2.5 Packaging and Over-the-Counter Drug Market
2.5.3 Marketing Functions
Today`s highly competitive environment characterized by changing trends in lifestyle, increasing self-service ethos and the proliferation of brands in the OTC drug market from which customers choose (Kauppinen-Raisanen, 2010; 2011; DeLorme et al., 2010), requires traditional herbal medicine firms to make their brands stand out from the clutter in the retail shelves.
Furthermore, Underwood and Klein (2002) suggested that as the advertising environment is increasingly growing to a point of saturation, firms are re-allocating their advertising funds to sales promotion and point-of-purchase communication. DeLorme et al., (2010) also argued that the conventional form of advertising has little impact when customers are deciding to buy non- prescription medicines.
Packaging design is regarded as one of the obvious competitive marketing tools (Kotler & Rath, 1983) that identifies and differentiates between competing brands and breaks through the over- crowded marketplace (Underwood & Klein, 2002; Rettie & Brewer, 2000). Quraeshi et al.
(1983) pointed out that packaging can be used as a tool for visual differentiation to distinguish products from other competing generic products. For example, by making the company name more visible in the package, stressing the use of colours or bold print, and using symbols or other graphic illustrations to distinguish the product from other generic counterparts. More importantly, the patient’s safety also depends on rapid and clear identification of drugs during emergencies (Drobrucka, 2014).
Packaging design can be used to transmit valuable information, provide customer satisfaction and overall gain competitive strength (Kotler & Kath, 1983; Butkeviciene, Stravinskiene, &
Rutelione, 2008), which can ultimately contribute to business success (Rundh, 2013). Well- designed packaging has the potential to build brand and improve sales (Kotler & Keller, 2009).
As an increasing number of pharmaceutical shops are turning to self-service retail outlets (Kauppinen-Raisanen, 2011), packaging may be the primary vehicle of transferring information between the product and the end-user at the point-of-purchase (Gonzalez et al., 2007).
It has been reported that, approximately 82 percent of decisions are made in the store, while 62 percent of all purchases are made on impulse (POPAI, 2014), indicating that potentially the role of packaging to communicate and influence product choice at point-of-purchase is heightened (Underwood, 1998). Obviously, packaging can be described as a key driver of impulse buying behaviour (Butkeviciene at al., 2008), and in some category of purchases, unplanned buying is estimated to be about 85 percent of sales (Wallace, 2001). Hence, firms’
attention on packaging as an in-store communication and brand-building tool has been increasing rapidly (Deliya & Parmar, 2012; Rettie & Brewer, 2000). This has largely replaced much of the sales force in the store (Garber et al., 2000a) and also reduced the cost of advertisement and branding (Gonzalez et al., 2007).
Essentially, packaging is seen as a promotional tool as it performs a similar role as the other marketing communications elements (Silayoi & Speece, 2007). Young (2008) also pointed out that packaging design is an important cue that influences product perceptions and brand image, improves functionality and post-consumption satisfaction.
Clearly, the contribution of packaging to sales and hence, the overall profit margins of a business organization cannot be overlooked as the self-service ethos becomes popular and the trend of lifestyle changes. Past research reveals that the customer perception of herbal medicines is positively influenced by packaging (Kumah et al., 2015). Indeed, at the point-of- purchase, packaging obviously provides opportunity to a firm by influencing customer perceptions (Kotler et al., 2002). Packaging is also an important product attribute that customers infer from in the store when the brand is less familiar or shopping for products in an unfamiliar category (Underwood, Klein, & Burke, 2001). Moreover, in the shop, where the customer might not have thought deeply about the brand before entering the store, the intention to buy a brand may depend upon what is communicated at the selling point (Silayoi & Speece, 2007).
Lofgren (2005) noted that, packaging must therefore transfer a message to the customer at the point-of-sale, while reinforcing the customer`s intention to buy by conveying valuable information and user-friendly benefits. The purpose of this message has been to stimulate interest in the market offering (Gardner, 1981) and ultimately, sell the offering (Griffin, Sacharow, & Brody, 1985). Packaging has been customers` initial point-of-contact with the
product in the store shelves, and it affects customers` first and later impressions (Kotler &
Keller, 2009) about the company and its products.
