University of Nigeria Research Publications

OSAGHAE, Ebuwa Roger

Aut

hor

PG /EMBA/99/0421

Title

The Effect of Product Package on Nigerian Consumers

Facu

lty

Business Administration

Dep

artm

ent

Marketing

Dat

e

June, 2002

Sign

atur

e

THE EFFECT OF PRODUCT PACKAGE ON NIGERIAN CONSUMERS /'

OSAGHAE, EBUWA ROGER CMD-UNN/PG/EMBA/99/0421

DEPARTMENT OF MARKETING FACULTY OF BUSINESS ADMINISTRATION

UNIVERSITY OF NIGERIA NSUKKA

THE EFFECT OF PRODUCT PACKAGE ON NIGERIAN CONSUMERS

OSAGHAE, EBUWA ROGER CMD-UNN/PG/EMBA/99/0421

A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF MARKETING, FACULTY OF BUSINESS

ADMINISTRATION, UNIVERSITY OF NIGERIA, ENUGU CAMPUS, I N PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA) DEGREE

JUNE 2002

CERTIFICATION

Mr. Ebuwa Roger,Osagbae, a postgraduate-student in the Department of Marketing,

Faculty of Business Administration with Registration Number CMD-

UNN/PG/EMBA/99/0421 has satisfactorily completed the requirement for the award of

MBA (MARKETING)

The work embodied in this report is orig?&l and has not been submitted in part or in

full for any other degree or award of this University or any other University.

Mrs. I). A. Nnolim I'rojcct Supervisor

This piece of work is

John Thong, Late MI

Miss lyore Eb8_rwa.

& Mrs

ughter

i v

ACKNOWLEDGEMENT

This piece of work will not be complete without due regard and reference to those who

contributed in one way or the other to its eventual success.

- . . - . - . . , . I am especially grateful to my supervisor MRS D.A NNOLIM who gave me the vital hints

and direction that saw me through the entire project.

- My gratitude also goes to the following people for their support: Chief Friday Uwagboe,

Chief Matlhew Iria, Mr Samuel, Miss Roseline Osaghae and Miss Monica Fashoranti.

Every effort has been made to recognize and acknowledge authors whose materials

have been quoted and others who have contributed in one way or the other. Where this

has not been possible or overlooked, I sincerely apologize to those concerned.

Above all, I remain most grateful to God almighty for seeing me through.

OSAGHAE, E. R

This project report was conducted in order to evaluate the effect of product package on

Nigerian consumers. Some manufacturers are having set backs in their sales and some

had even fcllded up while others now selling their products as sub-standard ones

whereas these products have strong competitive power if properly packaged.

Close-ended questionnaires as well as oral interview were used through random

sampling to gather data from the consumers for the study. Data was--analyzed while

hypothesis pstulated tested using statistical tools.

The findings show that:

Packaging has an effect on consumer's decision making process

Packaging affects product acceptance

Consumers can pay more for convenience appearance, dependability and prestige of a better product.

A good package makes a product appear superior to others.

Re usable value of a package influences Consumers to buy a product.

New affordable packaging in small packs and bags can influence Consumers to buy a product

Packaging has substantial marketing consequences

From the findings stated above, one can Categorically say that there i

substitute for good and welldesigned packaging as it does not only ensure

product acceptance but goes further to create a sound image for the

company and brand name

TABLE OF CONTENTS

TITLE P A G E ~ a ~ ~ ~ ~ m m ~ m m ~ ~ m m m ~ ~ ~ ~ ~ ~ m ~ ~ ~ ~ ~ m ~ m ~ ~ ~ ~ m a m ~ ~ ~ ~ ~ ~

..................................... CERTIFICATION

DEDICATION .............................. .. .............. ............................ ACKNOWLEDGE .... ......

ABSTRACT .......................... .......... TABLE OF CONTENTS

CHAPTER ONE

Introduction .............................................

Background Of Study ...............................

............................... Statement Of Problem

............................... Objectives Of Study

................................. Research Questions

............................... Research Hypothesis

............... Scope And Limitations Of Study

............................. Significance Of Study

CHAPTER TWO

.................................... 2.0: Literature Review

........................................... 2.1 : Definitions

........... 2.2 Historical Background Of Packaging

PAGE

i

i i

iii

i v

v

vi

'> . .. rz \ - ~ . ~ . . : Q ~ ~ . - - , . - I . . 1 3:); i+!..zi.lfipj,;....;-j ; . . . ... vii .!. ',

2, 31:: IPa&&$h&Tfends ... .......................... 9

- .. . . ........... ... . 2.4. Packaging.,Gon.cept; . . . . . . . . ,: .,, ,,,.,:., .,.. .., , - .'.. 10

................... . 2.5. Product Package and Product Branding 13

............... . 6 : Featuqwof, an Eff ectivve qacbge . . . 1.5

.................................. 2.7. Evaluation of The Package 18

.......................... 2.8; Package Design Consideration 19

........................... 2.9. Promotional Advantages of Packaging 23

. . 2.1 0: Product Package Test .................................................. 24

CHAPTER THREE

3.0. Methodology .................................................. 26

.................................................. 3.1 : Introduction 26.

............... 3.2. Re-Statement Of Research Questions 26

3.3. Research Design ........................................ 27

3.4. The Research Setting .............................. 27

3.5. Sampling Size ............................................ 27

3.6 Sampling Technique .......................................... 27

3.7. Instruments And Procedure Used .................................. 29

................... 3.8. . Re-Statement Of Research Hypothesis 30

....................... 3.9. Limitations Of Methodology 31

CHAPTER FOUR . . . :.

