The Importance of Packaging Development and Consumer Perception of Packaging in FMCG Industry

To study the importance of packaging development, functions of packaging and consumer perception of packaging in FMCG industry.

-To find out which elements of packaging have significance impact to consumer perception in FMCG industry.

-To examine consumer perception towards packaging in FMCG industry.

-To recommend factors that have impact on consumer perception in order to develop packaging in new product development process in FMCG industry.

Please make introduction has clear knowledge, structure, talk about background information relate to this topic that include packaging development, packaging and consumer perception. Please write about packaging in FMCG as well to introduce that why packaging is importance in FMCG before I this chapter go to next chapter.

Determinants of successful new package development process Purpose of the study Innovative packaging and new package development are becoming more and more important factors in highly competitive fast-moving consumer goods market were the number of products is high and the need for differentiation is vital in getting consumers’ attention. In order to develop successful package innovations that lead to sales increase, the success factors of new package development process need to be identified. Although the determinants of new product development process have been widely studied, academic literature lacks research in new package development process.

This study aims to fill the research gap by exploring and identifying success factors of new package development process. Methodology The data used in this study was collected via a web-based questionnaire, targeted to decision makers in supplier companies in Finnish fast-moving consumer goods sector. 92 managers and specialists participated in survey questionnaire investigating new package development process and attitudes towards packaging innovations within target companies.

The data was analyzed by using correlation analysis and one-way ANOVA test to find relations between independent and dependent variables. The hypotheses were formulated based on the theoretical insights of NPD process success factors. Findings The study succeeded in finding statistically significant correlations between success of new packages and certain factors of new package development process. More precisely, the study suggests that innovation-friendly company climate and attitude have positive influence on new package success. Furthermore, the results indicate that significant amount of internal resources allocated to new package development has a positive influence on new package success.

Moreover, the study found that packaging innovations are widely reckoned as an essential factor for product success. However, it also revealed that new package development process is still significantly less developed and organized than new product development process. In addition, the measurement and goals of packaging innovation process should be better defined in Finnish fast-moving consumer goods supplier companies.

Determinants of successful new package development process

Nowadays, companies all around the world are trying to come up with creative ways to develop new products in order to grow and be able to compete in the changing market environment (Calantone & di Benedetto 1998; Kotler & Keller 2008). New product development has long been identified as one main factor in gaining and maintaining a strong competitive position, especially in highly saturated and competed markets, such as food industry (Vernuccio et al. 2010; Underwood 2003). In order to differentiate one from competitors and catch more and more demanding customers’ attention, in addition to new product development, packaging innovations have been found to be an effective way to gain competitive advantage in the highly saturated fast-moving goods market (Underwood 2003; Young 2004).

Product packaging is an issue that has got a wide attention in the academic discussion during the recent years. Particularly in the grocery food industry the demand for a higher level of customization has aroused the need to further concentrate on more innovative packaging designs (Olsson et al. 2004). Several studies show, controversial to the traditional mindset, that packaging today has a significant role in product marketing and brand identity (e.g. Schoormans & Robben 1997; Underwood 2003; Clement 2007). 

Thus, several factors are driving businesses to pay more attention to product packaging. Increasing competition, changes in consumers’ consumption behaviour, new technologies and environmentalism, to name a few, are drivers that have forced decision-makers especially in the retail grocery sector to see product packaging as a potential source of competitive advantage and a way of differentiation (Underwood & Klein 2002; Vernuccio et al. 2010). However, introducing successful new package designs to market is not simple or risk-free. Extensive academic literature on new product development has shown new product failure rates of as high as 50% - 90% (Kotler & Keller 2008).

Therefore, potential determinants of product development success have emerged as an important focus of research inquiry to provide insights that may help managers reduce the failure rates of new product development (e.g., Kotler & Keller 2008; Ernst 2002; Ernst et al. 2010; Chesbrough 2010). Although various aspects of new product development success factors have been examined, a limited amount of academic research is found on the critical drivers of new package development process.

What are the determinants of successful new package development process?

The study seeks to answer the research problem by examining the following sub questions:

What are the drivers of successful new package development process in organizational level and how should they be addressed?

How does integrating package development with NPD process affect the success of the process?

What kind of company culture promotes the success of new package development process?