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Packaging Of Fast Moving Consumer Goods In India Marketing Essay

Abstract

In the ever increasing competition of today’s global market the necessity for effective product promotion is vital. In the prevailing marketing environment presentation is playing a crucial role as a company communication vehicle. Little exploration has been carried out within this area and therefore the purpose of this research do the job is to supply a better knowledge of how packaging plays a critical role in effecting customer’s perceptions. This research do the job provides response to the dilemma like how several positioning strategies effect consumer perception about the packaging characteristics and relationship between many packaging attribute for fast moving consumer products (FMCG) in Indian industry. Because of the fact that the area of package design is pretty extensive and vast the present study is focused on examining the bundle style in the Indian FMCG marketplace.

Keywords: Product Promotion, PRESENTATION, Consumer Perceptions, Positioning Strategies, Indian FMCG Market

INTRODUCTION

In the current marketing scenario, businesses are competing heavily to gain market talk about (Brassington and Pettit, 2000). In order to accomplish this objective marketing connection plays a key role. Brand names tend to be recognized through there component parts, packaging and advertising. Therefore packaging is an important the main product that not merely serves an operating purpose but also plays a crucial role in communicating item information and brand personality. Product brands use a range of packaging attributes consists of colors, designs, forms, symbols, and messages (Nancarrow et al., 1998). In a study carried out by the Paperboard in the entire year 2005 Packaging Alliance showed that in the clients mind, package and item will be one and the same.

Whatever the package deal says to a customer through size, material, thoughts and graphics – is exactly what its contents become, be a perfume bottle or the bottle of the milk. These attributes not only help in attracting and sustaining attention but also help the customers in identifying the makes with the images as presented through diverse advertisements. The importance of packaging design and the consumption of packaging as a vehicle for conversation and branding gets momentum (Rettie and Brewer, 2000), as packaging assumes a job similar to other advertising communication elements. One reason for this is simply the fact that consumers may not think very deeply about brands before they go into the store to get. As identified by Silayoi and Speece (2007) that whenever the consumer is undecided, the bundle plays an integral role in the buy choice because it acts as a communication vehicle to customers at the idea of decision making. This time around it is called as “the first moment of real truth” when the bundle plays a job of silent salesman (Lofgren, 2008). As recognized by Connolly and Davidson (1995), 73% of the purchase decisions are made at the point of sales. Consumer purpose to buy depends on the amount to which customers expect that the product can satisfy their goals (Kupiec and Revell, 2001).

How customers perceive the subjective entity of products as offered through the factors in the offer influences choice and is the key to success for most food products marketing tactics (Silayoi and Speece, 2007). However, a unique appearance regularly helps in attracting the clients and drives purchase (Small, 2008). To achieve the communication goals effectively and to optimize the probable of packaging, fast paced consumer goods (FMCG) producers must understand buyer response to their plans, and integrate the perceptual procedures of the consumer into design (Silayoi and Speece, 2007). In the design process, marketers and offer designers must manage the clients past experiences, necessities and wants, understand how packaging design elements noticed by the clients, messages on the deal and broadly evaluate product packaging design and labeling for his or her performance in the better communications. Many industry observers e.g. AC Nielsen, a leading international consumer research organization believe that consumer’s worldwide are likely to have roughly similar response to numerous FMCG, regardless of the cultural differences.

Not all observers on the other hand believe that customer behaviors will converge growing incomes and comprehensive competition give consumers additional ability not fewer desire to take according with their own particular cultural choices (deMooij, 2000). Some believe while special details such as for example response to particular colors or themes could be interpreted differently in various cultures but many basic issues are likely to be similar across cultures. Absolutely for FMCG which buyers do not think about much, basic trends (such as for food products desire for convenience or health/nourishment information on packages) may be similar. But individuals are unlikely to improve their culturally conditioned response to details of the merchandise or for food products the package which represents the product through the purchase process. The overall features of the offer can underline the uniqueness and originality of the product. Quality judgments are mainly influenced by product qualities reflected by packaging and these are likely involved in the formation of brand preferences.