4.0. Presentation Of Data And Analysis ............

.... ...................................... 4.1. Introduction ;

................... 4.2: Classification Of Respondents

viii .

..................... 4 . : Analysis Of Subject Matters

................................... 4.4: Hypothesis testing

CHAPTER FIVE

............ 5.0: Findings, Conclusion And Recommendation

................................................... 5.1 : Findings

5.2: Conclusion ...........................................................

.......................... 5.3: Recommendation To Manufacturers

- ......... ...................... 5.4: Recommendation For Further Studies

............................... BIBLIOGRAPHY

.......................................... APPENDIX

CHAPTER ONE

1.0 INTRODUCTION

I. I BACKGROUND OF STUDY

Packaging is a means by which the Consumer is able to distinguish one

product from another either because it adds an extra service, element or

because it provides some psychological satisfaction - Stapleton (1 975).

Pride & Ferrel (1995) described packaging as involving the development

of a container and a graphic design for a product. Packaging also includes

the wrapping, boxing, crafting and preserving of product. It serves to -

identify (branding) and advertise the product. It changes the product by

changing its visibility and attractiveness. Basically, packaging performs

three functions namely: Protection, Convenience and Communication.

The old packaging concept is the protection of product in transit and that - -.

of economy. Experts have since discovered a variety of functions being

performed by packaging. In a supermarket, the shopper first confronts a

package instead of a salesman. Packaging is used to create impact for the

brand on the shelf and to make the product appear attractive to the

consumer. A product package is also an appropriate and inexpensive

device for carrying promotional messages.

Product package is therefore expected to perform many of the sales tasks,

in other words a good product package is expected to include such

functions to its traditional role like to attract Consumer, to give confidence

To Consurrier on a particular product, to create a favourable impression on the

products, etc. The ever-increasing need to satisfy the dynamic changes in

consumers' expectation from the consumption of existing products

demands that the marketers should develop such products and package

them to match the consumers' higher satisfaction level requirement. The

scope of redevelopment activity required will depend on the specific

context of Ihe aspect of change implied in the consumers satisfaction gap.

Therefore the new packaging concept defines what the package should

basically look like or perform for a particular product and the consequent

effect on consumers, hence this study topic "The Effect of Product

Package on Nigerian Consumers'. The Consumers and product

packaging will be critically examined. The impact opf product packaging

on the marketing of consumer products can be linked io jkt i fy its

existence and to maintain a positive and healthy relationship between

consumers and product packaging.

1.2. STATEMENT OF PROBLEM

Many manl~facturers, particularly the young entrepreneurs do not see the

essence 07 spending on packaging which they referred to as a cost

without any substantial marketing consequences and as a result, the

.majority of them experience setbacks in their sales objectives and some

have even folded up while others are selling their products as substandard

whereas these products have strong potential if properly packaged. Hence

to Consumer on a particular product, to create a favourable impression on

the products, etc.

The ever-increasing need to satisfy the dynamic changes in konsumers'

expectation from the consumption of existing products demands that the

marketers should develop such products and package them to match the

consurriers' higher satisfaction level requirement. The scope of re-

development activity required will depend on the specific context of the

.aspect of change implied in the consumers' satisfaction gap.

Therefore the new packaging concept defines what the package should

basically look like or perform for a particular product and the consequent

effect on Consumers, hence this study topic "The Effect of Product

Package on Nigerian Consumersw. The Consumers and Product

Packaging will be critically examined. The impact of product packaging on

the marketing of consumer products can be linked to justify its existence

and to maintain a positive and healthy relationship between consumers

and product packaging.

1.2 STATEMENT OF PROBLEM

Many Manufacturers, particularly the young entrepreneurs, do not see the

essence of spending on packaging which they refer to as a cost without +@

any substantial marketing consequences and as a res~lt,~majority of them

experience setbacks in their sales objectives and some have even folded

up while others are selling their products as substandard whereas - . these

products have strong competitive potential if properly packaged. Hence

- - -

the old product package role needs to be critically looked into in order to

recommend firms to the new packaging concept.

1.3. OPJECTIYES OF STUDY

The research will specifically focus on the evaluation of product package

on Nigeria consumers. The following objectives will be achieved:

1. To show the marketing importance of expenditure in effective

packaging.

II. To show the effect of product package on Nigerian Consumers.

Ill. To explore other numerous objectives of packaging that have

marketing consequences.

1.4. RESE.4RCH QUESTIONS

I.

II.

111.

IV.

v. VI.

1.5.

What is the importance of product packaging to Nigerian

Consumers?

What is the effect of packaging on consumer's decision-making

process?

How does packaging affect product brand acceptance?

Can a consumer pay more for convenience, appearance,

dependability and prestige as offered by market oriented packaging

activities?

Does a product package make a brand appear superior to others?

Can re-usable value of a package influence consumer to buy a

product brand? -.

STATEMENT -- OF HYPOTHESIS

Packay iny has a substantial marketing consequences.

1 6 . DEFINITION OF TERMS

1.6:l. PRODUCT

This . is a complex m.ix of tangible and intangible attributes including

packaging, colour, price, manufacturer~s prestige, .retailer's prestige,

manufacturer's and retailer's services which' the buyer (consumer) may

accept as offeringsatisfaction of wants and needs.

