REVIEW OF THE LITERATURE
3.4. Defining Packaging
Packaging is defined as “any materials of any nature to be used for the containment, protection, handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the user or the consumer” (1994 cited in: European Parliament and Council Directive 94/62/Ec of 20 December 1994 on Packaging and Packaging Waste).
Chapter 3 – Packaging in the supply chain: Review of the literature
86 Another extensive definition of packaging is given by Beck (n.d.): “A container providing a means of marketing, protecting or handling a product, including unit packaging, intermediate packaging, and shipping containers. Includes unsealed receptacles such as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping films, bags and tubs. Tin-plated steel, hotdip and electrolyte galvanized steel, and galvanized wire shall be considered packaging. Includes individual parts of a package such as blocking, bracing, cushioning, weatherproofing, exterior strapping, coatings, closures, inks, labels, dyes, pigments, adhesives, stabilizers, or any other additive.”
Ballou (1987), states that in logistics the product is in many ways of minor importance related to the package. Packaging has some physical characteristics (shape, volume and weight), whereas in many cases the product inside may not have the same features.
Sara (1990) wrote that “packaging is the silent sales person and it is the final interface between the company and its consumers…”. This definition gives a brief indication of the basic character of packaging.
According to a survey conducted in the UK by Ipsos MORI (2008) on behalf of INCPEN11 and Valpak12 only 35% of the respondents believed that the packaging function is to protect the product and almost 1/3 of them (30%) believed that its main purpose is to keep product safe and hygienic. In the same manner a small proportion of 15% answered that packaging extends the life of the product itself.
On the other hand nearly half of the respondents (46%) answered that packaging uses too much materials and furthermore (35%) that the nature of packaging makes it difficult to dispose. The answers are graphically presented in the following Figure 3.2.:
11 INCPEN: The Industry Council for Packaging & the Environment
12 Valpak: The largest UK compliance scheme approved under the Packaging Waste Regulations.
87 Figure 3.2. “From the following list, please choose the three phrases you think are most applicable to packaging in general?”
Source: IPSOS Mori (2008), “Public attitudes to packaging 2008”, Report to INCPEN and Valpak, London.
Based on the same survey (Ipsos MORI, 2008) the level of agreement of the same respondents to the overpackaging issue is clearly shown in Table 3.1.:
Table 3.1. Aspects concerning the overpackaging issue
Most products are: Proportion
Very
over-packaged 43%
A little
over-packaged 36%
About right 17%
Under packaged 2%
Don’t know 1%
46%
35%
35%
34%
30%
25%
20%
15%
14%
3%
Uses too much material Protects the product Is difficult to dispose of Is bad for the environment Keeps product safe and hygienic Makes it difficult to get into the product Makes the product more attractive Extends the life of the product Makes the product easy to store Don't know
What is most applicable to packaging...?
Chapter 3 – Packaging in the supply chain: Review of the literature
88 Based on the same survey (Ipsos MORI, 2008) the most over-packaged products according to the participants are presented below in Figure 3.3.:
Figure 3.3. Illustration of the over-packaged products
Source: IPSOS Mori (2008), “Public attitudes to packaging 2008”, Report to INCPEN and Valpak, London.
According to the German Ordinance on the Avoidance and Recovery of Packaging Wastes (1998), packaging can be categorized into three types:
• Sales or primary packaging. The immediate containers in which goods are sold (Livingstone and Sparks, 1994). It is the direct material that the product is enclosed to, such as the plastic bottle of orange juice, the metallic can of tuna or the plastic bag of detergent.
• Secondary packaging. This category includes items such as corrugated boxes that can contain one or more primary packages (Rushton et al., 2000).
This kind of packaging has no contact with the product itself. This for example could be the corrugated box where plastic packets of salt are placed in. It is used for reasons of unitisation and easy of handling.
• Transport packaging. This type of packaging includes all these means (pallets, containers, crates) that are used to facilitate the transport of goods and to protect the product from damage during transportation.
The importance of packaging can be shown in the words of Meyers and Gerstman (2005), who support the aspect that nowadays and in addition to the four P’s of marketing, product, place, price and promotion, two more P’s: positioning and
59%
57%
41%
36%
33%
32%
0% 10% 20% 30% 40% 50% 60% 70%
Easter Eggs Electronics equipment Pre-packed fruit and vegetables Ready meals Sandwiches and lunch meals Cosmetics
Which of the following products are over packaged?
Percentage of affirmative answers
89 packaging should be added. They add that brand positioning and packaging are two interrelated factors that support each other. For what is relevant to packaging, they state that it is its ability of communicating the positioning of the brand, of conveying the product’s benefits to the consumer and of driving the final purchase decision at the point of sale that makes it so important, especially for retail marketing. In addition to the above, Denison and Cawthray (1999) cite, that the competitive environment at the point of sale has never been more aggressive and it is packaging that undertakes to convey the right message to the consumer.
In Experimental Packaging (2001), Mason states that contemporary packaging has to be harmonized with modern market conditions. For this reason, he adds that in order to be effective and stand successfully in the competition, packaging has to be:
• Recognisable. It is essential to make an immediate positive effect and remain in the consumer’s memory. It should have attractive characteristics for what is relevant to its shape, colour or materials used and be instantly recognisable. A characteristic mostly acquired through advertising and marketing.
• Informative. The packaging should be able to provide information about the product included; a function that is more informative than the best TV commercial. It is one of the most difficult issues for a designer because it must necessarily appear and often carries a lot of space.
• Textural. The use of textured materials can give important competitive advantages to a product. The sense of touch can affect the buying decision and improve the product’s attractiveness.
• Functional. The package should work just like the advertising said it would. Special form, holes, spouts etc. of the package, should offer the function that is described in the advertisement of the product.
• Dependable. Nowadays this tends to be the most important feature, especially for food sector. This aspect of packaging is the most familiar issue to consumers, albeit often not visible until a problem arises (Emblem 2000).
Innovative forms of packaging (eg. Tetrapak) will in future replace the older and less reliable materials. A notable example is that of Earth Water International13
13Earth Water International is a bottled water company, which donates all of their net profits from the sale of Earth Water to the United Nations’ UNHCR.
Chapter 3 – Packaging in the supply chain: Review of the literature
90 who substituted its PET bottles with environmental friendly Tetra Pak containers that are fully recyclable (White-Sax, 2008).
Underlining the importance of the visual characteristics of packaging Kalkowski (2012) states: “When consumers make their buying decisions in a matter of seconds, they are hungry for the newest, brightest and most creative packaging to capture their attention.”
An interesting aspect concerning packaging is cited in Waste Online (2005), which states that packaging innovations are strongly related with social and economic change. The continuous economic growth in the western world, that is translated in an on – going increase in consumer goods and the demand for more, new and innovative products, has boosted packaging operations and transformed them into a vital factor for the whole supply chain. The above can also be verified from the fact stated by the UK Packaging Federation (2002), that 70 – 80 percent of all packaging is used in the supply chains of consumer goods.