How can companies use packaging, labelling, warranties and guarantees as market tools

Chapter 11: Setting product strategy

How can companies use packaging, labelling, warranties and guarantees as market tools?

By: Kartik SinglaIndian Institute of Technology(BHU), Varanasi

Packaging

Known as the 5th ‘P’ of marketing mix. It includes all the activities of designing and producing the container for a product.

They can act as “five-second advertisements” and attract customer

attention during self-service purchases.

Packaging as a marketing tool

Appearance, convenience, dependability and prestige of

better packaging can convince the customer to pay more!!

Package appearance contribute to instant recognition of the

company or the brand.

Packaging

objectives

Aid product consum-

ption

Convey product

descripti-on

Assist home

storage

Identify the

brand

Colour and structural design of the package play a key role in visual marketing of a product.

“Beware!!! Some package design upgrades can lead to downfall of sales

too!!!!”

Labelling

Label is a simply attached tag or an elaborately deigned graphic that is a part of the package.

A label can:Help to identify the brand

Grade the product

Describe the product (who made it, when and where and how to use it?)

Promote the product through advanced graphics.

Warranties and Guarantees

is a formal statement of expected product performance by the

manufacturer.

Guarantee is an assurance that the product is of high quality and dependability.

Extended warranties and specific guarantees can increase customer confidence and reliability on the product!!!