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An Investigation The Relevance of Packaging in Marketing Activities of Retail

This document discusses the importance of packaging for marketing objectives of retail institutions. It notes that packaging performs functions like product differentiation, protection, and promotion. The study aims to show how variables like color, shape, size and material quality can impact sales, profits and competitive advantage. It raises questions on how packaging contributes to marketing goals and buying decisions.
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0% found this document useful (0 votes)
38 views24 pages

An Investigation The Relevance of Packaging in Marketing Activities of Retail

This document discusses the importance of packaging for marketing objectives of retail institutions. It notes that packaging performs functions like product differentiation, protection, and promotion. The study aims to show how variables like color, shape, size and material quality can impact sales, profits and competitive advantage. It raises questions on how packaging contributes to marketing goals and buying decisions.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 24

APPROVAL PAGE

This is to certify that this research work was carried out as required for the award

of National Diploma (ND) in the department of Marketing, School of Business and

Management Technology, Federal Polytechnic Nekede, Owerri.


DEDICATION

This research work is dedicated to God Almighty who gave me life and the grace

to write this work.


ACKNOWLEDGEMENT

It is impossible to accomplish an academic task of this nature without the strength

from God and assistance from people. Based on this fact therefore, I thank the

Almighty God for his strength and also the authors whose their books I read in

order to generate ideas on this topic.

I also appreciate the effort of my parents for their financial and moral support

throughout my stay in school. My profound gratitude goes to my able lecturer and

supervisor, Mr. Okere U.S. for his valuable assistance and directives toward the

accomplishment of this research work.

Finally, to all who collaborated in one way or the other, towards making this

project work a reality especially the typist for her painstakingly typeset, I say,

thank you all.


ABSTRACT
This study investigated the relevance of packaging in marketing activities of retail
institutions in Imo Sate, thus some problems associated with packaging were
emanated also the objective which the study tries to achieve was also noted, further
more, the studs received some theoretical framework of past scholars and authors
in the view of enlightening the subject matter. Moreover, the study the adopted
quasi- experimental research design, due to the descriptive nature of the study, the
population of the stud’, comprises of management and staff of the retail institutions
under investigation which was 23 in number and also some of their loyal
customers, the sampling techniques was based on judgmental procedure because
the research assumed that he can cover the sampling unit effectively, questionnaire
used to coiled relevant data for analysis and also the validation of the research
instrument was ensured. The study recorded the following findings, that there is a
significant relationship between packaging and profit growth. Also packaging
contributes to sales growth, finally packaging was noted to have a significant
contribution to customers desires to buy product. Based on these findings, the
study preferred the following recommendations: that retail institution should look a
packaging as a silent salesman that sales the produce and the firms. Hence, ensure
good packaging goods an made available for customers. Also, packaging an
assessment attention by retail institutions.
TABLE OF CONTENT
Title page - -
Certification page
Dedication -
Acknowledg ment
Abstract - -
Table of contents
CHAPTER ONE
Introduction -
1.1 Background of
Statement of problem
Objective of the study
Research questions -
Sign ificance of the study
Scope of the study -
Limitation of the study
the study
1.8 Operationel definition of terms-
References - - - -
CHAPTER TWO
Literature review - - - -
2.1 Introduction - - - -
2.2 Overview of packaging - -
Packaging has some functions - - - 20
Marketing executives must consider - - 24
Factors to consider in packaging development 25
2.6 Packaging policies and strategies - 26
2.7 Types of packaging materials - -
Reference - - - - -
CHAPTER THREE
3.0 Research methodology - - -
3.1 Research Design - - - - -
3.2 Population of the study - - -
3.3 Sampling procedure and technique-
3.4 Data collection method - - -
3.5 Questionnaire design and administration -
3.6 validation of research instrument -
3.7 Description of data analysis tools -
References - - -
CHAPTER FOUR
4.0 Presentation and interpretation of
4.1 Presentation and analysis of data-
4.2 Data Analysis - - - -
4.3 Discussion of findings- - -
CHAPTER FIVE
5O Summary of findings, Conclusion
and Recommendation - - - - 44
5.1 Restatement of problem - - - 44
5.2 Summary of findings - - - 44
5.3 Conclusion - - - - - - 46
5.4 Implication of the study - - - - 47
5.5 Recommendations - - - - - 48
5.6 Bibliography - - - - - 49
Appendices - - - - - - 51
CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THIE STUDY

Traditionally, in the past packaging is seen as a simple wrapper for a product.

