be manipulated, cut, folded, and
printed or colored with a variety of finishes.
Paperboard
It’s made from wood pulp and can be made from 100% recycled material. Depending on its final
application, 1-ply or multiple-ply forms exist, although, for packaging which is meant to provide
protection to small consumer goods and is likely shaped to fit, a multi-ply form will be more
appropriate as it is stronger than single-ply which can flex quite easily.
Price-wise, in general paperboard is inexpensive as you would expect of paper, although it can
still be printed and given a premium finish or texture and so is relevant for use retail packaging.
If coated with an antistatic chemical, it can even be used to package electronics safely, too.
Benefits
Reasonably affordable
Has a large variety of applications
Can be made by hand and doesn’t require machinery to construct
Recyclable and can use 100% sustainable material (paper), so is a ‘green’ choice
Easy to cut and alter into many forms
Great for products and goods of almost any shape and size
Drawbacks
Lacks strength and rigidity, especially 1-ply paperboard
May not withstand moisture, dust, and other contaminants well depending on the form and finish
Not as ‘premium’ as other packaging types
Chipboard
Chipboard packaging is a type of paperboard and not to be confused with MDF (Medium-
density fibreboard). In a similar process to MDF, the chipboard is made from reclaimed paper
(instead of wood) which is compressed together into the chipboard and bonded with glue or
resin.
chipboard
Aside from being very sustainable and always made with recycled material, the chipboard has
very similar features to paperboard. It is easily manipulated and also inexpensive.
It usually comes in two colors, brown or white, and its strength is dependent on the density of
the chipboard. The denser it is, the stronger and more rigid it will become, but still, it won’t
usually approach the levels of the rigidity of a rigid box. If it’s given a finish it’s also possible to
print on it.
Benefits
Inexpensive
Has a large variety of applications
Can be made by hand and doesn’t require machinery to construct
Recyclable and uses 100% sustainable material (paper), so is a ‘green’ choice
Great for products and goods of almost any shape and size
Easy to cut and alter into many forms
Available in both light and heavyweight forms
Can be antistatic to protect electronics
Can be printed
Drawbacks
Lightweight chipboard is thin and not too rugged
May not withstand moisture, dust, and other contaminants well depending on its form and finish
Not as ‘premium’ as other packaging types
Corrugated Cardboard
This is what we know as ‘cardboard’ and is very commonly used for shipping/export cartons and
boxes used for storing items, but is also used in retail packaging, boxed packaged food products,
and even for takeaway pizza cartons!
corrugated cardboard
Cardboard is, in fact, a multi-layered paper. The corrugated part refers to the fluted medium
which provides strength, insulation, and protection and lies between an inner and outer
heavyweight paper in a kind of ‘sandwich.’
As you can see below, there are different types of corrugated ‘fluting’ available:
Cardboard is generally made with recycled paper which makes it reasonably inexpensive and
sustainable.
It is possible to cut and shape cardboard and many boxes are flat-pack which are shaped and
ready to construct into the packaging’s final form by hand. In some cases, it is also used to
create mock versions of prototype components and products, such as furniture.
Benefits
Inexpensive
Incredibly wide usage
Can be made by hand and doesn’t require machinery to construct
Recyclable and uses 100% sustainable material (paper), so is a ‘green’ choice
Easy to cut and alter into many forms
Protects electronics when given an antistatic coating
Can be printed and provided in a variety of finishes: matte/gloss laminate or varnish, embossed,
etc.
Great for products and goods of almost any shape and size
Drawbacks
Price can increase for the multiple walled boards
Unless finished, can be susceptible to moisture and humidity
Usually doesn’t have a premium look or finish
Cotton
Cotton is a natural and somewhat sustainable fiber that is used in almost any application in
consumers’ everyday lives. As the world’s most used textile, we see cotton in use in apparel,
furnishings, and, of course, packaging, and storage.
Eco-conscious brands may go for cotton bags as the primary consumer packaging for their
products. You could imagine a piece of jewelry or ornament being packaged in the gift bags
below, for example:
cotton bags
Sought after for its soft, breathable properties, cotton makes great garments, but as soft and
quality-looking fabric, it would be appropriate to package premium or sustainable goods.
Cotton is widely available in different grades and while it’s unlikely the finest ‘Long Staple’
types would be required for packaging, even so, a soft cotton bag has a premium feel and is
reusable and sustainable if the cotton is responsibly sourced.
