packaging

PACKAGING PACKAGING AS A COMPETITIVE TOOL IN THE MARKETING OF CONSUMER GOODS IN NIGERIA (CASE STUDY OF ABAKALIKI RICE MILL PLC, IKWO, EBONYI STATE) CHAPTER ONE 1.0 INTRODUCTION Many physical products of various industries are offered to the market in packs by various sizes, color, and designs like the brand name and brand mark. A pack also adds value to the product. A pack is not just regarded as a handy container for products but also contributes to the personality as well as influence the capability of the product. Think of what coca – cola products will look like if they are served in calabash. The product will cease to have the attraction and glamour associated with it. 1.1 BACKGROUND OF THE STUDY In the world marketing, packaging of product is very vital of no doubt. It plays a significant role in effective marketing of products, especially in consumer goods. In definite terms, Busch and Houston (1985), packaging is defined as the container or wrapper for a product item. Packaging is defined as the general group of activities in product planning that involves designing and producing the container and wrapper for a product (Stanton, 1981). BACKGROUND HISTORY OF THE INDUSTRY The rice mill cluster in Abakaliki is the biggest in Ebonyi. There are about 584 milling machines of various capacities and 11 destoning machines, and the name of the rice is Ebony Gold. 1.2 STATEMENT OF THE PROBLEM As a result of the depress economy of Nigeria, firm has been imposed with several problem which affect the sales of the product and in order to skill remain the competition field, they have to adopt all aspect of marketing mix which acts as survival strategies and packaging is one of the most important factor of this strategies. These problems are; 1. How appropriate a packaging strategy would be the aspect of minimizing damages along channel distribution. 2. How to effectively use packaging as a tool to increase sales income. 1.3 OBJECTIVE OF THE STUDY Realizing the role plays in the profitability of any consumer goods industry the benefit of these companies in the economy and socio – cultural context of our economy as a competition tool. The marketing of consumer goods. 1. To find out whether this firm has been able to minimize product damage on distribution channel through the use of appropriate package 2. Based on the findings, to pin – point a well articulated technological techniques and format that will serve the mutual interests of the manufacturing firm, middlemen and the final consumers to an appropriate extent. 3. To find out whether these firms consider packaging as a major determinant of its goods. 4. To find put whether packaging plays a significant role in same volume and profitability. RESEARCH QUESTIONS To guide the investigation of this study, the following questions are raised. 1. Is there any relationship between packaging, the volume and profitability 2. Does packaging solve the mutual interest of both producers and consumer? 3. Is there any relationship between packaging, sales product identification? 1.5 SIGNIFICANCE OF THE STUDY Competition in many field of consumer goods has become fierce of cosmetic market in spite of the general lack of marketing orientation in the marketing of most of the consumer goods. Companies in this market are devoting all their time to endow their particular brand with distributive personalities. The personality of a particular message is very high in promotional activities. This problems will continue unless problems are enclosed in strong and well designed package, labeling and brand names. The research will modern product packaging for students who offer marketing as their discipline in the school of business studies and the manufacturing industries and consumers in general. Through this research work, I and my fellow researcher will gain that protecting a product (packaging) will be of great importance because it protects the products content from being managed and from damaging other product. For instance, kerosene needs a sound container to protect it from wastage. Another gain is promotion, in the sense that when a product is properly packaged it draws the attention of the customer to buy the product. This is why we say that packaging is a silent sales man. 1.6 SCOPE OF THE STUDY The scope of the study begins with the search for published data, journal, libraries and company sales and promotional records. In addition, the topic under review or problem. The case of abakaliki rice mill which is poised to enhancing its position economical recent development of the company identification of those involved in the related problems. AREA OF COVERAGES This framework was carried out in Ikwo metropolis using abakaliki rice mill plc, Ebonyi which is locatekd near old ogoja road Ebonyi as a case study. 1.7 LIMITATION OF THE STUDY There is no research without impediment either internal or external. This research work is not exceptional. The constraints of the research are; 1. Financial resources: the research may be able to accomplish the numerous activities necessary for a thorough research work. 2. Time: this work would have been better than what it is if enough time was given to travel to different parts of the state and companies for collection of data. 3. Transportation: due to high cost of transportation fare caused by bad roads, it was not possible to travel to different parts of the state in collection of data. 4. The research and development were not available to render the required assistance thereby making it inaccessible to small vital documents which could provide the required information. 5. Lack of relevant books in the school library and records relating to the topic. 1.8 DEFINITION OF TERMS For clarity of purpose, the following terms are defined 1. INDUSTRY; This is a group of people whose activities are directed towards the production of a particular thing or in providing a particular service. 2. PACKAGING; this is an activity associated with designing and producing container and wrapper for a given product. 