1.6.2. CONSUMER .

. .

The consumer is one who makes use of goods arid services to satisfy his

personal or household wants within the limits set by his income.' Because

of the relative freedom of choice being exercised by .co.nsumers,.

are to make profit and justify their existence.

manufacturers and middlemen must satisfy the consumers wants if they .r-

1.6.3. PACKAGING

Packaging could be defined as all the activities of designing and producing

the container for a product. ~ . o s t physical products-have to be 'packaged,

some packages .such as Coca-Cola bottle, Guilder bottle, Close-up

toothpaste, lami tube, Pears baby jelly jar are some of the popular

- packages in Nigeria. The package may contain up to three levels of

material, Close - up toothpaste in lamitube (primary package) that is in - .

card board box (secondary package) that is in a corrugated box (shipping

package).

1.6.4 BRANDS AND BRANDING

A brand is name, term, symbol, design or combination of these which

identifies the goods or services of one seller or group of sellers and

differentiates them from those of other sellers, some brand names are so

powerful that they are now in every day use e.g. OM0 instead of , . .

detergent, Xerox instead of photocopy, DHL instead of Courier, coke'

instead of minerals. The development of brand - management:- based

marketirg organisation provides firms with the opportunity to establish

internal orofit centers. The brand provides consumers with reassurance of

quality and consistency.

' 1.6.5 LABELING

Sellers must label products. The label may be a simple tag attached to the

product or an elaborate designed graphic that is part of the package. The

label might carry only the brand name or a great deal of information. Even

if the seller prefers a simple label, law may require additional information.

Labels perform 'several functions. First, the label identifies the product or

brand, the label might also grade the product, the kbel can also describe

the prod~ct, who made it , where it was made, when it was made, expiry

date, what it contains, direction for use.and how to'safely handle it.

Finally the label might promote the product through its attractive graphics.

- 8

1.7 SCOPE AND ~LIMITATION OF THE STUDY

The area of this research would be restricted to Lagos since the

consumers and manufacturers in Lagos serve as a good sample of the

Nigerian Universe.

1.8 SIGNIFICANCE OF STUDY . .

To enlighten manufacturers on the numerous objectives of packaging and

the effect they have on consumers. The study will also serve as reference

. material for researchers.

CHAPTER TWO

2 .O LITERATURE REVIEW

. 2 .I DEFINITION:

Packaging. includes all the activities of designing and producing the

container or wrapper for a product. Philip Kotler (1997), packaging is the

use of container's and components plus decorations or labeling to project,

contain, identify, merchandise and facilitate the use of products. It is

. - - .

containment and packing prior to sale with the primary purpose of

facilitating the purchase and use of a product. Onah and Thomas (1 993).

The coqtainer or wrapper is called the package. The package might

include up to three levels of materials. Thus, Blue Dream Cream -i r i a .

bottle (Primary Package) that is in a carboard box (Secondary package)

that is in corrugated box (Shipped Package) containing 3 dozen of 450g.

Blue Dream Cream. It can also be in two levels of material as in PZ'Joy

Soap in a wrapper (Primary that is in a corrugated box (Shipped . .

package) containing six dozens of 859 soap tablets.

Packagi~g can play a minor role (e.g. inexpensive hardware items) or a

-'majormrole (e.g. Cosmetics). Some packages - such as the Coke bottle

Pepsi bottles are world famous. Many marketers have called packaging a

.fifth P alang With Price, Product Place And Promotion.

Te~hn010gi~I advances in some instances demand packages that protect '

both, their content and the public, which may be exposed to them,

Radiclactive materials must be packaged in very complex lead shielded

boxes, within - boxes to prevent cohtamination of their surroundings and

those who come into contact with them. There has for a long time, been a

trend toward packaging rnaterials that are lighter, easier to use, and in

other'ways more convenient. Unfortunately, this trend has now produced

some very serious disposal problems and created a new demand for

containers less damaging to the environment, Indestructible plastics, one- . ..- ,

.. . . I i

way soft drinks bottles and throwaway cans have repulted in mountains of

debris. Even the amount of paper used in various aspects of

and Froduct design is bwdensome to our overtaxed disposal systems.

The search for solutions to the disposal problem has led to new

engineering ' techniques for recycling many packaging materials.

Econc)mically, feasrble methods have been developed (and are being

improved upon) for using crush glass from bottles as ingredient in highway

pavement and from re-using the aluminum in cans.,

Attacks by critics on over packaging will probably lead to aretuin to simple

packaging con6epts and greater use of easily 'destroyed materials the

majority of consumers have limited trash disposal facilities. Even City and .

Community sanitation departments are becoming hard pressed to cope

with the numerous amounts of waste papers, plastics, cans, bottles and

other forms of packaging used today.

The demand for greater safety in packaging is another major

contemporary trend. Aspirin bottle that cannot be opened by children is . . .

one example of safety in packaging. Much remains to be done in this.area

however and we can expect the demand for package safety to intensify in

the future.

2.4 PACKAGING CONCEPT

Although initially designed to provide protection for products as they move

from producer to consumer, the product package has played an

increasingly important promotional role in recent years. The recognition

that the package is more than a protective container has boomed the

packaging ind'ustry'to an annual level of gross sales of billions of naira.

Inspite, of the large role that packaging plays in promotional strategy,

there is only a modest amount of literature on the subject. .