Companies consider more the protective function of the packaging than other

functions. In the past most packaging is normally designed in a block form or

rectangular or square shapes. The colours for the packaging are not choosing for

attraction or promotional functions.

Modern marketers see packaging as the series of activities involved in providing a

wrapper for a product. Busch and Houston (1985) defined packaging as the

contained or wrapper for the product item. New developments in packaging,

occurring rapidly and in ht seemingly endless flow, require management’s constant

attention to packaging design. We see new packaging materials replacing the

traditional ones, new shapes and sizes, new closures, and other new features

(measured portions, metered flow). All these make for increased convenience for

consumers and additional selling points for marketers. Stanton W. J. (sixth

edition). The level of technological advancement today has given room for

management of firms to give reasons for considering package innovations in other

to combat a decrease in sales and to expand the market a share of companies and

institutions. Today marketing is seen as a strong competitive force in the struggle


for market share. It is not a simple task for manufacturers to get their products

placed side by side with either product in inclined to producers who have used past

studies revealed that packaging performs the following functions:

• It enables prospects to differentiate one product from another.

It enhances self service in retail outlets

• It protects the materials form dust and contamination

• Restrain them from undesirable movement in the container.

• It enhances product advertisement.

• It makes the product clean and convenient for ca rn age.

• It provides instruction so that the food is used correctly and has sales appeal.

1.2 STATEMENT OF THE PROBLEM

Recent findings on packaging are mostly based on big companies and foreign

companies. In our country today a lot of multinational companies have established

their marketing networks, since they are big companies with well designed,

effective packages for their product, the small scale business in our country is

suffering from the competitive advantage the bigger firms has over them.

So I feel that is needed to study the relevance of packaging to the marketing

objectives of retail institutions. Small business should find out the packaging that

can appeal to their prospects or target market. They should consider the variables

that make effective package for a product. For instance, variable like colour,
shapes, information that facilitates promotions the quality of the material used for

the package should be considered when designing a package or when retailers are

buying company’s products for resell.

1.3 OBJECTIVES OF THE STUDY

The purpose of this study is to work into the importance of packaging to the

marketing objectives of retail institution in Imo Sate, and Nigeria at large.

Some of these objectives are:

- The colour of the package determines the rejection and acceptance of a product.

An attractive colour aids advertising because it will go a long way to attract and

arouse the interest of prospect to take decision to buy a product. A beautiful colour

on a package posses competitive advantage for the company or retail shop and can

also increase market share.

- To that a quality material for a package is by consumers as revealing the quality

of the content in a package.

— To show that the shape of a product gives meaning to consumers concerning a

product, small businesses and retailers should design and choose packages that has

no negative meaning, for instance, different colours and shapes gives either

negative or positive meaning to people’s culture.


1.4 RESEARCH QUESTIONS

o To what extent has packaging contributed in achieving the marketing objectives

of retail institutions?

o Do colours on a package have anything to do with the buying decision of

consumers?

o Can the quality of a package material convince the consumer of the quality of the

product content?

o Can a consumer read any meaning from the shape or the colour of a package?

o Do information written on a product packages attract a buyer to buy more?

o Do the size of the product package have anything to do with the sales growth of a

business?

o Can the variables inherent in a package attract sales and increase profit?

o The label as part of the product should have information that will help satisfy

both individuals and the firm or the business.

o Small business and retail outlets should learn to design and stock products that

has the right proportion to satisfy different needs. For instance, they should have

small size, medium sizes and big sizes. This is the reason for adopting packaging

policies like family branding, multiple branding etc.


o Small business should endeavour to design and choose packages that will go a

long way to increase market share, raise profit, and give a competitive advantage to

the business.

