Positive Effect On Product Sales example essay topic

In the era of competitiveness, every company is going to increase profits by boosting their product sales. In fact, it is universally acknowledged that product sales can be affected by a number of factors such as advertising, sales promotion, personal selling and public relation (PR). Nonetheless, one of the most significant sales' influencers is packaging design. It has been used as a crucial marketing tool in order to establish a proper product image and positioning, induce consumers to try the goods and create the first impression of the product that generally affect the incremental sales. Therefore, it can be said that well-designed packaging can increase product sales and profit. In this essay, four important main points about packaging will be presented.

Firstly, it is going to identify the definition of packaging and then, show its roles. After that, significant components of good packaging design will be presented. Finally, the most significant part is the argument of whether packaging design can increase product sales or not. This essay will present both negative and positive impacts as well as direct and indirect effects of packaging design on sales volume. To begin with the meaning of packaging, it involves all types of product's protection, including inner wraps, containers and labels.

It is created to ensure that the goods will be delivered to end users in a good condition. Another definition is that "Packaging must protect what it sells and sell what it protects" (Briston and Neil, 1972, p. 1). It does not only play a key role as a safeguard of goods, in general; protecting and maintaining its quality, but packaging can also create the good product image. Take the cosmetics industry for example; the luxurious glass bottle is a significant part in promoting sales.

It enhances the goods to be more sumptuous than packing in a plastic box. Additionally, the pack can identify the product. The brand name, logo, usage method, promotional message and unique benefits are communicated to buyers through the information shown on the label (Meyers, 1996, p. 96) Finally, brand positioning can be established by a suitable design. As can be seen from the mini-sized cookies launched by Keibler Company, its brand positioning was set to be a portable snack that consumers were able to take it everywhere they wanted so the standup pouch with reclosable zipper was a satisfying solution. It succeeded to make the product to be an on-the-go snack in consumers' perspective (Haymarket Publishing, 2002, p. 46) In order to acquire a well-designed package, designers should consider three features; clear, understandable, and memorable message and design. In the limited area of package, too much detail of the product cannot be inserted; therefore, a best way is putting only important information with the clear message.

Additionally, each key word should be large enough to read easily when people look roughly on the cluttered shelves. Furthermore, it should not consist of too complicated information, which may cause them to misunderstand with the message. Nevertheless, only clear and understandable message cannot persuade people to buy a product. The main ingredient of good packaging is the distinct message and design that are able to fill the need or satisfy an inner desire of consumers (Meyers and Lubliner, 1998, p. 15; Isoline and Macomber, 2002, p. 14).

It has been questions that how packaging design affects product sales and whether it can encourage the increase of product profits or not. According to Sacharow (1982, p. 111), "modern package will not necessarily increase sales". Some old-fashioned packages may be sold better than a new one. In my opinion, this results from the change of product positioning. In other words, a stunning design can alter the well-established brand positioning that causes the decrease of product revenue. From my own experience when working in a company, which produces and distributes consumer goods, the company wanted to build up the sales units of a main product so its package was redesigned to be more magnificent by modifying its color and using English logo instead of Thai logo.

As a result, not only could not push the incremental sales, but this alteration also caused a decline in its sales. In deed, the cause of this fault came from the misunderstanding in the brand positioning. Originally, this product was set to be a local brand with a reasonable price but after changing the packaging style, the consumer perceived that it was an international product sold with a high price in spite of no actual price's change. On the contrary, it has been argued that striking design has become a noteworthy marketing tool for building up product income. It can directly impact on the increase of product revenue in several ways. First of all, first impression can be created by conspicuous design that induces nonusers to try a product (Isoline and Macomber, 2002, p. 14).

For example, in the beverage product, its purchase is more than 70% on impulse (Farlander, 2000, p. 52). Therefore, it can be said that the first significant factor of consumers' purchase is emotion, thus, an elegant design can persuade people to buy the product that has a remarkable effect on sales quantity. Secondly, stunning package can enhance product image which causes them can be sold on the premium price. It can be seen from a case of juice beverage called Capri Sun, which was launched with an inimitable package, a foil pouch, offering unique advantages over the traditional cans and bottles. Although its price was higher than others, it could succeed in a short time (Griffin, Sacharow and Brody, 1985, pp. 262-263).

