Page 4 - Lesson Note 3

(iv)Product Differentiation: Packaging is one of the very important means of creating product

differentiation. The color, size, material etc., of package makes real difference in the perception

of customers about the quality of the product. For example, by looking at the package of a

product say Paint or Hair Oil, one can make some guess about quality of the product contained
in it.

Functions of Packaging:

(i) Product Identification: Packaging greatly helps in identification of the products. For example,
Colgate in red color or Ponds cream jar can be easily identified by its package.

(ii) Product Protection: Packaging protects the contents of a product about the quality or price,

to complex graphics that are part of the package. From spoilage, breakage, leakage, pilferage,

damage, climatic effect, etc. This kind of protection is required during storing, distribution and

transportation of the product.
(iii) Facilitating Use of the Product: The size and shape of the package should be such that it

should be convenient to open, handle and use for the consumers. Cosmetics, medicines and

tubes of toothpastes are good examples of this.
(iv) Product Promotion: Packaging is also used for promotion purposes.

A startling color scheme, photograph or typeface may be used to attract attention of the

people at the point of purchase. Sometimes it may work even better than advertising.