0
1
Acknowledgement Starting from my primary school teachers, it would be impossible to thank all of the individuals who made, in one way or another, contributions in making this project possible. My special thanks goes to my project supervisor, Ma'am Ekta Kapur for providing me this research opportunity. I acknowledge the continuous support provided by her throughout the study. I would like to express my deep sincere gratitude to Prof. Alka Munjal who
2
has always been a source of inspiration for me. I also owe many thanks to my senior secondary school teacher Mr. G.S. Mongia who has influenced my professional career as much as my family. Finally, many thanks to my great family, especially to my parents, I would like to thank all my dear friends for their support and presence in my life.
3
Abstract
History of packaging is as old as trading of commodities. Earliest packaging of products was done with natural materials. However, with passage of time and development of technologies significant improvements were introduced in packaging also. Chocolate being a perishable commodity needs specialized packaging. At present packaging of chocolates is done with a view not only to ensure preserving quality and ease of handling but also to create customer preference and to boost business. Packaging material and style of major products of three chocolate manufacturing industries in Indian market namely Cadbury India Ltd., Nestle India, and Amul have been surveyed in this study. It was observed that packaging material and styles of the three companies are more or less similar and some differences exist in colour combinations only. It has been inferred that there is a lack of innovative approaches in packaging of chocolates and level of competition is low in Indian market. It has also been suggested that large scope exists for growth of chocolate industry in India.
4
Table of Contents Topic
Page no.
Chapter – 1
Introduction • What is packaging? • Types of packaging • Purpose of packaging • Objective of the study • Rationale of the study • Limitations of the study Chapter –2
5
13
28
29
Review of Literature • History of packaging • Materials and techniques of packaging • General packaging strategies Chapter – 3
Materials and Methods Chapter – 4
Data Collected • Packaging strategies of Cadbury India Ltd. • Packaging strategies of Nestle India • Packaging strategies of Amul Chapter – 5
37
39
Results and Discussions Chapter – 6
Conclusions and Recommendations Chapter – 7
41
42
Future Prospects References
5
Chapter – 1
Introduction What is packaging?
Packaging can be described as covering the product with one or more suitable materials for ease in handling, transportation and marketing. Packaging not only differentiates one brand from another but also, at times, gives a preview of the product being sold. In technical words, packaging is defined as ‘the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use.’ Packaging also refers to the process of design, evaluation, and production of packages (http://en.wikipedia.org/wiki /Packaging_and_labelling). Most of the times, packaging is accompanied with attractive and informative labelling. A package label is any written, electronic or graphical message on the container of the packaged product. The role of packaging continues from the coordinated system of preparing goods to the end use. Packaging contains, preserves and protects the product during its transport and informs the customers about the properties of the product during its sales. With the passage of time, packaging industry and packaging techniques have undergone drastic changes. The stress has, always, been at
6
reducing the after‐use waste, reusing the containers wherever possible and recycling the waste to an extent maximum possible.
Types of packaging:
Human needs to consume a product are plentiful and so are the packaging types. For example – there is transport package or distribution package which is the package form used to ship, store, and handle the product or inner packages. There is consumer package, which is directed towards a consumer or household. In relation of the product type being packed, there is medical device packaging, bulk chemical packaging, over‐the‐counter packaging, retail food packaging, military materiel packaging, pharmaceutical packaging etc (http://en. wikipedia.org/wiki/Packaging_and_labelling). Those who handle the product along the way need different labelling and packaging than the final user. For the ease of categorisation, packaging is now categorised on the basis of layers, that is, primary, secondary and tertiary.
Primary packaging Primary packaging contains the smallest quantity of a product for final sale or use. It is the package which is in direct contact with the contents, for example the Cadbury™ Dairy Milk chocolate shown in the image on the right. The primary packaging that contains the product Primary packaging, i.e. the covering just next to the chocolate. Product, i.e. the chocolate
7
should, not only catch the customer’s attention, but also create a desire to buy the product and Inspire the customer’s confidence to buy the product again. The customer should feel a sense of satisfaction right from the feel of packaging. The primary packaging is aimed mainly at marketing purposes. The point to be taken special care of while designing the primary package is to use descriptive titles for the product ‐ not necessarily creative. Many people go into a retail store looking for a product, but don't necessarily have a specific product in mind. You need to communicate your function and benefits to them quickly and effectively. Graphics and slogans on the package should reflect the functionality of the product.
Secondary packaging It is the packaging outside primary packaging – usually used to group primary packages together. For example the family packs of the chocolates available in super markets, decorated carton or gift box are common examples. Secondary packaging, sometimes, is also called intermediate packaging. Since not all products use intermediate packaging, the following factors can be used to determine when intermediate packaging is needed: How the product will be distributed, how the product will be merchandised, whether the finished products will be sold in kits.
