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May 2019 1558178923 7215076

Effect of packaging on fmcg and how it affects buying decisions
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0% found this document useful (0 votes)
7 views3 pages

May 2019 1558178923 7215076

Effect of packaging on fmcg and how it affects buying decisions
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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VOLUME-8, ISSUE-5, MAY-2019 • PRINT ISSN No.

2277 - 8160

Original Research Paper Economics


ROLE OF PACKAGING ON CONSUMER BUYING BEHAVIOUR IN THE CASE
OF FMCG PRODUCTS

Chythania. P. T Assistant Professor, MG College Iritty, Kannur,Kerala

ABSTRACT Fast moving Consumer goods (FMCG) or Consumer packaged goods (CPG) are goods which are sold at relatively
small prices at regular intervals. But they are sold in large quantities and hence cumulative pro ts on FMCG goods
are large. Major FMCG market includes European Union, China, Japan, Usa etc. Globally FMCG Sector growth is 4.4 %. The Indian FMCG
Sector is the fourth largest in economy. The India's contribution towards global consumption is expected to double to 5.8 % by 2020.
Predicted an Compounded annual growth of 27.86 % to reach US $ 103.7 billion by 2020.
Major Classi cation of FMCG Products are .Personal Care & House hold care which accounts for 50 %,.Food and beverage(19 %) and.Health
care(31 %).. The major features of Indian FMCGS are a.Branding.b.Contract manufacturing.c.Distribution networks. large Unorganised
Sector. Branding consist of names, Logos, Labelling and packaging. Packaging plays an important role in the case of branding. Packaging
can be de ned as the activity of designing and giving a wrapper or container for the product. Various functions of packaging include safety
of the product, protection of product,Symblic communication, and promotion of the product. It has got important role because it is the
major channel that captures the consumer attention.. Brand packaging of the product has in uence while making a purchase decision. The
independent variable includes packaging color, size, shape and labelling. Customers prefer a product having packaging which is
protective, eco-friendly and convenient. Packaging is the essential and signi cant factor which largely persuades the consumer buying
behaviour. For different products they rate the aesthetic components like color, shape, size, material used, text and graphics differently.
Convenience is one of the most important factor in the case of skin and hair care products. Customers prefers brand name while choosing
oral care and deodorants. In the case of cosmetic products they gives due importance to the information content .Now a days people prefer
environmental friendly packages. Packaging makes brand unique, supports in affirming brand name, retain its distinctiveness, and stands
out on the shelf. The information which is properly delivered has powerful in uence on consumer buying preference. Changing of
packaging is essential from time to time. Manufactures must focus on packaging aspect in order to move their product off the shelf.

