packaging and labeling

Produc

tPackaging Labeling Product WarrantyProduct Life Cycle

Ma. Joanna MirandaMa. Joanna MirandaBSA21a1

PACKAGIN

G

Packaging Packaging refers to all activities involved in designing and producing the container or wrapper for a product.

The container or wrapper is the package.

The package may include up to three levels of material briefly described as follows:

The primary package which is the product’s immediate container. The 370ml. can containing Carnation milk is its primary package.

The Secondary package which protects the primary package.

The shipping package which contains the secondary package or packages. It provides ease of storage, identification and shipping.

Reason for Packaging

There are several reasons for packaging products. Among them are :

• It provides protection to products before and after they are in the possession of the intended users. Products need to be protected from the harmful effects of outside elements. Packaging serves to eliminate this problem.

•It provides convenience to the user. Many products are now neatly packaged which provide convenience for use just anywhere. The effort exerted from the date of purchase to actual use of the product is greatly diminished.

•It provides safety. Products like insecticides may cause considerable harm unless they are contained in suitable packages.

•It provides economy to both the seller and the user. Buyers have different quantity requirements for product. Some will need more in a single purchase, while some will need less. In any case, purchasing in various quantities is made possible by packaging.

•It allows sellers to effectively promote the product. The package can be made to attract the attention of the prospective buyer and further provide vital information about the product. Children are oftentimes attracted by fancy candy wrappers which motivates them to buy the product .

What Makes a Good Package Packages must be made to assist in the marketing effort.

Defective packaging may contribute to lost sales and product damage. Too much packaging, on the other hand, may be costly and will eat up profits.

LABELING

Labeling That part of the product which provides information about the product and the manufacturer is called the label.

It may be a part of the package, or a tag attached to the product.

Types of

Labels

This label identifies the product or brand.

BRAND LABEL

This label provides information about the product: who made it, where and when it was made, its content, how it is used and how to use it safely.

DESCRIPTIVE LABEL

This label identifies the product’s judged quality with a letter, number, or word like “grade A”, “grade 3”, or “premium grade”.

GRADE LABEL

• This label provides attractive graphics to help promote the product.

PROMOTIONAL LABEL

Product Warranty

One of the product components that attract customers to patronize a product is the warranty, which is a statement explaining what the seller promises about the product.

It is actually a manufacturer’s written promise as to the extent of the repair, replacement, or otherwise compensation for detective goods

Variation of WarrantyExpress warranties are written statements of manufacturer liabilities for product deficiencies. Express warranties may be limited-coverage warranty or full warranty.

A limited-coverage warranty is a manufacturer’s statement indicating the bounds of coverage and noncoverage of any deficiency found in the product.

A full warranty is a statement of liability by a manufacturer’s that has no limits of noncoverage

Implied warranties are those that assign responsibility product deficiencies to a manufacturer even if the item was sold by retailer. Warranties of whatever variation help the consumer make his purchasing decision.

Product Life Cycles

Product, like human beings, have a life cycle which is referred to as the Product Life Cycle or PLC.

The PLC refers to a product’s sales growth from the beginning to its peak, followed by a decline and its eventual withdrawal from the market.

In more simple term, PLC is the period between the birth and death of product.

WARRANTY

IMPLIEDWarranty obligation not

expressed by the manufacturer

LIMITED COVERAGE WARRANTY

Liability coverage is limited

EXPRESSObligation of the

manufacturer stated in written or spoken words

FULL WARRRANTYLiability coverage is not

limited

The PLC consist of four distinct stages:

Introduction

Growth

Maturity

Decline

These stage are actually the manifestations of the effects of various forces affecting the life cycle, namely:

Consumer demand

Competition

Government rulings

In this stage, the product is introduced to the public. It is generally by the following :

•Slow growth of sales

•Heavy promotional expenditures in relation to sale

•Relatively high prices for the products

•Limited product offering, like limited variations in sizes, color and the like.

INTRODUCTION STAGE

The Slow sales growth attributed to the following:

•Delays in the expansion of production capacity

•Technical product problems that have to be worked out

•Difficultly in gaining widespread distribution

•Inertia on the part of consumer in trying the new product.

Heavy promotional expenditures are attributed to :•Heavy sales cost involved in obtaining distribution

•The need for heavy advertising to create consumer awareness and trial.

High prices are caused by:

•The need to recover investment cost in plant and equipment

•Low volume sales.

Limited product offering are caused by insufficiency of initial sales volume to justify variations in the product.

The growth stage in the PLC follows a successful introduction stage. The growth stage is characterized by the following:

•Sales start climbing rapidly as distribution increases and the consumers are persuaded to try the product.

•The ratio of promotional expenditures to sales decreases. This is due to the rapid increase in sales but without corresponding increase in promotional expenses.

•Prices tend to remain high except when demand stimulation is required and entry of competitors discouraged.

•New forms of the product appear, like new colors, new models, and new sizes .

GROWTH STAGE

When growth in sales slowdown, the maturity stage begins to take over. This stage is characterized further by the following:

•Sales settle down as the product becomes well known

•Price reduction are used are used as a tool of competition

•Competition is intensified

•The market becomes saturated

MATURITY STAGE

The decline stage begins with a permanent drop in sales. The stage is further characterized by:

•A pruning of product models and variation to eliminate those not producing profit.

•Promotional expenses are reduced

•Plans for phasing out the product is made

DECLINED STAGE

The Importance of the Product Life Cycle Concept

The concept of the PLC is important to the marketer in the sense that it provides him with a guide in adapting appropriate marketing strategies. The marketing action required in the introduction stage, for instance, will be much different than what is required in the growth stage.