Full Project – Effect of branding and packaging on consumers purchase decision

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CHAPTER ONE

INTRODUCTION

1.1       Background of the study

In the competitive marketing environment, the role of packaging has changed due to increasing self-service and changing consumers’ lifestyle. Firms’ interest in packaging as a promotional tool is growing increasingly. Packaging becomes an ultimate selling proposition stimulating impulsive buying behaviour, increasing market share and reducing promotional costs.

According to Rundh (2005) Packaging attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about product. Also packaging imparts unique value to products and 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 and Armstrong, (2007) opined that packaging performs an important role in marketing communications and could be treated as one of the most important tools of promotion. The primary function of packaging is to protect the product against potential damage while transporting, storing, selling and exploiting a product and to ensure the convenience during performance of these activities. Grundvag and Ostil, (2009) indicates the importance of packaging in the case of grocery, when consumers buy unbranded products. Seeing that most consumers tend to touch products before purchasing, they treat product packaging as a tool for protecting consumers from contamination, for allowing them to touch products without restraint, without need to avoid smudging their hands. They propose to use packaging with a “window”, in order to allow consumers to evaluate product by its appearance at the same time reducing “consumer uncertainty regarding quality by branding the product and labeling it” i.e. to communicate to consumer adequate message about product. It could be stating that in length of time a function of identification and communication became of vital importance especially for consumer products in the group of convenience goods.

Packaging as a tool for communication was investigated by Gonzalez., (2007) Taking into consideration that impulsive buying is proper to many consumers it could be maintained that “packaging may be the only communication between a product and the final consumer in the store”. Consequently the role of packaging in marketing communications increases: it must attract consumer’s attention and transmit adequate value of product to consumer in the short period right in the place of sale.

The role of packaging has evolved from the traditional function of protecting the product against dirt, damage, theft, mishandling, and deterioration. This functional role is a requirement of all packages. In the modern era, packaging is also utilized as a marketing tool to promote the product, to increase visibility of the product on the shelf, and to provide information to the customer O’Shaughnessy (2005). In spite of packaging use as a growing marketing tool, marketers still view packaging as a container. Known marketing guru, Philip Kotler (2000) defines packaging as all activities of designing and producing the container for a product. Packaging draws the attention of the consumer at point-of-sale through its attractive design and color, gives an indication of its contents, packaging can be a tool in educating the customer. Finally, the packaging contributes to the overall image of the brand. It is important to remember, however, that packaging is not the only marketing and promotional tool. Meyers (2001).

The increasing importance of packaging in the marketing mix has equaled and occasionally surpassed product advertising and sales promotion in the past thirty years.

The physical packaging of a product can be used for many purposes, from the manufacturing point to the end users, such as the protective and promotive functions where it is called as a “silent protector” Long (2002) and a “silent salesman” Pilditch (2003). The packaging not only delivers product information and brand identity, it also visually appeals to consumers and due to its protective function delivers the product undamaged. Besides, Packaging plays an important role in helping consumers to recognize and understand the products.

When consumers go to retailers, they usually see the packaging of products before they can see the products themselves. Therefore, the packaging of products can be an effective tool for promotion in real shops Stewart, (2006).

Branding, packing and labeling of product as activities in the production of a product which are inevitable because of its importance with regard to sale promotion. The production of a product is incomplete if branding, packing and labeling do not take place. This is because it plays a vital role developing a marketing strategy of industrial product, the manufacturers has to consider the issue of branding. These have pressing for an effective marketing strategy taking into cognizance the fact that they have been wastage of resources and materials by manufacturers on the production of unmarketable products due to wrong method of branding and packaging the consumer are unaware of certain goods in the market which posses some utility. This  has caused the pre-matured folding up of some companies. In view of this fact, it has interest the researcher to take time to diagnose the problem of communicating to potential user about the existence as well as the quality of a particular product but there has been some inadequacies which include lack of these products effort have often been made by manufacturers in promoting, branding, packaging and labeling to user about their products but there have been some inadequacies which include lack of combination of branding and packing of these products.

According to Mc Carthy (2000) asserted that in branding and packaging, decision may be more important and physical product decision, some objectives of branding and packaging are protecting the product, economy, easy identification, differentiation of the product.

The increasing importance of branding and packaging in Nigeria today cannot be over-emphasized in Nigeria because many years ago items were just  packaged for sake of it. In some case many perishable goods like bread, cakes plantain and egg were not branded and packaged to them a attractive and easily sellable. For instance all the major brand of power milk in Nigeria now comes in both can and sachets. In Nigeria where consumer look for was to meet oither pressing needs, it becomes more expedient and wishes to buy the one in sachet or cans.

According to Cateora (2002), a poorly packaged product conveys an impression of poor quality. Supermarkets have many products on the shelves each containing many items of information and there are very few sales people in a supermarket hence most selling is done through packaging. The modern marketer should then see packaging beyond its traditional role of holding contents together but as a promotional tool for his products which is the purpose of this study.

