Packaging: Levels and Importance, Product Line and Product Mix Strategies

The design and manufacture of the container or wrapping for a product are referred to as packaging. Traditionally, the package's main job was to contain and protect the product. However, a number of variables in the modern era have also made packaging a crucial marketing strategy. Due to heightened competition and shelf clutter, packaging must now fulfill a variety of sales functions, from grabbing attention to outlining the product in order to close the deal. Businesses are starting to understand how effective packaging can make a brand instantly recognizable to customers. For instance, the typical Walmart supercenter has 145,000 goods in stock compared to the typical supermarket's 50,000. Between 50 and 80 percent of all purchases are done in stores, where the average customer passes 500 items per minute. Due of the intense competition, the package may be the seller's final and best opportunity to sway customers. As a result, the box itself has emerged as a key promotional medium for many businesses.

Packages with poor design could give customers problems and cost the company sales. An advantage for a business could come from innovative packaging.

Levels of Packaging

Primary Package

The principal package is the one that contains the real commodity. The initial packaging is the one that comes with the product. Until consumers have consumed the goods entirely, the package is still linked to it. Examples of primary packaging include prescription bottles, cigarette packets, matchboxes, toothpaste tubes, and more.

Secondary Package

The term "secondary package" describes the additional layer of security that is placed atop the first package. The secondary package is discarded or removed once the product has been delivered to the home or is prepared for use. Examples of secondary packaging include the soap container lid, the cardboard box in which a tube of toothpaste is stored, etc. The second shipment is not kept by the clients for very long.

Shipping Package

The shipping package is used to make the products easier to identify, handle, transport, and store. For products of this sort that must be transported large distances, stored for a long time, and loaded and unloaded repeatedly, shipping packages are essential. There may be numerous primary and supplementary packages under this package. Examples of shipping packages include cartons, hardwood boxes, cardboard boxes, plastic boxes, and others.

Functions of Packaging

• Product Identification: The product is identified by its packaging. To set the products apart from those of the competition, they are packaged in unique shapes, colors, and sizes.
• Product Protection: Protecting the goods from different hazards, such as dirt, insects, humidity, and breakage, is the primary purpose of packaging.
• Convenience: Packaging provides convenience in the carriage of the product from one place to another while stocking and consuming.
• Product Promotion: Packaging simplifies the task of sales promotion. Packing components in the house remind the consumers constantly about the product. In this way, packaging performs the role of a passive salesman and it increases the sales.

Product Line Decisions

Building a product line is another step in the product strategy process that goes beyond choices about specific goods and services. A product line is a collection of goods that are closely related to one another because they serve the same consumer segments, are distributed through similar channels of distribution, or are offered at comparable price points. For instance, Nike manufactures numerous lines of athletic shoes and clothing, while Marriott provides numerous hotel brands.

The primary decision affecting a product line is its length, or the total number of items in the line. If the manager could boost profits by adding things, the line is too short; if the manager could raise profits by removing items, the line is too lengthy. Managers must periodically review their product lines in order to evaluate the sales and earnings of each item and comprehend how each item affects the performance of the line as a whole.

The aims and resources of the company have the biggest impact on product line length. To enable upselling, for instance, can be one of the goals. As a result, BMW aims to upgrade its 1-series vehicles to the 3-, 5-, 6-, and 7-series. The possibility of cross-selling could also be a goal since HP also sells printers and toner supplies. A business has two options for growing its product line: by-line filling and line stretching. Filling a product line refers to the addition of new items to the line's current assortment. Product lines should be fully stocked for a variety of reasons, including dealer satisfaction, maximum capacity utilization, leading full-line organization status, and plugging gaps to keep rivals out. When line filling causes consumer confusion and cannibalization, it is overdone. The company needs make sure that new products stand out from the competition.

Stretching a company's product line means extending it beyond what it now offers. The business may extend its line both up and down or both up and down. Businesses that are at the top of the market may extend their lines below. A business may reach downward to fill a market gap that would otherwise draw a new competitor or to counter an attack from rivals on the top end. Or, if it notices that low-end segments are growing more quickly, it might add low-end products. In response to rising consumer demand for more cost-effective vehicles, the fit, which was priced between $14,000 and $15,000, preceded rivals in the new-generation micro car sector. Companies can expand their product ranges to higher levels. Sometimes businesses reach higher to elevate their current offerings. Or perhaps a greater growth rate or higher profitability at the top end will draw them in. For instance, a few years ago, each of the major Japanese automakers unveiled a high-end vehicle: Honda unveiled Acura, Toyota unveiled Lexus, and Nissan unveiled Infiniti. Instead of using their own names, they had adopted completely new ones. Companies in the middle of the market may choose to extend their lines in both directions. This was done by Marriott in its hotel product range. In order to cater to both the high end and cheap end of the market, it has introduced eight new branded hotel lines in addition to normal Marriott hotels.

The primary danger of this technique is that some visitors will downgrade after discovering that the more affordable Marriott hotels offer nearly all they need. However, Marriott would like to retain these clients than lose them to rival businesses.

Product Mix Decisions

The business has a product mix and offers numerous product lines. All of the product lines and items that a specific vendor provides for sale make up the product mix. The four main product categories that make up Colgate's product mix are dental care, home care, personal care, and pet nutrition. There are many sub-lines under each product line. Fabric conditioning, dishwashing, and household cleaning goods are included in the home care line. Each line and sub-line is made up of numerous distinct elements. Colgate's product line includes hundreds of different things in total. The four key dimensions of a company's product mix are breadth, length, depth, and consistency.

The organization's ability to carry a wide variety of product lines is correlated with product mix width. For instance, the "Colgate World of Care" offers a somewhat restrained selection of trustworthy personal and home care items.

The total number of things a company carries within its product lines is referred to as the product mix length. Within each line, Colgate often carries various brands. For instance, its personal care collection includes Skin Bracer and After aftershaves, Speed Stick deodorant, Irish Spring bar soaps, and Softsoap liquid soaps and body washes.

The number of variations available for each product in the line is correlated with product mix depth. Colgate offers 16 different types of toothpaste, including Colgate Total, Colgate Sensitive, Colgate Max Fresh, and Colgate Tartar Protection. Other variants include Ultra Brite, Colgate Sparkling White, Colgate Cavity Protection, Colgate Luminous, and Colgate Kids Toothpastes. Every type has its own unique formulas.

Last but not least, product mix consistency describes the degree to which different product lines are tied to one another in terms of their final uses, production needs, distribution methods, or other factors. Colgate's product lines are consistent in that they are consumer goods and are distributed through the same channels.

• These elements of product mix serve as the levers for establishing the company's product strategy. There are four opportunities for the company to expand:
• It might expand its product mix by adding additional product lines. As a result, the company's new lines build on its other lines' reputation.
• The company might expand its current product lines to offer a wider range of goods.
• It might expand its product mix by adding more variations of each product.
• Depending on whether the firm intends to build a good reputation in one specific industry or across several other fields, it may decide to pursue more or less product line consistency.

Reference

Kotler, P., & Armstrong, G. (2013).Principles of Marketing.Chennai: Pearson India Education Services Pvt Ltd.