1.5 SIGNIFICANCE OF THE STUDY

The marketing significance of packaging has to be recognized by small business

and retail institutions in Imo State and Nigeria at large. The convenience,

protection and promotional functions of packaging must be bore in mind before

designing a package or buying a product form the company for reseH by retail

institutions marketers should see packaging as a competitive advantage in a market

environment.

They should know that packaging is a silent sales person in the retail shelf and

facilitates the activities of self service and automotive vending methods of selling

in retail institutions. Small businesses and retail institutions should know that

customers are ready to pay more dust to get a special package. They should

understand that some features of the package may serve as a sales appeal this study

ill positively effects expert’s readers and students on how to choose and deign a

package effectively.
1.6 SCOPE OF THE STUDY

The extent of coverage of this study is defined within the frame of the research

topic. As such the study will extensively examine the concept of packaging as it

affects the marketing objective of the retail industry in Imo State.

1.7 LIMITATION OF THE STUDY

For this study, the minor limitations encountered by the researcher in the course of

carrying out this research were time constrains, finance and locations of some

stores. Also, the major constraints encountered as well were non-responses error,

appropriateness of data analysis and uncompromising attitude of some

respondents.

1.8 OPERATIONAL DEFINITIONS OF TERMS

- Packaging: Packaging is a process of designing a popular wrapper, container or a

cover for a product.

- Marketing: This is the performance of business activities that direct the flow of

goods and services from producers to consumers.

- Effective Packaging: These refer to the use of the right material right colours

and the right label with the right information or package.

- Competitive Force: This refers to any activities in marketing operations that can

give an organization a competitive advantage.


- Market Share: Is the proportion of consumers or buyers and organization is able

and ready to satisfy at a particular point in time.

- Retail Institutions: These are the middlemen that sell directly to consumers.

- Legal Phrase: This is a phrase that is written on a package that is backed by

business law.
CHAPTER TWO

2.1 LITERATURE REVIEW INTRODUCTION

In order to provide an enlightening background for the project work, the writer

searched extensively for the contribution of many authors on related topics to, the

same field of study. Packaging traditionally is consciences as a protective device,

marketers and contemporary writers sees packaging as a promotional tool.

2.2 OVERVIEW OF PACKAGING

Stanton W.J. (1981), he sees packaging as a general group of activities in product

planning that involves designing and producing a wrapper for a product. Hence

package should be able to induce buying and subsequently lead to an increase in

sales and also satisfy the need at consumers profitably. He also said that the

utilitarian reason for packagincj a product is to protect i on its route from rhe

manufacturer to the final consumer thereby preventing it from evaporation, spilling

and spoilage.

Marketing he said also helps an organization to implement its marketing

programme and in differentiating a company’s product from that of its competitors.

According to him, at the point of purchase the package serves as a silent sales

person. Good packaging is expected to communicate the products brand,

ingredient, method of usage and legal phrase. The package of a product is usually

important as a marketing tool for advertisement.


In introducing new product into the market, packaging assumes additional

importance in creating awareness for the product. The package it well designed can

persuade consumers to try the new product and convince them of the quality and

suitability of the product. He sees packaging as having the quality of attraction in

such way that can make customers to pay more just to get the special package.

Frank (1985) observed that a good package apart from protecting the product

contributes to good display and advertising purpose. The package can provide

symbols that communicate instantly with the buyer. This symbols both verbal and

non verbal can appeal to rational and emotional motives of buyers packaging is an

important motivating force, its importance has compelled many markets or

marketing managers to call it (packaging) the fifth “P” of marketing.

According to Adediran (1982), the package can be made to shout for attention in

the shelf of supermarket and the soft sell approach for specially shops. He also said

that a well designed package can appeals to the intended mind. According to Philip

Kottle (1998) he defined packaging as the activities of designing and product to

save it from damage or spoilage. On the other hand he sees it as a potent marketing

tool. He made us to understand that we/I designed packaging can create

convenience value for the consumer and promotional value for the product. He also

observed that various factors account for the growing recognition of packaging as

an independent and potent selling tool. Such factors include: Self service
increasing number of products are sold on a self service basis as a result of the

growth of supermarkets and discount houses. The package periorms many of the

selling task. It must attract attention, describe the product features, given the

consumer confidence and make it a favourable overall impression.

