Importance of Packaging in FMCG

Running head:IMPORTANCE OF PACKAGING IN FMCG
Importance of packaging in FMCG
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IMPORTANCE OF PACKAGING IN FMCGChapter 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

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IMPORTANCE OF PACKAGING IN FMCGPackaging 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