22-08-2014, 11:03 AM
Packaging design as a Marketing tool and Desire to purchase Project Report
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Abstract
Ksenia Polyakova
Packaging design as a Marketing tool and Desire to purchase, 72 pages, 2
appendices
Saimaa University of Applied Science
Faculty of Business Administration, Lappeenranta
Degree Programme in International Business
Bachelor’s Thesis 2013
Instructor: Mr. Riku Hytönen Senior Lecturer, Saimaa University of Applied
Sciences
The purpose of the study was to examine the consumer perception on different
design elements of a milk package and to provide essential information for the
companies about the consumer attraction and importance of design attributes from
the consumer point of view.
Introduction
Consumer market grows rapidly every year and the number of competitors among
different types of products and goods increases steadily. To standout against
competitors, every company tries to invent something new and to get the
competitive advantage for providing the product to the end customer. One of the
marketing tools that has become popular and important is packaging and
packaging design which allows companies to be different from each other and to
have more priorities among competitors. This has become a reason why nowadays
there is a big variety of design packages on the supermarkets’ shelves.
Packaging and packaging design have become significant factors in the marketing
of diverse “consumer goods” and have a main role in communicating product
benefits to the customer. Czinkota & Ronkainen (2007) deem that product
packaging is connected to other variables in the marketing mix (Rundh 2009, p.
988). Cateora & Ghauri (2000) say that these variables are within the control of the
company and they help to adapt to the changes in the business environment
(Rundh 2009, p. 988). According to Packaging Federation (2004 a,b), these
changes occur in different areas: new technology, materials development, logistics
requirements, environmental issues, consumer preferences; all are the key factors
for making decisions on marketing strategy (Rundh 2009, p. 988).
Objectives
Nowadays the development of the market economy highlights the importance of
package. The package plays a big role in the market where similar items exist and
it assists products with a new pack in standing out against competitors’ goods.
Schoormans & Robben (1997); Rettie & Brewer (2000) deem that package design
is one of the most significant parts of product strategy. It is estimated that
approximately 70 percent of all purchase decisions of goods are made at the point
of purchase. Therefore, the package itself is the only marketing communication the
consumer may receive while evaluating the product. (Holmes & Paswan 2012,
p.109.)
Delimitations
There are many objects that can be explored in packaging design. Because of the
big variety of products and goods, its sizes, different storage conditions, terms of
protection and transportation, there are a lot of aspects that should be taken into
consideration when creating the design and making the package. For instance, the
terms of storage for food and detergents will be totally different, as their package.
In order to have a specific area of the research, this study focuses on exact
product type and its packaging designs. Therefore, the work has delimitations
which help to concentrate on concrete objects and to get appropriate research
results.
This study is concentrated on product package designs only. The general
perspective of the packaging design is included into the theoretical part. The milk
package design features which are the core issue of the research are included into
Research method
This report refers to examine consumer perception and evaluation of the package
design. In order to analyze the data from different points of view and to make
correct interpretation, both, qualitative and quantitative research methods are used.
In marketing research the combination of these two methods is called “Mixed
method” research. Johnson & Onwuegbuzie & Turner (2007) say that the mixed
method has become a popular term for mixing qualitative and quantitative data in a
single study (Harrison & Reilly -, p. 8).
Johnson et al. (2007) define that mixed methods research is the type of the
research in which a researcher combines elements of qualitative and quantitative
research approaches for the broad purpose of breadth and depth of understanding
and collaboration (Harrison et al. -, p. 8). The mixed methods of data collection
enrich and confirm the picture of the researching area. The data collection in case
of current report includes interviews and survey. Here, interviews are interpreted
through qualitative research method, whereas survey is analyzed through
quantitative method.