8
Tertiary packaging It is used for bulk handling, stockroom storage and transport shipping. It is the outer most level of packaging. Generally, other packages are shipped\transported with them, and they are designed to withstand normal transportation stresses. The corrugated, brown carton is the most familiar example of tertiary packaging.
Purpose of packaging:
Packaging of products is done for several purposes:
Physical protection The objects enclosed in the package require protection from various damages they may get, like from shock, vibration, compression, temperature, etc. (http://en.wikipedia.org/wiki/Packaging_and_ labelling).
9
Barrier protection A barrier from oxygen, water vapour, dust, etc. is often required. Permeation is a critical factor in design of the packages. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh and safe for the intended shelf life is the primary function (http://en.wikipedia.org /wiki/Packaging_and_labelling).
Containment or agglomeration Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 100 chocolates requires less physical handling than 100 single chocolates (http://en.wikipedia.org /wiki/Packaging_and_labelling).
Information transmission Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments (http://en.wikipedia.org/wiki/Packaging_ and_labelling).
Marketing The packaging is to be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display (http://en.wikipedia.org/wiki/Packaging_and_labelling).
10
Security Packaging plays an important role in reducing the security risks of shipment. Some packages are made with improved tamper resistance to deter tampering and also have tamper‐evident features to help indicate tampering. Packages are sometimes engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include authentication seals to help indicate that the package and contents are not counterfeit. Packages, also, can include anti‐theft devices, such as dye‐packs, RFID tags, or electronic article surveillance tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of preventing damage\tampering to the products (http://en. wikipedia.org/wiki/Packaging_and_labelling).
Convenience Packages can have features which add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, and reuse (http://en.wikipedia.org/wiki/Packaging_and_labelling).
Portion control Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one‐ litre‐bottles of milk, rather than having people bring their own bottles to fill themselves (http://en.wikipedia.org/wiki/Packaging_and_ labelling).
11
Objective of the study:
The aim of this project is to present an overview of the art and technique of packaging through history of commerce and to analyse the present trends in packaging with special reference to packaging styles of three major chocolate industries in Indian market namely Cadbury India Ltd., Nestle India, and Amul. A brief review of the strategies for developing a package is also presented in this project report.
Rationale of the study:
There is a lot of potential in Indian chocolate packaging industry; in fact, packaging plays a tremendous role in the success of a chocolate brand. Packaging not only signifies the quality of brand, but now a day, is also used as an important and intelligent marketing tool. Moreover, a layman buying a chocolate from market will always tend to buy a chocolate which has eye‐catching packaging and will be attracted towards a chocolate brand which has packaging suited to the special occasions. For example, gift packages on the occasion of Diwali, Holi ‘Rakshaa‐bandhan’ etc. Packaging has had a hypnotising effect on customers. The research, carried out on packaging styles of chocolates in Indian market would make it possible for me to manage a packaging industry successfully. The strategies analyzed during this research would enable me to form counter strategies for my competitors.
Limitations of the study:
Packaging is only one of the several components influencing the sales of chocolate or any other product for that matter. In a study like this, it is extremely difficult to determine the impact of packaging alone or its
12
interaction with other components on the sales of the products of different companies. Data available on packaging of chocolates in Indian market is inadequate and may not be up to date on websites in most of the cases. Crucial data on packaging is kept confidential by most companies therefore authenticity of the available data may not be assured.
13
Chapter – 2
Review of Literature History of packaging:
From the very earliest times, humans consumed food where it was found. Families and villages made or caught what they used. They were also self‐sufficient, so there was little need for packaging of goods, either for storage or transportation. When containers were needed, nature provided gourds, shells, and leaves. Later, containers were fashioned from natural materials, such as hollowed logs, woven grasses and animal organs. As ores and chemical compounds were discovered, metals and pottery were developed, leading to other packaging forms. For each product's needs, there are good packaging solutions. Though packages are often taken for granted, they are the result of many years of innovation ‐ in some cases accidental. From containers provided by nature to the use of complex materials and processes, packaging has certainly changed. Various factors contributed to this growth: the needs and concerns of people, competition in the marketplace, unusual events (such as wars), shifting lifestyles, as well as discoveries and inventions. Just as no single cause influenced past development, a variety of forces will be required to create the packages of the future, but a very important factor will always be consumer choice. Ultimately, only the packaging that our society demands is produced. We choose by the products we purchase.
