Role of Packaging in Market Development

by Kristie Lorette, Demand Media
Product packaging can attract customers and boost sales.

Product packaging can attract customers and boost sales.

pint container image by Paul Moore from

According to the publication "Private Label Buyer," studies show that packaging of products can increase customer satisfaction, increase visibility and set one product apart from its competition. In essence, packaging plays a pivotal role in the branding process of the product, attracting customers and providing customers what they’re looking for when they take the product home.


The true function of product packaging is to protect the product during shipment from the manufacturer to the store selling it. Packaging is also a form of protection as the product sits on store shelves waiting for consumers to come along and purchase it. In marketing and market development, packaging is the “dress” on the product, which can play a role in whether the product sells in a new market or to new customers.


Product packaging also plays a vital role in the branding process of the product. InvestorWords defines a brand as a symbol, wording or another type of mark that differentiates a product or business from its competition, and branding is an essential part of marketing for many products and companies. Some products carry different branding, depending on the market in which they are sold, especially in different countries.


Packaging can help sell the product because it provides space for sharing information about the product, such as nutritional information, usage or directions. For example, some packaging contains marketing messaging on the front to attract customers to pick it up and look at the product. In essence, the packaging can help to paint a picture of how the product benefits the customer. When developing a product in a new market, it is important to conduct market research, such as focus groups, to determine what is appealing to the new market. For example, preferences of colors, pictures and labels on products can differ from one country to another or from one group of customers to another.


Packaging also can share information on the features of the product. Size, measurements, uses and more printed on the packaging of a product can help customers decide if the product fits their needs. For example, if a customer is shopping for an under-the-sink garbage can, he needs to know the measurements of a product to make sure it will fit under his sink. A package box or label that details the height, width and depth of a garbage can on a store shelf can help the customer quickly determine if it fits under his sink--ultimately helping him make the decision about whether to buy it.


Packaging also can help customers identify the products or companies they are loyal to. For example, if a local restaurant decides it wants to sell its famous salad dressing in retail stores, the salad dressing packaging and label may carry the restaurant's logo, name and color scheme. Using packaging that carries the same brand helps customers of the restaurant identify the brand when shopping at the local grocery store. Once consumers start buying the product, packaging helps them quickly identify the product when shopping. When introducing a product in a new market, packaging can help to garner the attention of a prospect. For example, vibrant colors may prompt a new customer to stop and look at the product because of the bright colors or because the design is one she has seen before.

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