Page 316 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 283

Packaging also must meet the needs of resellers. Wholesalers and retailers consider
whether a package facilitates transportation, storage, and handling. Walmart is requiring its
suppliers to reduce the amount of packaging and try to put the contents into smaller containers
to ship more efficiently. Resellers may refuse to carry certain products if their packages are
cumbersome. Concentrated versions of laundry detergents and fabric softeners aid retailers in
offering more product diversity within the existing shelf space.

Packaging and Marketing Strategy

Packaging can be a major component of a marketing strategy. A new cap or closure, a better
box or wrapper, or a more convenient container may give a product a competitive advantage.
The right type of package for a new product can help it to gain market recognition very quickly.
Sprout Foods, for example, was started a few years ago by celebrity chef Tyler Florence.
The company produces high-quality organic baby food packaged in convenient resealable
pouches. Even though the package costs more to use than the traditional glass jar packaging,
its design with the zipper closure decreases the time it takes to heat up the baby food, allows
it to fit more conveniently in diaper bags, and keeps food fresh for three days after it is first
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opened. Marketers should view packaging as a major strategic tool, especially for consumer
convenience products. When considering the strategic uses of packaging, marketers also must
analyze the cost of packaging and package changes. In this section we examine several ways
in which packaging can be used strategically.
At times, a marketer changes a package or labeling because the existing design is no lon-
ger in style, especially when compared with the packaging of competitive products. Quaker
Oats hired a package design company to redesign its Rice-A-Roni package to give the product
the appearance of having evolved with the times while retaining its traditional taste appeal.
A package may be redesigned because new product features need to be highlighted or because
new packaging materials have become available. Wendy’s redesigned its Wendy’s logo, tak-
ing out the “Old Fashioned Hamburgers” from the logo and making the pig-tailed girl look
more simplifi ed and modern. The chain hopes to portray itself as a higher-quality fast-food
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restaurant chain.
An organization may also decide to change a product’s packaging to make the product
safer or more convenient to use. NatureSweet, for example, altered the package for its cherry
tomatoes when it introduced a clear plastic container to replace the classic red mesh bag
packaging. The new plastic packaging is more sustainable than the bags, makes the product

Marketing Debate

The Legal Implications of Energy Drinks

ISSUE: Should energy-drink labels disclose the amount Added together these additives might increase the
of caffeine in the beverages? amount of caffeine found in the beverages. Some regions,
such as Canada, have passed or are considering passing
A debate is raging concerning the health effects of energy legislation to limit the caffeine content in energy drinks.
drinks. A major issue is that while energy-drink labels Others argue that additives do not add additional caffeine.
state that the beverages contain caffeine, most do not This would make the labels completely legal. The Food
label the amount of caffeine. Critics state that overcon- and Drug Administration has found no issues with energy
sumption of caffeine can create heart problems. Some drinks, but the New York legislature is investigating
fear that additives such as guarana add additional caf- energy drinks such as Monster and Living Essentials to
feine, which, if true, violates a law against adding multiple determine compliance with laws and regulations.
c
sources of caffeine without disclosing such information.

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