CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In the Nigerian business environment, mostmanufactured or processed products are sold in packages. Few actual products seen, but the rest are packages of different sizes, colours and types. Packaging can be defined as the activities in product planning that involves thecan be shapes, general designing of a container or a wrapper for a product.
On the other hand, consumer behaviour can be defined as the way a consumer perceive, thinks or reacts towards purchases of goods or services, influenced by some factors that cannot be controlled by the market, but must be taken into account for consideration in marketing planningprocess. Thesefactors include cultural, social, personnel and psychological factors. The common packaging materials in Nigeria are cartons, plastics cans, bags, bottles, glass, etc. Each of these materials has remarkably appreciated in use because of the various roles they play in products promotion.
Packaging has two major functions, which are containment and promotion functions. Containment is essential in efficient physical distribution, while the promotional aspect of packaging aims to stimulate demand. Packagingis usuallymore critical element in convenience goods than for shopping or special goods.The importance of packaging varies with differences in buying behaviour of customers.
Self-service enhances the use of packaged products requirements e.g. frequent reseal and re-use, may make the package a major sales influencing factor. For some products such as cosmetics, larger beer, soft drinks, etc, packaging among others, may be more important than any other factor, due to high level of competition they (the products) face,in some cases, promotional tools e.g. electronic media (TV) may strongly influence package decision. As to this packaging has assumed a crucial role in stimulating purchases and most manufacturers have realized the importance of packaging as it affects consumer behaviour, that is the response of consumers to the package. The role of packaging as a promotional tool or communication means, is a vital part ina firm’s product development strategy, as this research is set out to view.
There are many factors that account for the growing recognition of packaging, as an independent and potent selling tool.
a) Self Service:Most products are sold on this basis duetothe increase in supermarkets and departmental shops. thepackaging must now perform many sales tasks It must attract attention, describe the products features; give the consumer confidence and make a favourable impression.
b) Collective Markets:In Nigeria today, most of our goals are brought through this collective market, and they are designed and well positioned to be seen by the customers.
e) Consumer Affluence:The rise in consumer affluence means that they are willing to pay a little more for the convenience appearance, dependability and prestige of better packaging.
d) Company and Brand Image:Many companies are recognizing the power of well-developed packaging in contributing to instant consumer recognition of the company or brand. Packaging is a tool not only for creating products category identification, but also in carrying out the brands positioning concept in terms of quality, cost and other functions. Here, using a distinctive pack and brand name, the manufacturer is able to differentiate its product at the point of sales, as well as designing, advertising and promotional strategies to create consumer pretence for the products.
One of the important roles played is that it enables marketers convey their products attributes to the target market, in order to assume the role of coordinating and determining the influences that other companies functions have upon packaging. The satisfaction to be derived from a product is dependent upon its packaging and consumers are therefore receptive to both technical and aesthetic improvement in package design.
“With the increasing pressure on both consumer products, marketing executives, package design is certainly more than just a nice look, but will have to bow more to the ever changing market and economic influence”.
In trying to explain marketing mix, many authors have made diverse views as to where packaging belongs. Some classified it as part of the product, while others place it among promotion in defining the four “Ps”(4ps). Under the selling concept, a company makes a product and then uses various methods to persuade a customer’s demand to fit its supply. But in marketing concept, just the opposite occurs. The company finds out what the customer wants and then tries todevelop a product that will satisfy the want profitably.
As to this, this research work will examine the effects of packaging on consumer behaviour, its contribution to the manufacturing company, its benefit to the middlemen and its role as a promotional or communication tool.
1.2 STATEMENT OF THE PROBLEM
In our ever growing economy, the overwhelming drive is only matched with lack of managerial expertise. In most companies and individuals, the question often arises as whether packaging is for containment or promotional purposes and the reaction of the consumers or buyers to the package.
In this project, it is viewed that most organization are faced with one problem or the other, when applying the marketingmix. They need to identify and eliminate these problems if they are to improve on their position in their respectiveindustries, thus the problem that can be associated or related with packaging as it affects the behaviour of customers through promotion are as follows:
1) Whether a properly designed package that is attractive, can create an impulse purchase?
2) Whether a change in a package design will affect the consumer’s choice of product?