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Master Thesis

HALMSTAD

UNIVERSITY

Master's Programme in Industrial Management andInnovation, 120 credits

Adoption of Smart Packaging

Case Study analysis from retailer’s perspective

Industrial Management, 30 credits

Halmstad 2019-04-11

Uma Devi Venkatesh, Omar Ali Ahmed Al-samuraaiy

Omar, Uma Thesis in Industrial Innovation Management (IN7001)

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ACKNOWLEDGEMENT

After an intensive period of a year, today is the day, writing this note of thanks is the finishing

touch on our dissertation. It has been a period of intense learning for us, not only in the scientific

area but also on a personal level. Writing this dissertation has had a big impact on us. We would

like to reflect on the people who have supported and helped us so much throughout this period.

Firstly, we would like to express our sincere gratitude to our thesis supervisor Vicky Long for

the continuous support of our thesis study and related research, for her patience, motivation,

and immense knowledge. Her guidance helped us in all the time of research and writing of this

thesis.

We would like to thank the people in industries, who helped us from their busy schedule and

gave us all the information that is needed for our thesis to complete.

We would also like to thank our classmates and professors, who have reviewed our work and

shared their valuable feedback to enhance our report during oppositions.

Last but not the least we must thank our parents and friends for providing us with support and

continuous encouragement throughout years of study and through the process of researching

and writing this thesis. This achievement would not have been possible without them.

Thank You

Omar Ali Ahmed Al-Samuraaiy & Uma Devi Venkatesh

March 28, 2019

Halmstad University

Sweden.


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ABSTRACT

This paper presents the challenges faced by the retailers during the adoption of smart packaging

in food packaging industry. The paper introduces three largest food retailers in Sweden, and

the problems they faced during the introduction of the adoption of smart packaging

technologies packaging.

Introduction- The authors present the paper with complete background of the food packaging

industry in general, as well as each types of smart packaging techniques. In addition, the paper

introduces the adoption process for the smart packaging. The research question of this paper

is:

What are the hinders of adopting smart packaging technology in food packaging

industry and why?

• What challenges do they face during the adoption process?

• What are the hinders in this adoption process?

• What are the new hinders in this adoption process?

Purpose- The main purpose of this paper is to find the challenges that occur during the adoption

of smart packaging in food packaging industry faced by the retailers. Knowing the basic

knowledge of the food packaging industry and giving importance to the challenges may lead

to achieve our aim.

Methodology- This research paper uses the research onion model as a methodology to analyse

the gathered data. The authors performed interviews with retailers and end-users of food

packaging industry to analyse their challenges during the adoption of smart packaging. The

collected data are further discussed in the analysis and discussion part.

Conclusion- This paper concludes the adoption in the new technology and concentrates on how

each retailer has their own perspective to see the quality and use it to overcome the adoption

process. This paper describes the common and unique challenges faced by the retailers during

the adoption process. The main common challenges faced by all the retailers in common was

to create awareness and to make end-user understand the adoption process but also the benefits

of adoption. The most important challenges faced by the retailers of ICA is they consider that

adopting to new technology in smart packaging is a challenge for them, because they must

create an understanding about the new technology to the end-users which requires a lot of time

for the adoption process.

According to Coop the open to new smart packaging technologies because since they use only

localize products and resources, the overall cost of the product increases which again becomes

a barrier for end-user adoption. The interviewee from Willys state that they offer affordable

smart packaging technologies without creating barrier for customer adoption, at the same time

they are not willing to adopt new technologies without testing its feasibility with the customers.


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Limitation- The aim of this study is focused on only one element of smart packaging i.e.

“Adoption”. Moreover, this study is limited to adoption of smart packaging done in three

companies (Coop, Willys & ICA Maxi) in the retail sector in Halmstad, Sweden. This study is

conducted from the retailer perspective, by analysing the challenges faced by the retailers

during the adoption process.

Keywords: Smart packaging, Packaging, Adoption, Retailers, B2B, Challenges, Innovations,

Food industry, Diffusion, Technology.


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LIST OF ABBREVIATIONS

PVC Polyvinyl Chloride

UPC Universal Product Code

FRID Radio Frequency Identification

MAP Modified Atmosphere Packaging

PET Polyethylene Terephthalate

UV Ultraviolet

IR Light Infrared Light

TTI Time Temperature Indicator

KTE Knowledge Transfer Efficiency

PPM Parts Per Million

LPF Low Pass Filter

DNA Deoxyribonucleic Acid

EU Ecological European Ecological

UN United Nations

QR Quick Response


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TABLE OF CONTENTS ACKNOWLEDGEMENT .......................................................................................................... i

ABSTRACT ............................................................................................................................... ii

LIST OF ABBREVIATIONS ................................................................................................... iv

LIST OF FIGURES ................................................................................................................. vii

LIST OF TABLES ......................................................................................................................................................................................................................................... viii

1. Introduction ............................................................................................................................ 1

1.1 Background and Significance ........................................................................................................ 1

1.2 Problem Statement ....................................................................................................................... 3

1.3 Research gap ................................................................................................................................. 3

1.4 Purpose ......................................................................................................................................... 3

1.5 Research Question ........................................................................................................................ 4

1.6 Outline of the Paper ...................................................................................................................... 4

Outline of the paper, consists of seven parts as shown in figure below ............................................ 4

2.Literature Review.................................................................................................................... 5

2.1 Diffusion of Innovation ................................................................................................................. 5

2.1.1 Rate of Adoption of Innovation ............................................................................................. 5

2.2 Food Packaging ............................................................................................................................. 9

2.2.1 Functions of Food Packaging................................................................................................ 10

2.2.2 Packaging Systems ............................................................................................................... 12

2.3 Smart Packaging .......................................................................................................................... 14

2.3.1 Active Packaging .................................................................................................................. 14

2.3.2 Intelligent Packaging ............................................................................................................ 16

2.4 Analytical Framework ................................................................................................................. 20

3. Research Methodology ........................................................................................................ 21

3.1 Philosophy ................................................................................................................................... 21

3.2 Research Approach and Unit of Analysis .................................................................................... 22

3.2.1 Unit of Analysis .................................................................................................................... 22

3.3 Research Strategy ....................................................................................................................... 24

3.4 Research Choice .......................................................................................................................... 24

3.6 Data Collection Techniques ........................................................................................................ 25

3.6.1 Primary Data ........................................................................................................................ 25

3.6.2 Secondary Data .................................................................................................................... 27

3.7 Trustworthiness .......................................................................................................................... 29


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3.7.1 Credibility ............................................................................................................................. 29

3.7.2 Transferability ...................................................................................................................... 30

3.7.3 Dependability ....................................................................................................................... 30

3.7.4 Confirmability ....................................................................................................................... 30

4. Empirical Data ..................................................................................................................... 31

4.1 Variable During Adoption ........................................................................................................... 33

4.2 Hinder During Adoption .............................................................................................................. 33

4.3 Environment Friend Product Influence Food Packaging Market ............................................ 33

4.4 Food packaging ....................................................................................................................... 33

4.6 Adoption logics affecting retailer’s position ............................................................................... 39

5. Analysis and Discussion ...................................................................................................... 42

5.1 Perceived attributes of innovations ............................................................................................ 42

5.1.1 Relative Advantage for Smart Packaging with three food packaging retailers .................... 42

5.1.2 Compatibility for Smart Packaging with three food packaging retailers ............................. 42

5.1.3 Complexity for Smart Packaging with three food packaging retailers ................................. 43

5.1.4 Trial ability for Smart Packaging with three food packaging retailers ................................. 43

5.1.5 Observability for Smart Packaging with three food packaging industries ........................... 44

5.2 Types of decision innovation ...................................................................................................... 45

5.3 Communication channels............................................................................................................ 45

5.4 The new hinders in this study ............................................................................................... 46

6. Conclusion ........................................................................................................................... 47

6.1 Limitations ................................................................................................................................... 49

6.2 Implications for Future Research ................................................................................................ 49

Appendix .................................................................................................................................. 50

Reference ................................................................................................................................. 51


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LIST OF FIGURES

Figure 1: Outline of the paper ................................................................................................................. 4

Figure 2: Rate of Adoption of Innovation (Rogers, 1995) ...................................................................... 6

Figure 3: Types of Decision Innovation (Rogers, 1995)......................................................................... 7

Figure 4: Communication Channels ....................................................................................................... 8

Figure 5: S- shaped Diffusion curve (Rogers, 2003) ............................................................................. 9

Figure 6: Functions of food packaging (Kuswandi et al., 2011) .......................................................... 10

Figure 7: Analytical Framework ........................................................................................................... 20

Figure 8: The Research Onion (M. Saunders et al., 2009) .................................................................... 21

Figure 9: Packaging industry (Morini & Simone, 2011) ...................................................................... 23

Figure 10: The global consumer packaging industry, by end user PIRA international, 2009 .............. 23

Figure 11: Methodological Choices (M. Saunders et al., 2009) ........................................................... 25

Figure 12: Packaging industry (Morini & Simone, 2011) .................................................................... 26

Figure 13: Quality research: Trustworthiness (Bryman & Bell, 2011) ................................................. 29

Figure 14: ICA Maxi Future Research .................................................................................................. 39

Figure 15: COOP Future Research ....................................................................................................... 40

Figure 16: Willys future planning ......................................................................................................... 41

Figure 17: Communication between retailers ....................................................................................... 45

Figure 18: Quality ................................................................................................................................. 48

Figure 19: Vacuum and Air Packaging (coop) ..................................................................................... 50


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LIST OF TABLES

Table 1: Comparison between smart and Traditional packaging …………………………...19

Table 2: Number of interviews that we are collected primary data …………………………27

Table 3: Summary of the interviews (Empirical data) …………………………………........31

Table 4: How each retailer thinking …………………………………………………………35

Table 5: Summary from the retailer’s interviews ……………………………………………36

Table 6: Theory and Actual hinder …………………………………………………………..37

Table 7: Problems faced by the retailers …………………………………………………….38

Table 8: Summary of the theory ……………………………………………………………..46


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1. Introduction

This chapter provides a general overview of the research topic, which includes background and

significance, research problem, purpose, research focus, research question and outline of the

paper.

1.1 Background and Significance

In very old days the people did not concentrated more on packaging. This was due to the fact

that commodities were consumed in their raw states either on the spot or sometimes carried

from their homes. Because at the time the society had not developed to the extent and there

was no competition who think in a specific way in the manufacture and selling the products.

From this the evolution is done to develop gradually in packaging. The most significant era of

packaging is when man started keeping some of his wares in leaves and shells as containers

which is endowed by nature. The information which is oldest on package manufacturing is

available to the research dated as 1844, when paper production was introduced in Europe.

Packaging started in a different form, from what we know today. The earliest form was by the

use of animal skins, shells, broad leaves and hard "skin" fruits and vegetables. Liquids were

stored in containers made from animal skins, hollowed out logs, gourds, coconuts and shells.