14
One way of placing packages into categories is to describe them as flexible, semi‐flexible or rigid. Flexible packaging includes the paper sacks that dog food comes in, the plastic bags that hold potato chips and the paper or plastic sacks in which we carry home our purchases. An example of semi‐flexible packaging is the paperboard boxes that cereal, many other food products, small household items, and many toys are packaged in. For many non‐food items, the packaging is made more rigid by precast packing materials that slip inside the box and hold the product and its accessories or components in place. Forms of rigid packaging include crates, glass bottles, and metal cans. Cloth or paper may be the oldest forms of flexible packaging. Flexible packaging is the most ‘source‐reduced’ form of packaging that means that a flexible package has the least amount of material compared to other forms of packages that would hold the product. This also means that flexible packaging adds very little weight to the overall product, and there is very little to discard when the package is empty. The use of flexible packaging materials began with the Chinese; they used sheets of treated mulberry bark to wrap foods as early as the first or second century B.C. During the following centuries, the Chinese also developed and refined the techniques of paper‐making. Knowledge of how to make paper gradually moved west across Asia and into Europe. In 1310 A.D., paper‐making was introduced to England. The technique arrived in America in Germantown, Pennsylvania, in 1690. Paper is, basically, a thin sheet of cellulose. Cellulose is a fibrous material derived from plants. Early paper was made from cellulose fibres derived from flax, the plant that also gives fibres for linen cloth. As demand for paper grew, old linen rags were sought as a source of fibre. In 1867, the process for deriving useful cellulose fibre from wood pulp was developed. Because wood was so cheap and plentiful, this fibre
15
source rapidly replaced cloth fibres as the primary source of paper fibre. Today, virtually all paper has wood pulp as the source of cellulose fibre. An important step for the use of paper in packaging came with the development of paper bags. Commercial paper bags were first manufactured in Bristol, England, in 1844. Shortly thereafter, in 1852, Francis Wolle invented the bag‐making machine in the United States. Further advancements during the 1870s included glued paper sacks and the gusset design, producing the types of paper bags used today. In 1905, machinery was invented to automatically produce in‐line printed‐ paper bags. With the development of the glued paper sack, the more expensive cotton flour sacks could be replaced. But a sturdier multiwalled paper sack for larger quantities did not replace cloth until 1925, when a means of sewing the ends was finally invented. Another important use of paper in packaging came with the development of paperboard ‐ the kind of paper that packages a box of cereal. The first paperboard carton ‐ often called a cardboard box ‐ was produced in England in 1817, more than two hundred years after the Chinese invented cardboard or paperboard. Another common form of cardboard based on corrugated paper appeared in the 1850s. Basically, this form of cardboard is made from thin sheets of paperboard that are moulded into a wavy shape and then ‘faced’ or sandwiched between two flat sheets of paperboard. The strength, lightness, and cheapness of this material make it very useful for shipping and storing. However, replacing wooden crates with the new paper alternative would prove to be something of a battle. Nevertheless, about 1910, after much litigation between manufacturers and the railroads, shipping cartons of faced corrugated paperboard began to replace self‐made wooden crates and boxes used for trade.
16
Today, cardboard boxes ‐ more accurately called ‘C‐flute corrugated paperboard cartons’ ‐ are used almost universally for product shipping. As with many innovations, the development of the carton was accidental. Robert Gair was a Brooklyn printer and paper‐bag maker during the 1870s. While he was printing an order of seed bags, a metal rule normally used to crease bags shifted in position and cut the bag. Gair concluded that cutting and creasing paperboard in one operation would have advantages; the first automatically made carton, now referred to as ‘semi‐flexible packaging’ was created. Such folding cartons or ‘tubular cartons’ dominate the dried, processed food market. The development of flaked cereals advanced the use of paperboard cartons. The Kellogg brothers were first to use cereal cartons. The Kellogg’s™ operated a sanatorium at Battle Creek, Michigan. They developed flaked cereals as a health food for their patients, but soon began marketing this new food product on a mass scale. Their original packaging was a waxed, heat‐sealed bag of Waxtite wrapped around the outside of a plain box. The outer wrapper was printed with the brand name and advertising copy. Today, of course, a plastic liner protects cereals and other products within the printed carton. Some cereal manufacturers have attempted to sell cereal in flexible pouches, like snack foods. However, U.S. consumers have only marginally accepted cereals in a pouch only, so we continue to see a bag‐in‐box format for cereals. Paper and paperboard packaging increased in popularity throughout much of the 20th century. Then with the advent of plastics as a significant player in packaging (late 1970s and early 1980s), paper and its related products were replaced in many uses. Lately that trend has slowed as designers have tried to respond to the perception that plastic is environmentally unfriendly. The fact is that decreasing that amount of material in packaging is usually more important than the
17
