THE SIGNIFICANCE OF PACKAGING IN THE MARKETING OF CONSUMER GOODS

(A STUDY OF TASTEE FRIED CHICKEN NIGERIA PLC, LAGOS-ISLAND, LAGOS)

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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY

The definition of packaging is a coordinated system of preparing goods for safe, efficient and cost-effective transport, distribution, storage, retailing, consumption and recovery, reuse or disposal combined with maximising consumer value, sales and hence profit. So there ought not to be any doubt of the importance of this system’s view when it comes to packaging design and use (Paine, 1990).

 Kotler (1990) defines packaging as “all the activities of designing and producing the container for a product.” Packaging can be defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean.

Packaging is the outer wrapping of a product. It is the intended purpose of the packaging to make a product readily sellable as well as to protect it against damage and prevent it from deterioration while storing. Furthermore the packaging is often the most relevant element of a trademark and conduces to advertising or communication.

Packaging is especially important in certain industry where future sales may be based largely on the quality, integrity and performance of a company’s previous delivery.

The significance of packaging has come to be increasingly recognized in export as well as in marketing of a wide range of consumer goods and industrial products within the country. The volume of exports depends not only on the quantity of the production and prices, but also to a substantial extends on the standards of packaging adopted for the products. Goods damaged in transit or arriving at the destination in an unacceptable condition tarnishes the reputation of the manufacturer as well as the country as a whole, besides colossal wastage of scarce economic resources.

According to Rundh (2005) package attracts consumer’s attention to particular brand, enhances its image, and influences consumers’ perceptions about product. Also package imparts unique value to products (Underwood, Klein & Burke, 2001; Silayoi& Speece,2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behavior (Wells, Farley &Armstrong, 2007).

Further, packaging has a crucial role to play in the fetching higher unit values for consumer goods through the substitution of the bulk packs by consumer packs. In the recent past packaging has been increasingly recognized as a significant factor in the nations export promotion effort. Effort should be geared to understand the importance of packaging there by to avoid the loss and damage cost incurred during transportation and delivery.

1.2 STATEMENT OF THE PROBLEM

The rise in environmental consciousness in recent decades has included a focus on household waste. It is not the most urgent of the problems we face, but it may be the most immediately accessible; but garbage disposal happens again and again, right at home under our personal control. Those who seek to act on their environmental concerns, therefore, often find it easiest to begin with the problems of solid waste.

When in 1990 Gallup poll asked people in the United States what they had done in connection with environmental problems, 80% to 85% answered their households had participated in various aspects of recycling; no other significant steps had been taken by a majority of respondents Packaging has come to symbolize the issue of waste. It represents roughly one -third of municipal waste in the United States. It has expanded rapidly in recent times; most adults today remember growing up in a world that used much less packaging.

The paramount concern of packaging is the reach ability of the product without any damage. No matter where and how the products are transported or shipped, they arrive at the customer’s door in working condition without need of repair or adjustment.

1.3 AIMS AND OBJECTIVES

Specifically, the objectives of the study are stated below:

1. To identify the effect of packaging on consumer goods.
2. To determine the contribution of packaging in the marketing of a product.
3. To examine the processes and procedures that are involved in packaging of consumer goods.
4. To evaluate the problems encountered during packaging of consumer goods.
5. To determine the psychological effect of packaging on consumer behavior.

 1.4 RELEVANT RESEARCH QUESTIONS

Based on the purpose of the study, the following questions are raised to provide a guide and solution to the research problems:

1. How does packaging affect consumer goods?
2. What are the contributions of packaging in the marketing of consumer goods?
3. What are the processes and procedures that are involved in packaging of consumer goods?
4. What are the problems encountered during packaging of consumer goods?
5. What psychological effect does packaging have on consumer behavior?

 1.5 RELEVANT RESEACH HYPOTHESES

In carrying out this research work these hypothetical statements are made to serve as a direction on which the work will be premised.

1. H_o: Packaging does not have a positive psychological effect on     consumer buying behaviour.

H₁:     Packaging does not have a positive psychological effect on consumer buying behaviour.

1. H_o: There is no positive relationship between packaging and marketing of consumer goods.

H₁:   There is positive relationship between packaging and marketing of consumer goods.

1. H_o: Packaging does not increase the sales volume of Tastee Fried Chicken Nig Plc.

H₁: Packaging does increase the sales volume of Tastee Fried Chicken Nig Plc.

1. H_o: Packaging does not have positive effect on customers’ loyalty.

H₁: Packaging does have positive effect on customers’ loyalty.

1.6 SIGNIFICANCE OF THE STUDY

The study will broaden our understanding about the importance packaging on a product and how it will help to prevent the item from contacting germ via exposure.

This study will also help the consumer to be more aware of an item without a packaging or label that will show the production and expiry date.

A well designed packaging of a product will effectively promote the growth of an organization via consumer’s demand and sales.

1.7 SCOPE OF THE STUDY

The research work will evaluate the significance of packaging in the marketing of consumer goods with a view to explore a more sustainable way of keeping the corporate mission of the Tastee Fried Chicken Nigeria Plc.

1.8 LIMITATION OF THE STUDY

The study as perceived might face some logistic challenges in term of the time and the costs involved in carrying out the research, but nevertheless, it would endeavor to accomplish its aims and purpose.

1.9 DEFINITION OF TERMS

Consumer: A consumer is a person or group of people that are the final users of products or services generated within a social system. A consumer may be a person or group, such as a household.

Goods: A good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. It is normally used in the plural form”goods”to denote tangible commodities such as products and materials.

Purchasing: Purchasing refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.

Packaging: packaging is the science, art, and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages.

Labeling:  Labeling is any written, electronic, or graphic communications on the packaging or on a separate but associated label.

Effectiveness: This simply means doing the right thing.

Efficiency: This means doing the right thing well

Organization: An organization is a social group which distributes   tasks for a collective goal.

Sale: A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity.

Productivity:       Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input.

Project Overview

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