PROMOTIONAL ASPECTS.

The prime promotional aspect of a package is to identify a product from an

array of competing goods and uponits ability to convey information and

meaning about the product. In those increasingly numerous situations in

which consumers' goods are sold with a minimum clerk service or by self-

service the padkage is the sale3 person. It plays the role of the attention

getter, or triggering cue, which starts the sales process. It provides

information about product attributes such as price, quality, quantity, and

instruction for use, warranty and so forth. Various factors have

contributed to the growing use of packaging as a marketing tool: . . .

1. Self-service: An ir~creas~ng number of products are sold on

a self-serv~ce basis. In an average supermarket which

stocks 200 different items, the typical shopper passes by

some 30 items per minute. Given that over 50% of all

purchases are made on impulse, the effective package

operates as a "two-second commercialn . The packages

must attract attention, describe . the . product features, create

consumer confidence, and make favourable overall

impression. , .

2. Consumer Affluence: Rising consumer affluence means

consumers are willing to pay a little more for the

convenience, appearance, dependability and prestige. of

better packages e.g. bottled water.

3. Company & Brand Image: Packages contribute to instant

recognition of the company or brand eg the blue & red

colours of soap boxes for Unilever Nig PIC the blue & Grey

colours of cream boxes for Grey De Kouron Nig Ltd, the blue

printing on boxes for Prestige Cosmetics blue dream cream.

4. Innovation Opportunity: Innovative packaging can bring

large benefits to consumers and profits to producers.

Companies are incorporating unique materials. and features

such as TOP Tea Pack or 25 tea bags + 1 free, Peak Milk

containing 28 vitamin's and minerals, Cowbell chocolate

containing 17 vitamins & minerals, in certa'in circumstances,

buy N1,000 worth of snacks from Mr Biggs and win prizes

PACKAGE COLOUR

The use of colour is one example of the ability of a package to cqnvey

psychdogical rneai~ir~y. blbhile packages for exatnples are usually utilized

to suggest purity and .cleanliness. Blue - distinctionlcoolness; Green-

quietlnature; yellow -sunshinelwarmth: orange-warmthlmovement; . . . red-

excitementlheat; purple and gold-royalty and richness; brown-utility, red &

yellomr in contrast indicate a hot new product, which demands~c=onsumers

attention.

- PACKAGE SHAPE

The physical form of package in addirtion to providing protection and'also

convey psychological message which is deemed appropriate given the

target markets audience and the overall copy platform which is used in the

advertising. For example, a successful promotion involved the packaging

of a I quid creanirig compound In a container that was designed to be a

rniniaiure version of a 5 gallon industrial drum; the packaging and lV

advertising was strong enough to be used by a janitor engaged in

comrrercial cleaning. The package design. needless to say re-in forced

this message.

. '

PACKAGE SIZE

By making different amounts of product available to different types of . '

buyers, package size variatioti can illcrease the size of the market in

many situations. Large size "ecutwmy" packages can attract heavy users

while snail size "trialsn packs can provide an option for light users or can

include trial use.

2.5 PRODUCT PACKAGE AND PRODUCT BRANDING, , .

The purpose of packaging has changed greatly in the past two (2)decades '

in Nigeria. Its original function was to protect the package content .and it

discharged this function in a utilitarian way. With the advent of self-service

shopping, packaging becomes an important selling vehicle in its. own right.

In addit on to its more basic purpose, it is used to create impact for the

brand cln the shelf and to make the product appear attractive to the

consumer. The package was also an inexpensive and appropriate device , .-

for carrying promotional messages.

Packaging is one of the lowest cost' and highest leverage areas of

. marketing activity. Changes in design are relatively inexpensive but can

. . 'bring cuite large business gains especially on small brands which do not

normal'y catch the attention of either the consumer or' the trader.

Functicmal improvement in packaging costs more but can provide large

pay-off and boost whole product categories. The aerosol spray can, for

example, build the hairspray market and has been the major influence

behind the dramatic growth of the deodorant market in the past few years.

Packacing, unlike advertising can close a sale since it operates at, the

point of purchase. In the Gase of lesser known brands, it may even trigger

off the whole cycle of inte'rest, attention, desire and action by itself. . .

Howwnll a product sells in its markets especially consumer goods will

depend on the packaging and brand name used and how these are

integrated into the other associated marketing activities. A brand is a

- name, term, symbol, design or combination of these, which identifies the

goods crr services of one seller or group of sellers and differentiates them

from those of other seller. Packaging identifies the product brands and by

its distirictive nature attracts the attention of potential buyers. It offers

shoppers pre-weighted, pre-measured, pre-assembled or pre-sorted

content at clearly indicated prices.

However, for a product brand to be successful it must possess the

following attributes:

1. The brand excels at delivering the benefits consumer.truly desires.

2. The . brand stays relevant to customer's taste, current market a .

conditions and trend. '

3. The pricing strategy is based on consumer perceptions of value.

4. The brand is properly positioned.

5. The brand is consistent

6. The brand portfolio and hierarchy makes sense.

7. The brand makes use of aid co-ordinates a full repertoire of

marketing'activities to buird equity

8. The Brand Manager understands what the brand means to

9. The brand is given proper sustained support:

10. -he company monitors sources of brand equity

2.6 FEATURES OF AN EFFECTIVE PACKAGE

.. In trying to satisfy the packaging design consideration and promotional

advantage of package management must discern those attribute that

make an effective package.