If the package deal communicates top quality, consumers usually assume that the merchandise is of high quality and vice-versa (Silayoi and Speece, 2004; Underwood et al., 2001). The program becomes the symbol that communicates favorable or unfavorable implied meaning about the merchandise. This is as a result of the fact that the pictures are really vivid stimuli in comparison to words (Underwood et al., 2001) and in addition are quicker and much easier for buyers to process in a low involvement problem. Underwood et al., (2001) recommend that consumers are more likely to spontaneously imagine aspects of how a item looks, tastes, feels, smells or seems while viewing product pictures on the program. The result of color may be the most obvious and very well Studied (Imram, 1999), customer perceptions of an acceptable color are associated with perceptions of other top quality attributes such as for example flavor and nutrition and in addition with satisfaction levels. Great effect may be accomplished by manipulating a number of packaging variables including product packaging color, very clear packs that allow looking at food color, incident light, and nomenclature and brand appearance. In food support, the food products chosen for display and sale by caterers are determined generally based on their color and appearance attributes (Imram, 1999).

Underwood (2003) says that the proliferation of brands on the market and the varied range that a purchaser finds at the point of sale, force attempts to achieve effective differentiation to be increased. That’s why traditional mass media communication is being redirected to level of sale.

Rapid Development of Retail Sector:

According to the 8th twelve-monthly Global Retail Advancement Index (GRDI) of AT Kearney, Indian retail market may be the most promising emerging industry for investment. In 2007, the retail examples of rhetorical analysis essays trade in India got a show of 8-10% in the GDP (Gross Domestic Product) of the united states and it rose to 12% in ’09 2009. Additionally it is likely to reach 25% by 2011. Such a rapid development in the retail sector features occur due to two elements i.e. demand aspect & supply factor. Demand component includes growing incomes, raising awareness and exposure level and changing part of women and kids in decision making method whereas supply element includes increased fascination among corporate, better sourcing alternatives and increased way to obtain retail real estate. Such adjustments in the retail environment in India will probably drive growth of many ancillary & support sectors in the coming years; one such Industry would be the packaging Industry. Factors responsible for increasing the importance of product packaging are increased anticipations, increased awareness, changes in buying behavior and cultural changes.

LITERATURE REVIEW

In marketing literature, packaging is considered to form area of the product and the company. A number of the researchers have defined product packaging as a product home or characteristic (Evans And Berman, 1992), whereas others have interpreted as an extrinsic component of the product i.e. it’s the attribute that is related to the product but will not form the the main physical item itself (Keller, 1998; Olson and Jacoby, 1972). Price and brand are likewise extrinsic components of the company and according to Underwood et al., (2001); they are the most crucial extrinsic values when it comes to deciding what food products to buy.

He has described it as one of the five factors of the brand alongside the name, company logo and/ or graphic symbol, individuality and slogans. Packaging is presented as a part of the buying and consuming process, but often in a roundabout way related to the things that are essential for the merchandise to function (Underwood, 2003).

Attributes: An assessment of the relevant literature indicates that there are four main packaging components potentially affecting consumer purchase decisions and can be sectioned off into two categories; visible and informational components. The visual elements consist of graphics and size/condition of packaging whereas informational factors are related to the merchandise information and the details about the technologies found in the package designing method.

Visual elements:

Graphics and color: Diverse people react to different packages in different ways, depending on their involvement (Vakratsas and Ambler, 1999).

Since an evaluation of attributes is not as much important in low involvement decision building, an extremely noticeable factor such as for example images and color becomes considerably more important in choice of a low involvement item (Grossman and Wisenblit, 1999). Alternatively, the behavior of consumers towards high involvement products is influenced much less by image issues. For low involvement, you will find a strong impact on consumer decision making through marketing and sales communications, including image Setting up (Kupiec and Revell, 2001).

As among the product attributes that a lot of directly communicate such text messages to the target consumers (Nancarrow et al., 1998), the look characteristics of the offer need to stick out in a display of many other offerings. Many customers today shop under higher levels of perceived time pressure, and tend to acquire fewer products than designed (Silayoi and Speece, 2004; Herrington and Capella, 1995). Products purchased during looking excursions often look like chosen devoid of prior planning and symbolize an impulse buying event (Hausman, 2000).

When scanning packages in the supermarket, the differential perceptions and the positioning of the graphics elements on a package could make the difference between identifying and missing an item (Herrington and Capella, 1996).