composition of the package to get the most environmentally friendly form of packaging. Although glass‐making began in 7000 B.C. as an offshoot of pottery, it was first industrialized in Egypt in 1500 B.C. Made from base materials (limestone, soda, sand and silica), which were in plentiful supply, all ingredients were simply melted together and moulded while hot. Since that early discovery, the mixing process and the ingredients have changed very little, but the moulding techniques have progressed dramatically. At first, ropes of molten glass were coiled into shapes and fused together. By 1200 B.C., glass was pressed into moulds to make cups and bowls. When the blowpipe was invented by the Phoenicians in 300 B.C., it not only speeded production but allowed for round containers. Colours were available from the beginning, but clear, transparent glass was not discovered until the start of the Christian era. During the next 1000 years, the process spread steadily, but slowly, across Europe. The split mould, which was developed in the 17th and 18th centuries, further provided for irregular shapes and raised decorations. The identification of the maker and the product name could then be moulded into the glass container as it was manufactured. As techniques were further refined in the 18th and 19th centuries, prices of glass containers continued to decrease. Owens invented the first automatic rotary bottle‐making machine, patented in 1889. Suddenly, glass containers of all shapes and sizes became economically attractive for consumer products, and from the early 1900s until the late 1960s glass containers dominated the market for liquid products. A typical modern bottle‐making machine automatically produces 20,000 bottles per day. While other packaging products, such as metals and plastics, were gaining popularity in the 1970s, packaging in glass tended to be reserved for high value products. As a type of ‘rigid packaging’, glass
18
has many uses today. High weight, fragility and cost have reduced the glass markets in favour of metal and plastic containers. Still, for products that have a high quality image and a desire for high flavour or aroma protection, glass is an effective packaging material.
Ancient boxes and cups, made from silver and gold, were much too valuable for common use. Metal did not become a common packaging material until stronger alloys, thinner gauges and coatings were eventually developed. One of the ‘new metals’ that allowed metal to be used in packaging was tin. Tin is a corrosion‐resistant metal, and ounce‐for‐ounce, its value is comparable to silver. However, tin can be ‘plated’ in very thin layers over cheaper metals, and this process made it economical for containers. The process of tin plating was discovered in Bohemia in 1200 A.D., and cans of iron coated with tin were known in Bavaria as early as the 14th century. However, the plating process was a closely guarded secret until the 1600s. Thanks to the Duke of Saxony, who stole the technique, it progressed across Europe to France and the United Kingdom by the early 19th century. After William Underwood transferred the process to the United States via Boston, steel replaced iron, which improved both output and quality. The term 'tin can' referred to a tin‐plated iron or steel can and was considered a cheap item. Tin foil also was made long before aluminium foil. Today many still refer to metal cans as 'tin cans' and aluminium foil as 'tin foil', a carryover from times well past. In 1764, London tobacconists began selling snuff in metal canisters, another type of today's "rigid packaging." But no one was willing to use metal for food since it was considered poisonous. The safe preservation of foods in metal containers was finally realized in France in the early 1800s. In 1809, General Napoleon Bonaparte
19
offered 12,000 francs to anyone who could preserve food for his army. Nicholas Appert, a Parisian chef and confectioner, found that food sealed in tin containers and sterilized by boiling could be preserved for long periods. A year later (1810), Peter Durand of Britain received a patent for tinplate after devising the sealed cylindrical can. Since food was now safe within metal packaging, other products were made available in metal boxes. In the 1830s, cookies and matches were sold in tins and by 1866 the first printed metal boxes were made in the United States for cakes of Dr. Lyon's tooth powder. The first cans produced were lead‐soldered by hand, leaving a 1 1/2‐ inch hole in the top to force in the food. A patch was then soldered in place but a small air hole remained during the cooking process. Another small drop of solder then closed the air hole. At this rate, only 60 cans per day could be manufactured. In 1868, interior enamels for cans were developed, but double seam closures using a sealing compound were not available until 1888. Aluminium particles were first extracted from bauxite ore in 1825 at the high price of $545 per pound. When the development of better processes began in 1852, the prices steadily declined until 1942, when the price of a pound of aluminium was $14. Although commercial foils entered the market in 1910, the first aluminium foil containers were designed in the early 1950s while the aluminium can appeared in 1959. The invention of cans also required the invention of the can opener. Initially, a hammer and chisel was the only method of opening cans. Then in 1866, the key wind metal tear‐strip was developed. Nine years later (1875), the can opener was invented. Further developments modernized the mechanism and added electricity, but the can opener has remained, for more than 100 years, the most efficient method of
20
retrieving the contents of a can. In the 1950s, the pop top/tear tab can lid appeared and now tear tapes that open and reseal are popular. Collapsible, soft metal tubes, known as "flexible packaging," were first used for artist’s paints in 1841. Toothpaste was invented in the 1890s and started to appear in collapsible metal tubes. But food products really did not make use of this packaging form until the 1960s. Later, aluminium was changed to plastic for such food items as sandwich pastes, cake icings and pudding toppings.