There is almost no limit to the customizability of, say, a cotton bag, and it can be dyed and
printed to be very brand-appropriate or attractive for consumers to then use again in the future.
This all adds to its appeal as a premium packaging type.
Benefits
Inexpensive in most cases
Fairly sustainable and reusable in many cases
Protects products from dirt
Can be printed on or painted
Has a softer-touch, more premium feel than jute
Adds to a brand’s eco-friendly image
Drawbacks
Non-organic or irresponsibly-sourced cotton is not very green as it has high water, pesticide, and
fertilizer demands and usage
Limited as to what they can be used to package, as cotton bags do not provide much protection
from the external environment
Plastics
Plastic has its detractors, perhaps rightly as its environmental impact grabs more and more
headlines, but it is an excellent packaging material that has all but replaced ‘traditional’
materials like glass, ceramic, and wood in most applications.
plastic boxes
Versatile enough to be crafted into heavy-duty shipping/export cartons (as seen above) or
delicate retail packaging like this thermoformed plastic blister pack:
plastic blister-pack
Plastics and packaging go together because plastic is durable, strong, resistant to moisture and
dirt (anti-fouling), and can be formed into almost any shape thanks to processes such as injection
molding. Despite being very durable, many plastic boxes are also recyclable if they’re made
from the right kind of polymer.
Unlike cardboard, plastics create air and watertight containers, meaning that as well as standard
items, they’re also suitable for food storage and packaging for food items (think how many
ingredients are packed in airtight plastic).
Most plastics are affordable, too, oftentimes more so than natural materials from renewable
sources.
PET (Polyethylene terephthalate) – transparent, glossy, and very tough. Great for protection and
commonly used in drinks bottles.
HDPE (High-Density Polyethylene) – hard and tough with a waxy exterior. Commonly used for
detergent bottles.
PVC (Polyvinyl chloride) – can be soft or hard depending on additives. Used in clothing, wire
sheaths, windows, pipes, and more.
LDPE (Low-Density Polyethylene) – waxy and slippery to the touch, tough. Commonly used for
postal poly bags, sandwich bags, and packing materials.
PP (Polypropylene) – light and hard, this can be seen in woven bags, bottle caps, barrels, drink
cups, auto parts, and more.
PS (Polystyrene) – usually colored white, polystyrene is brittle but tough, and is a good
insulator. Used in toy fillings, molded packing (see later in the dunnage section), and for single-
use food containers and cutlery.
Other types of plastics – these plastics are generally not easily recycled, therefore are not a good
choice for brands who are looking for a greener option. One important option here is EVA
(Ethylene Vinyl Acetate), a versatile foam that comes in sheets or expanded foam blocks and in
many colours. Waterproof, rubbery, and durable, it’s used in dunnage as it absorbs impact,
repels water, and insulates products well.
What plastics are recyclable?
Unless you’re using bioplastics, all plastics are made from non-renewable fossil fuels like oil
and natural gas so they score low on the scale for sustainability. As a rule, though, most plastics
can be recycled and the numbered scale from 1 to 7 describes how easy this is. The plastics with
lower numbers (1 & 2 for example) can be very readily recycled, and in this case, they’re far less
harmful to the environment than those which are harder to recycle, or simply not recycled most
of the time. A good example is PET. This is widely recycled and there is no reason for this
plastic to end up in landfills, whereas PS often ends up in landfills as it can only be recycled
effectively if 100% clean. If it picks up dirt or contaminants (which it is prone to doing) it will
be rejected and dumped.
The ubiquitous postal ‘polybag’ is also a form of plastic, low-density polyethylene or LDPE, and
is much loved by retailers who ship products by mail because it’s soft and tough at the same
time:
plastic polybag
If the item can fit inside it, it can contain it, although due to its thin and flexible nature, don’t
expect too much protection for the item. It is, rather, a good way to enclose the item and protect
it from tampering (they’re usually sealable) and the elements instead of providing the protection
of a box.
It goes without saying that plastic can come in a variety of colors, perhaps matching one’s brand,
and it can also be clear which is useful in retail packaging where products are stored safely but
can be seen by shoppers.
