THE IMPACT OF PRODUCT PACKAGING AS A COMPETITIVE TOOLS ON THE MARKETING OF CONSUMER GOODS

(A CASE STUDY OF PZ INDUSTRIAL PLC P/H)

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ABSTRACT

This study examines the impact of product packaging as a competitive tool on the marketing of consumer goods (a case study of PZ industrial PLC P/H). related literatures were reviewed in conceptual and empirical dimensions. The sample size used were the population of the total staffs of PZ industries PLC. Therefore the sample size of this study is judgmental sample of 100 respondents which comprise of both the senior and junior staffs of PZ industries PLC. Therefore the sample size for this study is 100. Data used in this study were obtained from two source namely, primary and secondary sources. The primary source gave birth to primary data which were collected via questionnaire administration. The method used to analyze the data was simple descriptive method stated in tables and expressed in simple percentage. The researcher in the course of this research work formulated one hypotheses which were stated to give bearing for the research work. In order to test the validity of already stated hypothesis, the chi-square statistical test was employed this test was used due to the nature of the questionnaire designed for the purpose of the hypothesis testing. From the analysis, Since the calculated chi – square values of 45.64 is greater than the table value of chi-square given as 3.841, the null hypothesis is rejected and conclude on the alternative hypothesis that There is significant impact product packaging on the marketing of PZ industry PLC against their competitors. As such, the following recommendations were made based on the findings: The items of a package or component for other purposes should be encouraged by the managements of organizations, Management of organizations should increase budget for packaging, Package should be designed to separate components to better facilitate recycling, Before package development,  management  should  take  environmental  responsibility, applicable environmental and recycling regulations in to consideration.

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Packaging is a very important marketing strategy to glamorize product in order to attract the consumer’s attention. Sometimes packaging is so important that it cost more than the product itself in order to lure the consumers to buy it. Packaging should definitely be included in the 4 major P’s of marketing (product, place, promotion and price) (Soroka, 2002).   Diana, (2005) believe that most consumers judge a product by its packaging before buying. So it is logical to say attractive packaging is crucial in order to get the first time buyers to buy your products. Without attractive packaging, who would buy it in order to try it? Your first step to enter the market is crushed if the packaging is ugly (Soroka, 2002). The basic function of packaging is to “preserve product integrity” by protecting the actual food product against potential damage from “climatic, bacteriological and transit hazards” (Stewart, 1995).

An American consumer faces experience of 20,000 products in single visit to supermarket in 30-minute shopping session (Belch & Belch, 1999). In this competitive environment packaging help to differentiate the product or achieve competitive edge (Klimchuk & Krasovec, 2007). According to (Nilsson & Ostrom) graphic includes name, typography and structure design include size of packaging or products. All packaging dimension have positive effect on consumer brand experience and purchase decision, it lead toward the brand loyalty. Packaging becomes useful tool to convenience marketers to capture the customer attraction and get competitive advantage or competitors. Color of packaging is important because of this part is differentiate to other company products. Packaging color is the more attention the customers about products. In competitive environment company used different packaging color for attractive and remind the consumers. Packaging material is also important factors because that the prevent looses, if material used sufficient then customers are attractive to the products. Font style is print on the packaging according to the customers perception, because those companies which used the best font style capture market successfully. There are three type of perception (i) Somaesthetic or Hearing visual (ii) Gustative (iii) Kinesthetic perception. (Gallen & Sirieix, 2007).

Packaging perform the important role for the attracting the customers. The children more intention on design of wrapper, so organization design the wrapper make for the children as well as. Suggestion is that information to catch the consumers and have huge effective on young adults and buying attitude (Renaud Lunardo 2007). Printed information provide detail of the product how make it and how use it will. Due to enhancing the competition in daily life so the product packaging has come to play a more important role as a brand communication vehicle. Packaging decision is to be considered first marketing plan in total marketing strategy (Panwar, 2004)Taleghani et al(2011) introduced that service,quality,usage & storage have also impact on consumer satisfaction. When consumer is satisfied then they repurchase the product of that brand.Rentie& Brewer (2000) believe that more than 73%of purchase decision is depend on the product storage, selling place.Mustafa (2007) says that consumer purchase of product is highly depending on the product environmental safety. The most important aspect of the product is the packaging and often to the critical factor in the success of failure of the given product (Schoell, 1985). According to the silayoi and speece (2007) following are the element of the packaging (shape, color, symbol, graphics patterns, pictures, size). Images are important since they may serve as a diagnostic piece of information in some product purchase situations(underwood et al., 2001). Color selection is also one of the most important components of the packaging and brand design that further increase the visual stimuli, also considered important tool for creating and sustaining the brand and make the corporate image in the consumer mind. And also strongly associated with the different brand (Madden et al,.