3. MARKETING; this is human activity directed at satisfying needs and wants through exchange processes 4. STRATEGY; this is the materials and methods which are used to achieve a particular purpose 5. TECHNOLOGY; a particular way of doing something especially one in which you have to apply special skills. CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 INTRODUCTION Literature review is a completion of a research been done on a particular topic. The purpose of literature review is to present a summary of what is known identifying strength and weakness of the current published work. It is also a systematic appraisal of all existing work or literature that is relevant to the research. Baridam (ibid) postulated that it is not enough to review related literature without presenting the studies by topic and determining how each of these topics are related to the researchers own study. A systematic presentation of the literature forms that foundation of the study. Thus, this chapter covers that following areas. i. Planning and packaging ii. Functions of packaging iii. Strategic importance of packaging iv. Good package design v. Packaging and its effect on distribution of consumer goods. vi. Changing role of packaging vii. Major packaging considerations viii. The place of packaging in marketing 2.2 PLANNING AND PACKAGING In the case of having something which must have the quality to serve all the important needs, the role of packaging in an organization must first be planned for the yield of a better result. According to Bane and Kurtz (1987: 150) planning is the management function of anticipating the future and determining the best cause of action to achieve the company’s objective. Most marketers would want their packages to exist enough to attract the attention of the consumers without appearing outlandish. This also proves that packaging does not only protect its contents, but also it promotes the company images. 2.3 FUNCTIONS OF PACKAGING There are two main reasons or functions for producing the packaging for product meant for sales. They include; A. PROTECTIVE FUNCTION; the traditional function of packaging is to protect the item to enclose it during the storage, deliver, usage and in fact during the entire lifetime of the products. Some product by their nature requires special container to avoid its damage(s) of other products when kept closer. B. PROMOTIONAL FUNCTION; the contemporary use of packaging is for promotional action so that more sales can be made. Packaging is often said to be silent salesman. This goes further to underscore the promotional implications. Packaging, as a promotional medium, packaging can be used to identify a product, differentiate it from others and connote the essential high quality contents of the product. 2.4 STRATEGIC IMPORTANCE OF PACKAGING According to McCarthy (1978: 260) marketing strategic planning tries to match the target market needs and preferences to the marketing mix offered a packaging is definitely a part of the mix. In some cases, the minor promotional change in packaging design, adds a more appealing illustration which may double sales, while another seeming minor change might cut a brand share of the market in half. Clearly, packaging materials, size and design should be examined with a final market in mind. 2.5 GOOD PACKAGING DESIGN According to McCarthy (1978: 264) there are easy rules of thumb for the marketer making packaging decision. The right package depends on such factors as; a. Susceptibility of the product damage b. Its hazards to which product normally will be exposed in commercial packaging. It is too costly to protect against every possible hazards c. The length of time the product must remain in the package and still be in satisfactory condition d. The promotional role of the packaging McCarthy (1978: 264) states some of the function of a package design must consider to the help of marketing research and they are as follows; - Packaging in the house - Package in the store - Package and other design in promotion consideration Hence, it is obvious that marketing research would be indicated before making major packaging decision 2.6 PACKAGING AND ITS EFFECT ON DISTRIBUTION OF CONSUMER GOODS According to Stanton (1999: 221), packaging was production oriental activity to obtain the benefit of protection of convenience. Today, however, the marketing significance of packaging is fully recognized and packaging struggles from markets. Berman (1990: 330) emphasized the importance of packaging in the distribution channel because in most cases, it is what sells the product to the product to the final consumers and it is important for the external looks of a finished good or product. 2.7 CHANGING ROLE OF PACKAGING Kotler (1984: 490) advanced four factors he believed accounts in large parts for the changing pace of packaging and the marketing mix. These are growth and consumers, he increase in self service retailing of integrated, marketing, and tie greater opportunities emerged because of packaging innovation, with respect to the Nigeria situation. 2.8 MAJOR PACKAGING CONSIDERATIONS Marketers must consider many factors as they develop packages. Obviously, one major consideration is cost, although a variety of packaging materials, processes and designs are available, some are rather expensive. Pride and Ferrell (1985: 163) In recent years, buyers have shown the willingness to pay more for improved packaging but there are limits. Marketers should try to determine through research just how much customers are willing to pay for packages. Marketers must also decide whether to package the products single or in multiple units. Multiple packaging is likely to increase demand because it increases the amount of the product available at the point of consumption. However, multiple packaging is not appropriate for infrequent used product since buyer do not like to tie up their money or store this product for a long time. 2.9 THE PLACE OF PACKAGING IN MARKETING Packaging is a component of promotion mix which in turn is component of marketing mix. The combination of decision to design appropriate strategy available embrance packaging, packaging occupies a relatively high place in the order of preference in the decision of marketing. But the absolute relative emphasis given to packaging by manufacturing firm is at mediocre level which calls for a critical analysis and appraisal of the role of packaging in the overall marketing activities. CHAPTER THREE 3.0 RESEARCH DESIGN AND METHODOLOGY 3.1 INTRODUCTION This research is any organized systematic enquiry that aims at providing information from solving an identified problem. It is used for the purpose of obtaining data to enable the researcher test hypothesis and also answer some research questions. 