Placement of visual components matters: Psychology analysis indicates that human brain laterality results within an asymmetry in the perception of components in package models (Rettie and Brewer, 2000). Recall is better for verbal stimuli when the duplicate is definitely on the right-hand area of the offer, and better for non-verbal stimuli when it is on the left-hand area. This may imply that, so as to maximize customers’ recall, pictorial elements, such as product photography should be positioned on the left-hand side of the package. Customers also study color associations, which lead them to prefer certain colors for several product categories (Grossman and Wisenblit, 1999).

Using color as a cue on packaging can foster a probably strong association, in particular when it really is unique to a particular brand. However, people in several cultures face unique color associations and develop color preferences based on their own culture. Marketing experts so must consider color of the package deal as a significant part of their strategies. Simply taking the colours of a particular logo, package or item design from one market to another should only be done under a thorough knowledge of how colours and the colour combinations happen to be perceived in each of the segments (Madden et al., 2000).

Packaging decoration: Size and shape also emerges as an essential dimension. Disconfirmation of bundle size after consumption might not exactly lead consumers to revise their volume judgment sufficiently in the long run, particularly if the discrepancy isn’t large (Raghubir and Krishna, 1999). Since generics usually are packaged in large sizes, this directly suits the needs of buyers from greater households, which will be specifically looking once and for all deals. They find the low value of the generics in much larger packaging as an appealing offer with excellent value for money (Prendergast and Marr, 1997). Furthermore this could simply that when product quality is hard to determine the effect of packaging size is better.

However, many other aspects of packaging could also conceivably affect perceived quantity, such as areas of package shape, color, material, and aesthetic appeal. Up to now there is little literature availablility on any of these aspects.

Informational elements:

Product Information:

One of the significant packaging features is to communicate product information, that may assist consumers in making their decisions effectively. An example of such significant information is foodstuff labeling. The pattern towards healthier eating has highlighted the value of labeling, which gives the consumers an possibility to cautiously consider alternatives and generate knowledgeable decisions (Coulson, 2000). To maximize the information continued products, manufacturers quite often use really small fonts and very dense writing variations. This reduces readability and some times causes dilemma. Mitchell and Papavassiliou (1999) advise that one major method for reducing consumer misunderstandings from information overload is usually to narrow down the choice set. Considering fewer choice makes and evaluating fewer characteristics reduces the probability that the buyer will be baffled by high choice and info over load. This plan could apply to more experienced consumers, because weighty users potentially look at fewer brand alternatives.

In other words, experience makes buyers selectively perceptive and restricts the scope of their search (Hausman, 2000). Hughes et al. (1998) suggest that involvement level reflects the extent of personal relevance of your choice to the individual regarding basic values, goals and self- notion. If the product does not stimulate much interest, consumers do not give much focus on it. On the other hand, more highly involved buyers evaluate message information more carefully, counting on the message to form their attitudes and buy intentions (Vakratsas and Ambler, 1999; Silayoi and Speece, 2004). The position of packaging in marketing communications is additionally advanced by recent technological developments (McNeal and Ji, 2003).

Benefits:

The business institutions should acknowledge that the effective marketing communications must recognize the relationship between something, brand and the consumption values or benefits sought by the buyers. The decision of corresponding benefits to talk and emphasize would seem to be especially crucial in situation where many consumer may broadly sought benefits and evaluate brands instead of goods (Ulrich et al., 2004). The significant difference between merchandise and brand consist for the reason that something is something that offers a functional benefits while a brand is a brand, symbol, design, or mark that enhances the worthiness of something beyond its functional value (ibid).Benefits will be the personal value consumer put on the product or service attribute that’s what consumer think the product or something can do for them (Keller, 1993).

Benefits can be even more distinguished into three categories based on the underlying motivations to which they are related (Recreation area et al., 1986) as functional benefits, experimental rewards and symbolic benefits.

Functional benefits:

Functional benefits are the main intrinsic advantages of product or service usually correspond to the merchandise related attributes (Keller, 1993). These benefits tend to be linked to fairly basic motivations, such as physiological and safety necessities (Maslow, 1970) and entails a desire for trouble avoidance or removal (Fenell, 1978).