In the Ancient Roman Empires and Egypt, materials such as clay were used as containers. Later

they have introduced glass, metal and paper for their invention and therefore used for

packaging. Butter and cheese were kept in baskets, vinegar in barrels, and tea in chests whilst

grains were put in sacks during the Victorian times (Hook & Heimlinch, 2007)

The branded package was first introduced in England by Dr. Robert James in the year 1746.

And he packaged his "Fever-Powder" in a box for retailing (Rennert-Ariev, 2009). Yardley of

London packaged his famous lavender water in glass bottles, whilst Crosse and Blackwell also

branded olive oil and mustard in jars (Rennert-Ariev, 2009). The method of packaging was

done to preserve food has begun in the latter part of the 16th century. In 1795, when the French

War was started, at the time there was an urgent need for food preservation for soldiers in the

war. As a result, food had to be canned. The famous French warrior Napoleon Bonaparte

realizing the need to preserve and transport food to his army, offered a prize to reward anyone

who could find answers to his demands. In 1809, Nicholas Appert, invented the process of

canning by introducing an airtight glass jar to win the prize. By this, he introduced canning and

further developed to the light weight cans of today (Hook & Heimlinch, 2007)

The packaging industry at that time availed itself with the development of mechanical printing

processes, photoengraving and process colour printing. Many packages were decorated using

the printing processes to make them more attractive to the buyers, to bear the names of the

products and their manufacturers’ information. This marked the beginning of packaging,

branding and labelling (Herdeg, 1961)

Packaging materials have traditionally been chosen for convenient and to avoid unwanted


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interaction with food (Rooney, 2011). In 20th-century packaging developments such as

packages incorporating antimicrobials and oxygen scavengers have been established new

precedents for prolonging shelf-life and protecting food from environmental influences. These

new packaging systems are called active packaging (Mahalik, 2009). Nevertheless,

omnipresent global trends such as increased industrial processing of food, greater importation

and exportation of food products, and less time for preparation of fresh foods compel the food

and beverage packaging industry to investigate newer, more advanced packaging solutions to

meet the demand for healthier, safer, functional, and cheaper, as well as more convenient

processed foods. Other elements of increasing importance in food packaging include trace

ability, tamper indication, and sustainability (Kotler & Armstrong, 2010). These newer

packaging systems are called smart packaging. Adoption to smart packaging makes the

packaging to extend the shelf life of the product, even it improves the quality, safety and work

on to provide information of the product.

According to (Ahmad, Mohib, & Lakhan, 2012) packaging is the last impression for retailers

and they make decisions on the basis of product packaging, therefore it is very important that

packaging is working hard to secure the sale, this may be in the form of brand image, brand

values, product quality and innovations (Mahera, Sayeda, Sana, & Mubin, 2015). Packaging

provides protection from chemical, biological, and physical deteriorations. Physical protection

shields food from mechanical damage and includes cushioning against the vibration

encountered during distribution and transportation (Gumbleton, 2007). It also reduces the

marketing and advertisement cost of the product (Abdullahi, 2014).

Packaging performs multi-tasks and functions which describes the product & its features and

also communicate with the customers and also safeguard the product (Silayoi & Speece, 2007).

For example, packaging of the product tells about different ingredients, usage of the product

and also it tells about some precautions if the product has any side effects. Packaging is one of

the foremost components of promoting, designing and plays an important role in marketing.

Food packaging is generally done for the preservation of food during storage, transportation

and marketing (Bolaji, 2010). Food packaging is essential and performs many disparate tasks,

protects food from contamination and spoilage, easier for transportation and in storage,

maintains uniform measurement of contents (Abdullahi, 2014). It is recognized that chemicals

from packaging and other food contact materials can migrate into the food and be ingested by

the consumer (Castle, 2006). Abdullahi (2014) talks about migration of chemicals from

packaging materials into the food depend on Composition of the packaging material, nature

and extent of contact, nature of the food, temperature of contact, duration of contact and

Mobility of the chemicals in the packaging (Castle, 2006).

This paper aims to explore and analyse the challenges faced by the retailers during the adoption

of smart packaging in food packaging industry. We also focus on the aspects of smart

packaging that are related to the retailer’s challenges during the adoption of smart packaging

through its concepts.


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1.2 Problem Statement

Most of the population in the world who live in cities, where they have few options for

independently growing food. The way, 3.5 billion people in the planet's cities buy their

products outside from home and these products usually come packaged (Perrea, Krystallis,

Engelgreen, & Chrysochou, 2017)(Arun.P, 2017). Also, the increase in numbers of single-

member households, people's preferred have outside food which are packaged food, which

leads to rise in food packaging materials wastes. Hence, there is a need to promote products

and brands that are environmentally friendly to inform consumers about these products (Baker

& Ozaki, 2008) and to raise the environmental awareness of customers (Schlegelmilch,

Bohlen, & Diamantopoulos, 2002). Although current practices are effective, but there are still

many issues faced by the retailers including the materials used and possible interactions they

may have with food, especially when food plastics are reused (Mijovic, 2003).

Packaging is an important step when it comes to protecting our products, ensuring our high

standards of quality and avoiding food waste (Arun.P, 2017). The main research problem is to

find out means of promoting the recovery of the food packaging from the retailers. The

retailers should think from the end-user point of view which plays the hardest role all the time

(Wahid, Rahbar, Shyan, & Ramayah, 2012). It is recommended to use various promotion

means to implement ecological promotion, advertising public relations, personal selling and

sales promotion (Banyte, Brazioniene, & Gadeikiene, 2010).

1.3 Research gap

Some authors have discussed that marketing can create awareness to the retailer, also it affects

the purchasing decisions of the end-users (John et al., 2012). There are different elements of

smart packaging in food industry (product description, price, shelf life, quality and safety)

which influence the awareness between the retailers and the end-users (Leonidou, Katsikeas,

& Morgan, 2013). Among these elements, adoption is considered an important element for

smart packaging (Leonidou et al., 2013). However, the literature does not connect the process

of adoption in smart packaging and awareness of retailers to show that how the retailers faces

the challenges by creating through adoption of smart packaging in food packaging industry. To

fill this gap, this is a study of the adoption process in smart packaging in terms of innovation

and adoption, with the aim of show the challenges that the retailers faced during the adoption

process of smart packaging in food industry from the retailer’s perspective.

1.4 Purpose

The main purpose of this paper is to find the challenges that occur during the adoption process

of smart packaging in food packaging industry faced by the retailers. Also, to know the basic

knowledge of the food packaging industry and to give importance to the challenges which may

lead to achieve our aim.


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1.5 Research Question

What are the hinders of adopting smart packaging technology in food packaging

industry and why?

• What challenges do they face during the adoption process?

• What are the hinders in this adoption process?

• What are the new hinders in this adoption process?

1.6 Outline of the Paper

Outline of the paper, consists of seven parts as shown in figure below

Part one is introduction, which describes the background and significance, research gap,

research purpose and research questions.

Part two is literature review, which gives detailed information about the diffusion of smart

packaging followed by smart packaging along with its functions and systems. Then the

different types of smart packaging techniques are explained along with its characteristics. Then

the factors influencing the adoption process are explained from the retailer’s perspective.

Part three describes the methodology used for this study which provides an outline for the

research study. This part also describes the research design that was chosen for the purpose of

this study and the justification behind the choice. The authors also discuss the various methods

used to analyse the data.

Part four is about empirical findings which describes the data collected from retailer’s

interviews and customer interviews which was collected by performing face to face interviews.

Part five shows the analysis and discussion of empirical findings which is mainly concentrated

on revising the data collected. Here the main findings are triangulated with the literatures

reviewed.

Part six gives the conclusion of study focusing on the main outcomes of this study along with

the limitations of study, and directions for further research.

Figure 1: Outline of the paper


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2.Literature Review

This chapter presents and discusses the review of scholarly literature related to the study.

Firstly, the chapter commences with a brief description of diffusion of innovation of smart

packaging used in food industry. Then the food packaging concept is explained along with the

packaging systems and the influencing factor for the adoption process. Lastly, the different

types of smart packing are explained in detail. This helps to serve as a small piece of

information to methods and their application in the field of packaging in food industry.

2.1 Diffusion of Innovation Diffusion is a communication process where innovation is communicated over time, among all

member who participate in social system. The factors affecting the rate of adoption are

categorized in four fronts: innovation, communication channels, time, and social system. This

explains how the variables are determined by using the rate of adoption and important part

being the independent variable (Rogers, 2003). Many examples have been found to describe

this but the diffusion of innovation by using various technologies as an example is more easily

to explain these problems. Usually the new technology takes long period for the end users to

adopt them (Geroski, 2000). In this perspective, adoption is defined as a “decision of make use

of an innovation as the best of course action is available”(Rogers, 1995). In the literature,

“Diffusion of innovations” by Rogers and “Crossing the Chasm” by Moore are two

fundamental books that discuss adoption theory.

2.1.1 Rate of Adoption of Innovation

According to Rogers (1995), all innovations should have certain attributes in order to persuade

and be adopted by Retailers. This argument follows with some general characteristics of

innovation and their adoption rate. This paper aims provide an understanding of key drivers

and barriers in the adoption process of a product in the packaging industry. For that reason, the

adoption curve is not conducted with research but the perceived attributes. In order to choose

a framework, one must start from the widely accepted and universally relevant attributes which

are based on past writings and researches. It can be argued that there are general attributes of

innovations which have affected their rate of adoption (figure 2).


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Figure 2: Rate of Adoption of Innovation (Rogers, 1995)

2.1.1.1 Perceived Attributes of Innovations

According to Rogers, attributes to innovation are (1) relative advantage, (2) compatibility, (3)

complexity, (4) trialability and (5) observability. It is important to understand these concepts

to use them efficiently (Rogers, 1995). The concept of perceived attributes (Rogers, 1995) has

serves as the basis for a number of diffusion studies (Daniel, Lima, Hor-meyll, Ferreira, &

Lima, 2011). The perceived attributes cause people to be more likely to adopt an innovation if

the innovation which offers them a better way to do something, is compatible with their values,

beliefs and needs, also it is not too complex and can be tested before adoption. The concept of

perceived attributes is important because it shows that potential adopters base their opinions

about an innovation on a variety of attributes, not just on relative advantage. Packaging

research companies, therefore, should consider how potential adopters will perceive their

innovations in terms of all of the five attributes, and not focus exclusively on the technical

superiority of the product.

According to Stam (2004), uncertainty about the outcomes of innovations, lack of knowledge,

insufficient capital, cultural practices and lack of opportunities can be barriers to the adoption


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of the new systems. Although this psychological theory considers the mechanisms of

behavioural change and adoption, it mainly focuses on the change in human behaviours in

general rather than the adoption of innovation. Albrecht, Padrón, Bartomeus, & Traveset

(2014) argue that adoption is a result from the physiological field of the inhibiting and driving

forces of innovation. However, these forces are not clearly stated, and it is necessary to identify

them specifically in each individual case.