An effective package should be. attention getting. The new

product package should stand out from competition particularly

.at point of purchase.

The package should be informative. It must identify the amount

of the product in the package, the content's brand name and

other relevant information for the consumer. New labeling law - - .

now requires identification of the content, composition,

direction for use, associated. risk manufacturing date and .

expiry date.

The package must be perceptually pleasing or appealing,.

colour, shape and texture, typography materials and

illustrations should connote something pleasing t o the

co.nsumer senses. With the growing interest of mass

merchandising in improving point - of -purchase information,

the package will become a more significant means of

providing this information.

The product package should protect the content and the

convenient for consumers to use.

In rating the above criteria, management must a-lso determine the

importance of each in meeting the firm's objectives. Continual .'

evaluation is needed during the package design phase to determine

how well the package is meeting these objectives so that

modifications may be incorporated without excessive loss of time and

money. Successful packaging, therefore can be a major source for:

Reducing unit cost

a Promoting distribution /retailer acceptance

Increasing turnover and sales at a profit

Extending shelf life and reducing waste

.a Help customers make better'and more frequent use of

product

lntrodicing new products or products adapted to new

forms and uses . .

Promoting a company, its product and image . .

Meeting government compliance programme and

mariufacturers responsibility for safety.

n Planned growth of product lines and profitability.

2.7 - EVALUATION OF THE PACKAGE

It is not .a simple task to evaluate a package proposal. Most marketing

executives do not have the experience upon which to base their

judgments. Test rnarketinq is always feasible but quite expensive.

Twedt (1974) has suggested four criteria, which can be of considerable

help in evaluating package proposals. He used the acronym VlEW so that

the approach might be remembered and he further suggests .that

adequale methods presently exist f o i measuring package performance in

terms of VlEW criteria. '

' Visibility is the first criteria. To 'determine how visible a package is; tests

can be made to see how quickly respondents can find a package in its

natural environment: generally a mass displays such as is found in a

, supermarket.

Information is the second criterion or the ability of a package to '

communicate the key product attributes to a corwmer. Tests can be

made to see how much information is gained by a respondent a limited . .

time frorn the proposed package design.

Emotionally appealing is the third criterion. Tests can be made to see if

package communicates a "product personality". For example, does the

I 0

package connote old-fashioned values or modernity economy or luxury

and so forth?

Workability is ttie critsriori which considers how well the . package ,

performs its task of protecting, its close and re-open and how well does it -

preservs the freshness of its contents after it has been opened for the first

time.

Twedt (1974) concludes by n ~ t i n g that few packages will score high on all

the criteria. But by using these or similar guidelines the marketing decision

maker will be able to select those designs best suited to the needs of the

target market ,audience and which blend :in best with the overall

promotimal strategy.

2.8 PACKAGE DESIGN CONSIDERATIONS

Traditiorlally, the function of packaging was to protect goods. In some

industries, this is still considered the primary function. However, in many

industries the package has become a promotional tool and image builder

for the new product thereby enhancing its success in the market. . . This is

especially true in cases where the consumer must choose from several

alternatives on a shelf where the package then becomes a point o f sale

display. One of the first marketing decisions to be made is to determine

how important the package is in developing a favourable appeal to the

consumers:

The packaging decision must, meet to a great extent each of four the

factors in the design phase:

(a) Marketing considerations

(b) Product protection

(c) Economic factors

(d) . Environmental factors

(a) Marketing considerations:

Attribute or Management:

- Recognition

- Size

- Design

- Image

Attributes for Retailers:

- Shelf stacking, characteristics

- Ease of price marking . .

- Ease of case identification

- Quality of packages per case

- Ease of package remover

- Pilferage protection

Attributes for Consumers:

- Conscirner convenience

- Ease of storage

. - Handling ease

- nirection of IJSF!

- Re-usable

- Disposability

- Information

.- Instructions for, IJSF!

- Expiration date

-- Guarantees

.- Nutritional components

-- Alternative product uses

Product Protection:

-- Prevents contamination

- Prevents physical damage

-- shelf life

- Safety.

- Effect of climate

- Effect of light

(c) Economic factors:

- Cost of materials

- Cost of fabrication

- Added or reduced manpower

. Inventory shipping and storage cost

- Refunds and allowances for damaged goods

- - Availability of raw materials

- Equipment needs

(d) E,nvironmental factors:

-- Bio-degradable

-- Ability to recycle

-- Impact on pollution

-- Social pressures

-- Legislative pressures

-- Competition

-- Impact on natural resources

2.9 PROMOTIONAL ADVANTAGES OF PACKAGING

Packaging offers the manufacturer an important promotional medium

particularly when marly of the products are similar and difficult l o ,

differeritiate. Packaging rnay be tile dominant force in the consumer's

chdice when there is little product information available and the size and

price are perceived as similar. . .

Manufacturer to obtain shelf facings in retail stores reflects the importance

of promotional impact of packaging in the bottle. Increasing the number of

shelf facings increases exposure. Thus the package design that attracts

the consumer's attention provides an important medium at the point of

2 . I0 PRODUCT PACKAGE TEST

Developing an effective package requires several decis'ions . The first is to

establish the packaging concept: defining what the package should

basically be or do for the particular product brand. Decisions must be --

made or1 additional element - size, material, colour, text, and brand mark

or logo

After the packaging is designed, it must be tested. A good product

package satisfy the following tests:

. ~

ENGINEERING TESTS

Engineering tests are conducted to ensure tr tat the package stands

LIP under normal conditions.