The rise in consumer affluence has made consumers willing to pay a little for the

convince, appearance, dependability and prestigious better package. He also

understood that companies are reorganizing the power of a well developed package

to contribute to the in start consumer recognition of the company’s and brand.

There is hardly a firms buyer who does not immediately peak milk as an example

innovation packaging can bring about large scale gain for instance the first

company to move into pop top cans and acrosable can attract many brand

switchers.

In the work N.G. Nwokoye (1984) the basic functions of the package is to protect

the product hence it must be durable for easy handling during distribution. He went

further to add that packaging fulfill important functions in a product. He

maintained that it should be aesthetically pleasing and distinctive enough to

standout when placed side by side with competing brands on the retail shelf. In

addition he observed that some product classes, such as cosmetics packaging and

brand naming are major items of promotional strategies.


According to Gils (1974) he said that package of a product must be easy to arrange

on shelves or racks and at the same time should attract the potential customers. He

stressed that when buying depend on shapes or colour it may be the major means

of creating product preference. For instant vigimilk has different colours and

different flavours and it is the basis for buyers preferences. Wright, Warner,

Wristler as an important part of consumer acceptance and therefore, vital to the

marketing success of consumer products.

In addition they also said that products are often judged by the package e.g.

perfumed or body s[ray. In the real sense the package is the product. Research has

revealed that a well functional package often remains in the shelf of the seller. As

regards t this, it has been confirmed that eye catching bright colour packaging

adorning the display space of the shop and stores promotes sales at a set speed.

No wonder Fulmer (1976) said that packaging is an important factor for the simple

reason that the consumer do not hke to make decisions especially decisions that has

been made before or once. If advertising and catching product name can help

convince buyers to make first trial purchase and the quality level ranges from non

offensive to satisfactorily, and the price is attractive, then the natural inertia of

consumer’s laziness will make the brand a repeat seller.


In furtherance, he observed that there are psychological differences in products

packed in different colours. He added that colours can warm people up, excite

them and even stimulate their thinking.

According to Peter Chrisnal (1975: P. 190) he said that a bag is not merely a handy

container for a product. It also contributes to the personality and influences

acceptability of the product of many types. He added that packaging is not an

indispensable part of the product mix of some products like cosmetics.

2.3 PACKAGING HAS SOME FUNCTIONS THAT IS BEYOND THE

TRADITIONAL PROTECTION AND SOMETIMES ECONOMY

The package of a product adds glamour and excitement to product e.g. lipsticks,

face powder etc. gives psychological satisfaction. He also added that with the

modern method of distribution, many products have to “sell themselves” when in

self service stores. Hence the package design and labeling can help shopper to

identify the brand among competing brands.

In addition he gave four useful guidelines in designing packaging attention.

Four Guidelines in Designing a Package

a. Arrest the shopper’s attention.

b. Arouse interest.

c. Readily impark the brand and suggest the nature of the product.

d. Invite action via purchase.


The goal of many firms according to the author is to form a pattern of shape and

colour for product which may be effective in attracting the attention of the shopper,

therefore, the design of any packaging should be capable of drawing attention of

any buyer. Features of a design should give mass display strong visual appeal.

In the contribution of AJ. Okafor (1989) said that two traditional function of

protection and economy has been joined by a third and fourth conveniences and

promotional functions. He added that the various factors of packaging as an

independent and potent selling

1) Tool.

2) Self service.

3) Consumer affluence

4) Innovation opportunity

Self Service: An increasing number of products are sold on a self service basis as a

result of the growth of supermarkets and discount houses. The package of a

product must now perform many of the sales tasks.

• It must attract attention, describe the product features, give the consumer

confidence, and make a favourable overall impression in the mind of the buyers.

