packaging & labeling

7/31/2019 Packaging & Labeling

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Packaging & Labeling


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Packaging & Labeling

Packaging includes all activities that focus onthe development of a container and a graphicdesign for a product.

A package may have three levels; primary packageis the container of the

product such as a bottle, jar, or tube. secondary packageis the box of cardboard

or some other material containing the primarypackage shipping packagethat contains more units of

secondary package


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Labeling A label may be a part of package or it may be a tag attached

to the product.

The labels perform a descriptive function relating to a products

source:

its contents

important features and benefits

use instructions

cautions or warnings

storage instructions

batch number, date of manufacture, and date of expiry.


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Product Mix / Product LinesA product assortment (mix)

is all the product lines that the company sells.


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Product Classifications

UnsoughtProducts

SpecialtyProducts

ShoppingProducts

ConvenienceProducts

ConsumerProducts

BusinessProducts

PRODUCTS


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Consumer Goods Classification of:

Convenience

Shopping

Specialty

Unsought Products


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Different Classes Convenience goods and services

things consumer wants to buy frequently

minimum effort, low risk

small amount of money, not much time

Shopping goods and services

stuff people buy after they shop & compare

Speciality goods and services

jewellery, special clothing

special entertainment

Unsought

things people dont want to buy, but have to eg. Autoinsurance, funeral plan


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Classes of Consumer Products


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Convenience Goods

Convenience goods:

things consumer wants to buy frequently

minimum effort, low risk

small amount of money, not much time

three types

1. Staples- bought routinely

2. Impulse products- unplanned purchases

3. Emergency products- bought immediately


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Shopping Goods

Shopping goods:

stuff people buy after they shop & compare

they have the time to compare prices

Homogenous - stuff that is the samesimply pick the lowest priceeg. Condensed milk,

Heterogeneous - stuff that is different, so the

customer will take time to compare features andprices- some retailers carry competing brands


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Specialty Goods

Specialty goods and services

jewellery, special clothing

special entertainment

Willingness to search, not extent of searching,makes it a specialty product

if people are willing to look and look at differentproducts, before they commit, it is a specialty item


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Unsought Goods

Unsought

things people dont want to buy, but have to eg.Auto insurance, funeral plan

the only way to sell this is to convince people ofthe benefit because the benefit is not easily seenby the average person.


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Some Product Definitions

Product line

a group of closely related product items.

Product mix

all products that a firm sells.

Width

refers to how many different product lines

the firm carries Depth

refers to how many variants of each product

are offered


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Gillettes Product Lines&Mix

Blades and Writingrazors Toiletries instruments Lighters

Mach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II ToniAtra Right GuardSwivel SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mix

D

epthofthe

productlines


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Cannibalization

Situation involving one product takingsales from another offering in a productline (Text)

Cannibalization occurs when sales of anew product cut into (reduce) the sales

of a firms existing products.


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Product Line Strategies

Extensions: Addingadditional products toan existing product

line in order tocompete morebroadly in theindustry.

Contractions:deleting productsfrom product lines if

there are low sales,cannibalization,obsolesce or fewresources.


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What is the Product Life Cycle(PLC)?

A concept that provides a way to trace thestages of a products acceptance, from its

introduction (birth) to its decline (death).

It is based on the product category.


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The Product Life Cycle

Time

Dollars

ProductCategoryProfits

ProductCategorySales

IntroductoryStage

GrowthStage

MaturityStage

DeclineStage

0


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Introduction Stage

High failure rates

Little competition

Frequent product modification Limited distribution

High marketing and production costs

Negative profits

Promotion focuses on awareness andinformation

Intensive personal selling to channels


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Growth Stage

Increasing rate of sales

Entrance of competitors

Market consolidation

Initial healthy profits

Promotion emphasizes brand ads

Goal is wider distribution

Prices normally fall

Development costs are recovered


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Maturity Stage

Declining sales growth

Saturated markets

Extending product line

Stylistic product changes

Heavy promotions to dealers and consumers

Marginal competitors drop out

Prices and profits fall

Niche marketers emerge


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Decline Stage

Long-run drop in sales

Large inventories of unsold items

Elimination of all nonessential marketingexpenses

Options for Deleting Products:

Maintaining

Deletion Harvesting

Contracting


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Marketing Strategies for PLC

INTRODUCTION GROWTH MATURITY DECLINE

ProductStrategy

DistributionStrategy

PromotionStrategy

Pricing

Strategy

Limited modelsFrequentchanges

More modelsFrequentchanges.

Large numberof models.

Eliminateunprofitable

models

LimitedWholesale/

retail distributors

Expandeddealers. Long-term relations

Extensive.Margins drop.Shelf space

Phase outunprofitable

outlets

Awareness.Stimulate

demand.Sampling

Aggressive ads.Stimulatedemand

Advertise.Promote heavily

Phase outpromotion

Higher/recoupdevelopment

costs

Fall as result ofcompetition &

efficient produc-tion.

Prices fall(usually).

Pricesstabilize at

low level.


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Categories of Product Adopters

Perc

entageofAdopters

Time

Innovators2.5%

EarlyAdopters

13.5%

LateMajority

34%

EarlyMajority

34%

Laggards16%


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Diffusion Process andPLC Curve

Innovators

Early adopters

Early majorityLate majority

Laggards

Productlife cyclecurve

Diffusioncurve

Introduction Growth Maturity Decline

Sales


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Thank You for Workingso hard in the class!

Have a Good Day!

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