of value. Poor quality of packaging portrays diminished value and experience to the customer. Packaging can be used to inspire and evoke emotions. Customer experience has more to do with connecting emotions to the brands. The emotions range from values, desires and aspirations.
Packaging delivers product differentiation to create competitive advantage. Unique and memorable packaging helps brands to stand out from competition. It communicates the product’ s unique benefits and features. The choice of sustainable packaging demonstrates the brand’ s commitment to protecting environment and this creates connection with eco-conscious consumers. It connects to sustainability goals of the brand.
Packaging is a powerful marketing and sales tool. It is used to attract customers and drive sales. Promotions and special offers can be executed through the product packaging. Packages are a great tool for driving impulse buying and shelf appeal for products.
What then is the connection between packaging and logistics? Logistics cover movement of cargo and inventory management. To move the cargo, appropriate packaging is required. Depending on the mode of transport for example, for shipping and road- containerisation is preferred. To support packaging, palletisation is critical. This impacts efficiencies in loading, offloading, and kitting or de kitting. The selection of size of trucks and route planning is impacted by the choice of packaging and this determines costs of handling and transportation. Decision on the choice for full container loads( FCL) or less than container loads( LCL) are considered based on the packaging and cargo quantity being transported. Cargo that may also be crated for ease of handling. Load buildup is determined by equipment size and dimensions in air cargo handling. Cargo parameter controls impact packaging especially for perishables – e. g. horticulture products, meat products, medicaments, and pharmaceuticals.
Logistics is an enabler of the 4Ps of packaging. It plays a vital role in promoting, positioning, presenting, providing and protecting the products.
We have already covered the aspect of promoting the product through packaging. We have seen that packaging offers the consumers physical contact and experience with the brand. This impacts their decision to purchase and engage at emotional level with the brand. The role of logistics is to ensure that the designed packaging is delivered to the consumer as intended with no damages, waste or losses. Logistics must deliver all aspects of the packaging to close the loop in connection with consumers in line with the brand story and values. What is designed for promoting the brand is what should be delivered, through careful handling, movement and placement. This goes further to include personalisation of the packaging to the consumers. This is very popular with gifting and promotions.
Logistics support product positioning. This involves both physical placement of a product in-store and brand positioning in the eyes of consumers. In terms of physical placement, this encompasses everything from which outlets sell a brand’ s products to where a product is displayed in the outlets. This has an impact on the overall product and brand perception.
The next consideration is positioning. Given competition for space allocations in outlets, the brands may not dictate the exact slot for display. Use of powerful packaging may influence where retailers position the items. The choice of colour as a signifier of a product’ s ingredients or nutritional attributes can lead a retailer to position it alongside similarly packaged items. Shelf-ready packaging is another option that can make a product more favourable in the eyes of retailers and consumers. It ensures that products make it out of the warehouse and into store faster, as well as making it easier for retail employees when stocking and increasing shelf appeal. Shelf-ready packages may not require further labelling and are easy to move and place in warehouses and outlets. Customised labels for specific outlets can be used to manage the cost of pre-printed labels. These are only used to the specific outlets or stores and enhances warehouse management and inventory parameters like location visibility, stock holding and re-order levels. Logistics solutions around warehousing are impacted by unique stock identification like bar codes and images that form part of packaging.
Product presentation is greatly impacted by packaging. This impacts not just physical presentation, but also digital presentation for online purchases. Consumers are faced with wide range of choices. Packaging affects the ease with which consumers make the choice to pick one product from the next. Logistics play the critical role in delivering presentation of the products in all platforms accessible to consumers.
Packaging is the canvas that brands create the touch points with consumers.
Packaging provides critical information about a product and its associated brand. Through use of technology like QR codes on the package, consumers can see which route a product took to reach the shelf. This opens the product supply chain to consumers and delivers real transparency to reinforce the brand’ s sustainability and origination history. This fortresses the brand authority, authenticity and creates consumer trust, excitement and engagement.
With the proliferation of e-commerce, secondary packaging is most likely to be the first point of touch with the customers. While this is usually premised on the need to protect the product, it should not be lost that as a first touch point, the design of the packaging should create a memorable experience with the customers. It should not just be plain and expect the customer to work through that to get to the primary pack- this could be a lost opportunity in presentation. Further the mode of delivery should present the brand in the designed format to cement customer experience- the delivery personnel and vans or riders are part of this experience to the customer. Customised needs and requirements must form part of the display on the package.
The last and very impart consideration is protection. The most important function of packaging is to protect the product. If packaging doesn’ t protect the product, it has failed. This is as basic as it can get. All packaging must be designed to provide protection throughout the rigorous retail supply chain, from the point of production right through to the point of use, making sure the product arrives in its original condition. By ensuring products are in great condition upon arrival in store, manufacturers give themselves the best chance of standing out on the shelf and customer satisfaction is maximised once products are taken home. In terms of logistics, proper protection also helps to eliminate waste through damage or spoilage. This protects the profit margins. It is a win for all.
CPA Michael Maithya Nzule is the Finance & Strategy Director of Mitchell Cotts Freight Kenya Limited. He holds an MBA in Accounting and a Bachelors of Commerce( Accounting Option Hons) from the University of Nairobi. He is a member of the Institute of Certified Public Accountants of Kenya( ICPAK). Views expressed here-in are personal. You can commune with him via mail at: Mikemaithyanz @ gmail. com.