The Effectiveness of Packaging as a Source of Competitive Advantage in a Manufacturing Industry
Background of the Study
In manufacturing industry, the products are kept inside a container that is called packaging. Packaging has already developed well beyond its original function besides from protection and now plays a major role in the industry by developing its appeal, providing product information and establishing brand image and awareness. The meaning of packaging comes in different view of individuality and became the integral part of the product component, the 4 P’s of marketing: product, price, place, and promotion (Cateora and Graham, 2002). Manufacturers use the packaging as a promotional tool rather than merely an extension of the product because packaging is an attribute that is not related to the product. Manufacturers enclosed the five elements of the brand in the packaging that comprises with the name, logo or graphic symbol, the personality and the slogans. In the industry, the main use for packaging can be considered to be the protection of the goods inside. From the consumer perspective, packaging plays a major role when products are purchased as both a cue and as a source of information (Louw and Kimber, 2007).
Statement of the Problem
Packaging is well-introduced as part of the concept of marketing or part of the marketing strategies to promote or introduce the product in the market. In the perspective of the manufacturers, the packaging plays an essential role aside from the protection. Manufacturers believe that in packaging, they can gain the competitive advantage against their competitors. Also, the business leaders believe that through the use of packaging with the unique logo, the product is already being promoted which also affects the other products that produce by the same firm. The problem is how effective this idea can be?
Relevance to the Degree Program
In the completion of the study, it can be set a guidance of crafting an effective packaging. The study was created to help the manufacturing industry since manufacturers believe that through packaging they can gain advantage against the other competitors. The supports of the study in providing justification in relation to the manufacturers’ idea will not ceases until it reached the completion.
Objectives of the Study
The study found its foothold upon the establishment of the three important objectives. First is to identify or recognize the importance of packaging in the manufacturing industry. Second is to measure the effectiveness of the packaging in the market competition. And third is to discover the other areas in which the manufacturers can enhance their packaging to achieve their aim of competitive advantage.
Significance of the Study
The research seeks the importance in the business sector particularly in the manufacturing industry. The study is in the right position to examine the different approach of the business leaders in the idea of packaging. In addition, the importance of the study will reflect on how well the manufacturers treat the portion of packaging in terms of applying its elements that usually starts in planning.
Statement of Hypothesis
As part of the hypothesis, the study believe that in many ways, the packaging may help the manufacturing attain its ultimate goal for advantage. Taking the principle of marketing, packaging plays a huge role in reinforcing consumer perceptions. Packaging helps to drive the way consumers experience a product (Rice and Hofmeyr, 2000). Furthermore, packaging is described as the key in communicating with the consumers (Louw and Kimber, 2007). Therefore, manufacturers’ develops or innovates the packaging to adopt in different market, which works in the International markets (Brody, 2006). Through this area of knowledge, manufacturers can attract the market and in return have the potential to achieve the growth and competitive advantage.
Possible Research Questions
The study identified several questions that will serve as the engine of the study
· What are the objectives or functions of the packaging?
· Does packaging attract consumers based on the study of the consumer buying behaviors?
· Are there any evidences that packaging plays an essential role in the aim for competitive advantage of most of the manufacturers?
Assumptions
Packaging gives the representation of products whenever a consumer targets to purchase one particular product. It is part of consumer behavior that sometimes deceives them. In part of the marketing strategy, the packaging is another way of promoting itself whenever it is placed inside the shelf and the good features of it will carry the product description.
Delimitation of the Study
The study is limited in providing the information about the different industry. Since the entire study is allotted to conceptualize the emerging idea of packaging in the manufacturing industry then, the study will remain on focus.
Limitations to the Study
The participating companies are not bound to reveal their financial status or financial gains from the reinforcement of the packaging. But the study will prefer to ask and present the different changes, challenges, and future plans of the companies that successfully used their packaging as their essential tool.
Works Cited:
Brody, A., 2006. Packaging innovation as a Marketing Tool. [Online] Available at: http://members.ift.org/NR/rdonlyres/pack.pdf. [Accessed 09 Feb 2010].
Cateora, P. & Graham, J. 2002. International Marketing, McGraw-Hill, New York, pg 358-360.
Louw, A., & Kimber, M., 2007. The Power of Packaging. The Customer Equity Company. [Online] Available at: http://www.tnsglobal.com/_assets/files/DataBanks/The%20power%20of%20packaging.pdf. [Accessed 09 Feb 2010].
Rice, & Hofmeyr, 2000. Commitment-led Marketing, John Wiley & Sins Ltd., p. 216.
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