 Welcome learners. This is the third video lecture on branding. Outline of the presentation. After going through this video lecture you will be able to define the role and functions of packaging and then you will be able to explain the role and functions of labeling. So here we will be focusing on two things. One is your packaging and another one is labeling. First we will discuss about the packaging. So the physical products must be packaged and labeled. Packaging has made the users of the products quite convenient. Consider its importance. Many marketers have called packaging as the fifth P along with the product price, promotion and place. So most of the marketers however treat packaging and labeling as an element of product strategy. And warranties and guarantees can also be an important part of the product strategy which are often appeared on the package. Packaging may be defined as all the activities of designing and producing the container for a product. So just imagine a product without package. We don't like trash the product then the product can also be damaged because if there is no package. So packaging protects the product. It gives a good appearance because of all these aspects like packaging is considered as fifth P of the marketing mix. So packages might include three levels of material. First primary level of packaging is for immediate holding of the product. Just for example the tube holding the toothpaste. And then the secondary package. Secondary packaging is the paper board container holding the tube and a flashing brand related information. So just consider the first thing is your tube of the Colgate or any kind of toothpaste. Then second is the paper board container where all the details information were given. And what is the third level of your packaging that is the shipping or transportation packaging. Like where distributors are distributed in a large quantities to the retailers and wholesalers. So packaging as a marketing tool are discussed as like I am going to discuss it. First thing is self service. In today's retailing format an increasing number of products are sold on a self service basis. Like we go to the supermarket and from that we purchase whatever product we would like to purchase. So in an average supermarket which stocks more than 15,000 items the typical shopper passes by some 300 items per minute. So given that 50% to 70% of all purchases are made in the store the effective package must perform many of the sales tasks. Like attract attention, describe the product features, create consumers confidence and make up a favorable overall impression. Then consumer affluence. Rising consumer affluence means consumers are willing to pay a little more for their convenience, appearance, dependability and prestige of better package. Just imagine some package which are easy to carry. So consumers prefer those packages like for 5 liters oil or like any bigger get things if you want to purchase. If that package itself is easy to carry then consumers will prefer that particular package or that particular brand. So consumers prefer buying branded on packaged products. Then your company and brand image packages contribute to the instant recognition of the company or brand. Because the logo, sign, symbol everything is like visible in the package. In the store packages of a brand can create a visible effect. Then innovation opportunities. Like innovative packaging can bring large benefits to consumers and profit to the producers. Companies are incorporating unique materials and features such as resellable spot and openings. Then you may observe how milk is packaged to maintain its freshness. Then different types of bottles like with the product. So it makes the product more attractive and like for some products for kids. So their packaging will be different to attract the kids. So it also gives some innovation opportunities. Then from the perspective of both the firms and consumers, packaging must achieve the number of objectives. Like protecting the product during the transportation, then identify the product, then convey descriptive and persuasive information about the product, then assist at home storage, then aid product consumption. So to achieve the marketing objectives for the brand and satisfy the desires of the consumers, marketers must consider the aesthetic and functional components of packaging correctly. Aesthetic considerations relate to package, size and shape, material, use of color, text, graphics, etc. So more the package will be attractive, the more consumers will be trying for that particular brand. Then although developing effective packaging may cost considerable amount of money and take several months to complete, companies must pay attention to the growing environmental and safety concerns about the packaging. In India, there are increasing concerns on the environmental degradation caused by excessive use of plastic in packaging. Some state governments have taken the decision to ban the use of certain type of plastic shopping bags. Some companies are showing increasing sensitivity to these issues and are using more environment-friendly alternatives and packaging materials like jute. Then along with the companies, the intermediaries and the consumers also have responsibilities towards environmental-friendly packaging. So while using certain type of packaging, we should consider about the environmental sustainability. So far we have discussed about packaging, now we will go to discuss about the labeling. First, we should know what is label? Like in any kind of product, you will see certain labels will be there where all the information required about the product or services will be clearly defined. A label provides written information about the product. Labeling helps the buyer to understand the nature of the product, its distinctive features, its composition, its performance, etc. Labeling may include different dimensions. There are grade labels as descriptive labels. In grade labeling, product classifications are based on quality. Like products may be classified into A, B, C or 1, 2, 3 categories based on quality. But among branded products, mostly descriptive labeling is used where they will furnish the detailed information about the product attributes, qualities and uses related information. Suppose, for example, date of manufacturer, date of expiry, then what are the contents there in that particular product? Is there any child-sensitive products? Ingredients were there in the product. So all these details will be given in the labeling. Now we will discuss about the functions of labeling. A label provides written information about the product as I have already said. Labeling helps the buyer to understand the nature of the product, its distinctive features, its composition, its performance, etc. Labeling may include different dimensions. There are grade labels and descriptive labels. In grade labeling, as I have already said, it can be labeled as A, B, C or 1, 2, 3, etc. The packaging sets mandatory labeling requirements and allows regulatory agencies to ensure implementation of packaging regulations in the specific industries. These are very important in case of food products and medicines. Here the date of manufacturing, date of expiry, etc. should be clearly mentioned. So in this video lecture, we have basically discussed about two things. One is packaging and the other one is labeling. The physical products must be packaged and labeled. So packaging is the primary task of packaging is to protect the product. And labeling provides the detailed information about the product. So packaging is very important in marketing and labeling provides us the detailed information about the products, its manufacturing and expiry date, etc. And packaging is one of the most useful tool to attract customers. A trademark, as I have already discussed, it gives a legal protection to the product. So that's all about this video lecture. And I have given some references for you to further reading. Thank you.