That means buyers were willing to pay more on this package. Furthermore, when the price per unit is higher, it implies that the product proceeds will automatically rise despite selling in the same units. In addition, it is a certain true that in the cluttered retail environment, a similar appearance of a myriad of brands makes consumers to hard find what they are looking for on shelves. Nonetheless, novel packaging can help a product to stand out from others.

It encourages the product to be more attractive and remarkable, which facilitate its marketability and affect the sales growth. What is more, one part of the heart of marketing objective is building brand loyalty in consumers' mind. It is generally accepted that packaging can be a brand loyalty builder (Isoline and Macomber, 2002, p. 14). While standing in buyers' houses, it will encourage the consumers to bear its brand in their mind, which influences on their repeating purchase behaviours.

Undoubtedly, an increase of the number of loyal customers certainly has a positive effect on product sales. Furthermore, it is a duty of package on maintaining the product quality. This leads customers to satisfy the goods and repeat purchase that naturally increase its revenue. Sacharow (1982, pp. 108-109) claimed that the product's shelf life could be last longer by using a proper material of package. Besides, the quality enhancement can be added by package. For instance, specific-designed film of mini-sized cookies helped to keep the product firm but not dry, and stored them in a sound condition until they were consumed.

As a result, buyers satisfied this product that led it to be successful in a few months (Haymarket Publishing, 2002, p. 46). Lastly, proper packaging design can drive the success of sales promotion's programs. Take a pack-on premium for example. Marketers can create an appealing message on the outside wrapper in order to present the special of this premium.

Consequently, it can induce consumers to pay attention on this promotion, which results in the achievement of its proceeds. Although a good packaging design is accepted to be a direct sales's timulator as numerous reasons mentioned above, it is claimed that a new more prominent packaging is unlikely to instantly change consumer's shopping behaviour. It is not able to drive people who have loyalty with other brands switch to try it but perhaps can lead them to bear it in mind as an interesting alternative. If their regular-used brand is out of stock, they may have a trail on it. Therefore, in some situations, packaging cannot stimulate the product sales in a short term but it tends to affect the increase of product revenue in a long run (Young, 2002, pp. 10-14). In general, its impacts on sales volume are indirect.

Two considerable effects of package, which obliquely influence on the product income, are the repositioning inappropriate-existing brand and building dealer's satisfaction. The re-launched packaging can create new product positioning as well as improve it. These encourage a product to be more valuable in consumer's perception that leads it to receive higher sales and larger proportion of market share. For example, according to a market research, it showed that "Boots" brand was perceived to be a brand for older women so the company decided to redesign its package. In consequence, its positioning was absolutely changed to be a fashionable product. Furthermore, its sales exceeded the target nearly 100% and its share also increased by 24% of the total market (Haymarket Publishing, 1992, pp. 29-31).

Moreover, packaging can help a product to be easy to handle, transport and store as well (Briston and Neil, 1972, pp. 202-205). The suitable size and material of package can make a product conveniently unpack and stack that are more likely to establish the satisfaction of all distributors. As a result, this satisfaction has a positive impact on the sales volume in the long term. In conclusion, as a packaging has become a significant tool in marketing strategy, it can create brand image, identify the product, establish brand positioning as well as maintaining quality of the product. Packaging may decrease the product sales in some situations such as changing its well-established positioning. However, the majority of well-designed packaging can directly boost sales quantity of the product by making the first impression, creating good image, helping it to stand apart from rivals, reinforcing brand loyalty, maintaining quality and supporting sales promotion's activities.

Also, it is able to obliquely affect on sales by repositioning poor existing brand and creating distributors's satisfaction. Therefore, it can be concluded that good packaging design strongly affects the increase of product revenue. (1,647 words)

Bibliography

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