One of the team founders worked for the Indian Packing Company (which was a meat packing facility). The company donated funds for uniforms and equipment, on the condition that the team be named for its sponsor. (see discussion)
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Curly Lambeau, the team's founder, got a sponsorship from a Green Bay meat-packing company, In exchange for paying for the team's uniforms, they got to advertise their company on the team's jerseys. Look up some old photos online and you'll see the early teams wearing jerseys that say "Acme Packers" on them. After the sponsorship expired, fans continued to call the team the Packers, so the name stuck.