Experimental benefits:

Experimental benefits are related to the use of product or service and in addition usually correspond too the merchandise -related attributes. Hence consumer may benefit the prestige exclusively or fissionability of a brand because of how it pertains to their self idea (Keller, 1993). A manufacturer with the experimental concepts can be reinforced by building the strategies that links brand compared to that of other experimental products (Keller, 1993).

Positioning strategy: There are research (Maggard, 1976) that sustain that its origins lie within an article by Alries and Jack Trout published in the magazine commercial marketing in1969. This is followed by other article content released in the magazine Advertising and marketing Age in1972 beneath the title age positioning, which served to increase and disseminate the word. According to these authors, positioning has got its origins in presentation (the idea was called product positioning). Some experts have explored approaches to consumer-driven optimization of bundle design employing a novel modified conjoint examination way (Gofman et al., 2009). Underwood (2003) highlights that unlike the transmitting of positioning though marketing, packaging allows positioning to be transferred live. With regard to the main parts of packaging, many several points of views have been expressed by different experts in their job (Underwood et al., 2001; Hine, 1995; Vidales Giovannetti, 1995; Sonsino, 1990).

Generally speaking, a distinction is made between two blocks of parts. Graphic components such as color product packaging, typography, the graphical designs used and the images introduced; and structural parts such as shape, size of the containers and the materials used to produce it. The purpose of this work is to supply better understanding of importance of product packaging in Indian market. This research work will provide answer to the issue like how diverse positioning strategies effect client perception about the packaging attributes of fast paced consumer goods and relationship between various packaging attribute for fast paced consumer products in Indian market. Due to the fact that the region of package design is pretty extensive and vast, and also due to the limited timeframe directed at conduct this research, today’s study will concentrate on examining the package design and style in the Indian FMCG marketplace.

METHODOLOGY

The purpose of this research is to develop better understanding about the result of positioning technique on color, size and form of letters & characters, shape of geometric figure & impression present on the package deal and the value of product packaging attribute for FMCG product’s in the consumer eyes.

The study consists of a qualitative method of gain better insights and profound understanding within the situation area. Existing literature is reviewed so you can get deeper and better insights in the research location. For increasing the dependability of the research, convenience sampling technique can be used and the picked respondents are those who were acquainted with packaging features and positioning strategy. Furthermore, we have as well considered the demographics differences

i.e. genders cash flow level and education level of the respondents (Customer’s point of view). The responses are gathered from an example of undergraduate, graduate and MBA pupils. 165 + 100 responses had been collected all over the Madhya Pradesh Place of India. Age the individuals was ranged from 17 to 46 years with a mean of 27 years. The info was gathered through a study based approach (Online as well as offline) utilizing the research instrument (questionnaire) having multiple choice questions. For analysis goal answers were changed into regular variables. The respondents in the survey were general mobile phone users who had some basic understanding of mobile advertisements. Stability, correlation and factor examination were performed employing SPSS 16.0.

RESULTS:

Descriptive analysis:

Data Summary

1. Relation between Packaging features of fast moving consumer goods.

Factor 1: Packaging Colour

Figure: 1

Factor 2: Form of words

Figure: 2

Factor 3: Size of words

Figure: 3

Factor 4: Form of Package

Figure: 4

Factor 5: Product Picture

Figure: 5

Factor 6: Size of Package

Figure: 6

Factor 7: Product Information

Figure: 7

Factor 8: Benefits

Figure: 8

Data Analysis:

(a) For romance between various packaging attribute for FMCG:

The most common inner consistency measure is usually Cronbach’s alpha. Cronbach’s α steps how well a couple of variables or items methods an individual, unidimensional latent construct. Its value lies between -1 to at least one 1, more the value proceeds towards +1 extra may be the internal consistency.

Nunnally (1978) recommends that responses used in research having reliability of about .70 or more are better and quite feasible for undertaking factor analysis.

Correlation:

Color of package: It is extremely correlated (99%) to shape of words and is definitely loosely correlated to size of terms.

Shape of words: It is highly correlated (99%) to Colour of package.

Size of words: It really is very correlated (99 percent) to form of package, product picture, Product information and benefits. Size of words and phrases loosely correlated to Color of package.

