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Packaging Labeling and Warranties


Packaging, Labeling and Warranties

Product packaging:

Product packaging is the art and science of creating boxes, covers, tubes, bags and other containers that
are sturdy enough to protect the product inside, and that are effective promotional pieces in themselves.
To a very large degree, the quality of design work on the package affects how well your products sell.
When shopping, you reach for products whose packaging is attractive and looks professional, and you
instinctively shy away from unattractively packaged products. The design of the container along with
the images, logos, marketing text, ingredients and fine print, all go into creating something people will
feel confident to buy. Therefore it is essential that packaging be of the highest quality so that it acts as
your in-store salesperson.

Issues in packaging in international markets:

International marketers need to take into account the following factors for deciding appropriate
packaging in various international markets;
• changes in climates across countries
• lengthy & difficult transportation
• lengthy periods on shelves
• varying sizes of packaging
• different consumer preferences in packaging
• some standardization needed to make the product recognizable
• growing environmental consciousness
• different types of channels of distribution
• different cost pressures
• environmental concerns

Issues in labeling:

International marketers also need to design appropriate labeling for various markets, to cater for the
market differences as well as to adhere to regulations. In the following are the list of issues marketers
face in labeling in international markets;
- different languages of foreign markets
- information details to be provided
- instructions for use
- different price or currencies
- different promotions
- consumer preferences in various markets (color, wording style etc..)
- rules and regulations of foreign countries
Issues in warranty and service policies:
International marketers also face issues, whether to standardize or to localize warranty and service
policies in international markets. Factors favoring standardization or localization of warranty and
service policies in international markets are listed below;

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Factors favoring standardization

– presence of multinational customer
– goods purchased in one market but consumed elsewhere
– products affecting human health and safety
– standardized products

Factors favoring localization

– different competitive situation
– different quality levels in different markets
– different use conditions
– lack of international service network
– stronger guarantees when the company is entering in new market (marketing tactic)
– barriers to import of replacement parts and traveling of foreign staff
– availability of human resources & ability of local distributors
Strategies to cope with negative country of origin (COO) stereotypes:
Marketers of products from developing world often face negative attitudes from the customers in
developed countries. There are ways in which international marketers attempt to address this issue
though product policy, pricing, distribution and communication;

Product Policy:

- Select a brand name that disguises the country of origin or even involves a favorable COO (Giordano
- Sheer innovation & drive for superior quality also help firms to overcome COO biases in the long


- Selling the product at a relatively low price will attract value-conscious customers who are less
concerned about the brand’s country of origin.
- For product categories where price plays a signal of quality - high price may help.


- Companies could influence consumer attitudes by using highly respected retailers.


- Firm can use communication strategy to
1. Improve the country image.
2. Bolster the brand image.

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