Page 317 - Foundations of Marketing

284 Part 4 | Product and Price Decisions

more visible to the consumer, provides more protection for the tomatoes during transport and
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handling, and limits ventilation, which increases the shelf life of the product. A product’s
packaging can also be changed to make it easier to handle in the distribution channel—for
example, by changing the outer carton or using special bundling, shrink-wrapping, or pallets.
In some cases, the shape of the package is changed. Outer containers for products are some-
times changed so that they will proceed more easily through automated warehousing systems.
Marketers also use innovative or unique packages that are inconsistent with traditional
packaging practices to make the brand stand out from its competitors. Orville Redenbacher
now offers several flavors of its microwave popcorn in packaging that converts to a convenient
pop-up bowl. Heinz began selling its new Dip & Squeeze Ketchup packets in stores as a result
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of the good consumer response to the products from their use in restaurants. Unusual pack-
aging sometimes requires expending considerable resources, not only on package design but
also on making customers aware of the unique package and its benefit. Research suggests that
uniquely shaped packages that attract attention are more likely to be perceived as containing
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a higher volume of product.
Finally, multiple packaging can also be implemented in a firm’s packaging strategy. Rather
than packaging a single unit of a product, marketers sometimes use twin-packs, tri-packs, six-
packs, or other forms of multiple packaging. For certain types of products, multiple packaging
may increase demand because it increases the amount of the product available at the point of
consumption (e.g., in one’s house). It also may increase consumer acceptance of the product
by encouraging the buyer to try the product several times. Multiple packaging can make prod-
labeling Providing identifying, ucts easier to handle, store, and increase consumption as in the case of the “cube,” which is
promotional, or other information a box of 24 to 30 12 -ounce soft drinks sold in the summer when consumption of Coca-Cola,
on package labels Pepsi, Sprite, and other beverages are higher.

LO 8 . Understand the functions LABELING
of labeling and selected legal
issues.
Labeling is very closely interrelated with packaging and is used for identification, promo-
tional, informational, and legal purposes. Labels can be small or large relative to the size of
the product and carry varying amounts of information. The sticker on a Chiquita banana, for

Emerging Trends

Domestically Made Products Thrive

Made-in-America apparel is generating an upsurge of Barneys are marketing the idea that hand-tailored clothing
interest within the fashion world both domestically and produced in America is worth the investment for customers.
internationally. Companies such as Levi’s, American The ability to control the quality and amount produced is
Apparel, and J.Crew are taking notice with American-made also appealing for companies to ensure exclusivity for con-
products. A greater preference for American-made goods sumers. Other countries are also interested in American-
may signal a shift toward small-scale, specialized garments made clothing, with Japanese businessmen showing a
as opposed to mass-produced, mechanized clothing. willingness to purchase American hand-tailored suits.
While the trend for outsourcing seems to have become Despite its growing popularity, American-made prod-
the norm for most manufacturing companies, the benefits ucts often cost significantly more than those manufactured
of having products produced, packaged, and branded within overseas. This makes them expensive for the average con-
the United States is one that will potentially be beneficial to sumer, potentially limiting growth. However, as demand for
the economy—a fact that pleases many consumers. Based American-made products rises, manufacturers may become
d
on these benefits, Brooks Brothers, Neiman Marcus, and more inclined to tackle the challenge of cost in the future.

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