Structure of the study
The current study consists of two main parts: theoretical and empirical. In the first
section, which is divided into three parts, the relevant literature is reviewed and the
theoretical framework is presented. The chapters include information about
packaging and packaging design. The theoretical concepts about packaging
functions, packaging elements, and packaging elements towards product are
described. Packaging as a decision making instrument and communication tool are discussed
Package and packaging design
In marketing literature, packaging is a part of the product and the brand. A
product's package represents its characteristics and communicates the product
information. For consumers, the product and the package are one and the same
when they see it on the supermarket shelves. During the purchasing decision, the
package assists the consumer by creating the overall product perception which
helps the evaluation and the making of the right choice. Furthermore, the package
is the product until the actual product is consumed and the package is recycled.
The package design adds value to the package and to the product respectively.
Design elements such as colors, font, text, and graphics have an important role in
package appearance. Pictures on the package in form of attractive situations
(mountains, beaches, luxury houses and cars) can assist in triggering lifestyle
aspirations (Rundh 2009, p. 999). At the point of purchase, the primary role of the
package and packaging design is to catch the consumers’ attention and to stand
out among the competition in the store or at the supermarket
Packaging functions
Packaging has many functions in different departments. It has its most essential
roles in logistics and marketing due to the fact that these two units are strongly
connected to the end-users of the product. The task of the package is to sell the
product by attracting attention and to allow the product to be contained, utilized,
and protected (Silayoi & Speece 2004, p. 610).
Marketing tool
Product design is an important marketing variable. It is also a vital instrument in
modern marketing activities for consumer goods (Rundh 2009, p. 988). To be
successful in today’s increasingly competitive marketplace, the product design,
namely appearance, should include the preferences of consumers (Creusen &
Veryzer & Schoormans 2010, pp. 1437 - 1438). Packaging provides an attractive
method to convey messages and information about the product attributes to
customers (Silayoi & Speece 2007, p. 1495).
Bloch (1995) says that the importance of product design is crucial to the success of
a product. It ensures consumer attention for the product, communicates
information, and it provides sensory stimulation. (Holmes et al. 2012, p. 109.)
According to Berkowitz (1987), an exclusive and unique package design is a way
for a new product to be noticeable among familiar packages offered by
competitors. (Holmes et al. 2012, p. 109.)
The design of a package contributes to the communication of value and has a
strong influence on sales of a particular product. The package and package
benefits are essential instruments in marketing strategie
Packaging elements towards product
The actual package can be considered as a part of the product since it can assist a
product’s benefits and be important for the product usage (Rundh 2009, p. 991).
For different products, the shape of the package is the crucial factor for success in
the marketplace, whereas size and color can be vital for other goods. Graphics and
technology image are the other elements that also contribute to a successful
package. Since the packaging is the last marketing communication tool the
company uses before the purchase decision is made, the importance of package is
highlighted in the communication mix of a company.
The combination of shape creativity and color together with well-designed graphics
forms the package and creates consumer emotional appeal. Here, the logistics and
marketing aspects are considered and performed in cost efficient way. A
company’s stability and profitability are dependent on its product relevance and
business performance.
Influencing factors
From the historical facts it is known that the package has been utilitarian. It has
had specific attributes and special functions which nowadays are changed or
replaced with more convenient and functional elements. There are many internal
and external factors that have influenced the package and package design
throughout their existence. The result of these developments is presented and can
be observed by consumers in the supermarket. Nevertheless, packaging still
continues to improve and progress.
Consumer behavior
The modern market consists of a big variety and diversity of packages, designs,
products, goods, and services. It develops and innovates daily and makes
improvements in strategies permanently. However, it would not put so much effort
into the development if the consumer and the overall society would not need and
require new products, product ideas and functions. The market is the dependable
sector of industry and the consumers are only one indispensable element of
market performance which allows the industries to exist and grow. In order to
create an appropriate product or service, companies need to understand the
consumers, their behavior and perception, and to meet their needs and
requirements.
Perception
Nature endows people with feelings and senses by which a person can experience
the environment. Perception assists a person in understanding his or her
surroundings and phenomena as a more detailed concept. In other words,
perception is the process by which physical sensations such as sights, sounds,
and smells are selected, organized, and interpreted (Solomon et al. 2010, p. 118).