Shape of Package: It really is extremely correlated (99 percent) to size of deal and size of offer. It is 95 percent correlated to product information.

Product picture: It is extremely correlated (99 percent) to size of words, product information and benefits.

Package size: it is extremely correlated (99 percent) to shape of package.

Product Information: It is highly correlated (99 percent) to size of words, product picture and benefit. It is 95 percent correlated to form of package.

Benefits: It is highly correlated (99 percent) to size of words, item picture, and product facts.

Factor Analysis:

Descriptive analysis:

Data Summary and info analysis for effect of positioning strategy on packaging attributes

If a product is positioned as merchandise directed towards upper course:

Colour

Figure: 9

Size & Form of Letters & Character

Figure: 10

Image

Figure: 11

Figure: 12

Reliability:

Correlation:

A correlation is an individual number that describes the amount of romantic relationship between two variables. Correlation of every component is given as under.

Size and shape of letters and character types: It really is loosely correlated (95%) to geometric figure.

Geometric figure: geometric figure present on the bundle is highly correlated (99%) to image present on the physique.

Image present on the program is highly correlated (99%) to geometric figure.

Factor Analysis:

If a product is put as reasonably and affordably priced.

Colour

Figure: 13

Shape & Size of the letter & Characters

Figure: 14

Image

Figure: 15

Figure: 16

Reliability:

The reliability of the data collected is certainly 88.8%, which is fairly acceptable for factor analysis.

Correlation:

According to the Pearson’s correlation all the attributes are highly correlated to one another.Colour is certainly 99 % correlated to image, shape of geometric amount and size & condition of letters and personality.

Factor Analysis:

(c) If something positioning is founded on guarantee, safety and toughness.

Colour

Figure: 17

Shape & Size of letters & Characters

Figure: 18

Images

Figure: 19

Figure: 20

Reliability:

The reliability of the info collected is usually 94.3 percent. , which is very acceptable for factor examination.

Correlation:

According to the Pearson’s correlation all of the attributes are extremely correlated to each other.Colour is normally 99 % correlated to picture, shape of geometric body and size & form of letters and figure.

Factor Analysis:

(d) If something positioning is founded on refined, sober and tasteful aesthetics.

Colour

Figure: 21

Shape and size of the letters & characters

Figure: 22

Image

Figure: 23

Figure: 24

Reliability:

The reliability of the data collected is certainly .776 percent, which is pretty acceptable for factor examination.

Correlation:

According to correlation figures colour is remarkably correlated to size and shape of letters and individuals and geometric figure. Additionally it is loosely correlated to image present on the program. Similarly size and shape of letters and character types is very (99%) correlated to the colour of package. Geometric body present on the deal is usually 99% correlated to colour and image. Image is definitely loosely correlated to colour and 99% correlated to geometric figure.

Factor Analysis:

(e) If a product positioning is founded on region of origin, patriotism.

Colour

Figure: 25

Shape and size of the letters and characters

Figure: 26

Image

Figure: 27

Figure: 28

Reliability:

The reliability of the info collected is normally .75, which is very acceptable for factor research.

Correlation:

According to correlation figures image is extremely correlated to size and shape of letters and characters and loosely correlated to color of package. In the same way size and condition of letters and characters is very (99%) correlated to the image & geometric physique present on the package deal. Geometric number present on the package deal is 95% correlated to size and condition of letters and heroes. Colour is definitely loosely correlated to picture.

Factor Analysis:

(f) If a product positioning is based write an essay for me on excellence, high cost, and variety.

Colour

Figure: 29

Shape and size of the letters and characters

Figure: 30

Image

Figure: 31

Figure: 32

Reliability:

The reliability of the data collected is .722. Therefore the data received is very reliable

Correlation:

According to correlation figures image is highly correlated to size geometric figure present on the package. Similarly size and form of letters and character types is loosely (95%) correlated to the geometric amount present on the deal. Geometric shape present on the bundle is 99% correlated to the photograph present on the program and 95 % correlated to the size and condition of letters and characters.

Factor Analysis:

(g) If something is positioned for the center class and positioning is founded on noble principles.