Rogers’ theory about adoption and diffusion is one of the best known and most commonly used

theories within this area. However, Rogers’ diffusion theory has been criticized for not

providing empirical evidence (Lowrey & Harasha, 1991; Weiss & Dale, 1998). As a matter of

fact, most of the arguments concern his model of the classical normal distribution curve of

adopters (Wright & Charlett, 1995); the attributes of diffusion, which are said to affect the rate

of diffusion, are rather suggested to be combined and reformulated (Weiss & Dale, 1998) or

added to (Foing, 2014). However, since the purpose of this thesis is not to evaluate the validity

of the diffusion theory but rather to use the theory as a guideline for the research design, it

seems appropriate to use the most commonly used and accepted theory. Considering the

suggestions of (Weiss & Dale, 1998)the appropriate attributes of innovation model will be

elaborated on and used in the analysis part of the study in the adoption of smart packaging.

2.1.1.2 Types of Decision Innovation

Diffusion occurs through a five-step decision-making process. It occurs through a series of

communication channels over a period of time among the members of a similar social system

(Rogers, 1995). Rogers' five stages are awareness, interest, evaluation, trial, and adoption

which are integral to this theory. An individual can reject an innovation at any time during or

after the adoption process. Five stages of the adoption process (figure 3).

Figure 3: Types of Decision Innovation (Rogers, 1995)


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The Above figure shows the types of decision innovation process. The present

conceptualization consists of five stages: (Rogers, 1995)

• Knowledge comes when an individual is experiencing the new technology to

find the operations and how does it function, but it does not inspire to find out

more information about the innovation.

• Persuasion occurs when an individual meets information for the innovation.

• Decision occurs when an individual involves in activities which will make them

to think about reflecting those technology towards their idea. According to

Rogers, states that this is the most difficult stage to acquire the empirical

evidence.

• Implementation occurs when an individual has shown the success and start to

search for the further information.

• Confirmation occurs when an individual seeks to reinforcement of an

innovation-decision already made, but the individual has the right to take the

decisions.

2.1.1.3 Communication Channels

The communication channels used to diffuse an innovation also have an influence on rate of

adoption. For instance, if interpersonal channels are used to create awareness-knowledge, as

frequently occurs in late adopters (Rogers & Shoemaker, 1971). The communication channels

used in smart packaging are shown in the figure 4.

Figure 4: Communication Channels

Channels used in Smart Packaging

Barcodes

Pigments

Augmented Reality

Sensors


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2.1.1.4 Nature of the Social System

The nature of social system is the communication network which shows a high quality of

interconnectedness. As Rogers (1995) explained an individual has the right to accept or reject

the innovations, which is being diffused in the social system. Moreover, social system is always

in both the rate of knowledge and rate of adoption. and level of given learning whenever is a

sign of aggregate sum of data about information accessible to social system. Rogers (1995)

define an adopter category as a classification of individuals within a social system on the basis

of innovativeness. Five categories of adopters are innovators, early adopters, early majority,

late majority, and laggards.

Figure 5: S- shaped Diffusion curve (Rogers, 2003)

2.2 Food Packaging

The word packaging is used for covering and protection aspects of the product. The most

common used materials from millenniums to protect goods were paper and glass. Even 200

year ago, the companies do not have enough information and research to discover techniques

which would expand the shelf life of products. The development of the plastic materials

manufacture has started in 1860s (G. L. Robertson, 2009) by altering hard rubber. Later,

synthetic plastics were gradually invented, starting with Celluloid. Hermann Staudinger

invented multiple compounds amongst which was polyvinyl chloride (PVC) used in vast

quantities in modern packaging. In twentieth century, American brewers grew fond of tins

manufactured from tinplate and steel coated with chromium which were previously used in

Europe during war, to sell their beverages inside protected atmosphere (Coles & Kirwan, 2011)

but this invention was also attractive for companies producing soup or preserved fruits

(Robertson, 2006).


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2.2.1 Functions of Food Packaging

The function of food packaging was to protect food products from outside influences and

damage, to contain the food, also to provide consumers with ingredient and nutritional

information (Arvanitoyannis, 2005). The function of food packaging consists of containment,

preservation, communication and convenience as shown in figure 6.

Figure 6: Functions of food packaging (Kuswandi et al., 2011)

Containment

The term “containment” means, simply, to contain products to enable them to be moved or

stored. It is so basic that it is easily over looked. However, containment is a key factor for all

other packaging functions. All products must be contained for delivery from their point of

production to their ultimate destination. Without packaging, products are likely to be lost or

contaminated by the environment. Early packaging such as animal skins, baskets, or leaves

from trees were used to contain liquids, powders, grains, etc. The containment function

significantly contributes to protecting and preserving products during their distribution. A

packaging system will protect or reduce two broad types of damage that fresh and processed

foods sustain during storage and transportation. One is physical damage such as shock,

vibration, compressive forces, etc. The other is environmental damage that occurs due to

exposure to water, light, gases, odours, microorganisms, etc (Kuswandi et al., 2011).

Protection

There are two broad types of damage that fresh and processed foods sustain during storage and

transportation. One is physical damage such as shock, vibration, compressive forces, etc. The

other is environmental damage that occurs due to exposure to water, light, gases, odours,

microorganisms, etc. A packaging system will protect or reduce these types of damage to the

package contents.


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For example, an essential aroma or flavour in coffee or juice may easily be evaporated or

oxidized without optimum barrier packaging. A shelf-stable food in a can or pouch may

maintain its stability (especially against microorganisms) as long as the package provides

protection. However, in the case of fresh food products, the ideal protection is usually hard to

achieve with packaging alone. Since temperature is a major influence on the degradation of

food, it is more economical to control temperature through supply chain modification

(refrigeration, freezing, etc.). However, packaging might add a certain level of protection to

slow down temperature changes.

Communication

The communication function of packaging not only includes the information provided by the

written text, but also elements of the packaging design such as package shape, colour,

recognized symbols or brands. Beyond giving information, the communication function is

expected to entice the consumer to purchase the product. Packaging has been regarded as the

“silent sales man” (Judd, McAneney, & Wilson, 1989). According to the Fair Packaging and

Labelling Act (Federal Trade Commission, 1994), food packaging must identify the product,

the net quantity of the contents, name/address of business of the manufacturer, packer, or

distributor, as well as nutritional information.

Consumers may instantly recognize products through pictures or distinctive brands on

packaging, and even simple transparency of the packaging material can attract consumers by

allowing them to view the product inside (Selke, 2012). The Universal Product Code (UPC) is

widely used to facilitate rapid and accurate checkout in retail stores. Also, most warehouse and

distribution centre’s track and manage their inventory using UPCs. Currently, by using radio

frequency identification (RFID) tags attached to secondary and tertiary packages,

manufacturers are able to get better demand signals from customers and markets. An RFID tag

can gather data on items automatically without human intervention or data entry. It identifies,

categorizes, and manages product and information flow at important inspection and decision

points. Another problem is the lack of uniformity in global standards in the area of sensor

technology. Sensor providers usually provide their own interfaces to communicate with their

own tags (Lopez et al., 2011).

Convenience

This function of packaging is sometimes termed “convenience.” End-user demand products

that fit into their lifestyles and the packaging industry must respond to this function of

packaging which is called convenience. Thus, the utility function encompasses all the

packaging attributes that provide added value and convenience to the users of the product.

Unquestionably, food products that offer simplification and convenience have grown in

popularity with this group includes microwavable entrees, steam-in-pouch vegetables, oven-

safe meat pouches, pump-action condiments, and so on (Kuswandi et al., 2011).


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2.2.2 Packaging Systems

We can categorize packaging systems into five groups: primary packaging, secondary

packaging, distribution or tertiary packaging, unit load, and industrial and consumer packaging.

At the first level of packaging that directly contacts the product is referred to as the “primary

package.” For example, an inner bag in a cereal box, and an individual candy wrap in a pouch

which consider as a primary packages, and their main function is to contain and preserve the

product (Soroka, 2008). Primary packages must be non-toxic and compatible with the food and

should not cause any changes in food attributes such as colour changes, undesired chemical

reactions, flavour, etc.

The secondary package contains two or more primary packages and protects the primary

packages from damage during shipment and storage. Secondary packages are also used to

prevent dirt and contaminants from soiling the primary packages; they also unitize groups of

primary packages. A shrink wraps and a plastic ring connector that bundles two or more cans

together to enhance ease of handling are examples of secondary packages (Soroka, 2008).

The tertiary package is the ship ping container, which typically contains a number of primary

or secondary packages. It is also referred to as the “distribution package.” A corrugated box is

by far the most common form of tertiary package. In General the main function of the product

is to protect during distribution and to provide for efficient handling. In addition, fourth type

of packaging system called unit load which is mean a group of tertiary packages assembled

into a single unit. If the corrugated boxes are placed on a pallet and stretch wrapped for

mechanical handling, shipping and storage, the single unit is referred to as a “unit load.” The

objective is to aid in the automated handling of larger amounts of product. A fork-lift truck or

similar equipment is used to transport the unit load (Soroka, 2008).

Packaging systems can be divide into consumer and industrial packaging. Consumer packaging

means a package that will be delivered to the ultimate consumer in the retail store. Usually,

primary and secondary packages fit in this category.

Industrial packaging means a package for warehousing and distribution to the retail store.

Tertiary packages and unit loads fit in this category. Every package systems are not actually

composed of a set of primary, secondary, and tertiary packages. For example, the packaging

system for potato chips usually consists only of a flexible barrier bag and a corrugated shipping

container before they are palletized, while mayonnaise jars are sold in a club store as a two-

pack consisting of plastic bottles, shrink wrap, corrugated boxes, and pallet. Often, the

distinction between consumer and industrial packaging is more clear-cut than between primary,

secondary, and tertiary packaging.


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2.2.3 Packaging as an Influencing Factor

Packaging is defined by Lee (2010) as the wrapper such as plastic, glass, metal, paper or

paperboard that is used to protect a product. These days, various organisations are concerned

with their customer base, attracting new customers, and also maintaining existing ones.

Organisations must utilise amazing packaging, so that it will have the ability to discuss viably

with the purchaser intriguing them and eager to select the product. Package covers and clothes

as a product 26 whereby consumers can locate the products quality, value, substance, and

capacity by merely looking at the package (Jafari, Sharifnia, Salehi, & Zahmatkesh, 2013). In

that capacity, it should be completely used for imparting the brand message.

Packaging may be important for other purposes, for example, for communicating premiums

available (inclusion of a gift, bonus product, or coupon) or containers for household use(Marsh

& Bugusu, 2007).

