Packaging, marketing, logistics and the environment: are there trade-offs?

Gerard Prendergast: Henley Management College, Henley on Thames, UK

Leyland Pitt: Henley Management College, Henley on Thames, UK

Introduction

There is little doubt that the impact of packaging on the environment is gaining increasing recognition from consumers. Particular consumer concerns relate to the effect of packaging on resource use, energy consumption, pollution, solid waste and litter[1]. Governments are also concerned about the impact of packaging on the environment. Germany, for instance, tends to have taken the lead in Europe[2]. Looking at Europe in general, the European Union or EU (formerly the European Community or EC) has become involved in environmental legislation. Indeed there are nearly 200 EC/EU directives and decisions which deal specifically with environmental areas, although by 1990 more than half of these directives had not been implemented[3]. One recent legislative force is the EC Proposal for a Council Directive on Packaging and Packaging Waste. This directive, which focuses on increasing the recycling of packaging material and reducing the level of packaging waste, has major implications for marketing and logistics.

Given that there is both consumer and legislative pressure on companies to rethink their packaging, the question remains as to whether or not making a package more environmentally compatible reduces the ability of the package to protect and promote the product. It is this issue which is the focus of this paper.

Packaging, marketing, logistics and the environment

Different authors point to different functions for packaging. Some of these functions relate to marketing and some to logistics. Both Robertson[4] and the Institute of Logistics[5] point to up to seven specific packaging functions, which essentially can be condensed into three core functions. The first function of packaging tends to be logistically related: packaging protects the product in movement[6, 7]. One of the basic reasons for incurring the added expense of packaging is to reduce the occurrence of damage, spoilage, or loss through theft or misplaced goods. A number of issues have increased the profile of packaging in logistical activities. For instance the increase in use of information technology and automation in warehousing and materials handling have increased the importance of packaging. Good packaging might have a positive impact on warehouse layout and design and overall warehouse productivity. Packaging dimensions and stackability are important factors for...