Plastic is the newest packaging material in comparison with metal, glass, and paper. Although discovered in the 19th century, most plastics were reserved for military and wartime use. Plastics have become very important materials and a wide variety of plastics have been developed over the past 170 years. Several plastics were discovered in the nineteenth century: styrene in 1831, vinyl chloride in 1835, and celluloid in the late 1860s. However, none of these materials became practical for packaging until the twentieth century. Styrene was first distilled from a balsam tree in 1831, but the early products were brittle and shattered easily. Germany refined the process in 1933 and by the 1950s Styrofoam was available worldwide. Insulation and cushioning materials as well as foam boxes, cups and meat trays for the food industry became popular. Vinyl chloride, discovered in 1835, provided for the further development of rubber chemistry. For packaging, moulded deodorant squeeze bottles were introduced in 1947 and in 1958; heat shrinkable films were developed from blending styrene with synthetic rubber. Today some water and vegetable oil containers are made from vinyl chloride.
21
Celluloid was invented during the American Civil War. Due to a shortage of ivory, a United States manufacturer of billiard balls offered a USD10000 reward for an ivory substitute. A New York engineer, John Wesley Hyatt, with his brother Isaiah Smith Hyatt, experimented several years before creating the new material. Patented in 1870, "celluloid" could not be moulded, but rather carved and shaped, just like ivory. Cellulose acetate was first derived from wood pulp in 1900 and developed for photographic uses in 1909. Although DuPont manufactured cellophane in New York in 1924, it wasn't commercially used for packaging until the late 1950s and early 1960s. In the interim, polyethylene film wraps were reserved for the military. In 1933, films protected submarine telephone cables and later were important for World War II radar cables and drug tablet packaging. Other cellophanes and transparent films have been refined as outer wrappings that maintain their shape when folded. Originally clear, such films can now be made opaque, coloured or embossed with patterns. One of the most commonly used plastics is ‘polyethylene terephthalate’ (PETE). This material only became available for containers during the last two decades with its use for beverages entering the market in 1977. By 1980, foods and other hot‐fill products such as jams could also be packaged in PETE. Presently low density polyethylene (LDPE) and high density polyethylene (HDPE) are among the most frequently used packaging materials for the fast moving consumer goods (FMCG). Of late, packaging designs are beginning to incorporate recyclable and recycled plastics but the search for reuse functions continues. It now seems obvious that product containers will bear the identification of the maker alongside pictures, nutritional information,
22
ingredients, etc. However, this seemingly obvious feature of packaging has its own history. In the 1660s, imports into England often cheated the public and the phrase "let the buyer beware" became popular. Inferior quality and impure products were disguised and sold to uninformed customers. Honest merchants, unhappy with this deception, began to mark their wares with their identification to alert potential buyers. Official trademarks were pioneered in 1866 by Smith Brothers for their cough drops marketed in large glass jars. This was a new idea ‐ using the package to "brand" a product for the benefit of the consumer. In 1870, the first registered U.S. trademark was awarded to the Eagle‐ Arwill Chemical Paint Company. Today, there are nearly three‐quarters of a million (750,000) registered trademarks in the United States alone. Labels now contain a great deal of information intended to protect and instruct the public (http://edis.ifas.ufl.edu/pdffiles/AE/AE20600.pdf).
Materials and techniques of packaging:
The
material used for
primary packaging of chocolate is HDPE. However, in some chocolates of Cadbury India Ltd., Amul and Nestle India, thin aluminium foil is also used as primary packaging.
23
The material used for secondary packaging is thin paper cardboards. These packages display the brand name, logo etc. and all the marketing information necessary for the buyers. The material used for the tertiary packaging is corrugated thick brown coloured cardboard. With the availablity of computerized and mechanized robotic systems, the incrediblity of food packaging techniques have reached to a point of automation. The companies use a machine system called ‘Automatic Automatic flow‐wrapping line (A horizontal flow‐wrapping machine, flow‐wrappng line’. fillers, product feeding and automatic loading system) (http://www.pfm.it/pages/file/7ebcf3fe2224b104.pdf)
24
The most widely used and the most accepted technique of packaging is the horizontal flow wrapping machines, fillers, product feeding and automatic loading systems. In this system, the product is provided to the machine as input from one end and it is then recieved in packaged form as an output from the other end. This system enables packaging of twelve hundred chocolate bars per minute (http://www.pfm.it/pages /file/7ebcf3fe2224b104.pdf). This system of robotic machines provides very high productivity. Example is the success of companies ‘CAMA group’ and ‘SPS Italiana Pack Systems (PFM group)’. Their turnovern has more than tripled in just three years (http://www.pfm.it/pages/file/7ebcf3fe2224b104.pdf). The use of such techniques and automatic robotic machines has the following features: • These machines are automatic, so there is no scope of faulty packaging. • There is continuous flow, which makes packaging very speedy. • The throughput is very high. • Packaging is uniform and attractive/beautiful. • There is simultaneous primary and secondary packaging. However, since the system is a result of high‐tech engineered processes, the installation cost of such a system could be very high.
