Packaging and Labeling

Packaging

• Package: physical container or wrapping for a product
• Integral to product design process
• 10% of retail price is spent on the design of packaging

Promotion/Selling

• Customer reactions to packaging impact purchasing decisions
• Provide messages about performance, features, and benefits
• Helps to minimize the loss of sales to competing products

Define Product Identity

• Promotes product image
• Conveys: prestige, convenience, status, etc.

Provides Information

• Provides directions for use
• Provides information about its contents, nutritional value, or potential hazards

Expresses Customer Needs

• Packages come in various sizes to meet different demands
• Example: family packs
• Must keep up with changing values and lifestyle trends

Ensure Safe Use

• Insure product safety
• Blisterpacks: packages with preformed plastic molds surrounding individual items arranged on a backing
• Childpoof containers

Protecting the Product

• Protects product during shipping, storage, and display
• Should also prevent tampering, shoplifting, breakage, and spoilage

Packaging Issues

• Packaging allows companies the opportunities to incorporate the latest technologies
• Packaging can also address environmental and social concerns

Aseptic Packaging

• Food storage process that keeps foods fresh without refrigeration for extended periods
• Involves sterilization of the packaging and the food
• Filled and sealed in a sterile area

Environmental Packaging

• Response to demand for environmentally sensitive design
• Reusable, recyclable, and safer for the environment

Cause Packaging

• Packaging to promote social and political causes
• Encourages consumers to participate in different causes
• Used to increase differentiation from competitors

Labeling

• Information tag, wrapper, seal, or imprinted message that is attached to a product or its package
• Main function is to inform consumers about the contents and to provide directions for use
• Protect companies from liabilities
• Some labeling is government regulated

Brand Label

• Label giving the brand name, trademark, or logo
• Example: Chiquita banana label

Descriptive Label

• Label that gives information about the product's use, construction, care, performance, and other features
• Can include: illustrations, weight and dimensions, dating and storage, ingredients, product guarantees, and instructions

Grade Label

• States the quality of the product
• Example: Grade A eggs

Labeling Laws

• Packaging must meet local, state, and federal standards
• Fair Packaging and Labeling Act (1966)
• Prevent manufacturers from misleading consumers with deceptive or incomplete labels

FDA Regulations

• Nutrition Labeling and Education Act
• Requires nutritional information on food
• Health warnings on packages

FTC Regulations

• The Care Labeling Rule
• Care of products must be on labels
• FTC monitor false or misleading advertising

Department of Agriculture Regulations

• National Organic Rule: produced without hormones, antibiotics, herbicides, insecticides, chemicals, genetic modification, or germ-killing radiation
• Country of Origin Labeling: must be placed on all fruits, vegetables, peanuts, meats and fish

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