2000). Packing shape and size have an impact on a consumer’s purchasing decision. Mostly consumers are attracted with that product which can use easily and carry (silayoi, speece 2004).

1.2 STATEMENT OF THE PROBLEM

The basic function of packaging is to “preserve product integrity” by protecting the actual food product against potential damage from “climatic, bacteriological and transit hazards” (Stewart, 1995).

  1. Product packaging has drastically affected the marketing of consumer goods. It is therefore pertinent to find out the solution to such devastating issue.
  2. Conscious that packaging is far more than a salesman, it is a flag of recognition and a symbol of values”. It represents one of the most important vehicles for communicating the brand message directly to the target consumer (Nancarrow et al., 1998). As the retail environment becomes saturated with competitors varying for consumers’ attention, packaging has to work harder than ever if the product is to be noticed through the congestion of competitive products (Milton, 1991).
  3. Alongside this challenge, retailers are faced with the realisation that consumers not only differ in how they perceive brands but also in how they relate to these brands (Fournier, 1998; Muniz and O’Guinn, 2001). It on this premises that the researcher wish to examine the impact of product packaging as a competitive tool on the marketing of consumer goods with special reference to PZ Cussons industries PLC PH.

1.3 OBJECTIVE OF THE STUDY

The main objective of the study is to examine the impact of product packaging as a competitive tool on the marketing of consumer goods with special reference to pz cussons industries. The specific objectives are as follows:

  1. To Find Out the effect of product packaging on the marketing of consumer goods.
  2. To determine the extent to which product packaging enhances the market share of PZ industries PLC against their competitors?
  3. To measure the relative impact of each product packaging element on the consumer.
  4. To identify the  elements,  which  should  be  highlighted  while  design  the packaging.

1.4 RESEARCH QUESTIONS

  1. What are the effects of product packaging on the marketing of consumer goods?
  2. To what extent does product packaging enhance the market share of PZ industry PLC against their competitors?
  3. What are the relative impacts of each product packaging element on the consumer?

1.5 HYPOTHESES

The following hypotheses were formulated to guide the study.

HO: There is no significant impact on product packaging on the marketing of PZ industry PLC against their competitors.

HI: There is significant impact product packaging on the marketing of PZ industry PLC against their competitors.

1.6 SIGNIFICANCE OF THE STUDY

The importance of this study is to help or be of help to any manufacturing organization that would like to design a product package, so as to help them in establishing a well rooted product through the enhancement of sales.  It is also of great importance to other companies in that at the end of the study, they would diligently make reference to this work and also take the necessary measures to meet up with efficient and effective product packaging that will improve their levels of sales and have competitive edge /advantage over their competitors.

1.7 SCOPE OF THE STUDY

The study covers the impact of product packaging as a competitive tool on the marketing of consumer goods with special reference to PZ industry PLC, in Port Harcourt Rivers state.

1.8 LIMITATION OF THE STUDY

The study is limited to the following limitations:

The level of frankness in response to questions by the respondents is quite doubtful.

Finance: Accessing fund for the research work was difficult, and this to a great extent limited the quality of research activity.

Time: The time allocated to the research work was not sufficient to give room for further intensive work on the field of study.

Organization Policy: Policies of the organization limited the level of information received. The personnel of the firms were not willing to give information, stating that it was against the organization’s policy.

1.9 DEFINITION OF TERMS

The researcher took the pains in giving the definitions of some uncommon terms used in this study; this is done in order to make it possible for the project work to have the full knowledge of product packaging.

The following are some of the related terms used in the study:

Competitive advantage: It is a property that a business can have over its competitors.

Competitors: An organization or country that is engaged in commercial or economic competition with others.

Competition: The activity or condition of competing.

Consumer: A person who purchases goods and services for personal use.

Consumer goods: Goods bought and used by consumers, rather than by manufacturers for producing other goods.

Packaging: Materials used to wrap or protect goods.

Product: An article or substance that is manufactured or refined for sale.

Marketing: Marketing is a set of activities that facilitates the exchange of transaction involving “Economic goods and services,” for the ultimate purpose of satisfying human needs.

 

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