VISUAL TESIS

Visual test is conducted to ensure that the script is legible and the

colours harmonious. . .

DEALERTESTS

This is to ensure that dealers find the package attractive 'and easy

to handle.

CONSUMER TESTS

Consumers test is carried out to ensure favourable consumer

response.

ENVIRONMENTAL TESTS

This test is done to ensure that packaging materials are

environmentally friendly and are recyclable. This is in response fo

the growing problem of urban solid waste management.

SAFETYTESTS

Safety test is necessary to ensure the health of users is not

compromise by ensuring that the. Government minimum

(pq~irement on packaging is met. Such as food grade ma\efiels, (polyethylene P.E.T), for use in edibles as against cancer causing

polypropylene P.P and high-density polyethylene HDPE.

REFERENCES

Cannon., T. (1997)

Crouch, S. (1 985):

Chisnall, P.M (1 985)'

Douglas Foster (1 984):'

Davidson J.H (1 972):

Basic market in^ (Principles) 4th edition Casse ls Pubkshers Ltd, London PP277

Marketing - Research for Managers. Wil.liam Heinemann Ltd. London pp3l7 - 320.

Marketing: A Behavioural Analysis (2"d edition-Mc Graw Hill Books of (U.K) Ltd. Fp 41 - 42. .

Mastering Marketing Macmillan Master Series. PP 214.

Offensive Marketing Cassel and . Company Ltd. London. PP 203 - 204.

Hisricti' R.D and Peters M.P. (1978): Marketing a New Product: Its Planning,' 'Development and Cont~ol. ,

The Benjamin I Cummings Publishing C.ornpany. PP241 - 246. : .

Hearne J. J (1 979): Marketing for Managers. Edward Arnold (Australia) Pty Ltd. PPl65.

Kinsley J.(1988): Marketing Iri Developing Countries. Mac,millan Education Ltd. Nigeria . .PP 125.'

Kotler P(2003): Marketing Management: Analysis, Planning, Implementation and Control (eleventh edition). North Western University. Pearson Education Inc.www.preihall.comlkotler PP436 1437.

Kinnear (1 979): Managing The Marketing Communication Process (4th edition) Richard D. Irwin Inc. PP 462 - 467.

Onah J .0 and Thomas M. J.: Marketing Management. Pacific Publishers, Nigeria. PP 145 - 148.

CHAPTER THREE

3 . 0 METHODOLOGY

This chapter deals with the method through which the researcher

collected his ' data. The method of' collecting data employed by a

researcher is determined by a number of factors and the two paramount

. . ones among these factors are:-

i) Nature of the subject matter under study

ii) . The type of information the researcher requires.

3 . 2 RESTATEMENT OF RESEARCH QUESTIONS . -

, .

i > What is the importance of packaging to Nigerian Consumers?

i i ) ' M a t is the effect of packaging on consumers decision making

-- iii) Yow does packaging affect product brand acceptance?

. - (iv) Can a Consumer pay more for convenience, appearance,

dependability and prestige as offered by market oriented

activities?

(v) Does a good package make a brand appear superior to others?

(vi) Can re-usable value of a package irlfluence Consumers,- to buy a

product brand? I

- For the purpose of this study, emphasis will be laid on descriptive

research since it is colicerned with discovering the general nature

of the problem at hand, and variables that relate to it.

3.4 E I E RESEARCH SETTING

Th.2 research was carried out at ten different locations in Lagos

where most of the targsted respondents were represented.

3.5 SAMPLE SIZE

A combination of sampling techniques was employed in this

research to get a fair' representation of the entity called Lagos. A

sample size of one hundred (100) respondents was used.

3 .6 - SAMPLING TECHNIQUE

The total number of subjects in a study is referred to as populati.on or

universe. Ths whole population cannot be made use of, rather a portion of

the universe, which has all the characteristics of the population, that

portion, is known as sample. The success of research rests largely on the

quality of the sampling and great care is taken at every stage in the

development of a suitable sample -

Sample selection can be categoiized into two:- probability sampling and

non-probability sampling

probability sampling is one in which all the elements in a population

have equal and known chances of being selected while non-probability

does not give chances of being equally selected It is rather based on

human judgment.

This study employed the probability sampling method - cluster sampling.

3.7 CLUSTER SAMPLING

The subjects were both 'males and females of different ages, ranks and

academic qualifications ranging from first school leaving certificates to ,

Univer~ity degree holders five (5) areas were selected through cluster

sampling - this are Mushin territory, Agege territory, Oshodi territory.,

lkeja Territory and llupeju territory . Random sampling was employed to

select 20 respondents each from the 5 territories.

The respondents were picked by folding several small pieces of payers

containing Yes or No. For each location,' a total of 40 pieces were .

prepared, 20 containing Yes and remaining containing No. The picking is

done with replacement to select 100 respondents.

If you pick ~ e b , then you will be part 07 the respondents and will be given

a questionnaire, however, if you pick No, then you will not take part and

will not be given a questionnaire. By this method, all the targeted

consumers have the same probability of either picking a Yes or No piece

of paper. Hence, the respondents were randomly selected.

It is hoped that the subject will provide a cross sectional base for

ascertaining the effect of product package on Nigerian consumers.

