Importance of Packaging in FMCG

This study explores the importance of packaging development, functions of packaging, and the perception of the consumer in the FMCG industry.

Running head:IMPORTANCE OF PACKAGING IN FMCG
Importance of packaging in FMCG
Name of the Student
Name of the University
Author Note

1IMPORTANCE OF PACKAGING IN FMCG
Chapter 1: Introduction
1.1 Introduction
Packaging is of great significance as a marketing strategy for the fast moving consumer
goods (FMCG) industry. Packaging can stimulate the consumer behavior by conveying
distinctive features to products. Most of the FMCG companies consider visual packaging as a
part of sales strategy in order to be at par with the competitive food packaging industry.
Packaging seems like a last impression, resulting in that helps consumer decide the final
purchase of the product. In this context, acknowledgement of New Product Development (NPD)
carries an important role for the FMCG owners to sustain in this growing competitive business
(Lo, Tung & Huang, 2017).Additionally, the packaging provides physical appearance comprising
product constituents, manufacturers and application to the consumers. The modern consumers
often devote considerable times on product labeling in order to know the product constituents. A
lot of research works including the have been attempted to find out the critical impact of
packaging on consumer impulsive choices. However, these studies fail to provide unanimous
solution regarding effect of package on buyer’s purchase decision. In this context, this paper
strives to examine how FMCG industry concerns about the consumer perception in case of
packaging improvement. Further, this study attempts to investigate the influencing factors related
to the development of new packaging system provided with analytical thinking.
1.2 Background of the Study

2IMPORTANCE OF PACKAGING IN FMCG
Packaging is used to ensure the safety against probable damages during performance of some
activities like selling, transporting and storing of the products. According to Marek (2014),
packaging is used as a key communication factor between a consumer and a final product
considering the impulsive nature of the consumer. There are several extinguished features such
as, size, color, shape, ingredients and containers that need to be emphasized while employing
packaging strategy of a product (Shah, Ahmad & Ahmad, 2013). Further, the elements of
packaging can be categorized into two aspects from the perspective of consumers. One of them
are the verbal elements containing name of product, manufacturer and brand slogan and other
one are the visual components like the brand image, shape and color (Raheem, 2014). Therefore,
further study is required to explore the role of packaging to understand which key elements are
responsible for the recent packaging development in the FMCG industry.
1.3 Rationale behind Study
This study shows two important aspects of growth of the packaging industry in regard to the
FMCG products. First, this paper elaborates the importance of packaging development in
general. Afterward, this paper also attempts to relate the consequences of improved packaging on
consumer perception in FMCG industry. This result will put forward a pathway to deciding
promotional elements for this special sort of industry. Moreover, detrimental impacts on
ecological balance need to be addressed while initiating new packaging technology (Seimiene,
&Kamarauskaite, 2014).
1.4 Problem Statement

3IMPORTANCE OF PACKAGING IN FMCG
Owing to lack of time availability consumers hardly get time for research work. They solely
depend on the product labeling to get informed about the product. Moreover, attractive
packaging also influences the impulsive nature of the consumer. Manufacturers are often unable
to amalgamate these two requirements in order to provide efficient solution to the final product
purchasers (Riley, Martins da Silva & Behr, 2015).Therefore, importance of proper packaging
has been a growing concern special for the FMCG packaging industries.
1.5 Research Aim
The aim of the research paper is to explore the importance of packaging development,
functions of packaging and the perception of the consumer owing to the FMCG industry.
Modern consumers concern not only for their health conditions also for the environmental
impacts caused by packaging. Manufactures need to cogitate both environmental and fitness
issues before implementing any new packaging policy. On the account of growing environmental
concern, manufactures are aimed at implementing green technology in the packaging process.
This results in reducing environmental harmful impacts instead of compromising the quality of
the products.
1.6 Objectives of research
The objectives of this study are explained as follows:
 Objectifying the elements of packaging that influence that has significant impact on the
perception of consumer in the FMCG industry
 Examining the perception of consumers towards the packaging in the FMCG industry.

4IMPORTANCE OF PACKAGING IN FMCG
 Recommending the factors having an impact on the consumer perception of packaging
development in the process of new product in the FMCG industry.
1.7 Research Questions
 What are the influencing factors that stimulate purchase decision of the consumer?
 What are the effective and promotional strategies need to be considered in case of the FMCG
industry?
 What are the important consumer perspectives regarding choice of FMCG products?
1.8 Significance of the study
This research study will put forward the consumers as well as the FMCG companies a
pathway in identifying influencing factors and their impacts on the consumer behavior. This
paper outlines the importance of packaging development in determining the new product
development and the consumer perception in the FMCG industry. Overall, this study will
evaluate the role of both verbal and non-verbal packaging in terms of giving their impressions on
the buyers.

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References:
Lo, S. C., Tung, J., & Huang, K. P. (2017). Customer perception and preference on product
packaging. International Journal of Organizational Innovation, 9(3), 3-15.
Marek, P. (2014). A critical analysis of the concept of marketing strategies for small and mid-
sized companies. Economics, Management, and Financial Markets, 9(4), 255-261.
Raheem, A. R., Vishnu, P. A. R. M. A. R., & Ahmed, A. M. (2014). Impact of product
packaging on consumer’s buying behavior. European journal of scientific research,
122(2), 125-134.
Riley, D., Martins da Silva, P., & Behr, S. (2015). The impact of packaging design on health
product perceptions.
Seimiene, E., &Kamarauskaite, E. (2014). Effect of brand elements on brand personality
perception. Procedia-Social and Behavioral Sciences, 156, 429-434.
Shah, S., Ahmad, A., & Ahmad, N. (2013). Role of packaging in consumer buying behavior.
International Review of Basic and Applied Sciences, 1(2), 35-41.