THE EFFECT OF PACKAGING ON CONSUMER BUYING DECISION
TABLE OF CONTENTS
Table of Content
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Question
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
1.8 Definition of Terms
2.0 Literature Review
2.2 What is Packaging
2.3 Function of Packaging
2.4 Method of Packaging
2.5 Benefits of Packaging
2.6 Effect of Packaging on Consumer Purchase
2.7 Protecting Function of Packaging
2.8 Packaging and Protection Requirement
2.9 Problem Encountered in Packaging
3.0 Presentation and Analysis of Data
3.1 Discussion of Findings
The word packaging is fast becoming a vital element in industries at recent time worldwide, owing to the fact that the introductions of packaging in the industrial business have contributed immensely in protecting products against damage and against degradation.
Getting products into the market, in the desired state of affordable price is a nightmare for manufacturers and alike. The packaging appears to be indispensable due to the high cost of package materials. A package keeps a product intact and available to the final consumers in its original state, protecting the quantity of the product from the physical damage, which was the traditional purpose.
In a nutshell, packaging in industries is vital even more for perishable and non-perishable such as blue band, margarine, Royco bulhon cubes and many other PZ products. The conventional purposes of packaging are meant to perform two basic functions.
i) Protecting the products against damage
ii) Protecting the products against degradation.
These functions are mainly aimed at controlling the possibilities of spoilage, either physical or chemical.
The packaging as we know acts upon the protection of industrial products which enables the marketers of these products to confront the issue of packaging n the case of any physical product that will be offered to the market.
Initially, packaging was a minor element in the marketing mix for a product but today, the entire controllable products attracts the attentions of consumer and thereby motivates their decision to buy the product.
It was also found that packaging plays an important role for promotion of product apart from its traditional role of production.
On the other hand, it was discovered that PZ Company advertise their products but they still rely on the power of products packaging which enhanced all the promotion. The belief that packaging is a silent “salesman”. Also apart from packaging consumers are motivated to buy a particular product by the price, quality and quantity. Therefore, for the company to achieve its goals the management should give packaging an intelligent leadership and support since packaging is dynamic, complex and controversial business area. This involves improving their packaging policy and ideas and ensure that these polices are properly implemented.
1.1 BACKGROUND OF THE STUDY
The background of these study emphases on the effect of packaging Paterson Zochonis industries limited which was incorporated on the 4th December, 1948, under the name of P.B Nicholas company limited to take-over the soap making activity of Mr. P.B Nicholas who had some years prior to date establish a factory of that purpose.
Paterson Zechonis and company limited of Manchester (PZ) subscribed 75.5% of the company’s issued share capital and has since directly or through subsidiary companies, retained its controlling interest P.Z itself was incorporated in England in 1884, become a public company quoted in the London and Northern exchange in 1933. Its principal activities are that of general merchant in West Africa and it has been established in this capacity in Nigeria since 1899. PZ interest now include industrial venture in Nigeria, Ghana and Sierra Leone.
In 1951 Mr. P.B. Nicholas sold out his interest in the company to PZ. Two years later the company changed its name to Alagbon Industries limited in 1960 adopted the name association industries. During the same year, the company achieved the first indigenous Nigeria equality participation and by the end of 1972, it had sold 40% of its share capital to indigenous Nigerians.
Following the merger of PZ and company Nigeria limited, and association industries limited in 1976, the company changed its name to Paterson Zochonis limited an in 1990 adopted the name Paterson Zochonis Nigeria plc.
It is pertinent to note that after in-corporation in 1948 new factor buildings were erected and in 1948 modern soap making equipment installed at Aba thereby creating one of the earlier major industries manufacturing facilities were further developed during 1960 both by addition to the soap making capital and by the introduction of a wide range of perfuming cosmetics and medical products.
The original soap factory premises at Aba are no longer used for manufacturing purpose but extensive factory and administrative premises has been built up there over the years.
