Oftentimes, packaging is an integral element of product-related decisions. Packaging is an especially
important consideration for products that are shipped to markets in far-flung corners of the
world. The term consumer packaged goods applies to a wide variety of products whose packaging
is designed to protect or contain the product during shipping, at retail locations, and at the
point of use or consumption. "Eco-packaging' is a key issue today, and package designers must
address environmental issues such as recycling, biodegradability, and sustainable forestry.
Packaging also serves important communication functions: Packages (and the labels
attached to them) offer communication cues that provide consumers with a basis for making 6
purchase decision. Today, many industry experts agree that packaging must engage the senses.
make an emotional connection, and enhance a consumer's brand experience. According to Bernd
Schmitt, director of Columbia University's Center on Global Brand Leadership, "Packages are
creating an experience for the customer that goes beyond the functional benefits of displaying
and protecting the object."l Absolut Vodka, Altoids breath mints, and Godiva chocolates are a
few examples of brands whose value proposition includes "experiential packaging."
Brewers, soft drink marketers, distillers, and other beverage firms typically devote considerable
thought to ensuring that packages speak to consumers or provide some kind of benefit
beyond simply holding liquid. For example, a critical element in the success of Corona Extra
beer in export markets was management's decision to retain the traditional package design,