People during their entire life get tons of information which subsequently is filtered
and selected. The information can be in form of natural or background noise,
advertising or news, or even a sound. Here, people get information automatically
and react on it according to their needs, wishes or experience.
People notice only a small amount of stimuli and pay attention to an even smaller
amount. The meaning of these stimuli is interpreted by the individual according to
his needs and experiences. Figure 3 represents the process of perception where
the stages of sensation, attention and interpretation are illustrated.
Attention
Attention is the degree to which consumers focus on stimuli within their range of
exposure (Solomon et al. 2010, p. 130). Nowadays consumers are exposed to a lot
of advertising and design stimuli forcing marketers to become creative and original
in products and images in order to appeal to the consumers. When many stimuli
are competing to be noticed, one will receive the attention to the extent that it is
different from others. Here, size and color can catch the attention and can be a
way to achieve contrast.
Involvement and Packaging
Involvement is the interaction between consumer and product. During this process
the consumer receives the necessary information about the product and makes a
purchase decision. In other words, the consumer experiences the product either in
a direct or indirect way and makes a product choice. Here, the importance of the
package is vital due to the fact that it communicates straight to the consumer and
can influence on the decision making process.
Hoch and Deighton (1989) suggest that consumers have a four stage experience
process. First, the consumer forms a hypothesis about the product. Second, the
consumer has an experience with the package and product. Third, the consumer
collects the information about the package or perceives how he or she feels about
the package or product. Fourth, the consumer integrates the information and
updates his or her behavior. (Holmes et al. 2012, p. 109.)
Consumer decision-making
Consumers make the decisions to buy the products or goods according to their
needs and requirements. Since consumers have experience and product
knowledge, they tend to make a purchase choice. The decisions are built around
several factors and attributes which communicate to consumer through package
and product.
The consumer goes through several steps in order to make a purchase. First step
is called problem recognition. Here, the consumer sees the difference between the
current state and the desired one. Second step is information search. The
consumer investigates the data and makes a reasonable decision. Third step is
evaluation of alternatives. Here, the consumer collects the alternatives, identifies,
categorizes, and compares them against his criteria. Fourth step is called product
choice. Here, there are two rules that drive the decision. The non-compensatory
rule reduces the number of alternatives that do not fit the criteria the consumer has
set up. Compensatory rules mean that the consumer considers all alternatives
carefully in order to make the right choice. (Solomon et al. 1999.)
Consumer benefits
Consumers and potential, prospective buyers are the revenue and profit creators.
Companies innovate and develop products in order to satisfy and meet consumers’
needs. Here, consumer benefits are crucial because they enhance consumer
experience in using a particular package and product. The most important benefits
are: ease of opening, closing and releasing; ease of handling; convenient methods
of product processing; security and product integrity (Stewart 2004, p. 89).
The main function of the packaging is to consider the end-user and to make the
task of opening and using the product as easy as possible. The example of
creating consumer benefits in opening can be seen through gable-topped cartons
package for milk. Here, the manufacturers create plastic caps and spouts that
make the process of opening easy and simple.
Milk package
Milk package design is a core element of the current report. Milk is a dairy product
which is always needed for consumption and cooking. It is a demanded product all
over the world and it is an integral part of food. Hence, milk was chosen due to the
reason of purchasing demand. In the market where the high competition exists, it is
important to differentiate. In case of milk package, it is crucial to have an attractive
design in order to gain consumers’ attention and to stimulate purchase decisions.
There are a few companies in Finland which are specialized in the package design
creation and the milk package production. In case of the current report, two
companies are considered: Valio Ltd and Tetra Pak Ltd. Valio is a company that
produces dairy products such as yoghurt, milk, cheese, butter and etc. Valio is the
biggest milk manufacturer in Finland that has 86% of milk market shares. The task
of Valio is not only to produce dairy products but also to present them in attractive
form. The company creates the design, makes images and slogans. However, it
does not produce the actual package. This task concerns another company which
is also involved into package design creation. Tetra Pak is a food packaging and
processing company. Tetra Pak offers packaging and processing solutions for
dairy, beverages, ice-cream and prepared food.
