Packaging Physical container or wrapping for a product.

Package Development Integral part of product planning and promotion 10% of the retail price based on developing, designing, and producing the package

Functions of Packaging Helps promote and sell the product Defines the product Provides information Expresses customer needs Ensures safe use Protects the product

Promoting and selling the product Customer reaction is critical to success Product message: performance, feature, and benefits

Defining Product Identity Promote image of prestige, convenience or status

Provides Information Gives directions for using the product and information about its contents, product guarantees, nutritional value or potential hazards.

Expresses customer needs Various sizes exist to meet the needs of different consumers.

Ensures safe use Plastic containers Tamper-resistant packages Blister packs-packages with performed plastic moles surrounding individual items arranged on a backing

Protects the product Package must protect product during shipping, storage, and display Package should prevent tampering, shoplifting and protect against breakage and storage Airtight containers are used for perishable food products such as cheese or luncheon meat.

Key Terms Mixed bundling – Marketers package two or more different products in one package Price bundling – Two or more of the same item are package together

Contemporary Packaging Issues Product packaging allows company’s to incorporate technology and address environmental, social and political concerns

Aseptic Packaging Incorporates technology that keeps food fresh without refrigeration Involves separately sterilizing the food and packaging Seals and packages the food in a sterile environment Ex. Canning and bottling products

Environmental Packaging Due to consumer concern, companies are making reusable and recyclable products. Ex. Hair products have switched from aerosol cans to pump dispensers due to harmful CFC’s,

Cause Packaging Promote social and political causes Printed messages which cause consumers to think about issues Separates from the competition

Label An information tag, wrapper, seal or imprinted message that is attached to a product or its package Gives information about the product's contents and directions for use Protects the business from legal liability

Brand Label Gives brand name, trademark or logo – Chiquita bananas

Descriptive label Gives information about product’s use, construction, care, performance and other features.

Food Labels Include: – Product illustrations – Weight statements Product minus packaging material – dating and storage information Includes packed on date, sell by date, expiration date – ingredients – product guarantees – Manufacturer’s name and address

Non-Food Labels Instructions for proper use and care Warranty information Product warnings – Electrical hazard, flammability, poisonous ingredients May be symbols

Grade Label States the quality of the product – AA, A and Bare used for eggs – Corn and wheat are graded 1 and 2 – Canned fruit is A, B or C

Labeling Laws The Fair Packaging and Labeling Act of 1966 – Established mandatory labeling and packaging requirements

The Food and Drug Administration The Federal nutrition Labeling and Education Act (1990) – Protects consumers from deceptive labeling – Requires labels to have nutritional information

FDA requirements Manufacturers of certain products must place health warnings on their products – Alcohol and pregnant women

The Federal Trade Commission Monitors advertising that is false or misleading – Recycled: a company must show proof that it has retrieved or recovered a designated amount of scraps or materials for the product – Degradable, biodegradable, and photodegradable: the product must decompose in a short time after disposal

U.S. Department of Agriculture Issues legal standards for Organic products Requires Country of Origin Labeling -COOL