Packaging - Definition, Importance, Types & Example

Published in Marketing and Strategy Terms by MBA Skool Team

What is Packaging?

Packaging is a mechanism to safeguard finished goods by covering them in a protective material to enable its availability at different points of sale and display important information about the product at the same time like weight, volume, brand name, labels etc. Product packaging is an essential step in inventory management & supply chain for increasing shelf life by protecting goods from damage. Depending upon the type of products, distribution time, geography, logistics etc. the packaging type is decided.

Importance of Packaging

Companies manufacture goods depending upon customer demand, business forecast & production capacity. Once goods are made, they are to be distributed across different locations, stored in warehouses, kept at retail outlets before they get told. During this time, it is essential to protect the products from damage & increase their longevity. This is why product packaging plays an important role as it safeguards finished goods from damage, scratches & even enhances brand value of expensive goods.

At the same time, packaging helps in creating a good brand image in the minds of the customers.

A well packaged good with relevant information always creates a trust among the target audience. Packaging plays a very important in brand building.


Functions of Packaging

The important functions of having packaged goods are:

1. Protect goods from damage.

2. Preserve the products for longer shelf life.

3. Increase customer convenience.

4. Promote products with their unique packaging & branding

Types of Packaging

The different ways in which goods can be packaged can be explained as follows:

1. Primary packaging

It is the packaging which covers the main products. Some examples are laminations, cling films, glass containers, tin can, bubble wraps etc.

2. Secondary packaging

They are used for stacking goods like crates, trays or secondary storage

3. Tertiary Packaging

Once stacked goods are ready, they are packed in material like fiber-board, cardboard boxes, cartons etc.

4. Ancillary

Protects the final packaged goods & increases visibility like adhesives, tapes, cushion material, labels etc.

Examples of Packaging

Consider the following products & their packaging:

1. Consider FMCG products like biscuits, wafers, chocolates etc. Each of these products is carefully packed in a plastic wrapper which ensures its protection from external elements. The packaging contains branding information like logo, brand name, registered address, manufacturing date, expiry date etc. Also, many such biscuits or chocolates are also put in a box of many products.

2. Packaging for expensive goods like premium watches or jewelry products are also very unique. It has a soft cushion inside so that product is not damaged. The outer side of box contains the brand name & logo, and often uses a material like velvet to enhance the experience.

Hence, this concludes the definition of Packaging along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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