25
General Packaging strategies:
There are several aspects looked upon before developing a packaging strategy. Basically, the traditional three R’s of Reduce, Reuse, and Recycle are considered in product and package development. Nowadays a trend has come which has had a great influence on the way packaging is done. The emphasis is now on packaging methods, which not only make the package entirely biodegradable but the left over product contents biodegradable too. Nowadays, with the widespread awareness of environmental management, development of sustainable packaging has become an area of keen interest. Standards’ Organizations, Governments, Consumers, Packagers and Retailers all have preferred packaging which is handy and easy to ‘wrap off’. Be it a primary, secondary or tertiary, while developing a package, the ‘waste hierarchy’ is followed. The waste hierarchy focuses on six major aspects – prevention, minimization, re‐use, recycling, energy recovery and disposal. It means that packaging waste must be prevented, and if not possible then it must be minimized, made re‐useable, recycled, used for recovery of energy, and finally if these steps are also not applicable, then it must be disposed off (http://en.wikipedia.org/wiki /Packaging_and_labelling).
Prevention Nowadays, Waste prevention is a primary goal. Packaging should be used only where needed. The orientation, nowadays, is to develop packages which leave, after use, as little residue as possible. Proper packaging can also help prevent waste. Packaging plays an important part in preventing loss or damage to the packaged product. Usually, the
26
energy content and material usage of the product being packaged are much greater than that of the package (http://en.wikipedia.org/wiki /Packaging_and_labelling).
Minimization It is also known as source reduction. The mass and volume of packaging (per unit of contents) can be measured and used as one of the criteria to minimize during the package design process. Usually ‘reduced’ packaging also helps to minimize costs. Nowadays, packaging engineers continue to work toward reduced packaging (http://en.wikipedia.org /wiki/Packaging_and_labelling).
Re‐use The re‐use of a package or component for other purposes is encouraged. This sort of packaging has long been useful (and economically viable) for closed loop logistics systems. Inspection, cleaning, repair and recouperage are often needed (http://en.wikipedia .org/wiki/Packaging_and_labelling).
27
Recycling It is the reprocessing of materials (pre‐ and post‐consumer) into new products. Emphasis is focused on recycling the largest primary components of a package: steel, aluminum, papers, plastics, etc. Small components can also be chosen which are not difficult to separate and do not contaminate recycling operations (http://en.wikipedia.org/wiki /Packaging_and_labelling).
Energy recovery There are methods like ‘Waste‐to‐Energy’ and ‘Refuse‐Derived Fuel which make it possible to utilize the energy available from the packaging components in form of heat (http://en.wikipedia.org/wiki /Packaging_and_labelling).
Disposal Incineration and placement in a sanitary landfill are needed for some materials. Material content should be checked for potential hazards to emissions and ash from incineration and leachate from landfill. Packages should not be littered (http://en.wikipedia.org/wiki/Packaging _and_labelling).
28
Chapter – 3
M a t e r i a l s & M e t h o ds Research Methods:
This project report has been compiled with the help of information and data about the packaging industry in general and about the packaging styles of three Indian companies available on the internet. The data present in this report is secondary. The text has been modified to make it more relevant to the requirements of the current study. The data has been sifted and analysed to provide a comparative account of the packaging methodologies of the three target companies. Wherever necessary, pictures and diagrams have been either snap shot through webcam or have been copy‐pasted from the websites to elucidate the statements. At the end of the manuscript list of sources has been provided from where the material has been drawn.
29
Chapter – 4
Data Collected Packaging Strategy of Cadbury India Ltd:
Cadbury India Ltd. is the leading chocolate manufacturer of India. The company maintains a large product range in the market. Major brands of the company are as follows (http://fmcgmarketers.blogspot.com /2007/12/chocolate‐market‐in‐india.html):
Cadbury Dairy Milk Dairy Milk is retailed in colourful primary packaging of HDPE over a thin aluminium foil. For different versions of Dairy Milk ‐ Fruit & Nut, Roast Almond, Crackle, and Desserts, the company is using different colour combinations retaining the brand name style common. The basic combination is blue and white with variations of red, yellow and brown. Cadbury Dairy Milk was launched in India in the year 1948 and it emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey (http://www .cadburyindia.com/brands/choco1.asp).