3.2 RESEARCH DESIGN Research design refers to plan structure and strategy of investigation conceived by the research so as to obtain answers to research questions. It could be seen as a complete framework that gives a guide in collection and analyzing the data for a study. In order to make the findings for this study explicit the survey method was employed. The process of the survey method according to Anyanwu (2001: 40) is defined as the investigation of the behaviour opinion or other manifestation of a group of people by questioning them. The instruments used were the structured questionnaires which were often used in the case of primary collection. This comprises of open ended questions and close ended questions, the open ended questions give room for respondents to answer in their own words where as the closed ended questions pre-specify all the possible answers in which the respondents make choice among the alternatives. SOURCE/METHOD OF DATA COLLECTION The use of primary and secondary sources of data collection were instituted PRIMARY DATA This is as a result of the exploration nature of this research, the main method of primary research in the study was through oral interview and administering of questionnaires to various relevant sections of abakiliki Rice mill plc. This timed obtaining first hand information regarding to the subject topic. Primary sources of information enhanced the collection of data through the useof observations, survey, experiment and focus group. SECONDARY DATA In order to support the findings, the researcher also generated secondary data/information. This was generated from diverse textbooks, publication and unpublished information, internal records of abakaliki Rice mill plc, journals, Afikpo today’s new paoer etc. The questionnaires were designed on the research questions. The questions were made up of dichotomous multiple choice and open ended questions, they are structured to obtain responses from the respondents. Te respondents are expected to choose the relevant and appropriate answers from the options given and also make suggestions. 3.3 POPULATION AND SAMPLE SIZE Population is the aggregate or totality of the unit in the universe of the study. SAMPLE SIZE The sample of the research work is the population of the consumer goods in Ebonyi and staffs and management of Abakaliki rice mill plc Table: Research population and sample size S/No sample farm population sample size 1 marketing dept 20 3 2 40 40 20 Total 60 50 The sample size of 15.6% of the population or O5 respondents were used and since it was not easy to distribute questionnaires to all the customers and staffs, the chosen percentages is believed to be a true representation of the research population, the table above revealed the population and sample size 3.4 SAMPLING TECHNIQUE The data collected from the various sources where analyzed using percentages method and table percentage were used to ascertain the number of respondent that are in agreement. The technique in analyzing the data collected include; charts average and percentage for the purpose of this work, the researcher uses tabulation and percentage analyze the data. 3.5 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENTS 3.6 Since studying the packaging consumer goods in Abakaliki rice mill plc lead to packaging of consumer goods. This research covered the areas of packaging as a competitive tool in the marketing of consumer goods in ………… which is located along factory road 3.7 METHOD OF DATA ANALYSIS Data analysis is the procedure taken in collecting and organizing of data. The research question are formulated arid presented on a tabular presentation and the percentage of respondent and the respondent answers the percentages are imperatively the result of data collected. 3.8 SUMMARY OF FINDINGS 3.9 The study focused on packaging in the marketing of consumer goods in Nigeria. Base on the analysis of the questionnaire, it was found out that the firm under study used packaging as a competitive tool as indicated in their volume of sales. Therefore, consideration of packaging design is overly essential as a competitive tool in the marketing of products, since it plays a significant role in sale volume. Packaging has an impact on the marketing of consumer goods and is considered as a determinant factor for product identification. 3.10 CONCLUSION The researcher made up the following conclusion based on the analysis; a. That good packaging helps to increase sale volume and profitability b. That packaging (shape, size and color) assist in the identification of product c. The firms have special strategies of packaging their products and the materials used are as a result of the nature of the product. REFERENCE Anyanwu A. (1993) : Dimension of marketing, okigwe Aran global publication Anyanwu (2000) : Principle of research, Umuahia versatile publisher Barker (1991) : marketing, an introductory text, U.S.A MacMwan industry. Nigeria business concord newspaper Kotler P (1993) : principle of marketing, London cent publishing company Onuoha K(2005) : marketing ideas and dynamics, owerri versatile publishers Stanton (1991) : marketing, new York MacMillan publishing company.