3.7. INSTRUMENT AND PROCEDURE USED

A thirteen items of close-ended questionnaire as well as oral interview

were used to gather the data from the consumers.

The questionnaire contained items divided into two sections. That is .

section A and B. Section A contained questions basedron personal data of

respondent, like Age, Sex, Marital Status, educational Qualifications,

while Section El contained questions based on' those issues that relate to

the subject of the study.

In order to test the validity of the questionnaire, The researcher pre-tested

a copy before administeriry the rest to the chosen respondents.

In the questionnaire (Please see append~x) some measure on a 5-po~nt:

strongly agree, agree, indifferent, disagree, and strongly disagree was

used. In all the questions, respondents were expected to rank their

agreement, For example, respondents were expected to pick either of

strongly agree, agree, indifferent, d~sagree or strongly disagrea.

The response to each item was scored (coded) with a pre-assigned

values of 5;4, 3, 2 and 1 respectively. For example.

a. Strongly agree -

b. Agree -

c. Indifferent -

d. Disagree -

e. Strongly d~sagree -

The research was both descriptive and analytica

5

4

3

2

'I

11. Data collecter 1 and

analysed while hypothesis postulated was tested using Pearson's

Correlation Coefficient.

3.8 RE-STATEMENT OF RESEARCH HYPOTHESIS

Packaging has substantial marketing consequences. . .

3.9 UMITATIONS OF THE METHODOLOGY.

The conduct of research in Nigeria and of cdurse all developing countries

is confronted with a lot of problems. However, in this particular research,

the following problems were encountered.

(I:! Delays in the filling of questionnaire by the respondents.

(ii) Finance: Effective research work involves good finance,

. hence the little financial resources were a limiting factor

(iii) Transportation - Aside from delays by respondents and

financial constraints, the chaotic traffic situation in Lagos

posed a great problem in getting to the various respondents

for feedback

CHAPTER FOUR

4 .O PRESENTATION OF DATA AND ANALYSIS

All data analysed here are responses to the questions- asked inside . . the

questionnaire (See .appendix). Data are analysed using correlation

coefficient.

- 4 -2 _CLASSIFICATION OF RESPONDENTS '

The sample size is 100 derived from *the five clustered areastterritory

through random sampling

The tolal random sampling in percentage by

a) Sex

b) Age . .

c) Marital status

d) Occupation

. . e) Educational qualification are as follows: -

. '

I 1 Nn t3F , I I .--. -. I I

I % To TOTAL SAMPLE 1

.The study is a aood representative of sex tkough it shows more,

QUESTION 2 - Aae - -

A G E F F R E Q r I I

No. Of

- I -

50 R t

I I

ABOVE I 10 I I 0 I I

TOTAL 1 100 1 100 I I

INTERPRETATION . ' This shows that respondents of different ages were involved and

informationgiven can be reliable

TABLE ' 3: QUESTION 3 - Marital status --

(ML STATUS Cf RESPONSE "/o of TOTAL

L A - I INTERPRETATION

This is another evidence to show that information given is good

representation of views of consumers both married and unmarried.

TABLE 4: QUESTION 4 - Occupation

1 1 - % To TOTAL

SAMPLE

38 O h

40 % -

10 %

12 %

I00 %

0 .

No.Of

RESPONSE

38

40

10

I 2

100

OCCU PATION

SELFEEMPLOYED

WORKERS

UNEWPLOYED

STUDENTS

TOTP L

FREQ

38

40

10

12

100

Bnsinecc nwners mc! emp!qees attract ahwt 78% d the tda!

responcieiis whiie the remainin9 22" ib . i~ for stucieiiis and unernpioyed.

Based on this, one can assume that employees and self-employed

% ?TO TOTAL:

S K P i E I CI . . I . .L . - I - . A.. I V.UALIPILH I IUN I

This .'shows that 'the respondents were of different educational

quaiifications. The absence of stark iiiiterates means thai the views of the

4 -3 !,NALYSIS OF SUBJECT MATTER;

VARIABLE RESP0NS.E DATA

KEY -- . ' x. - Score awarded to variable agreement

F - Frequency of respondent to each agreement

1 : . - , Summation or Addition

S. A - Strongly agree

A - Agree .

lrld - Indifference

C) - Disagree

S. D - Strongly disagree -- \I

k - Mean score

5 - Scored awarded70 S. A

4 - Score awarded to A

3' - Score awarded to Ind.

'> 1-

- Score awarded to D 4,-

'I - Score awarded to S. D

'% - Percentage ,

-- I< - - zfx - formuh for the mean of a grouped data

r f

TABLE 6 : QUESTION - Packaging Of Products Is Important --

A

IND

To Nigerian Consumers

S . A & A = 87 x 100 = 87 O h 100

IND = 13 x I00 = 13%

INTERPRETATION The m e m score is 4.2 which is more than the score awarded to agree.

This means that about 87 96 of the respondents agreed that packaging of

products is important to ~ iger ian consumers. 13 % were indifferent and ,

none disagreed; .

TABLE 7 Packaging Has An Effect On Consumers Decision

Making.

X = Cfx = 417 = 4.2

VARIABLES

S. A

A

IND +

D

S. D

X (Summation)

100 1 IND 9 x 100 = 9 % . .

