Packaging as a Retail Marketing Tool

Packaging is a vital tool in the marketing mix, too often ignored by companies, but twice as much is annually spent on this as on above‐the‐line advertising and promotions. Packaging has two functions: to protect and contain the product; and as an interface to sell the product to the end‐user. Product branding on packaging also represents the company distributing the product. Good packaging requires research of target markets, retail environment and external environment including social change and technological developments. Consumers buy by image and perception of value. Packaging colour and the way it can affect sales by consumers′ subconscious colour associations are examined. Major packaging suppliers monitor consumer trends and technological advancements, aware that packaging is “the silent salesman”.