Packaging essay
Packaging includes all the activities of designing and producing the container of a product. The packaging is an integral marketing strategy to glamorize a product to attract the consumer’s attention. There are various reasons why there is a growing use of packaging. First, the increase of self-service in retail outlets means creates the need for a compelling package that must perform the tasks of attracting attention, describing the product’s features, and building consumer confidence. Second, rising affluence means the consumer is willing to pay a little more for convenience, dependability, appearance, and prestige of better packages. Third, the company and brand image is another factor contributing to the growing use of packages. Consumers will instantly recognize a brand through its package. Fourth, packaging not only presents the opportunity to make products more convenient and easier to use but also become unique in the market.
Today, many people across the globe are aware of Coca Cola because of the company displays a recognizable logo on its package as well as sell the product in bottles with a distinctive shape. The company can attract consumers who often judge products by its packaging before buying it.
Companies rely on price to cover the cost of production, to pay expenses, and to provide the profit incentive necessary to continue to operate the business. The five pricing objectives include:
Survival: Managers pursue pricing strategies that will enable a firm to maintain its operation for the long term. If the revenue generated by a pricing strategy falls below cost for an extended period, the firm cannot survive. However, a company must learn how to add value or face extinction.
Maximum current profit: A company may choose a pricing strategy that maximizes profit, cash flow, or rate of return of investment. Lower-than-expected or no profits will drive down stock prices and may prove disastrous for the company.
Maximum market share: It is important to select a pricing strategy that will increase sales volume to lower unit costs and higher long-run profit. Prices must be set to attract the appropriate market segment in significant numbers.
Maximum market skimming: Sometimes, companies set high prices to maximize market skimming. The start price may be high but slowly drop over time.
Product-quality leadership: Some firms select their pricing strategy intending to be the product quality leader in the market.