30
Cadbury 5Star 5Star was launched in India in the year 1969 and was distinct with its classic golden colour. It comes in different versions of Crunchy, and Fruit Nut. It is retailed in primary packaging of HDPE (http://www. cadburyindia.com/brands/choco2.asp).
Cadbury Perk It was launched in India in the year 1996. It is retailed in primary packaging of HDPE. It has a colour combination of blue, yellow, red and brown (http://w ww.cadburyindia.com/brands/choco3.a sp).
Cadbury Celebrations This brand was aimed at replacing traditional gifting options like ‘Mithai’ and dry‐ fruits during festive seasons. These are marketed in different versions, each with beautiful attractive packaging of festive colour combinations. The retail package is of glazy light cardboard with a primary packaging of HDPE inside (http://www.cadburyindia.com /brands/choco4.asp).
31
Cadbury Temptations The Cadbury Temptations range is available in five delicious flavour variants ‐ Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. Packaging of these versions is uniquely sombre and impressive. The retail packaging is made up of glazy paper with a primary packaging of thin aluminium foil inside (http://www.cadburyindia.com/brands/choco7.asp).
Cadbury Eclairs This is a toffee version of chocolate packed in primary packaging of HDPE with colour combination of blue and yellow (http://www.cadburyindia.com/brands/choc o8.asp).
Cadbury Gems This brand comes in brightly coloured packaging, specially attractive for the children. This brand was launched in India in the year 1968. It comes with a variation of Fruity Gems. There are three package types of gems. The regular brand is retailed in thin paper cardboard over a
32
primary packaging of HDPE. The second type is retailed in primary packaging of HDPE only. The third packaging is in a cylindrical plastic container over a primary packaging of HDPE (http://www.cadburyin dia.com/brands/choco10.asp).
Packaging Strategy of Nestle India:
Nestle India covers a considerable segment of Indian chocolate industry with a large product range. Their packaging styles associated with different products are as follows:
Nestle Kitkat This popular brand of Nestle is wrapped in three primary packages. First is a thin aluminium foil followed by paper in a slide‐in cover of HDPE. Colour combination of this brand is red and white (http://www.nestle.in/Chocolates Conf.aspx?OB=4&id=4).
Nestle Kitkat Chunky This brand comes with a variations of Kitkat Chunky Choko and Kitkat Chunky Hazelnut. It has a primary packaging of aluminium foil followed by a thin cardboard. Colour combination is similar to that of regular Kitkat (http://www.nestle.in/ChocolatesConf.aspx? OB=4&id=114).
33
Nestle Munch This brand has colour combination of purple, yellow and red. It has single primary packaging of HDPE (http://ww w.nestle.in/ChocolatesConf.aspx?OB=4 &id=5).
Nestle Munch Pop Choc This brand has a primary packaging of HDPE followed by thin cardboard. It has a colour combination same as that of munch (http://www .nestle.in/ChocolatesConf.aspx?OB=4&id=107).
Nestle Milkybar This brand has a primary packaging of thin aluminium foil followed by thick glazed paper. It has a colour combination of yellow, red, blue and white (http://www.nestle.in/Chocolates Conf.aspx?OB=4&id=52).
Nestle Milkybar Choo This brand comes with a variation of strawberry flavour. It has HDPE as primary packaging. The strawberry version has a colour combination of pink, sky‐blue and blue. The later has colour combination of off‐white, red and sky‐blue (http://www
34
.nestle.in/ChocolatesConf.aspx?OB=4&id=3).
Nestle Bar‐one This brand has HDPE as primary packaging. It has colour combinations of red, black and silver. It comes with a variation of a small‐ sized package (http://www.nestle.in /ChocolatesConf.aspx?OB=4&id=6).
Nestle Funbar This brand has HDPE as primary packaging. It has colour combination of red, yellow, blue and white (http://www. nestle.in/ChocolatesConf.aspx?OB=4&id =101).
Nestle Milkchocolate This brand has packaging pattern similar to that of Milkybar. It has a colour combination of red and white (http://www.nestle.in/ ChocolatesConf.aspx?OB=4&id=7).
Nestle Eclairs This toffee version of chocolate has HDPE as primary packaging. It has a colour combination of golden and red.
35
It comes with a variation of Milkybar Eclairs, which has blue, off‐white and white as colour combination (http://www.nestle.in/ChocolatesCon f.aspx?OB=4&id=10).
Packaging Strategy of Amul:
Amul also has a considerably wide product range, which are beautifully packaged in various styles. Their colour combination is comparatively simple.
