Marketing And Management : Branding And Targeting

Labelling and packaging plays a very important role in identifying the company’s products. They will play an important role in the development of the company’s image and brand with regard to the target market. If a company fails to pay attention to the design of its labelling and packaging, then they will decrease their attractiveness and visibility of the particular product. This in the end will be reflected in the sales. According to D’Souza, et al., (2016), packaging plays four main functions in marketing. First of all, packaging protects and contains the product. It will promote the product. It will help the consumers while they are using the product by allowing them to for example, reseal in between different uses. Packaging will also facilitate the recycling of the product and reduce damage of the product to the environment.

When it comes to labelling, D’Souza, et al., (2016), adds that they need to carry the intended messages of the product. Through labelling the company is able to explain the benefits offered in the product that might not be the same as that of the competitors. For example, the label will show price discount or added content. Through labelling a company is able to develop brand goodwill with time. This is done by showing customers how much one shares in their values (CFP & Katz, 2014). For example, it can contain images of happy families, healthy children or a clean environment. All these messages are able to speak to different customers in different ways. Through labelling, the product is also able to fulfil its legal obligations by showing that it has passed the bureau of standards and that it is safe for human consumption. The manufacturer is also able to publish health and nutritional information regarding the product. This is important as it enables the customer to consent to the product knowing well what the ingredients of the products are. The product will also have a Universal Product Code especially when it is sold in high volume retailers.

In marketing, labelling and packaging makes the product stand out from other similar products. For example, a colour scheme or notable logo will help differentiate your product from those of competitors. This will also be able to shape the product packaging. It is important to consider the colour schemes and messages being put across. For example, bright colours will attract attention and draw the customer to the product (Klein, 2006). This will be distinct when competitors have dull colours in the products. However, the opposite should be the case and vice versa. In Australia some companies use understandable designs to differentiate themselves from bright colour, mass appeal of the products even when on the same shelf as the rest. When it comes to practically, labelling and packaging will attract customers especially will competitors are using resealable packaging for their products (Porter, 2008).

Consumer will favor such products over the permanently sealable ones since it has practical benefits. When the packaging is inconvenient it will likely affect the sales of the product. Thirdly, labelling and packaging brings more cohesiveness of the product and the customers. This happens when clients identify a particular product with your company. Labelling and packaging of each item in the line should match the rest so that during marketing efforts are able to coordinate (Palmer, 2013). If for example, one is marketing a particular product type with a print advertisement, other items in the same product line are also bound to benefit.

The current Australian laws do not provide customers with an opportunity to know origins of some products they are purchasing and consuming. In many cases, product labelling laws have been found to be misleading. For example, one can describe a product as ‘made in Australia’ so long as it contains 51% of the value substantially transformed in Australia. This will also include the packaging of the product, even when a larger percentage is from another country (D’Souza, et al., 2016).  In July 2016 the Australian government introduced a new country of origin labelling system. Under the new system the country of origin labelling requirements will come under the Australian consumer law. Businesses all over the country have been given two year to change their labels will also applies to health drinks (D’Souza, et al., 2016). According to the food standard code businesses must comply with the country of origin labelling required according to the food standard code (Stern, 2015).

Packaging of health drinks should be able to meet environmental requirements. The country has strong measures on the environmental impact of the disposal of packaging. Most companies are coming to terms with ways to implement best practices in Australia. Health drinks industries in Australia in collaboration with the national government and other local governments have come up with self-regulatory agreement. This is done so that they are able to minimize the environmental impacts of health drinks packaging and waste of products. The agreement is famously known as the Australian Packaging covenant and is administered by the federal department of sustainability, Waste, Environment, population and communities (Vogel, 2006). The pact is based in the shared responsibilities principles that is gained from product stewardship and will apply through the chain of packaging health drinks.

This will involve raw materials, suppliers to retailers and the main disposal of waste packaging. Much of this information can be accessed by marketers through the National Waste Policy.  It is also mandatory that all product labelling and packaging achieves the following. It must identify the product through name/ brand, position the product in the mind of the consumer, and describe the product. It must promote the product through an eye catching and distinctive design (Lafley & Martin, 2013). The product label should also provide information about nutrition, ingredients, allergy warnings and other legal information. The most vital legal information for product labelling in Australia include name of the drink, location where it is packaged, lot or batch number, business name, address, warning and advisory information, ingredients, date, health and safety advises, percentage of characterizing ingredient, country of origin and net weight of the product.

The value of packaging that is produced in Australia is estimated to be $AUD 10.5 billion. This shows that the packaging and labelling industry is Australia is relatively small. The packaging industry in Australia accounts for less than 1% of the country’s GDP and employs about 30,000 people (Lafley & Martin, 2013). The main packaging manufacturers in the country are owned by Australians and are part of the country’s Small Medium Enterprises. In most cases they type of packaging that is produced in country is more of a high volume with low margin. However, there is the value added packaging where the margins and costs are much more, this eventually affect cost reduction (Brownell, 2011).

According to Kerin, et al. (2010), Australian consumers are always demanding a wider range of products that require different type of segmentation in those products. The packaging of small items is on the rise due to demand by consumers. When it comes to health drinks, consumers are always looking for the ready to consume product which reflects the importance of convenience in marketing. When it comes to health products, consumers will always be on the lookout for packs that are easy to dispense and those that are self-induced more than those that require medical assistance (CFP & Katz, 2014). Convenience is the main issue when it comes to labelling and packaging of health products and will go beyond the purpose of protecting the product.  In fact, labelling and packaging is part of the government way of regulating health products.

From August 2016, the Australian medicine labels are changing to include important information about the medicine so that customers can make it easier to find. Labelling should include information about any substance that include allergies contained in the medicine that may result in health problems for some users (D’Souza, et al., 2016). The new regulations are important in making medicine labels clearer and consistent. Labelling of pharmaceutical products and health drinks also focus on selling the product. According to the recent trends like greater product differentiation, changes of lifestyle and competitive pressure there is need for labelling and packaging to focus more on creating appeal and quality (Klein, 2006).

In conclusion, labelling and packaging of products are important for marketing campaign. There is increased diversity and sophisticated demands by customers which calls for companies to exercise greater versatility of product presentation. This include quality graphics, choice of color and advertising. It is also important that organization consider the rules and regulations of the country while labelling the product. Competitor analysis is also another factor that will be important. This is because labelling results into a strong attachment of clients to the product. Of the product is well labelled then it is bound to attract loyalty of the clients to the product. Packaging also needs to consider the usability of the product and ways that it can be made easier for customers to consume. Such factors as price, and size will play along during labelling and packaging. Each size of the product package should go hand in hand with the price. The choice of color and graphics will also determine whether customer will take the product with positive or negative regard.

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