However, besides these useful contributions that packaging makes during product distribution,

there is the communication purpose whereby packaging turns into the face and voice of the

picture and the organizations identity (Mutsikiwa & Marumbwa, 2013). Kuvykaite et al. (2009)

state that the marketing function of packaging is to influence purchase decision of customers

at the point of sale. It is actually one of the key factors which influence buying decisions for

convenience goods. These 27 functions are achieved by right choice of colour, shape, pictures,

packaging material, writings, and other variables. Kotler and Keller (2012) state that numerous

elements have a bearing on the increasing acceptance of packaging as a marketing technique.

The elements include;

• Self-service: Increasingly numerous numbers of products are being offered on

a self-service basis. In a normal grocery store, which might stock fifteen

thousand products, an average customer passes around three hundred products

in a minute. In the knowledge that fifty to seventy percent of all sales happen in

the store, the successful package must perform numerous sales undertakings;

pull in consideration, portray the components of the product, creating customer

confidence and making a general impression.

• Consumer affluence: Increasing affluence implies that buyers are ready to pay

extra for the appearance, handiness, reliability and renown of improved

packaging.

• Brand image and company: Packages play a vital role to the prompt

identification of the brand and company. In supermarkets, package might have

an effect of a billboard.

• Innovation opportunity: Differentiated or creative packaging, for example,

resealable package can bring enormous advantages and profits to producers.


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2.3 Smart Packaging

Smart packaging “Provides a total packaging solution by monitoring changes in a product or

its environment (intelligent) and on the other hand acts upon these changes (active)”

(Vanderroost, Ragaert, Devlieghere, & Meulenaer, 2014). Smart packaging trace and track a

product throughout its lifestyle and analyses and controls the environment inside and outside

the package to inform about the products condition at any given time.

2.3.1 Active Packaging

If packaging performs some other role other than providing an inert barrier to the external

environment than it will termed as ACTIVE (Rooney, 2011). Active packaging can be defined

as a system in which the shelf life of the product is increased by interacting the product, package

and the environment in the positive way (Miltz, Passy, & Mannheim, 1995). It has also been

defined as a type of packaging that changes the condition of the pack-aging to extend shelf life

or to improve safety or sensory properties while keeping the quality of the packaged food

(Ahvenainen, 2003).

The main goal of active packaging is to increase the preservation of food and to prolonging the

shelf life of food involves application of various strategies like temperature control, oxygen

removal, moisture control, addition of chemicals such as salt, sugar, carbon dioxide or natural

acids or a combination of these with effective packaging (Restuccia et al., 2010; Robertson,

2006). And active packaging manipulates the selectivity to modify the atmospheric

concentration of gaseous compounds inside the package by coating, micro perforation,

lamination, co extrusion or polymer blending (Brody, Bugusu, Han, Sand, & McHugh, 2008).

2.3.1.1 Characteristics of Active Packaging

Oxygen scavengers

Oxygen scavengers is one of the most widely used active packaging technology for foods

today. Oxygen present inside food package accelerates the oxidative deterioration of food. And

it facilitates the growth of aerobic microbes, off flavour and odour development, colour

changes and nutritional losses and overall shelf life stability of muscle foods (Hogan & Kerry,

2008). So, the presence of oxygen in a food package causes the spoilage reactions in food. Even

though the oxygen sensitive foods can be packed in modified atmosphere packaging (MAP) or

vacuum pack-aging, but it does not remove oxygen completely. Oxygen which permeates

through the packaging film cannot be removed through the system. But with the use of oxygen

scavengers, residual oxygen after packaging can be removed and the quality changes in oxygen

sensitive foods can be minimized (Kerry, O’Grady, & Hogan, 2006; Vermeiren, Devlieghere,

Van Beest, De Kruijf, & Debevere, 1999).

The oxygen absorbers are designed to reduce oxygen levels to less than 100 ppm in package

headspace. The commercially available oxygen scavengers utilize one or more of the following


15

technologies: iron powder oxidation, ascorbic acid oxidation, photosensitive dye oxidation,

enzyme oxidation, saturated fatty acid oxidation, immobilized yeast on solid material etc.

(Floros, J.D., Dock, L.L., and Han, 2000; Vermeiren et al., 1999). With the medium Barrier

properties, the oxygen free conditions in the headspace of packages is done by oxygen

scavengers (Sivertsvik, 2007; Sivertsvik, Rosnes, & Kleiberg, 2003). The oxygen scavengers

can be used alone or in combination of MAP. Relatively inexpensive oxygen scavengers are

used to remove the residual oxygen remaining in the MAP (Day, 2003, 2008; Robertson, 2006).

Sachets are also used to remove oxygen contain in package, alternative to sachets include

package inserts in the form of cards, sheets or layers coated onto the inner walls of the package

(Rooney, 1995).

Carbon dioxide absorbers and emitters

In order to suppress the microbial growth in certain products such as fresh meat, poultry, fish,

and cheese carbon dioxide is added to the packaging and also to reduce the respiration rate of

fresh (López-Rubio et al., 2004). Carbon dioxide scavengers are used to remove excess CO2

in packages. CO2 scavengers are mainly used in fresh roasted coffees which produce

significant amount of CO2 if hermetically sealed in packs directly after roasting leads to the

bursting of package (Day, 2008). Use of carbon dioxide scavengers, replaces the ‘aging’

process after coffee roasting and thereby prevents the loss of desirable coffee volatiles (Brody,

Strupinsky, & Kline, 2001).

Antimicrobial Packaging

The packaging that acts to reduce, inhibit or retard the growth of microorganisms that may

present in the packaged food is known as antimicrobial packing, it is also form of active

packaging (Appendini & Hotchkiss, 2002). Antimicrobial substances can be coated on food

packaging materials in order to control the undesirable microorganisms on foods (Labuza &

Breene, 1989). Natural antimicrobial agents include extracts from spices like cinnamon, all

spice, clove, thyme, rosemary, oregano and other plant extracts like onion, garlic, radish

mustard and horseradish. Other antimicrobials are resulting from substances produced from

fungal and bacterial action like polypeptide nisin, natamycin, pediocin, and various

bacteriocins (Nicholson, 1998). Antimicrobial package material can be divided into two types:

1. Those containing antimicrobial agents that migrate to the surface of the packaging material.

2. Those are effective against surface microbes without migration of the active agent to the

foods (Han, 2000).

This method also extends the lag phase and reduce the growth phase of microorganisms in

order to extend the shelf life and shelf life safety (Han, 2000). Packaging systems that release

volatile antimicrobials include chlorine dioxide, sulphur dioxide, carbon dioxide and ethanol.

This type of system, polymer cannot be directly in contact with the food. Here the antimicrobial

agents are directly incorporated into the polymer or into the carriers that may be extruded or


16

coated into the packaging materials. The packaging material used for the volatile antimicrobial

system should possess high barrier properties to prevent the loss through permeation

(Appendini & Hotchkiss, 2002).

Some antimicrobial packaging uses covalently immobilized antibiotics or fungicides to

suppress the growth of microbes (Brody, Strupinsky, & Kline, 2002). Examples of

antimicrobials with functional groups are peptides, enzymes, polyamines and organic acids.

Some polymers like chitosan are inherently antimicrobial and are used in films and coatings.

Chitosan has been used as a coating to protect fresh vegetables and fruits from fungal attack. It

also acts as a barrier between the nutrients contained in the product and microorganism (Cuq,

Gontard, & Guilbert, 1995).

Moisture control

Food spoilage mainly happen nowadays because of presence of moisture inside the package,

so it is important to regulate the moisture and to low the water activity of the product to suppress

the microbial growth (Vermeiren et al., 1999). Moisture content in the pack causes softening

of dry crispy products, caking of hygroscopic products like milk powder, instant coffee powder,

sweets etc (Anon, 1995; Vermeiren et al., 1999). Moisture absorbent pads, sheets and blankets

are used for controlling liquid from foods like fish, meat, poultry, fruits and vegetables (Day,

1998). Drip absorbent sheets basically consist of two layers of a microporous polymer like

polyethylene or polypropylene sandwiched with a superabsorbent polymer in the form of free-

flowing granules (Rooney, 2005).

Flavour or Odour Absorbers

The volatile compounds accumulate inside the package as a result of food degradation such as

aldehydes, amines and sulphides can be selectively scavenged (Day, 2008). Flavour scavengers

prevent the cross contamination of pungent odour while transportation of mixed loads. Odour

proof packages were developed for the transportation of Durian fruit by (Morris, 1999). The

package consists of an odour impermeable plastic like polyethylene terephthalate (PET) or

polyethylene of suitable thickness together with a port to allow for the passage of respiratory

gases and a sachet made from a mixture of charcoal and nickel to absorb odour. Volatile amines

formed because of the protein breakdown in fish muscle can be removed by incorporating

acidic compounds like citric acid in polymers (Hoshino & Osanai, 1986). Flavour scalping of

polyethylene was studied by (Sajilata, Savita, Singhal, & Kanetka, 2007). Use of high barrier

packaging materials can also prevent the absorption of other non-food odours like taints (Brody

et al., 2008).

2.3.2 Intelligent Packaging

The concept of internal migration of preservatives to food and the communication function of

the package to facilitate decision making are related with intelligent packaging (Otles &

Sahyar, 2008). Intelligent packaging systems deliver to the user with information on the


17

conditions of the food. Basically, it done the communication function of traditional packaging

and it gives the consumer an ability to detect, sense and record the changes in the products

environment (Realini & Marcos, 2014; Restuccia et al., 2010).

The intelligent packaging can also contribute to improving Hazard Analysis and Critical

Control Points and Quality Analysis and Critical Control Points systems (Heising, Dekker,

Bartels, & (Tiny) Van Boekel, 2014). Intelligent packaging is also identified processes that

strongly affect the quality attributes and efficiently improve the final food quality (Vanderroost

et al., 2014).

Basically, there are three intelligent systems;

• Sensors,

• Indicators,

• Radio Frequency Identification (RFID) systems (Kerry et al., 2006; Vanderroost et al., 2014).

Sensor

A sensor is a device used to detect, locate or quantify energy or matter giving a signal for the

detection or measurement of a physical or chemical property to which the device responds

(Kerry et al., 2006; Kress-Rogers, 1998). Sensors provide continuous output of signals. Most

of the sensors contain two main functional parts,

➢ Receptor

➢ Transducer.

Biosensor

Biosensors are used to detect, record and transmit information pertaining to biological reactions

(Yam, Takhistov, & Miltz, 2005). Biosensors contain bioreceptors and transducers (Alocilja &

Radke, 2003). The bioreceptor recognizes the target analyte and the transducer converts

biochemical signals into quantifiable electronic response (Yam et al., 2005).

➢ Bioreceptors may be either organic or biological materials (Such as enzyme, hormone,

antigen, microbes etc.)

➢ Transducers may be optical, acoustic or electrochemical.