During the year 1967 to 1970 (Nigeria civil war manufacturing operations at Aba factory were disrupted and in consequence the company operated in rented premises in Lagos, a factory which enable it to maintain suppliers of all but its soap product to its customers.
This manufacturing unit eventually moved to modern built and equipped factor premises on company’s property in the Ilupeju industrial estate near Lagos. The company’s range of products include bar and toilet soap performing cosmetics, confectionery medicaments, and pharmaceuticals of all which are distributed throughout Nigeria with buffer stock held at strategic centers. Additionally, the company has significant expert of glycerin and oil cause by-products of the soap making process which utilizes substantial tonnages of palm oil and other vegetable oil purchase locally.
1.2 STATEMENT OF THE PROBLEM
In the running of the duties of packaging in PZ Nigeria plc, there are some problems they encounter in the packaging of their products. A product package apart from protecting the product content it is also expected to communicate the brand of the product, prices, dominations, ingredients, method of usage and legal phrase. All these combinations portray an ideal and effective product package design.
As regards to the above attribute, these are the major existing problems inherent in polythene / leather package products designs
i. Leakage in machine when sealing
ii. Unattractive package materials
iii. Compression of metallic package design
iv. Non qualitative package materials
Consequently; disregarding of packaging as a market major device for advertising or as in influencing factor toward making a buying decision, therefore management should see this as a major marketing problems areas influence the desires consumer to buy these products.
1.3 THE OBJECTIVE OF THE STUDY
This research is aimed at investigating and examining the impact of packaging in the buying decision of the consumers.
It is also hoped that the study will give any organization an in-depth knowledge of consumers buying behaviour based on the effects of packaging and how to use it as a tool in controlling consumers demand pattern.
1.4 RESEARCH QUESTION
In carrying out the survey on the effect of packaging in consumers buying decision at PZ Aba Abia state the researcher used the following question.
1) What kind of packaging procedure does PZ employ in their organization and does the quality of their packaging determines the price of their products?
2) Does the high demand of PZ products due to the style of their packaging
3) What kind of packaging strategies does PZ Company employ in its marketing activity?
4) What factors are considered before certain materials is used in packaging PZ company product?
5) How does packaging help in the storage of PZ Company products?
1.5 SIGNIFICANCE OF THE STUDY
These study emphases on the significance of packaging and the effects on consumer buying decision. It is one thing for a company to invest so much on packaging and another to receive the returns in increase sales due to repeat purchases attraction of new user and so on.
Therefore, the research intends to identify and highlight those factors that are necessary in cosmetic products package designed and their effects on consumer buying decision.
1.6 THE SCOPE OF THE STUDY
The scope of this project is limited to the packaging of products in PZ plc Aba, Abia state. That is it cover the areas of packaging of new produced products and re-packaging of damaged ones and it is mainly carried out in the packaging department and others such as sealing, labeling, etc are also involved in packaging of a product. Since the research work is limited to PZ Nigeria plc only it is designed to asses how they actually carried out product package. Based on their assessment, conclusion will be drawn which related to the other manufacturing organizations also research work is designed so as to enumerate ways of packaging in product.
1.7 THE LIMITATION OF THIS STUDY
The limitation of this project includes some militating factors such as inadequate of:
1. TIME: the researcher because of the other academic involvement had as short time for the study.
2. FINANCE: the researcher as a student had limitation of income that cannot support him for a big financially committing venture.
3. ACCESSIBILITY: because of the nature of the relationship that is between the people in authority and the ordinary people, it was externally different for the researcher to gain access to certain top information as was reflected in the organizational flow of PZ Nigeria plc.
1.8 DEFINITION OF TERMS
PACKAGING: is defined as the basic and essential aspect of production which involves designing and wrapper of product in order to enhance choice of purchase.
CONSUMER: this defined as people that utilizes or consumes the goods and services
BUYING: – this is the act of selecting and purchasing of goods and services.