Benefits
Inexpensive
Lightweight or rugged
Durable, airtight, and waterproof
Can be printed on or painted
Takes many forms, from thick boxes to delicate films
Drawbacks
Questionable environmental impact
Even ‘recyclable’ plastics are often not readily recycled unless taken in by specialists
Don’t have a real premium feel in most cases
Not a great choice for fragile or rectangular-shaped goods
Foil sealed bags are used as packaging for smaller items, commonly food, but also apparel,
textiles, and, in some forms, certain delicate items such as computer HDDs and silicon chips
(such as RAM sets). They are PET film with an aluminum foil layer and while many are a basic
metallic color, it’s also possible to print them with branding, for instance.
If it is specially made to be conductive for use in electronics, then it will also protect against
ESD by preventing an electrostatic build-up.
It is fairly delicate, so is more commonly used as packaging in environments where the packages
won’t take a lot of abuse, such as in a retail store’s shelves. The vacuum sealing process will
naturally condense the products inside in many cases and so foil sealed bags are a good choice
for storage of items where space is an issue.
Benefits
Inexpensive
Condenses products to save space
Protects products from UV light, moisture, and oxygen
Can be printed on or painted
May be a suitable form of dunnage
Protects electronics in some forms
Drawbacks
Plastic is not the greenest option and the foil lining makes these bags hard to recycle with other
plastics
Is associated with basic food packaging, and so not good for premium products
Can’t provide protection against impact, dropping, crushing, etc
Not a great choice for fragile or rectangular-shaped goods
Jute (Hessian/Burlap)
Jute is a fibrous material sourced from the Corchurous family of plants which are usually grown
in warm and wet climates. It is the second most common textile behind cotton.
Usually used for bags, twine, matting, and sacks, Jute is an increasingly popular packaging
material due to its sustainability.
jute bags
As you can see in the image, reusable shopping bags are often made from jute, and the strong
fiber is a hard-wearing textile which can take a lot of punishment over time. On its own, jute
looks very rustic and is usually used in agricultural packagings, such as coffee sacks, floor
matting, and even acoustic insulation, so it’s not, perhaps, the first choice as packaging for
premium goods. But if you consider sustainable living products, such as an artisanal soap, for
example, a small jute gift bag would be appropriate and welcomed by consumers who are
looking for 100% sustainable products and packaging.
Benefits
Cheaper than cotton
100% biodegradable and recyclable
Low pesticide and fertilizer needs as a crop
Can be printed and colored
High tensile strength and so good for use in bags
Drawbacks
Does not have a premium image or feel in comparison to cotton, rigid boxes, and some kinds of
plastics
Can shed fibers
Good as a bag, but does not provide protection from crushing, dropping, moisture, etc
Primarily made from paper, they’re a low-cost packaging option and, in the case of bubble
mailers, the integrated bubble wrap which lines the envelope provides a good amount of
insulation and protection for the goods inside.
bubble mailer
For vendors who need to send a lot of products by post, envelopes are a low-cost packaging
option that won’t add much to your costs.
The good thing is that there are many configurations to suit your needs, such as card-backed
envelopes (which prevent bending), peel and seal, self-sealing, gummed, and more. Peel and seal
envelopes, in particular, are quite secure as the sealant strip is very strong. If willing to spend a
little more, envelopes can be customised, too, with your logo, branding, colors, etc.
As long as they provide adequate protection, consumers who appreciate eco-friendly brands will
be pleased to receive recyclable paper or card envelopes (think of Amazon’s card wallet-style
envelopes, for example) which they can recycle themselves at the kerb.
Benefits
Available in numerous sizes (common envelope sizes are C4 – A4 size, C5 – A5 size, C3 – A3
size)
Bubble mailers can provide enhanced protection without the need for bulky boxes
Low cost
Standard paper/card envelopes are recyclable and sustainable
Envelopes can be customised with branding, logos, etc
Bubble mailers are waterproof, making them suitable for deliveries where the envelope may be
in the rain
Drawbacks
Bubble mailers aren’t easily recyclable
Potentially not the most premium feel or image
Only provide limited protection, not good at withstanding extreme heat or moisture
Can lack security
Not a great choice for fragile or rectangular-shaped goods
Packaging cost
Packaging Cost means the actual price paid by Silan to a third party for packaging a die of
Licensed Product for sale by Silan. If Silan sells Licensed Products as unpackaged Wafers, the
Packaging Cost for purposes of the Manufacturing Costs calculation above shall be zero. Sample
1 Based on 1 documents
Packaging Cost means, for each packaging of a Product, the delivered cost of packaging (such as
tubs, lids, cases, sleeves, bands, wrappers, pallets). The cost shall be
The most important aspect when we look into packaging is the packaging cost. Packaging cost
include the following:
Material cost: It means the cost of the pack and quality control cost. Storage and
handling cost of empty packages: This include the handling cost of bulky packages, heavy
materials of construction, drums etc.