Gas sensor

Gas sensors are used for detecting the presence of gaseous analyte in the package. It includes

oxygen sensors, carbon di-oxide sensors, water vapour sensor, ethanol sensor, metal oxide

semiconductor field effect transistors, organic conducting polymers and piezoelectric crystal.


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2.3.2.1 Characteristics of Intelligent Packaging

Printed Electronics

Printed electronics can be define as an emerging technology on flexible substrates using

electrically functional inks. Some unique properties of printed electronic sensors include

lightweight, bendable, roll able, portable and foldable. Possibility of creating sensors on a

variety of substrates each shaped and individually tailored to operate uniquely (Vanderroost et

al., 2014).

Chemical Sensor

The chemical sensor or the receptor is a chemical selective coating capable of detecting the

presence, activity, composition, concentration of particular chemical or gas through surface

adsorption. Presence of particular chemicals are being observed and converted into signals by

transducer. Transducers can be either passive or active depends on the external power

requirement for measurement (Vanderroost et al., 2014). Recent advance in sensors are use

optical transducer which do not need the electrical power and it can be read out from a distance

by using UV, visible or IR light. Silicon based such optical transducers are composed of optical

circuits which are integrated in silicon semiconductor material (Sree et al., 2012).

Indicators

Indicators can be defined as substances that indicate the presence, absence or concentration of

another substance or the degree of reaction between two or more substance by means of a

characteristic change, especially in colour (Hogan & Kerry, 2008).

Freshness Indicators

Freshness indicators tells about the product quality information which is resulting from

microbial growth or chemical changes within a food product. The reaction between the

microbial growth metabolites and the integrated indicators within the package pro-vide visual

information regarding the microbial quality of the product (Kerry et al., 2006; Kuswandi et al.,

2011).

Time Temperature Indicator (TTI)

Time temperature indicators are meant to give information on whether a threshold temperature

has been exceeded over time and or to estimate the minimum amount of time a product has

spent above the threshold temperature. There are three basic types of TTI available in market:

• critical temperature indicators,

• partial history indicators

• full history indicators (Singh, 2011).


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Integrity Indicators

A leak indicator to package ensures package integrity throughout the production and

distribution chain. Visual oxygen indicators in MAP foods with low initial oxygen are studied

by (Davies, Gardner, & Inventors, 1996; Mattila-Sandholm, T. Ahvenainen, Hurme, &

Inventors, 1995). Visual oxygen indicators with redox dyes make change its colour depends on

changing in oxygen concentration.

Radio Frequency Identification (RFID)

Radio Frequency identification (RFID) is an automatic identification technology that uses

wireless sensors to identify items and gather data without human intervention. An RFID is

based on tags and readers (Hong et al., 2011; Tajima, 2007). RFID tags are of two categories:

• Passive

• Active.

Passive tags depend on the power supplied by the reader. When radio waves from the reader

are met by a passive RFID tag, the coiled antenna within the tag make some form of magnetic

field. The tag draws energy from it and sends the information encoded in the tag’s memory.

Semi passive RFID tags use battery to maintain memory in the tag or power the electronics that

enable the tag to modulate the Electromagnetic waves emitted by the reader antenna. Active

RFID tags are powered by an internal battery, used to run the microchips circuitry and to

broadcast a signal to the reader (Vanderroost et al., 2014).

Smart Packaging Traditional Packaging

It designed to monitor and communicate

information about food quality of the packed

food during the transport and storage.

It designed to delay the adverse effects of the

environment on the food product.

Digitalize Non-digitalize

Less time consumption more time consumption

Long shelf life of food Shelf life of food is less

Manpower is less Manpower is more

high cost, low running cost. Low cost, high running cost

Table 1: Comparison between smart and Traditional packaging


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2.4 Analytical Framework

During the transformation process, i.e. the adoption from traditional to smart packaging

adopting the retailers face many hinder/challenges which slows down the adoption process.

Each retailer has unique style to offer marketing value to their end-users. Each retailer will see

the challenges from different points, to get that to their customers. The main two challenges

faced by retailers are end-users and their employees within the organizational level. The

challenges of major retailers like COOP, ICA and Willys are discussed in detail from 3

dimensions i.e. during the adoption process, the challenges, diffusion of innovation process.

The adoption of smart packaging involves active and intelligent packaging.

Figure 7: Analytical Framework


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3. Research Methodology

We have used research onion model by Saunders et al. (2009) for this study to explain the

research design process. Each layer of the onion describes a more detailed stage of the research

process used for conducting this study. The first step philosophy is the starting point for the

research approach which it is adopted in the second stage. The third step is the research strategy,

and the fourth step represents the research choices whereas the fifth step represents the different

data collection procedures and analysis techniques. It can be used for any type of research

methodology and can be used in a variety of contexts (Bryman & Bell, 2011).

Figure 8: The Research Onion (M. Saunders et al., 2009)

3.1 Philosophy

A research philosophy refers to the set of beliefs and assumptions concerning the nature of the

reality being investigated (Bryman & Bell, 2011). It justifies how the research will be

undertaken by creating various assumptions. It differs on the goals of research and on the best

way that might be used to achieve these goals (Goddard & Melville, 2001). Philosophy can be

explained by the type of knowledge being investigated in the research project. Therefore,

understanding the philosophy which it helps to explain the assumptions in the research process

also how it fits the methodology being used.


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Packaging is a metaphor of a cover (or shape) of particular one content. From philosophical

point of view this cover is the simplest definition of the content itself. Retailers understand the

importance of packaging and believe that packaging is much more than a box. According to

definition of interpretivism (Mark Saunders, Lewis, & Thornhill, 2008), it makes researcher to

understand difference between humans in our role as social actors. However, interpretivism

originates from two scholarly traditions: phenomenology and representative interactionism.

We interpret activity of whom we collaborate, and this alteration prompts our own particular

importance and activities. Likewise, we have chosen interpretivism to study barriers in

diffusion of smart packaging.

3.2 Research Approach and Unit of Analysis

The research approach describes three types of research approaches for theories of

development which is deductive, inductive and abductive (combination of two approach). The

inductive approach generally describes a new theory from data for development. The deductive

approach generally refers to test a theory where the hypothesis is generated and tested out

(verify a theory). In this approach the researchers use abductive method in which the

knowledge of this paper can develop a theory which it has taken from the previous findings,

observations. The collected data from interviewees are triangulated with the literature to test

the existing theory which makes it deductive (M. Saunders et al., 2009). In this research we

have used abductive approach for adoption of smart packaging.

3.2.1 Unit of Analysis

The packaging industry is like any other industry has own structure, though understanding the

structure of the food packaging industry is very necessary in order to know the drivers and

barriers in that industry. The basic knowledge of the market dynamic and have an overview of

the market, make the discussion more serious. Therefore, general information and available

statistic of the market will be given later.

The food industry equalled to the sectors which are very dynamic sectors, but the food

packaging industry is very dynamic sector, where there is undergoing transformation

happening almost every day with new technology better than the current and old one and/or

take their place and replace it (“The Future Outlook of Packaging,” 2010).

The packaging industry divided into two major components, supply side or, provider the

packaging products, and demand side. As it shows in figure 9 below.


23

Figure 9: Packaging industry (Morini & Simone, 2011)

The supply side of packaging industry as a type of end product. the manufacture of packaging

has globally, greatest share of total industry with (81%), where the packaging service is

followed by (14%) then at end the packaging machinery with (5%) (packaging getaway report,

2010).

Figure 10: The global consumer packaging industry, by end user PIRA international, 2009

The demand side of the packaging industry could be classified by the relations of the end user,

namely: individual consumers, industrial users, and institutional users. Where they are


24

categorized by industry as food, beverage, and healthcare. As it shows in figure below, the

consumer packaging industry, by end user. In addition, the figure shows that the food

packaging industry has (50%) in the packaging industry (Morini & Simone, 2011).

3.3 Research Strategy

Research strategy is a goal towards to answer research question (M. Saunders et al., 2009).

There are eight research strategies techniques and they are experiment, survey, case study,

action research, grounded theory, ethnography, archival research and narrative inquiry.

we have adopted face-to-face interview as our research strategy. Face-to-face is usually

associated with the abductive approach. It is used to answer who, what where, how much and

how many questions. It is most common strategy for business and management research and

therefore it tends to be used for exploratory and descriptive research (M. Saunders et al., 2009).

Case study strategy is the assessment of a single unit in order to establish its key features

(Bryman & Bell, 2011). Also, case study is strategy for doing research and it involves an

investigation for a particular contemporary phenomenon within its real-life context using

multiple source of evidence (Robson, 2002) which it gives clear understanding of where the

number of variables is limited and data can be collected.

It can offer an insight into the specific nature of any case and can establish the importance of

culture and context in differences between cases. This type of research is an effective way in

financial research, such as comparing the experiences of two companies, or comparing the

effect of investment with difference contexts.

3.4 Research Choice

In a research choice method, the researcher can use mono method or multiple method or

combination of both (M. Saunders et al., 2009). To understand the current situation of the food

packaging industry in smart packaging, interviews were conducted and analysed the views in

the field. To expand answers quality, we collected data from secondary literature sources and

compared with it. The interviewees were also asked about their retailer’s views on what are the

challenges facing in smart packaging during adoption part, and this was matched with the

collected secondary data sources. This provides the researcher with a greater support in terms

of explanation. By keeping this in our mind, we used multi method qualitative study to answer

the research question of this study.


25

Figure 11: Methodological Choices (M. Saunders et al., 2009)

3.5 Time horizon

Research may be time constrained or “snap shot” research which is called as cross-sectional

study or it may be with longer time duration or diary or series on snap shots (Saunders et al.,

2009). As like most academic research, this research is a cross sectional study.

3.6 Data Collection Techniques

For the thesis, the research data will be collected in the form of primary and secondary data.

3.6.1 Primary Data

Primary data is derived from first-hand sources. This can be the first-hand sources, or the data

derived from interviews (Bryman & Bell, 2011). However, it is not necessarily data that has

been produced by the research being undertaken. Therefore, the primary data is best way to

understand the data that is being analysed as itself, rather than another. (Face-to-face

interviews). Therefore, we conducted semi-structure interview. The primary data is the data

that be collected to research specific problem using best procedure for research problem (Hox

& Boeije, 2005).

3.6.1.1 Interviews

This first-hand source has been collected through interviews with different actors in food

packaging industry. The packaging industry divided into two main sectors, the supplier sector


26

where the packaging manufactured, machine and service. and the second sector is the demand

sector where the retailer and the end user are the main actor in this part.

During data collection process, we had to follow certain ethics for all interviews to collect data

as much as we can. According to literature there are three type of interviews we had to choose

from. 1. structured interview, 2. semi-structured interview and 3. unstructured interview (M.

Saunders et al., 2009). We skipped the structure interview because it was more like a

questionnaire interview and the interview must be conducted in the same interview

environment during all interviews, starting from questions until the way we interview.

The unstructured interview is type of informal interview where the interviewer and the

interview start the discussion freely without any type of structure for the questions or the

interview in general (M. Saunders et al., 2009).

