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Why packaging matters

The packaging does play an important role.
By Entrepreneur Staff |

It’s difficult to overstate the importance of packaging to a product or service. Especially for products like food, it’s the packaging that gives the customer the first impression about the product. In fact, as most of us know, many people judge a product by its packaging.

Great packaging can lure more customers and turn first-time buyers into repeat customers and loyal brand followers. For this reason, some manufacturers spend a lot of money to glamorize the package—sometimes even more money than what they spend on its contents. They do this knowing that the package is the final marketing message the buyer sees before making a purchase decision.

“The truth is that packaging is the total image of the product before it is brought out to the consumer,” says the chief executive of a local packaging company that has been supplying the needs of the country’s top consumer-product makers over the last three decades.

“Since it’s image-driven, you have to make your packaging so sensible that the consumer can’t help but notice it,” explains the CEO, who requested to remain anonymous.

But with hundreds of brands competing for a customer’s attention in the marketplace, it is not enough for a product’s packaging to be simply good. It has to be truly different—and this, according to the packaging executive, is where innovative packaging that “transcends the traditional” comes in.

Peter Renton, founder of Lightning Labels Inc., says that innovative packaging “gets the product noticed, helps build your brand, and will give your product some personality.” Renton is an expert in digital label printing and writes a regular blog about the US packaging industry.

For all its importance, though, innovative packaging need not be expensive. According to Renton, a resourceful entrepreneur can come up with great packaging for a product without paying a fortune to a packaging design company.

This article was originally published in the November 2010 issue of Entrepreneur Philippines.

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