Packaging operation costs: This includes the cost involved in operations like,
cleaning the package product filling – closing, labeling – unitizing, stenciling, handling
cylindrical slums etc.
Storage of filled packages: This includes the cost incurred to shift the goods
from one form of packaging to another.
Loss and Damage cost: It is related to the loss and damage during operation,
transportation delivery etc.
Obsolescence Cost: This cost involves when changes in the packaging materials,
packages and labels happen.
Package developmental cost: This include the evaluation cost, pilot test cost,
field testing cost, consumer research cost, feedback cost, final trial cost etc.
Importance of packaging
1. Protection
The primary purpose of packaging is to protect its contents from any damage that could happen
during transport, handling and storage. Packaging retains the product intact throughout its
logistics chain from manufacturer to the end user. It protects the product from humidity, light,
heat and other external factors. This is the most important purpose of packaging. Because of that
it is not unusual to end up with far more packaging than the actual product. Especially when
ordering items from online stores. The amount of packaging waste the product leaves behind can
be really staggering. All in all, packaging’s purpose is to protect, but there is a difference
between an intelligent and well-designed packaging and a packaging with no fit-to-purpose
design.
2. Safety
Above all, packaging has an important role in keeping its contents and consumers safe.
Packaging should contain important information of the product and its safety. For example, for
food products the packing date, best before date and a list of ingredients must be clearly visible
on the packaging. No harmful chemical, smell, or taste should transfer from packaging materials
to the food whether it is produced from virgin material or recycled material. Moreover, it must
become clear from the packaging if it contains toxic substances. All these pieces of information
add the product safety for the consumer. Too much information is always better than no
information at all.
3. Attractiveness
Packaging counts an important part of the product brand and marketing. A unique packaging can
increase the product attractiveness and thus affect to the willingness to buy the product.
Packaging is as important as the product itself. Its purpose is to stand out from the shelf or
website, enhance sales, provide relevant information on the product and augment interest. Two
thirds of people say that the packaging has an effect on their buying decisions. A packaging can
also tell a whole story about the business behind the product and the product’s environmental,
social and economical impacts. It is a tool to communicate company’s values and great benefits
that the product brings to the consumer.
4. Usability
Consumers are looking for fit-for-purpose packaging. They demand a functional, “life-saver”
packaging that is incredibly user-friendly. The usability of the packaging is judged by the
consumers only. A packaging which is simple to open and close, easy to fold and sort after
usage, and which can be reused or recycled will satisfy some of the consumers’ requirements. In
addition, optimal design enhances usability. Today’s trend in packaging usability has been seen
to change direction from single-use culture back to buying products in bulk, in reusable
packaging and own containers like before 1960s. Environmentally conscious consumers already
bring their own empty jars, bags and containers to go to grocery shopping. Thus one big
challenge remains in packaging usability. How many times the packaging can be recycled and is
it made as simple as the consumer require?
5. Sustainability
More and more consumers are paying attention to the packaging materials’ carbon footprint, re-
usability and recyclability before making their buying decision. In fact how sustainable
packaging is perceived, the more positive impact it has to the sales numbers. The packaging
design has a crucial role in defining how easy it is to separate the materials from each other and
thus how easy the packaging is to reuse and recycle. Making more with less not only saves
resources but also leaves less material for the consumer to handle properly.
Packaging Can make a product more convenient to use or store, easier to identify or promote or
to send out a message. Some of the major significance of packaging can be detailed as follows:
• Packaging can make the important difference to a marketing strategy by meeting customers'
needs better.
• Packaging plays a key role in brand promotion and management. Packaging is of great
importance in the final choice the consumer will make, because it directly involves convenience,
appeal, information and branding.
• The paramount concern of packaging is the reachability of the product without any damage.
No matter where and how the products are transported or shipped, they arrive at the customer's
door in working condition without need of repair or adjustment.
• Packaging is especially important in certain industries where future sales may be based largely
on the quality, integrity and performance of a company's previous delivery.
Conclusion