For this paper we choose a semi-structure interview due to its ability to switch between the

questions we want to ask to the interviewees. Longhurst (2006) during time period we made

only face to face interviews with different actors in food packaging industry. The 2 main actors

involved in the adoption process are the customers and end users.

On the demand side, 6 interviews were made with the end users from three companies, each of

them is a loyal buyer from a certain retailer. From these interviews, we found that each retailer

work for their own buyer. More than one goal, most of the retailer share with and concentrate

on, such as environment friendly material, Swedish food and customer satisfaction.

Figure 12: Packaging industry (Morini & Simone, 2011)

The interviews are divided into two-part, retailer and end user. In the retailer part three main

retailers in food industry in Sweden have been interviewed, ICA maxi (högskolan), Coop and

Willys. The end-user’s interviews mainly used for triangulation with the literature.


27

Date Interview nr. Title Place Duration

24-7-2018 1 Store manager Willys

Halmstad

(flygstaden)

30 min

24-7-2018 2 Store Manager Ica maxi

(högskolan)

35 min

30-10-2018 3 Store Manager Coop (gamle

tull)

25 min


10-11-2018 4 End user Coop Hallarna 5 min

10-11-2018 5 End user Coop Hallarna 5 min

12-11-2018 6 End user Willys

flygstaden

5 min

12-11-2018 7 End user Willys

flygstaden

5 min

14-11-2018 8 End user Ica Maxi

högskolan

5 min

14-11-2018 9 End user Ica Maxi

högskolan

5 min


27-11-2018 1 Owner/manager Ost mejeri

Halmstad

45 min

Table 2: Number of interviews that we are collected primary data

3.6.2 Secondary Data

The secondary data is used in the form of the data already available, as collected through desk

research. Secondary research data is data found in primary and secondary resources that already

exist, as information has already been collected by individuals and institutions other than the

researcher him- or herself (Babbie & Mouton, 2010; Welman, Kruger, Mitchell, & Huysamen,

2005). Secondary data, which formed the literature review, was collected from different

sources, including stock exchanges, registrars of companies, companies published annual

reports, organisational constitutions, national statistical offices, government publications, the

Internet, university publications, chambers of commerce and industry from different countries,

and other academically accepted sources. During the study, the researcher also physically

and/or electronically collected literature on various countries.

Documentary data means, voice and video recording, email and letter. survey-based data, such

as academic, organization survey, government censuses and employee survey. The data

compiled can include different type of data, it could be survey, annual report, government


28

censuses, industry report, journal article, and different type of publication (Mark Saunders et

al., 2008).

For this paper, we have gathered data from different sources, like company annual report,

companies web side, many different web sources. From this we can say that we were using

complied data using multi source. The articles, and academic papers were used to explain the

theoretical framework and helped us to convert the practical knowledge we got from the

companies into theoretical information. This helped us to build a whole view for the subject

and to solve the research question in way to understand the situation.

Ica Maxi, Willys and Coop have been involved in the food industry for many years. They began

using the traditional food packaging which was limited to very few benefits, like to keep the

food clean, easy for end user/ buyer to carry, and not complicated. Thereafter, companies

started thinking out of the box, by starting to produce their own product, using their own

packaging and by that way they started to develop the packaging and packaging process on the

way which fit their own end user/buyer. Numerous data have been collected from the annual

report, video, ppt and different material from the companies to add more empirical evidence to

the paper.

3.6.2.1 Analyses of Data Collection

In order to explain the challenges in the adoption process for smart packaging, a review on the

food packaging in general, tradition packaging, smart packaging and the adoption in food

packaging industry have been conducted. The data had been collected through two different

ways. First, we used primary data by interviewing three type of companies, to obtain deeper

understanding about the adoption process.

The second data was obtained from various of database, such as; web of since, since direct,

IEEE, ACM digital library, article on smart packaging, adoption process, traditional packaging,

and challenges during adoption process. The research also includes annual report directly from

the companies.

The first step was to choose the type of companies we need to interview during the research

process. So, we chose three different type of companies to cover the widest area and collected

most data from this variation. We selected retail companies and compared it with the

manufacturing company and in addition to these, interviews with end costumer (user) was

made to lift the quality of the research.

The second step in research process was to obtain the secondary data where different database

had been used. This step is divided into two steps, first step was related with identifying

scientific articles based on the topics of, smart packaging, traditional packaging, food

packaging, adoption process in packaging industry, these keywords were used in different

combination in title bar in all database web sites.


29

The second process of the second step is to narrow down the articles to specify the focus of

research into the main area. that lead us to divide the articles into three main sections, 1.

adoption, in this part, the articles show the adoption process towards smart packaging and 2.

Smart packaging and 3. challenges faced by retailers.

3.7 Trustworthiness

The quality of qualitative research is assessed by using trustworthiness, which is characterised

by four main dimensions which are credibility, dependability, confirmability and transferability

(Bryman & Bell, 2011). All these are explained as four subdivisions for trustworthiness.

Figure 13: Quality research: Trustworthiness (Bryman & Bell, 2011)

3.7.1 Credibility

Credibility state as the confidence that can be placed in the truth of the research findings

(Holloway & Wheeler, 2010). Triangulation is a technique usually employed to strengthen the

credibility of qualitive research findings (Bryman & Bell, 2011). In this regard, triangulation

theory was used in this research work, adopting different theoretical perspectives to examine

and convert the data. Furthermore, data triangulation was employed to collect the data with

accuracy. In this case, data triangulation has consisted in gathering the same information from

different sources, such as official documents from various packaging industry from Sweden,

articles, and collected reports.

We conducted research in three food packaging industry and collected several information by

taking interviews in the packaging industry and some of information are not shared with us due

to confidentiality issues. According to (Cohen, Manion, & Morricon, 2012) multiple sources

of data helps to increase the confidence of the researcher. We approached the packaging

Trustworthiness

Credibility

Transferability

Dependability

Confirmability


30

industry in different ways and perspectives which further improved the credibility of the study

(Bryman & Bell, 2011).

3.7.2 Transferability

Transferability refers to applicability (Krefting, 1991). According to Bitsch (2005) “researcher

facilitates the transferability judgment by a potential user through ‘thick description’ and

purposeful sampling”. This means that when the researcher provides a detailed description of

the enquiry and participants were selected purposively, when it facilitates transferability of the

inquiry. According to Lincoln & Guba (1982), “argue that a thick description provides others

with what they refer to as a database for making judgements about the possible transferability

of findings to other contexts”. The main purpose of the qualitative research study in

transferability make us to explode the hindrance in diffusion of food packaging industry within

Willys, Ica and Coop.

3.7.3 Dependability

According to Bitsch (2005), dependability refers to “the stability of findings over time”.

Dependability makes our research study data participants evaluating the findings and the

interpretation and recommendations of the study (Cohen et al., 2012). Dependability requires

the researcher to carefully document step by step the research investigation and related

outcomes from the food packaging industry. A technique widely used to access dependability

is to undergo an external audit, whereby the research process and outcome of study are

examined by a third party. During interview with the managers of food packaging industry in

Willys, Ica and Coop, we collected information and took some personal notes. We also

collected data with the help of our supervisor and by collecting articles through “Google

Scholar”.

3.7.4 Confirmability

Confirmability give the findings which represent the outcome of the study rather than the point

of view, motivation or interest of the researcher. According to Bowen (Bowen, 2008) an “audit

trail offers visible evidence from process and product that the researcher did not simply find

what he or she set out to find”. The researcher’s judgment may be influenced by cognitive

biases, which are tendencies to reason in a certain way, due to existing knowledge and

expectations on the process of collecting, analysing and interpreting data (Bryman & Bell,

2011). On this aspect, the thesis cannot be considered free from cognitive biases. The research

findings are strongly dependent of the researcher’s own understanding of the research problem.


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4. Empirical Data

This section the findings from the primary and secondary data are explained. First explaining

this section with the results from the various interviews have been done. Then categorized in

the table form.

Table below shows the summary of the interviews made to reach the empirical data used in

this paper. In addition, the table includes summary of key findings and limitations for each

retailer interviewed.

Nr. Retailer Position of

interviewer

Key finding

summary Limitation

1 ICA Store

Manager

Hinder: Open for new

changes

Adoption: Long time to

understand the benefits

of smart packaging.

Future: QR technology

How the

adoption

process starts.

Inside out,

outside in.

Traditional

packaging.

Information

inside the mother

company.

2 Willys Department

Manager

Hinder: Competitive

price to reach all

customers



of smart packaging

Future: High

technology

Diffusion and

adoption of

smart

packaging.

Quality of

smart

packaging as

one of factor

who push out

the hinder.

More knowledge

of smart

packaging inside

the company.

3 Coop Store

Manager

Hinder: Increase the

local resources and local

products



of smart packaging

Future: Combination of

traditional with smart

packaging

The customer

satisfaction in

the first place.

Using the

smart

packaging to

saturate

customer

satisfaction.

Short of time.

Less numerical

information.

Table 3: Interview data (Empirical)


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The above table shows the challenges that affect the adoptions of smart packaging from the

retailer’s perspective, here each retailer explains the problems faced by them during the

adoption process.

The following are the factors which makes the adoption process more difficult to achieve. The

end-users think that smart packaging is one of the factors that affect the reduction in food waste.

Also, end-users like to have local food more than the imported food products, not only it should

be local but also it should be ecological.

End-users need the food products to be in fresh till they are consuming that. Packaging plays

an important role in keeping the food products fresh. Nowadays, shelf life also should be

considered while talking about food freshness. But by using the traditional packaging methods

it is not possible. But by using the smart packaging methods we can solve that. Active

packaging method can fulfil the needs of end-users by providing food products fresh. By

Intelligent packaging method the end-users can get the better information about the products

which they buy.

Materials used for smart packaging is environmentally friendly, which keeps the food products

fresh. Latest technology used in smart packaging will bring benefits to the end-users. Change

the working environment, makes the employees to fear about their future in the work place.

Retailers need to explain them about the machine (self-scanner) are just to make their work

easier.

From the empirical data, the adoption in the packaging industry depends on several variable

where each of them plays an important role during the adoption process. Although it describes

the several elements where adoption depends on to reach the final stage (Rogers, 1995)

according of the retails (Willys, ICA) they mention that, the end user took long time to

understand the benefit of smart packaging despite the higher price of it but it later on became

he wanted one to the customer. From this we understand that the first and most important

challenge they faced during the adoption process is how to make the end user feel and see the

benefit of this upgrade/change to this innovation in near future.

The end user starts to understand the problem of food waste, the important of knowing the

ingredient of the product, time consumption and quality of the product. from that the smart

packaging adoption could take to the next step in the adoption process.