Amul Milk Chocolates Amul milk chocolate versions include Amul – Crisp, Bitter, Orange, Fruit & Nut, Crunch, and Badambar. The company retails the variations of Amul Milk Chocolate – Orange, and Crisp. These chocolates have dual primary packaging. First consists of aluminium foil, while the outer box is made up of thick glazed paper. The bars are covered with single primary packaging of HDPE. The colour combination of these chocolates consists of golden with a variety of other colours including maroon, blue, brown, red, and green (http://www.amul.com /desserts‐chocolates.html).
36
Amul Chocolate Gift Packs These packages are brought out as special versions on various festivals. They have thin aluminium foil as primary packaging followed by thin decorative cardboard. Colour combinations are brilliant with festive themes (http://www.amul.com/ desserts‐chocolates.html).
37
Chapter – 5
Results & Discussions The
concept of packaging started with need to maintain the
cleanliness of the product and ease of handling during transport and retailing. During the course of time, packaging has evolved into a full‐ fledged science and art. Besides the original utility purposes now, it serves the purposes of attracting customers and fulfilling mandatory obligations. These days, packages are designed beautifully in multiple colour combinations to suit customer preference; and at the same time information regarding contents, batch no., dates of manufacture and expiry, and MRP (maximum retail price) is provided on the packaging. Three chocolate companies under study have been using the packaging styles very effectively for impressing their customers. A common feature among the three companies is that they are all using their signature logo on their packaging in a uniform and consistent manner. This stimulates a memory of the previous taste of the product in the mind of the customer while choosing a particular brand of any of these companies. The slot created by the company for itself through advertisements is also reminded by the peculiar logo style of the respective company. Cadbury India Ltd. and Nestle India are using bright colour combinations on their packaging in the middle price segment of their chocolates like Cadbury Dairy Milk, Cadbury 5star, Cadbury Perk, Nestle Kitkat, Nestle Munch, and Nestle Milkybar. Cadbury India Ltd. use
38
sombre combinations on their high price segment like Temptation only, while Amul prefer such combinations on all their products. Dual primary packaging consisting of inner aluminium foil and outer paper cover provides an extra sense of sanitation to the customer and also preserves the aroma and texture of the chocolate better. Unique kind of packaging like used for Cadbury Gems is of special attraction for the children. However, such unique packaging styles are not in vogue in Indian market. Cadbury India Ltd. and Amul are rendering special packaging on festivals. Cadbury’s packages are plain and impressive while Amul’s packages are more colourful and vivid. These packages convey a sense of festivity to the customers and are convenient to handle and deliver. A survey of the packaging styles of the three major companies shows that invariably packaging of all the products is thermally sealed which has to be torn off by teeth. Although these products are basically targeted for children, none of the packaging has a provision for safe, convenient and sanitary way of opening. It is surprising that such provisions exist for opening cigarette packets but not for chocolates.
39
Chapter – 6
Conclusions & Recommendations The report reviews various styles of packaging in chocolate industry in Indian market. The report also presents glimpses of the various strategies companies use for packaging. The study shows that packaging plays an important role in cultivating favourable customer response for marketing various chocolate brands. The study shows that the three chocolate manufacturing companies in Indian market use more or less similar packaging material and style for their products. However, some variations in colour combinations and patterns exist among the packages of different companies. In the absence of marked differences in packaging material and style of the three companies, it may be inferred that the difference in sales of the products of these companies is due to factors other than packaging. Following recommendations may be presented on the basis of the present study: • Attempt should be made to make chocolate packaging more user friendly.
40
• Attempt should be made to make chocolate packaging more environment friendly. • There must be an appropriate provision made for opening the seal of the chocolate packages.
41
Chapter – 7
Future Prospects
The study shows lack of innovative approaches in packaging strategies of the three companies under consideration. This situation leads to infer that the level of competition among the leaders in chocolate manufacturing in India is low. Hence, there exists a huge scope for growth of chocolate industry in India.
42
References • • • • • • • • • • • • • • • • • • • • • •
http://en.wikipedia.org/wiki/Packaging_and_labelling http://edis.ifas.ufl.edu/pdffiles/AE/AE20600.pdf http://www.pfm.it/pages/file/7ebcf3fe2224b104.pdf http://fmcgmarketers.blogspot.com/2007/12/chocolate‐market‐in‐ india.html http://www.cadburyindia.com/brands/choco1.asp http://www.cadburyindia.com/brands/choco2.asp http://www.cadburyindia.com/brands/choco3.asp http://www.cadburyindia.com/brands/choco4.asp http://www.cadburyindia.com/brands/choco7.asp http://www.cadburyindia.com/brands/choco8.asp http://www.cadburyindia.com/brands/choco10.asp http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=4 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=114 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=5 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=107 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=52 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=3 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=6 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=101 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=7 http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=10 http://www.amul.com/desserts‐chocolates.html
***** The End