Packaging decisions are important for several reasons including:
Protection – Packaging is used to protect the product from damage or breakage during shipping or handling and to avoid product spoilage if exposed to air or other contaminants.
Visibility – In a market with intense competition, the retail packaging is not only to contain and protect the contents but also have to add the product shelf appeal. Packaging design is used to capture the attention of customers as they shop or take a quick look through a catalog or website. Companies like CO-PACK INC produce a myriad array of retail packaging products to help businesses expand their market and engage more customers.
Added Value – Increasing the perceived value of the product or service is a way of improving what you have to offer, without having to increase your costs. Packaging design and structure can increase the shelf impact and the value of the products you sell. For example, benefits can be achieved from the package structure which makes the product convenient to be used or consumed while the stylish design can make products look more attractive to exhibit at the customer's home.
Distributor Acceptance- Packaging decisions must not only be approved by the end consumer, but they also have to be agreed by distributors who sell the product to the supplier. For example, a retailer may not accept the package if they will not comply with the requirements they have for stocking up products on their shelves.