From the retailer’s side, the manpower, the time and the higher technical used in smart

packaging were one of the hinders, the workers were not usually familiar with it. So, the

advantage of smart packaging and the disadvantage has been discussed to reach the end of each

interview and taking the new advantage for further technology could/should be using to solve

the recent problem. That opens the door to understand the other side of the hinder inhouse

where the retailers face problem inside their own business. Despite the new technology comes

from the cooperation between the retailer and the manufacturer of the food packaging, the

retailers faced another type of challenge from inhouse, where required a new plan to make the

manpower understand the benefit of using this new technology.


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4.1 Variable During Adoption

From the empirical data, the adoption in the packaging industry depends on several variable

where each of them plays an important role during the adoption process. Although it describes

the several elements where adoption depends on to reach the final stage (Rogers, 1995)

according of the retails (Willys, ICA) they mention that, the end user took long time to

understand the benefit of smart packaging despite the higher price of it but it later on became

the wanted one to the customer.

4.2 Hinder During Adoption

From the retailers side the manpower, the time and the higher technical used in smart packaging

where one of the hinder, the workers were not usually familiar with it. So, the advantage of

smart packaging and the disadvantage has been discussed to reach the end of each interview

and taking the new advantage for further technology could/should be using to solve the recent

problem.

4.3 Environment Friend Product Influence Food Packaging Market

The end users understand the problem of food waste, the important of knowing the ingredient

of the product, time consumption and quality of the product. From that the smart packaging

adoption could take to the next step in the adoption process.

An interview was performed with the store manager, Ms. Ajana Petkovic from Coop, Sweden.

First the author started with the question why the consumers prefer this shop. The interviewee

explained that the packages play a vital role to the prompt identification of the brand.

The interviewee also explained that the products are more environmentally friendly and the

used to get their raw materials from the Swedish farmers which make the consumers to prefer

this shop. Secondly the discussion around the challenges faced in the packaging were made.

The interviewee replied by, they face three challenges: Air packaging, vacuum packaging and

gas packaging. The manager also added that, they start to come over the environment by

avoiding use of plastic material, non-environment friendly packaging material and offer more

fresh food in packaging model.

4.4 Food packaging

Designing packages to be more global, safe, unified and environmentally friendly are goals of

every business. It is difficult to find or develop new packaging materials as those should be

environmentally friendly, but the price should not be much higher than what it already is.

Plastic with a material that burdens the environment less. Another way to reduce packaging

waster is to use thinner materials, which demands for extensive testing of strength and

durability. This is because thinner materials change the attributes of the package. All attributes

of packages must obviously be done within the laws. The appearance of packaging is

increasingly important factor in selling the product to the consumers.


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According to the retailers, manufacturers (suppliers), the development of printing techniques

provides the industry with new opportunities. In general, the amount of ink and printing area

used are to be reduced without losing the quality. The development of techniques makes this

possible. Retailers said that enabling this the packaging become more environmentally friendly

and thus the waste and emission fees imposed on the business decrease. Consumers demands

on more environmentally friendly packages, for example substitutes for plastic, they are not

willing to pay for the difference, imbalance between the wants of the consumers and their

willingness to pay exists.

4.4.1 Willys

They provide flexible packaging solutions for coffee, soft drinks, soups, fresh food, ready

meals (superfoods), spices, meat and fish, frozen snacks, milk and other applications. Their

high barrier packaging offers maximum protection and can help improves product shelf life.

This improves brand performance and guarantees convenience for the end-user.

4.4.2 ICA Maxi

Sustainability has become increasingly important in the retail trade. For the grocery sector, this

means increased demand for ethical labelled and eco-labelled food, and greater awareness

among end-users regarding where food comes from and how it is produced. ICA carries out

targeted work to continually develop the Company as a responsible operator. This work rests

on strong shared values and a belief that every link in the chain is important, from supplier to

employee and customer.

4.4.3 Coop

Coop will offer the consumer affordable goods, a sustainable attractive range and clear store-

style food that exudes food pleasure. Sustainability is part of their DNA and their

business. Coop's sustainability policy, sustainability strategy and objectives govern their

work. They will be at the forefront of environmental and sustainability efforts.


35

Company Variable Hinder Communication Thinking

ICA End-user &

manpower

Open for new

change

Listen to end-

user by different

methods.

Manpower

Take future step

in high tech in

smart

packaging for

both end-user

and manpower

benefit

Willys Price, local

product.

Competitive

price to reach

all customer

segment

Through

different

supplier, own

product. engage

with end-user

benefit

Wish to

corporate with

different

supplier to have

more customer

segment

Coop Product

Quality,

environment

friendly & local

product & local

resource.

The quality of

the product the

usually use ,

Involve the end-

user and the

supplier in this

variable

Take deep step

in combine

traditional &

smart

packaging

Table 4: How each retailer thinking


36


37


38


39

4.6 Adoption logics affecting retailer’s position

For new type of packaging one of the Coop managers in Halmstad, explained that certain type

of packaging helps them to come over this type of new challenge. The retailer explained the

benefit of this type of packaging helps them to achieve the need of the end user, and it was one

of the challenges they faced during the adoption of smart packaging. This type of smart

packaging keeps the product inside the packaging fresh.

Usually the packaging has packaging date and expire date, but with this type of innovation, the

manufacturing and the retailer introduce the new type of smart packaging with best before use

(expire date) and best after use (the end user can use the product after the date on the

packaging). We don’t go deep in technical explanation, but we study it as one of the ways, the

retailer could come over the adoption challenge.

ICA Maxi

Outgoing from each retailer quality focus, the future planning has been drawn as they plan to

fit their own end user. Rogers (1995) looking to Ica as one of the largest retailers in the Swedish

market and focused on presenting the product on high technology with environmentally

friendly material where the global benefit on focus.

Figure 14: ICA Maxi Future Research

Using the robot instead of using the human for physical work inside the store will help to locate

the product on the shelf using the high QR technology. Develop the QR technology to increase

end user benefit of it, make the use of it easier and end user as the retailer want to continue

offering to end user.

Make more use of high technology of the QR to increase the market of it among the users, give

the Ica as a retailer the benefit to be first in the market by using the QR technology for fully

capacity and show the end user how to get full benefit of using this technology on their daily

life.

ICA

high tech

more local, ecologic product

more use of QR


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COOP

COOP is an old retailer company in Sweden with a root in farmer work, starting from the

beginning of the COOP as a retailer in the market, as a few farmers starts selling product direct

from their farm to let more people can buy a daily product to make them live in the hard-cold

life in Sweden. In addition, their thinking were not only people who has money can buy these

products but the other as well.

From all above we understand that COOP needs to improve the new technology to build a

future which is connected to the old fashion classic model of retailer in Sweden. The outcome

of the interview from the COOP was that, they lag behind in introducing new technology to

their end user (Rogers, 1995).

All these reasons made COOP to build the future by mixing the old, and new technology of the

packaging to deliver benefits to the end user without compromising on the quality by using the

new technology.

Figure 15: COOP Future Research

Willys

This retailer has different view for the quality perspective which is different from the first two

retailers. We can see that clear from their future plans to use technology in smart packaging. It

is mainly done to increase the shelf life of the products, and easier the daily shopping of the

product inside the retailer store.

COOP

combination of traditional and smart packaging

higher quality with new type of packaging


environment friendly packaging

material


41

The next main point got from Willys is that they use more local and ecological product where

they can fit the need of the end user. Where the price is more important for them to introduce

local product with less price.

Figure 16: Willys future planning

Willys

high tech


long shelf life


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5. Analysis and Discussion

In this chapter, the analysis of the data followed by and discussion of the research findings.

Data were obtained from interviews with the retailers and the end-users and by determining the

rate of adoption of innovations (Rogers, 1995).

5.1 Perceived attributes of innovations

The rate of adoption explained by Rogers model is partially influenced by perceived attributes.

The author believes the different perceived attributes of innovation leads to the rate of adoption

which constitutes towards the diffusion of smart packaging. Roger’s theory of perceived

attributes of innovation defines five characteristics of an innovation which have been shown to

affect the rate of adoption in a society (Dhakal, Bigsby, & Cullen, 2011). The different kinds

of perceived attributes are seen below.

Rogers’s theory of perceived attributes of innovation defines five characteristics of an

innovation which have been shown to affect the rate of its adoption in a society (Cullen, 2001).

5.1.1 Relative Advantage for Smart Packaging with three food packaging

retailers

Environmentally friendly, smart packaging helps us to keep environment clean by reducing the

plastic uses also by using recyclable materials for packaging. Food waste, it reduces the food

wastages by perfect and safe packaging techniques. While comparing to normal packaging,

smart packaging controls food wastage. Easier employees work, due to usage of high-tech

methods in smart packaging it reduces the workload of the employees. Willys use only the

highest quality materials and deliver their products on time. Their competitive advantage is

their superior service before, during and after the packaging process. They have helped

rationalize and streamline the processes of many of their clients by helping them save costs and

time. They do this by providing technical, commercial and creative support that result in tailor-

made product solutions.

ICA and COOP works on sustainability in a structured way, using tools and models to follow

up and ensure that the products sold and processed meet both internal and external

requirements. A significant element of this is certification of large parts of the sourcing,

logistics and store processes to relevant standards on quality and the environment. The main

advantage of working with established standards is the assurance that the sustainability work

is being carried out effectively and methodically.

5.1.2 Compatibility for Smart Packaging with three food packaging

retailers

Compatibility is a degree to which innovation is not completely new one, it should be derived

from experience, existing values, and things that need for easy adoption. Adoption of smart


43

packaging as an innovation which it does not require prior adoption of the new value system

because it complete the existing value and develop it by the innovation. If the innovation is not

compatible with already existing values and social norms will not adopted rapidly as an

innovation which it is compatible. From the old innovation experience developed by ICA

which works actively to limit the use of chemicals that could be harmful to humans and the

environment. Änglamark was created in 1991 by Coop's members who demanded a larger and

better range of organic products in their stores. Now Änglamark products are always labelled

with a third-party environmental certification, such as KRAV, EU Ecological, and Swan. Test

methods are described to show how and why are certain films are used for mechanical,

chemical, and barrier properties to avoid over or under packaging. As per previous papers,

many tests are made to make sure the packaging methods are safe for consumes. According to

Alvarez and Casielles (2005) organization inventions are developing brands in order to attract

and retain the existing consumers. This is the reason retailers collaborate with their consumers

to guide and support them in each and every step.

