Packaging serves the following functions:

Appeal to the customers
Cost effective
Protection of the product
Promotion to product
Easy handling
Perform functionally
Preventing adulteration
Convenience

1. Appeal to the customers: Package is an important marketing tool particularly for consumer products such as cosmetics, chocolates, toffees and gift articles. A package performs the self-selling tasks-attracts attention; tells the product features and usage; and builds confidence of the product usefulness for the purpose.

Packaging has special role to play for sales promotion activities. For example, Brown & Poison custard powder informs the consumer that the product is ‘New Improved’. Maltova flashes the massage that the reusable Binnie’s PET JAR worth Rs. 30 is free with one Kilogram pack. Dabur Chawanprash announces that the new pack is from the makers of the product. Thus, different sales promotion techniques are adopted for packaging the product; e.g. Money off pack, Coupan-pack, Pack-in-premium and premium package.

2. Cost effective: A package costs the manufacturer. The cost of package should not alarmingly increase the price of the product. It is reported that a package in cosmetics industry costs 20% to 30% and in chocolates 5% to 10% share in the final price to the consumer.

3. Protection of the product: The basic function of the package is to protect to product from:

Breakage or damage due to mishandling. For example, cardboard package for the washing machines, Thermocal package for TV, VCR etc.
Extremes of temperature. For example, package for the Amul butter includes information for keeping the product in refrigerator.
Contamination with external elements such as dirt or chemical elements. For example, Sunflower oil comes in sealed packs so that no external object may (dust or chemical element) affect the purity of the oil.
Absorption of moisture or odor of foreign elements. For example, drugs are packed in sealed bottles, and aluminum foils to protect them from absorbing odor.
Loss of liquid or vapor. For example, Petrol is packed in air tight containers to avoid any loss of the product due to the vapor effect.
Pilferage. For example, Coca-cola one litre bottles are packed in plastic containers which are fully covered and placed one over another. This leads to control in pleferage of the bottles in transit.

4. Promotion to product: Packaging gives individuality to the product and this act as a device of promotion. Manufacturers choose attractive packages so that the users are able to remember and identify their products. Packaging helps in pushing up the sales of the product. It beautifies the product so that it attracts the customers. A customer may be ready to pay a higher price for coffee jars and pickle jars which are reusable. If they are attractive, they will draw the attention of customers very quickly. Thus, packaging acts as a silent salesman.

5. Easy handling: Packaged goods are very easy to handle. Handling instructions can also be mentioned on the package to ensure safe handling of goods, e.g., “Glass-Hand/ e with care”. Moreover, packaging is a must for many of the goods such as wheat, ghee, butter, acid etc.

6. Perform functionally: The science and technology part of the package refers to a package performing functions. For example, vegetable oil used to come in tin packs. Now, it comes be as well as in plastic packs with handle grip so that the package not only stores the product, it is handy and therefore can be kept near the place of cooking. Hexit and Lifebuoy liquid are two examples of packages that perform functionally because the product is useless unless the gun works to complete the product usage.

7. Preventing adulteration: Packaging is also necessary to prevent adulteration of goods by the unscrupulous traders. For instance, ghee, oils, cheese, etc. need sealed packaging to prevent any possibility of adulteration.
8. Convenience: A good design of the package would provide many advantages. Convenient to stock, convenient to display, reduce waste save shelf-space, retains its looks during shelf display, and is easy to dispose-off. It leads to convenience to the manufacturers, resellers and the consumers.

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