It has been highlighted that packaging is important at the first moment-of-truth by attracting attention and transmitting the product benefits to the customer (Lofgren, 2005). Underwood and Ozanne (1998) suggested that with products which are bought in their raw state like food stuffs, the buyer often depends on the packaging to form an impression about the final product.
The product appearance communicates the product`s uniqueness and originality to the customer which plays a crucial role in brand preference (Silayoi & Speece, 2007).
Ghoshal, Boatwright, and Cagan (2009) noted that packaging can be considered as special form of advertising tool because it can used as a tangible medium of communication to transfer vital messages about the actual product. Thus, packaging continues to influence and strengthen customer brand preference long after the buying decision is made.
Packaging also appears to be the only advertising tool that communicates to customers at every stage of the buying-decision process in the store. A study indicates that packaging influences customers’ decision-making before, during and after purchases (Butkeviciene et al., 2008).
Moore (2012) stated that, the only means of communication between the manufacturer and the customer when the product leaves the pharmacy is via packaging. Packaging therefore reinforces the instructions given by the OTC medicine seller, and ultimately improves the compliance of the drug therapy (Keerthi, Prasanna, Sharuna, & Rao, 2014). For a large majority of customer goods, packaging offers a cost and sales-effective medium of communication at the selling point (Wallace, 2001). It has also been established that, packaging is the biggest vehicle of communication because of its extensive reach to many prospective buyers, its presence at the point-of-purchase and at high involvement level when customers actively search for package information to make purchase decisions (Peter, 1994 cited by Brassington
& Petitt, 2003).
It has been emphasised that the traditional form of advertisement usually lasts for a few seconds while the average length of OTC commercial is around 21.7 seconds and are mostly transmitted in the mid-afternoon (2–4 pm) and early evening (6– 8 pm) in a day (DeLorme et al., 2010).
Although verifiable data are not available, this situation is not different from the advertisement of OTC herbal medicines in Ghana. Indeed, a product package is recognised as a more
permanent and pervasive medium of brand communications platform than any other promotional tools (Wallace, 2001). In addition, a brand that receives low advertising support and loyalty, packaging becomes the only essential tool of communication to the target market (Bundh, 2005). Empirical evidence reveals that well over 73 percent of customers rely on packaging to support their purchasing decisions at the selling points (Well et al., 2007).
Creusen and Schoormans (1998) also argued that packaging performs six different roles:
communication of aesthetics, symbolic and functional value, grab attention, categorization and ergonomic. In a way, packaging transmits aesthetic and symbolic value, functional features and offers quality impressions as well as facilitate ease of use. Enhanced attention can increase sales by ensuring that the brand enters the customer`s consideration set (Underwood & Klein, 2002).
Consequently, packaging performs an invaluable role in the marketing strategy along with other marketing variables. From the perspective of the customer, packaging conveys value, messages, simplifies choice and entertains (Kotler & Rath, 1983). It has been emphasised that customers` perception and consumption of attractively designed product form can enhance sensory pleasure and stimulation (Bloch, 1995). A packaging may add value to the product by transmitting product features, aesthetic and positive information as well as preserving the product quality (Gonzalez et al., 2007).
Packaging also represents the company and its brands which may enhance customers`
confidence in the company`s image as well as its brands (Kotler & Keller, 2009). A high quality packaging design can create an opportunity for companies to charge premium price, and increase and sustain market share for their brands. Due to rises in income levels, affluent buyers may be willing to pay more for dependability, prestige, convenience and aesthetics offered by innovative packaging design (Kotler, 2003).
Kotler and Rath (1983) suggested that, a well-managed packaging design can re-invigorate customer interest for a matured product to increase its share in the market and create a personality for a new product to distinguish it from competitors. For example, toothpaste pump dispensers increased market share by 12 percent because they offered greater convenience and were mess-free (Kotler, 2003). Moreover, warranties and guarantees which are important part of the product strategy frequently appear on the packaging (Kotler & Keller, 2009).