KEYWORDS : FMCG ,Branding,Consumer Buying Behavior,Packaging


FMCG SECTOR contributor to overall revenue in India.The growing awareness,
Fast moving Consumer goods(FMCG) or Consumer packaged disposable income and more focus on rural areas are the major
goods(CPG) are goods which are sold at relatively small prices at driving factors for growth. The focus on union budget 2019-20 in
regular intervals. But they are sold in large quantities and hence MSMEs health care,agriculture,tax rebate and infrastructure is
cumulative pro ts on FMCG goods are large. Major Classi cation of expected to in uence and directly impact the growth in
FMCG Products are 2019.Moreover Companies like Pat Anjali and Dabur is planning to
expand their capacities in 2019.The major opportunities are large
1. Personal Care & House hold care which accounts for 50 %. number of younger population, high disposable income ,changing
2. Food and beverage(19 %) life style and Increasing awareness among people. The major
3. Health care(31 %) features of Indian FMCGS are a.Branding.b.Contract manufa
cturing.c.Distribution networkd. large Unorganised Sector.
GLOBAL SCENARIO
Major FMCG market include European Union, China, Japan,Usa etc. Consumer Buying Behavior
Globally FMCG Sector growth is 4.4 % while Indian FMCG growth is Before addressing Consumer buying patterns or buying behaviour
far slower that this rate. Now a days FMCG Sector has shifter focus to we should draw a clear line between customer and consumer. A
E-Commerce due to increased use of Mobile and internet. Major customer is the recipient of a good, service, product, or idea,
FMCG Companies are Unilever,Procter & Gamble, Nestle , General obtained from a seller, vendor or supplier for a monetary value.
mills, Coca Cola, H.J Heinz, Reckitt Benckiser, Sara Lee, Kleenex, Kraft, Customer can be divided into Intermediate customer (Trade
PEPSI, Wilkinson and Mars. During the time of economic recession customer) and Ultimate Customer. Consumers are the person who
also it is the only sector which oats steadily because these are the actually uses the product. But usually in the cases of services there is
products which satisfy fundamental needs rather than luxurious no clear line between customer and consumer.
needs.
Consumer buying behaviour include consumer's attitudes,
INDIAN SCENARIO preferences, intentions, and decision regarding the consumers
The Indian FMCG Sector are the fourth largest in economy. The India behaviour in the market place when purchasing a product or
's contribution towards global consumption is expected to double service. The study of consumer behaviour draws upon social science
to 5.8 % by 2020. Predicted an Compunded annual growth of 27.86 disciplines of anthropology, psychology, sociology, and economics.
% to reach US $ 103.7 billion by 2020.The Indian FMCG Sector has The 4 Ps of marketing Product ,place ,price and promotion directly
grown rapidly over the past ten years due to factors Changing life In uence the consumer buying behaviour. Among this most
style of people and increased income level. The major FMCG important factor is product itself and branding plays a major role in
companies in India are Amul ,ITC Limited, Dabur ,Patanjali, the case of product.
Brittannia, Himalaya Healthcare, Godrej Consumer Products
Limited, Cadbury India,Nirma etc .FMCG Sector in the years 2017 Imporatnce of Branding of the product.
and 2018 has witnessed a growth percentage of 12-13 percentage. Branding can be de ned as a way to identify the product of a
An increasing affection towards products with natural ingredients particular manufacture and differentiate from other manufacturers.
has shown 20 % growth in case of natural products. The sector is Brand play as an important role in the consumer buying decision
expected to grow 11-12 % in 2019.FMCG Urban segment is making process. It is really important for companies to nd out
predicted to grow at a steady rate of 8 % and rural segment is consumer's decision making and identifying condition, which
expected to grow between 15-16 % of total income in nancial year consumers apply while making decision regarding purchase of a
2019.with a revenue share of 45 % rural segment is the largest product. Marketer are highly concerned about how brand name

202 X GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS


VOLUME-8, ISSUE-5, MAY-2019 • PRINT ISSN No. 2277 - 8160
in uence the consumers purchase particular brand .It mainly Mostly the children of 10-18 years are so sensitive to the design of
consist of names, Logos, Labelling and packaging. Packaging plays wrapper.
an important role in the case of branding.
Printed Information
Packaging and importance of packaging. Container or wrapper of the product is serves a number of purposes
Packaging can be de ned as the activity of designing and giving a like protection and description of the contents, theft deterrence,
wrapper or container for the product. Various functions of and product promotion. The labels on packages are important
packaging include safety of the product, protection of components of the overall marketing mix and can support
product,Symblic communication, and promotion of the product. It advertising claims, establish brand identity, enhance name
has go important role because it is the major channel that captures recognition, and optimize shelf space allocations. The consumer
the consumer attention.Therfore it is necessary to understand can change his decision on the basis of information printed on the
various packaging factor that attracts and prompts customers to packaging
buy a product .Customers won't spend much time in searching
products and he chooses among the products with attractive Innovative Packaging Strategies.
packaging. Most of the customers evaluate the product from
Shape of packaging has an iconic position in determining the
memory cued by packaging style.
purchase of the products. For example the shampoos, cosmetics,
beverages etc. comes in attractive and innovative shapes. It is found
The various independent variable of packaging are
that in many cases customers purchase for the sake of bottle shape
Ÿ Packaging Color.
rather than the content.
Ÿ Background image
Ÿ Packaging material.
Easy To Use Packaging Strategy is the latest trend. It included a
Ÿ Font Style.
speci c point to open as in oils ,shampoos pickles etc ,Sachets with
Ÿ Design of wrapper.
nozzles as in medicines, Flip top caps usually found in soft drink,
Ÿ Printed Information.
Reusable jars ,easy to squeeze pump jar, Package which protect the
Ÿ Innovation. content from seasons (parachute oil package against winter),
Features of good packaging are Adaptability, Convenience, Unbreakable bottles (Dabur India in case of almond oil and dabur
Security, Status Dependability and Handsome Design.
gulaberi Freshner)
Packaging colour- psychology plays a major role. It plays an Another major breakthrough is small packages or Sachets in case of
important role in consumer decision making process. One good
soaps,shampoos,and pastes. . The pioneering initiative in sachet
example is Apple I pode advertisement which uses tri tone colors
marketing strategy goes back to 1976, when CavinKare launched its
Black, White and Bright Back ground.
Velvet brand of shampoo in sachet .In 1993, Sachets formula was
used by HLL to Colgate. In late 2003, HLL introduced 50 gm Lifebuoy
Color Blue-it is the most favourite color an liked by both genders. It
soap priced at Rs. 2.
is considered as calm trustworthy color related to sky and water. But
the over use of blue can be considered cold or uncaring.
Multi-Packs Packaging Strategy
Color Green-It is the second most favourite color and often related Multi-pack products are an innovative way to enhance consumers‟
to Life and Nature. Most Used is Blue Green. If u want to give your purchase weight as well as raise assortment purchase. A multi-pack
product more natural look green is the option. Yellow greens are product also reduces the cost involved in the packaging of the
usually avoided in food products as it is an appetite depressant. product.

