Why packaging is important

Packaging is possibly the most visible marketing tool. Ironically, only a handful of Indian companies give it due credit

No one can deny an inveterate shopper the pleasure of walking around, swinging colourful shopping bags carrying goods from different brands. The shopping bag is a powerful symbol, a subtle display of your brand choices without being labeled ostentatious. This psychology of the shopping bag can just as easily be extended to our obsession with the so-called externalities of the product.

In the second edition of its annual study, Packaging Matters, MeadWestvaco Corporation (MWV), a global packaging solutions company, highlights the role of packaging as an influencer. (See Statpseak). The research shows that packaging plays a significant role in brick-and-mortar retail purchasing behaviour. Empirical evidence has already established that packaging plays a significant role in the purchasing process - trial, repeat or switch. The study corroborates that with statistics:

Trial: 65 per cent have tried a product because the packaging caught their eye on the retail shelf

Repeat: 55 per cent purchase a product again because of the packaging

Switch: 50 per cent have switched brands because of negative experiences with new packaging

"Brand owners must recognise the significance of packaging and invest in getting it right, as it is directly proportional to the bottom line," said Gautam Sircar, country head and MD, MWV India

The study also examined the online shopping habits of global consumers. It was found that a host of behaviours, beyond purchase-related decisions, can be influenced by packaging. When shopping online, consumers in India reported that product packaging has led them to research more information about a product (41 per cent), write online reviews that mentions the packaging (39 per cent), 'friend' or 'become a fan' of a brand/company on social networking sites (40 per cent) and post something about that product on social media (36 per cent).

Indians clearly seem far more influenced by packaging than their global counterparts. In the study, the contribution of packaging in overall product satisfaction is put at 71 per cent by Indians compared to the 41 per cent global rating. Brand owners attribute these high scores to primarily two factors: One, that a large majority of the consumer base is getting exposed to many product categories for the first time. Two, and possibly part of the irony too, that the aspirational value goes hand in hand with our strong cultural preference for utilitarian traits. We expect our packaging to be reusable as well.

However, the study indicates that there is much to be done to improve this experience. Sample this: Only 17 per cent of Indian consumers are satisfied with packaging today, compared with 11 per cent of global consumers. Functional attributes, such as protecting the product from spillage and making the product easy to pull out from the stacks, are considered the most important packaging attributes . However, these are the attributes where Indian brands seem to be underperforming in the eyes of consumers. Take the case of the squeezy ketchup bottles. The bottle design resolved a usage issue. No more wastage of ketchup stuck at the base of the bottle. Unlike the glass bottles, that see applications as wide ranging as a container option in the kitchen to more eclectic usages like lamps and plant holders, the squeezy bottle found no reuse.

So which aspect of packaging do you attach more importance to? Fixing a functional problem or maintaining utilitarian characteristics?