Colour

Figure: 33

Shape and size of the letters and characters

Figure: 34

Image

Figure: 35

Figure: 36

Reliability:

The reliability of the data collected is usually .779 percent, which is very acceptable for factor examination.

Correlation:

According to correlation figures colour is very correlated to size and shape of letters and characters. Similarly size and form of letters and people is very (99%) correlated to the colour of package.

Factor Analysis:

MAJOR FINDINGS

Model Produced by Factor Analysis:

(a) Style for relationship between many packaging attribute for FMCG:

PACKAGING

ATTRIBUTES

Characteristics

Look

Shape & Size

Product Picture

Product Information

Size of Words

Benefits

Colour

Shape of Words

Shape of Package

Size of Package

Figure: 37

(b) Model for Aftereffect of positioning strategy on Colour, Size and shape of letters & Characters, shape of geometric figure & impression present on the offer:

1. If the product is directed towards upper class.

PRODUCT DIRECTED

TOWARDS UPPER

CLASS

CLASS A

CLASS B

SIZE & SHAPE OF LETTERS & CHARACTERS

SHAPE OF GEOMETERIC FIGURE

IMAGE PRESENT

COLOUR

Figure: 38

2. If the merchandise is positioned as reasonably priced.

PRODUCT POSITIONED AS REASONABLY PRICED

COLOUR

SHAPE & SIZE OF LETTERS & CHARACTERS

GEOMETERIC FIGURE

IMAGE

Figure: 39

3. If something positioning is based on guarantee, safety and sturdiness.

PRODUCT POSITIONING IS BASED ON GUARANTEE, SAFETY AND DURABILITY

COLOUR

SHAPE & SIZE OF LETTERS & CHARACTERS

GEOMETERIC FIGURE

IMAGE

Figure: 40

4. If a product positioning is based on refined, sober and graceful aesthetics.

PRODUCT POSITIONING IS BASED ON REFINED, SOBER AND ELEGANT AESTHETICS

CLASS A

CLASS B

COLOUR

SHAPE OF GEOMETERIC FIGURE

IMAGE

SIZE & FORM OF LETTERS & CHARACTERS

Figure: 41

5. If something positioning is based on region of origin, patriotism.

PRODCUT POSITIONING IS BASED ON COUNTRY OF ORIGIN

CLASS A

CLASS B

IMAGE

SIZE & SHAPE OF LETTERS & CHARACTERS

COLOUR

GEOMETRIC

Figure: 42

6. If something positioning is based on excellence, high value, and variety.

PRODUCT POSITIONING IS FOUNDED ON EXCELLENCE, HIGH PRICE & VARIETY

CLASS A

CLASS B

SIZE & FORM OF LETTERS & CHARACTERS

SHAPE OF GEOMETERIC FIGURE

IMAGE PRESENT

COLOUR

Figure: 43

7. If something is positioned for the middle class and positioning is based on noble principles.

PRODUCT IS POSITIONED FOR MIDDLE CLASS

CLASS A

CLASS B

COLOUR

SHAPE OF GEOMETERIC FIGURE

IMAGE

SIZE & FORM OF LETTERS & CHARACTERS

Figure: 44

CONCLUSION

(a) Unit for relationship between various packaging attribute for FMCG

According to the model developed, the product picture, product data, size of words and phrases and benefits comes under the same class. The merchandise picture helps in deciding the fact that where in fact the figure should be placed on the package in order that it have bigger recall value. The product information give us thought what sort of information consumer wants, size of text plays a important part in gaining attention and benefits helps in attracting interest. All these attributes participate in the same class because of their ability in providing useful information. Shape of words, size of offer; form of package comes beneath the same group named condition and size.

(b) Model for Effect of positioning strategy on colour, size and condition of letters & characters, form of geometric figure & graphic present on the package

According to the model developed by the factor analysis distinct attributes of packaging comes under distinct group depending upon their positioning strategy.

LIMITATIONS & FUTURE RESEARCH LINES

This study can be replicated by increasing the sample size and incorporating responses from various other regions to validate the findings. Furthermore the proposed types can be verified through the use of confirmatory factor analysis and derive actual values about which attribute (factor all together) plays an essential role in influencing consumer perceptions for product packaging of FMCG.

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