Consumer Affluence: The rise in consumer affluence has meant that consumers are

willing to pay a little more for the convenience appearance dependable and

prestige of better packaging.


Innovational Opportunity: Innovational packaging can bring about large scale

sales gains. The first company to move into pop top, cans and Gerosol can attract

many brand switches.

Good design of package should be able to attract buyers or shoppers attention. If

there are three or more brands are placed side by side in the sample retail shelf, the

attention of most buyers is drawn to the best designed package. Therefore a

marketer or the marketing manager has to confront the issue of packaging in such

way as to achieve this goal.

MARKETING EXECUTIVE MUST CONSIDER MANY FACTORS AS

THEY DEVELOP PACKAGE AND THESE FACTORS ARE:

1. Cost: Some packaging materials processes and design are expensive.

2. Multiple Packaging: Multiple packaging is likely to increase demand available

in the point of consumption; however, it is appropriate for infrequently use

products since buyers do not like their money or store product for a long time.

3. Fairly Packaging: To promote an overall company image firm may decide that

all packages are 1:0 be similar.

4. Promotional Role: A package should be able to attract customer’s attention and

encourage them to examine the product. This can be achieved through the use of

verbal and non verbal symbols to inform potential buyers about the products

content features, uses, advantages and hazards.


5. More over desirable images can be created by the use of good colour design,

shapes and feature. He made special references to cosmetics by saying that many

cosmetics manufacturers design their product packages to create impression of

richness, luxury and exclusiveness. Hence a package may perform a promotional

function when it is designed to be safer or more convenient to use, such

characteristics helps stimulate demand.

2.6 PACKAGING POLICIES AND STRATEGIES

Packaging policies are concerned with the formulation determination and

identification of the will and purpose of the e packaging department of an

organization while strategies fundamental packaging logic in which a company

intend to achieve its packaging objectives or goal. The ultimate goal of a firms

packaging policies in strategies include increasing sales, reducing product cost,

attracting more users, stimulating repeat purchase correcting a poor features in the

existing package.

Changing the packaging

In general there are two purposes for considering a change in package to expand a

market by attracting new group of customers to combat a decrease in sales, the

question is whether changing a package will create an impact on the sales volume

of the product. The trend today is to change the package and it is gaining

momentum.
More especially, changing a package may be intended to correct poor features in

the existing package or alternative the company may want to take advantage of

new materials. Some companies change their package may show up well on an

advertisement.

Re-use packaging

Should a company change and promote a package original contents have been

consumed. Most of the package of products are attractive and often double or

revisable containers such as mugs or soft and pepper shaker. Many containers have

become collection item. Re-use packaging also should stimulate repeat machine set

of containers.
CHAPTER THREE

RESEARCH METHODOLOGY

INTRODUCTION

Research methodology is a frame work that provides the steps and strategies to be

used in a research study. Thus for the purpose of this study, this chapter will

explain in details the research design used and why, the population of the study,

sampling procedures, method of data collection, questionnaire design and as well

as the description of data analysis.

3.1 RESEARCH DESIGN

Research design according to Ezirim (2004) is a blue print that guides a research in

the process of carrying out a finding. Hence, there are two types of research design

namely, experimental and quasiexperimental research design. The former consists

of empirical laboratory procedure / method of collecting data, while the later

consists of field survey / non empirical method, thus for this study; the quasi-

experimental design was adopted based on the human activities involved.

3.2 POPULATION OF THE STUDY

The population of this study consists of the management and staff of the firms

under investigations, as well as their customers they are presented thus:

Table 1
Due to the fact that, all the population are relevant for the study, the whole

population was adopted for sampling. Hence, they are 23 in number.

3.3 SAMPLING PROCEDURES

Since the sampling unit is not too large and the research can effectively reach out

to them, the whole number that made up the population was adopted as sample for

the study. Also on this basis were questionnaire distributed to the firms under

investigations. Consequently, since the research does not know who the loyal

customers are, he gave out 20 questionnaires each to their loyal customers in all

100 questionnaires was given out unbehaf of the customers.

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