Manufacturing companies are set up to achieve specific objective, in order to derive the objectives, appropriate branding and packaging as tools in promoting sales should be employed to boost the sales of the product by giving the best of utility to consumers and earning a good computation.

Many marketers are now debating on how the fifth “P” known as marketing mix this is because marketing plays a very important role in any manufacturing company.

12   Statement of the Problem

Despite the increasing popularity of packaging in the promotion of goods and services, one cannot but agree that there are areas of problems which need to be studied. Though some business organizations are now using packaging to promote their wares yet many business organization in Nigeria concentrate their marketing effort on the traditional elements in the marketing mix in the performance of their marketing activities. The rate at which wares or products are being advertised, one may be forced to ask questions bothering on the use of packaging.

In the application of marketing mix, many organizations are faced with packaging problems. Some of the packaging problems include; the need to know whether packaging is a good promotional tool. In this regard, packaging alone is not enough for promotion of goods and services. There is a great need to look at other marketing mix elements which usually comes first before packaging, despite the fact that good packaging promotes sales; wrong packaging can lead to the total rejection of goods. Again, packaging affect consumer buying decision, because wrong\bad packaging can make a consumer not to buy a particular product. In this aspect packaging needs to be suitable for each product in order to attract the attention of the consumers and also make them buy. Good packaging also protects the image of the organisation, but some organisations do not have good packaging system, thereby making their products to appear cheap and of low quality. Packaging is not a good compliment or substitute for advertisement though good packaging helps in advertisement.

The statement of the problem in the research work will be based on the following questions.

1. Does packaging in Nigeria measure up to international standards?
2. How does the prevailing law guiding decision effect organization in the country.
3. How to prospect for consumers?
4. Is branding and packaging of the cause of high cost of living in the country today.
5. How does the society view packaging with regard to the materials used in the environment?

1.3  Research Question

To what extent does packaging influence buying behaviour?

What is the impact of a change of packaging on the sales of the product?

To what extent does brand product packaging promote the image of the company?

To what extent do producers consider packaging in their product decisions?

Do consumers associate the appearance of a product to its quality?

4.3  Objective of the Study

The main aim of this research work is to analyze the role of branding and packaging as a promotional tool in the marketing of selected products in Bida and its contributions towards organizational performance. The specific objectives includes:

1. To analyze the extent to which packaging influences buying behaviours.
2. Find out the impact of a change in packaging on the sales of the product.
3. To ascertain whether brand packaging promotes the company’s image.
4. To know the extent producers consider packaging in their product decisions.
5. To determine if consumers associate the appearance of a product to its quality.

1.5  Research Hypothesis

In analyzing the role of packaging as a promotional tool in the marketing of selected products in Bida, some tentative statements have to be tested hence the following hypothesis is put forward for this study:

1. H0: There is no relationship between influence of packaging of product on buying behaviour.

H1: There is relationship between influence of packaging of product on buying behaviour.

2. H0: There is no impact of change in the packaging of a product.

H1: There is impact of change in the packaging of a product.

3. H0: There is no relationship between brand packaging and company’s image.

H1: There is relationship between brand packaging and company’s image.

4. H0: The producers do not consider packaging in their product decisions.

H1: The producers consider packaging in their product decisions.

5. H0: The consumers do not associate the appearance of a product to its quality.

H1:  The consumers associate the appearance of a product to its quality.

1.6       Significance of the Study

The study is aimed at bringing up the awareness of users in promoting manufacturers to enable us appreciate and enhance the importance of branding and packaging to sale product whereby enhancing the attainment of their goals.

This study will solve the research questions mentioned earlier and show the importance of packaging as a promotional tool to both the manufacturers and consumers.

To the manufacturers, it will make them adopt a better approach to taking packaging decisions; help them promote the image of the organisation and the brand.

To the consumers, it will show that packaging is part of the product they buy and may help to reduce dissatisfaction felt after buying a product, stimulate their buying behaviour and help them choose a product from a wide range of similar products.

Also, academic community will not be left out, because this work will serve as a fertile ground for researchers who wish to carry out a study on this topic.

The consumer will also be availed of the opportunity of ensuring the right product with knowledge of safety and quality.

1.7  Scope of the Study

This study is limited to research into branding and packaging of product in an organization and its effectiveness in promoting sales of such product, the tools of branding and packaging, the problem of putting branding and packaging into  practice, it cause and possible solution will be brought into focus. However, some selected products will be evaluated in Bida, Niger State. It also examines the role of the management regard their contribution like establishing branding and packaging department, enhance effective marketing strategy

1.8 Definition of Terms

1. 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 designing, evaluating, and producing packages.
2. A brand is a name, term, design, symbol or any other feature that distinguishes one seller’s good or service from those of other sellers.

III. A person who purchases goods and services for personal use.

1. The action or process of deciding something or of resolving a question.

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Full Project – Effect of branding and packaging on consumers purchase decision