Collecting and analyzing quantitative data
Quantitative data has been collected through the online questionnaire and has
been analyzed by the computer program Excel. This program has been chosen
due to the fact that a small amount of people have participated in the survey. The
target group of the questionnaire has included international students, particularly
from Finland, Russia and Germany. In order to have visual results of the research,
several diagrams and pie charts have been created. The presented numbers and
percentages are explained and described according to the results of the collected
data. However, the obtained results could not be scientifically precise since the
answers have been conducted by a small number of participants.
The online questionnaire lasted one (1) week and the survey questions were sent
to fifty (50) respondents. Thirty (30) persons took part in the questionnaire what
was equal to 60% of the total amount of people. The questionnaire consisted of
eleven (11) questions. The closed-ended, closed-ended likert, closed-ended rating
scale, and closed-ended dichotomous questions were included into the
questionnaire. These types of closed-ended questions assisted in getting straight
forward and exact answers. Two pictures were used in the questionnaire. The
respondents’ perception was examined by using two images of milk packages with
different design styles. The data were collected and analyzed according to the
answers provided by the respondents who were working with these two images
during the whole survey. The quantitative data analysis was used in the
first
research analysis
Main images of the questionnaire
The main objective of the research is to examine consumer perception on different
product designs. In order to investigate it, a particular product package has been
selected. Here, the milk package is the core element of the research. Two milk
packages with different design styles have been chosen and included in the
questionnaire. These two milk package designs have been selected by two criteria.
The first criterion: the package communicates different information and represents
different design elements. Here, the first package has visible product information
and shows a glass of milk, whereas the second package does not tell a lot about
the product and does not demonstrate the milk package attributes. The second
criterion: the package shape and opening tool. Here, first package has a form of
cuboids and a special cap, whereas the second package presents in an elongated
shape and can be opened by cutting or tearing
Milk package design - attention
Two milk packages with different design styles have been examined. All
participants answered the question and gave an opinion about what first caught
their attention.
According to the milk package (1), the color was noticed first by 50,0% of the
participants. Fifteen (15) people chose the option color as the first thing that caught
their attention. Product information was noticed by 26,3% of the respondents which
is equal to eight (8) people. Only six (6) persons perceived graphics and images
first; which is 20,0% of all respondents. However, there was only one (1)
participant whose attention was caught by the shape of the package; it has 3,3%
respectively
Milk package design and attributes
Question number ten (10) in the questionnaire was presented in a form of matrix.
There were four (4) statements with which the respondent agreed or disagreed.
The questions were about package design, its attributes and importance.
First statement was about “Milk package design is telling you about product
quality”. Here, only one (1) respondent strongly disagreed. Six (6) people
answered “disagree” and the same amount of participants had neutral opinion
about the design and product quality. The number of respondents who agreed with
the statement was fifteen (15) and the number of those who strongly agreed was
two (2).
Second statement was telling that “Size and shape of milk package are important
for you”. Here, one (1) respondent strongly disagreed with the statement. Four (4)
persons answered that they disagree and twelve (12) participants had neutral
opinion about the size and the shape importance. Eleven (11) people agreed with
the statements and two (2) strongly agreed.
Conclusion
The mixed research method was used in the empirical part of the study. The
quantitative results were acquired from the questionnaire. The qualitative findings
were obtained from the e-mail and the telephone interviews. The mixture of these
two research methods assisted in getting a comprehensive view on the packaging
design, its elements and attributes. It also provided information about consumer
perception on different design packages and attraction by different packaging
design elements. The main research findings were described and concluded.
According to the information provided by the Valio representative, it is known that
the consumers are involved in the process of selecting the design elements. The
customers are tested by using different designs in order to examine their
perception, preferences and attractions. In the quantitative research of the current
study the consumer perception and attraction were investigated and certain results
were obtained.
The quantitative results were collected through the questionnaire where two milk
package designs were examined. The research provided reliable figures and
numbers as well as the opinions about the package design and design elements.