5.1.3 Complexity for Smart Packaging with three food packaging retailers

The smart packaging can be described as a complex innovation, which is difficult to understand

at the beginning for an end user. This is the reason why the end users had problem in

understanding the benefit of smart packaging at the beginning. The advantages of smart

packaging such as its environmentally friendly and reduction of the food wastes were not easily

understandable by end users on one side and the employees from the other side. The innovation

presented as smart packaging is not only to provide high tech services but also higher the life

quality of both end-user and the employees. Protection and performance are critical factors for

brands in the industrial market, therefore their high barrier packaging is perfect for the technical

market in high demands. Willys high barrier flexible packaging solutions are perfect for

protecting our products in the healthcare, food & beverages, confectionery, industrial, or pet

industries. ICA provide flexible packaging solutions for sealants, glue, gel, powder, paint,

liquid and oil. By striving for the highest quality their packaging, ICA also can protect the

product, and it can reduce weight and waste, also the product can catch the consumer’s attention

in the shop. Antimicrobials are used in food packaging to enhance quality and safety by

reducing surface contamination of processed food; they are not a substitute for good sanitation

practices. Coop has taken a position to reduce chemical exposure associated with its products

and has a long-term chemical strategy, where phase-out of bisphenols is a subset. Coops

receipts were free from bisphenols already in 2011 and most of Coop's packaging is bisphenol

free.

5.1.4 Trial ability for Smart Packaging with three food packaging retailers

Trialability is a method, in which an innovation is applied in small area or material part. So

that we can find if the innovation will be good or not before implemented in large scale. The

retailers started to implement smart packaging in limited area, so that they need to see the

difference in consumers while they use smart packaging. Also due to the relative advantages

of smart packaging, it will easy if we use in limited scale. That’s why the retailers started to


44

begin in limited area, so that adoption of an innovation (smart packaging). Packaging costs

(direct labour and material) account for a substantial portion of a product's manufactured cost

and so it is desirable to minimize these costs (Souza, Ab, Lee, & Lye, 2004). Willys, LPF

Flexible Packaging they mention terms like partnership, flexibility and choice. They don’t

believe in one generic solution, but in every product having its own specifications and

characteristics. Ica help customers to feel good and inspiring them to have a healthy lifestyle

is an important role. It also helps to develop the product range and opens new business. ICA

Gruppen can spread information and inspire customers to make conscious choices daily. This

work is based on official nutritional recommendations.

ICA has been providing healthy tips through recipes, customer magazines, websites and stores

based on customers’ needs since long time before. Änglamark is Coop's cutting edge in

sustainability. With about 660 products ranging from baby food to skin care products,

Änglamark stands for almost half of Coop's organic sales. In 2017, the range was expanded

with 55 new products, including a large bathroom range. For the second consecutive year, Coop

achieved an equity ratio of over ten percent. The organic sales volume was estimated to be 10.1

percent in 2017. For Coop's online trading, the total shareholding was 19.2 percent. Generic

manual packaging line is significant in a specific line for a specific product may be quickly

configured from it (Souza et al., 2004). In order to offer a fitting solution to all these different

options Willys place a big emphasis on internal flexibility. Which allows them to create a

specific solution per product, instead of a generic ‘one size’ fits all solutions.

5.1.5 Observability for Smart Packaging with three food packaging

industries

Packaging for Sustainability is a brief and readable handbook for practitioners who are ready

to be among them who are trying to implement sustainability strategies for packaging

(Verghese & Lewis, 2012). It’s important to note that sustainability as a subject is still

constantly changing. What might be considered a good solution today, could end up being

overtaken by different solutions in a year’s time. Therefore, they consistently try out new

solutions together with their customers and are always open for new (sustainable) options for

their portfolio. ICA observed that the products that crossed their shelf life will affects the end-

user’s health that’s why ICA has sold may pose a health risk, the Group contacts the responsible

supervisory authority, takes the product off the shelves and distributes a press release

concerning a recall. A recall means that the product is immediately stopped at check-out and it

is no longer possible to buy it. A recall is always followed up with the supplier through a visit

and documented feedback on the measures the supplier has taken to prevent any reoccurrence.

Coop observed that there have different kinds of products, so they need flexible packaging

system, so their use high barrier flexible packaging solutions are perfect for protecting our

products in many sectors especially in the healthcare, adding to that food & beverages,

confectionery, industrial, or pet industries. Flexible packages are used for end-user and

institutional products and in industrial applications, to protect, market, and distribute a vast


45

array of products. Flexible packaging is customizable to the extreme. It can be tailored to fit

your needs.

5.2 Types of decision innovation

Retailers have “the ability to influence other channel members to make decisions which

otherwise would not have been made” (Dzewaltowski & Noble, 1990). The author interviewed

in three food packaging industry they are Coop, Ica and Willys. The KFs is a Coop’s Group

and the UN's Global Sustainable Development Goal provide a framework for Coop's

sustainability efforts. All Coop's operations are based on two primary governing documents, a

code of conduct and a sustainability policy. In order to clarify the goals and priorities for Coop's

sustainable business, a sustainability strategy has been developed.

All governing bodies and employees are trained in the ICA Good Business values, both via

web training and through special initiatives. Policies and guidelines are including a

sustainability policy, a business ethics policy and other special policies which are linked to this

foundation and explain how each of these positions is put into practice. There sustainability is

committed to a triple bottom line model they are people, planet and profit. For example, they

focus on thinner concepts, recyclability, and the local events they sponsor.

5.3 Communication channels

The author interviewed the retailers about the communication channels with ICA, Coop and

Willys. ICA and Coop preferred for advertisements and taken it as an important channel but

Willys did not preferred advertisement is important (Awan & Wamiq, 2016). Willys consider

low budget because advertisements are too expensive. Furthermore, retailers proposed that

collection of products are communicated to the customers through price discounts and offers.

Online websites and the newspapers are also the important communication channel which

creates and increase awareness among the consumers.

Communication is a global scale, where the ideas and needs from different markets are

collected into a central marketing function and converted that into the requirements, finally fed

to the centralized R&D. Retailers requires communication as a give and take between the buyer

and seller (Lauterborn, 1990). The retailers are willing to fulfil their customer’s needs.

However, the users feel that they can only suggest changes but, in the end, they will have to do

with the products that are currently available. This leads to a situation where the users are

waiting for the technology to develop, when actual solutions are already available. Poor

communication between the package manufacturers and users lead to slow spreading of use of

smart packaging.

Figure 17: Communication between retailers

Producers Retailers Consumers


46

5.4 The new hinders in this study

Inconsistence of the employment knowledge from understanding the employees within the

organizational level also from the end-user’s perspective by the adoption process what theory

says and what does not has explained in table 8.


47

6. Conclusion

The study concludes from the interview made with the retailers which shows that many of them

faced different types of problems to implement the smart packaging from one side. But from

the other side, all of them faced one main challenge in common, which is to create an awareness

to the end-users about the benefits of adopting new technology like smart packaging from an

old traditional method. Even though there are many benefits for end-user in this method, it’s

hard for retailers to get it to them. It is hard for retailers to make end-users to understand the

benefits of smart packaging at the beginning of adoption process.

The most important challenges faced by the retailers of ICA is they consider that adopting to

new technology in smart packaging is a challenge for them, because they have to create an

understanding about the new technology to the end-users which requires a lot of time for the

adoption process. According to Coop the open to new smart packaging technologies because

since they use only localize products and resources, the overall cost of the product increases

which again becomes a barrier for end-user adoption. The interviewee from Willys state that

they offer affordable smart packaging technologies without creating barrier for customer

adoption, at the same time they are not willing to adopt new technologies without testing its

feasibility with the customers.

On other side, each retailer has their own point of view in quality and how to maintain the

quality, the retailers have a big challenge in same quality value to end-user as before. To

understand that each retailer uses the benefit of quality to approach the relative advantage of

the innovation, to make it easier to be adopted. Each retailer consider quality as a man aspect

from their point of view, and what the quality mean to them. From the below figure 18 shows

how each retailer understands the quality, or/and how they present the quality to the end user

to fit their needs.

Finally, we like to conclude that, retailers give preference to the quality of the product than

other factors. In case of ICA, they receive the products from locals to maintaining the freshness

as they give important to the self-life. Coop also get their product from local resources that

means they use local products to keep them fresh. Whereas in Willys, they rate for products

are high when compared to other two because of their certain quality product principle.


48

Figure 18: Quality

Diffusion of innovation reach most of the theories of change by using different radical

approach. So, in state of concentrating on individual change, it should primary start with

evaluation of product and the behaviour where it become better to fit the need of the individual

and the market in general. Different type of using the quality in spread the innovation can

determine the success of it (Rogers, 1995). These qualities depend on how they see the quality

from the retailer point of view. The figure below shows how each retailer sees the quality which

fit their customer need, by that the retailer implement the theory of Roger of using the quality

to increase the innovation, not by changing the people but change the innovations themselves.

Each retailer uses one or more of the five quality by Roger, to determine the adoption of new

product. Using the smart packaging in their process depends on how they see the quality,

starting from

• How they see the innovation is better from different point of views, as economic,

social, convinces and/or satisfaction.

• These can absolute not interact with the existing value and practices, that’s mean the

innovation perceive as being consistent with the past value, experience and need of

potential (Rogers, 1995).

• When innovation is easy to understand and use, the end user can see the benefit of it,

then this innovation become faster to be adopted (Rogers, 1995).

• The innovation can be adopted in limited basis, that triable presented less risk to be

rejected.

• At the end, when start observing the result of the adoption, the easier to an innovation

being adopted (Rogers, 1995).

ICA• local product

• shelf life

• fresh product

Coop• local resource

• local product

• fresh product

Willys • certain quality product


49

6.1 Limitations

This study is based on the assumption that adoption of smart packaging makes the retailers to

face challenges. Different elements of smart packaging (price, product description, quality, and

shelf life) which makes the retailers to face challenges during the adoption time (Leonidou et

al., 2013). To achieve the aim of this study only one element of smart packaging “adoption” is

focused. Moreover, this study is limited to adoption of smart packaging done in three

companies (Coop, Willys & ICA Maxi) in the retail sector in Halmstad, Sweden, with limited

food range. This study is conducted from the retailer perspective, which lists out the main

challenges faced by the retailers through adoption process.

6.2 Implications for Future Research

There are several possible approaches that can be taken for future research within this area.

During this study, it was apparent that packaging elements have varying importance for retailer

perception of quality regarding market values. Therefore, it is appropriate to conduct studies

on these market values more thoroughly in order to gather more in-depth findings that could

serve as more reliable bases to draw conclusions. Also, in this study we consider only retailers’

perspective, if we consider all end-user and the manufacture perspective, it will be in a

complete cycle. By doing that we may get further ideas and innovate methods in future.


50

Appendix

Figure 19: Vacuum and Air Packaging (coop)


51

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PO Box 823, SE-301 18 HalmstadPhone: +35 46 16 71 00E-mail: [email protected]

Uma Devi is a Master's student inIndustrial Management and Innovationfrom Halmstad University, Sweden.Uma has completed Bachelors inElectronics and CommunicationEngineering from Saveetha University,India and focusing on ProductDevelopment.

Omar graduated as a chemicalengineer with professionalizing inpetroleum and gas refinery fromBaghdad 2005. Omar did a Master’sdegree in Energy engineering andwork with solar energy in Sweden. Mydream is working in industrialmanagement somewhere.

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