Color yellw-it is the most catchy color . It will grab the attention of a Promotional Packaging Strategy
person so can be a good choice for things such as magazine Promotional packaging strategy is use for promotional offers like
advertisements which may usually be ignored due to ad blindness. 30% more, buy one get one free etc and discount offers on package.
Yellow signi es happiness, optimism and warmth but also caution.
The main advantage of yellow is its attention grabbing feature so a Brand Reinforcement Packaging Strategy
combination of blue and yellow can be a successful colour scheme. The packaging of the product must reinforce not just the product
Similarly color red is found to be activating black is perceived as brand but also the corporate brand. When consumers are deciding
power. on which product brand to choose, they will use the packaging to
make their decision. Change in color scheme, fonts, size, shape,
Background-Image product information & ingredient information, promotional offers
The background image property speci es the background image on package will reinforce the brand and repetitive purchases.
for an element. When setting a background image, authors should
also specify a background color property that will be used when the Convenience is the most in the case of skin and hair care products.
image is unavailable. Customers preferred brand name while choosing oral care and
deodorants. In the case of cosmetic products they gives due
Packaging Material importance to the information content. Peel of coupon and size of
High quality Packaging attract consumer then low quality package also in uence the products purchase. Now a days family
Packaging. Now a days customers are attracted to mosre natural structure is more nuclear oriented.So manufactures should keep in
ways or traditional packaging like wooden boxes, pottery vases, mind the size of product or weight of product should cater those
ceramic amphorae, wooden barrels, woven bags, Iron, Plated Steel requirements.
etc. That means they are going back to ancient times. Moreover
customers are preferring products with packages that are less CONCLUSION
environmentally harmful. Finally to conclude we can say almost every brand packaging and
communication ideas can satisfy even more consumer
Font Style requirements. It also implies that attractive shape, color of
The font style of Packaging grabs customer attraction. The up packaging can capture customer attention. It can make brand
gradation of IT technology have support this feature. The successful unique, supports in affirming brand name, retain its distinctiveness,
companies have best practices of the font styles. and stands out on the shelf. The information which is properly
delivered has powerful in uence on consumer buying preference.
Design of wrapper Manufacturing and expiry date should be visibly printed. Changing
The overall design also plays a vital role in attracting the consumer. of packaging is essential from time to time. Most of the people

GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS X 203


VOLUME-8, ISSUE-5, MAY-2019 • PRINT ISSN No. 2277 - 8160
prefer the product clean and untouched while purchasing
preserved product. customers purchase FMCG products when the
packaging is changed frequently.

REFERENCES
1. https://www.ibef.org
2. www.researchersworld.com
3. https://www.thebrandingjournal.com/
4. http://www.themarketingsage.com/ten-roles-for-product-packaging/

204 X GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS

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