Packaging designs that standout are more likely to be remembered on future shopping trips. Added Value – Packaging design and structure can add value to a product. For Instance, benefits can be obtained from package structures that make the product easier to use while stylistic designs can make the product more attractive to display In the customers home. Distributor Acceptance – Packaging decisions must not only be accepted by the final customer, they may also have to be accepted by strictures who sell the product for the supplier.
For instance, a retailer may not accept packages unless they conform to requirements they have for storing products on their shelves. Cost – Packaging can represent a significant portion of a product’s selling price. For example, it is estimated that in the cosmetics industry the packaging cost of some products may be as high as 40% of a product’s selling price. Smart packaging decisions can help reduce costs and possibly lead to higher profits. Expensive to Create – Developing new packaging can be extremely expensive.
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The costs involved in creating new packaging include: graphic and structural design, production, customer testing, possible destruction of leftover old packaging, and possible advertising to inform customer of the new packaging. Long Term Decision – When companies create a new package it is most often with the intention of having the design on the market for an extended period of time. In fact, changing a product’s packaging too frequently can have negative effects since customers become intentioned to locate the product based on its package and may be confused if the design is altered.
Environmental or Legal Issues – Packaging decisions must also Include an assessment of its environmental impact especially for products with packages that are frequently discarded. Packages that are not easily bio-degradable could draw customer and possibly governmental concern. Also, caution must be exercised in order to create packages that do not Infringe on Intellectual property, such as copyrights, trademarks or patents, held by others.