100 - 1 D - 2 - x - 100 = 2 %

100. 1 INTERPRETATION

-

The mean score is 4.2 which is more than the score awarded to agree.

x

5

4

3

2

1

15

This means that about 89 % of the respondent agreed that'packaging

affects product acceptance. 9% were indifferent while only 2% disagreed.

f

30

59

9

2

0

100.

xz

25

16

9

4

1

55

fx

150

236

27

4

0

417

fxz

750

944

81

8

0

1783

-, - TABLE 8: - Psckaqinq Affects Product Acceptance.

Mean:= x = z x = @ = 4.1 . 'Cf 100

D = 5 x m=5% 00 1

INTERPRETATION

The mean score is 4.1 which is more than the score awarded to agree.

This means that about 75 % of the respondents agreed that packaging

affects product acceptance. 20 % of the respondent were indifferent while

only 5 9'0 disagreed.

TABLE 9: QUESTION 9 Consumers Can Pav For -- Convenience, Appearance, Dependability And Prestiqe. -

, INTERPRETATION

The mean score is 4.1, which is more than the score awarded to agree. 91

% .of the respondents agreed meaning that Nigerian consumers are

willing ,to pay more for convenience, appearance, dependability and

prestige oK a better package while 7 % where indifferent and 2 % disagree.

TABLE ?O: Q!!EST!Opl! 10 - P. gnnd package makes rr

proderct brand appear superior to others.

The mean score is 4.4, which is more than !he score awarded .to Agree; . .

meaning tbat Nigerian consumers can be influenced to buy a product

brand because of the gnod package, which it comes in. . .

D . ' - 1 ; . '

4 I ' 4

3 . D I

I 0

x ' ( T o T A ~ ~ ~ O 440 I 1,966 I -

f x

210

228

0

f

42

57

VARIABLES

- S.A

- A

-

x

5

4

xZ

25

. I 6

9 IND

fxZ

1,050

91 2

0 3 1 0

TABLE .22: QUES?!ON -I? ' - !?eusah!e Value Qf A Packaqe

. - The mean score is 4 which is the score awarded to agree. Which means

that Nigerian consumers can be influenced to buy a product brand -

because of the reusable value of a package. 87 % of respondents agreed,

7% were indifferent, 4% disagreed while 2% strongly disagreed.

TABLE 32: QUESTIOI? 22- - New Affordable Packaqing In . ,

Srna!l Packs And Bags Can Influence Consumers To Buy A Procluct

VARIABLES I x

100 1 IND = 2 xIOJ = 2 %

loo , 1 , D . 3 2 x . D = 2 %

100 1 . .

INTERPRETATIB?!

The mean score is 4.1, a little over the score awarded to agree. This

indicates that the majority of th,e respondents agreed that packaging has . ,

substanfial marketing consequences. 96% of the respondents agreed, 2%

were indifferent while 2% disagree.

TABLE 13: QUESTION. 13 - Packaclring Has Substantial

Marketing Consequences.

- IND

The mesn score is 4.7, a little Iess than the score awarded to strongly . ~ - -

agree. This indicates that the majority'of the, respondents agreed that

packaging . has substantial marketing . consequences. 95% of the

respondents agreed, 3% are indifferent while 2% disagreed.

45

4.4 HYPOTHESIS TESTING

Pearson's correlation coeificjxtt is uszd to tcst the hypothesis fci mlated

since the subject matter deals ?&tl the ::tit GIG::! s; ;i ~c r dlatimcXi~ 'Aween

product package a i ~ d L o K i C i t W ; ~ i ~ ~ . i u i ' . 1 is: ILLLXCA hy+2zsis is

4.5. TESTING THE HYPOTt-IESIS

Note: the data for hypothesis are from the responses and analysis

earlier done in question 13.

SIGNIFICANCE OF r

To test the null hypothesis that the population correlation co-

efficient is infact 0.00 , 1 consulted a table of critical values of r. to

find the critical value, one need to determine the degree of freedom -.

(df) - the df for the sigrlificance test of r. Numberof observations N

less number of parameters in required equation m. Since N is 5 and

M is 2 therefore df is 3. Using student t to test 3 degree of freedom,

the critical value of it at 0.05 level of significance is 2 2.35 the

formula for converting r to t is as follows. 9

Where:

r = the figure i;: rived at aiier computing the dala using Pearson

correlation co-efficient

t - Student test

n = 'Number of observation

m = Number of parameter in requnion equation

Note: for the test to be significant, the obtained t must be greater than the

critical value o f t which in this case is + 2.35

Source:

Fisher R.A. Stafistical method for Research Workers

Oliver and Boyd Lid., Edinburgh

Osuola, E.C. 7993: lntroduction to Research Methodology,

AFP Publislters Ltd., Onitsha Pp 98-1 02

TABLE 14: QUESTION 13 -Pachag&g Has Substanfial Markefinq

:- r = 0.84 positive correlation

H I :

HO:

Level ol significance 5%

n -. -. 5

Note:

t = 2.68

obtained t - -

Critical t - -

INTERPRETATION

Since calculated t lies outside the critical t of 2 2.35, the test is

significant. So 1 accept HI and reject tlo that is 1 accept hypothesis that

packaging has substantial marketing corlseyuences. .Moreso, . . there is a

positive correlation between product packaging and its marketing

consequences. That is, when product packaging is enhanced, consumer

response would be positive.

CHAPTER FIVE

5 .O FINDINGS, CONCLUSION AND RECOMMENDATION

5 .1 FINDINGS

The objective of this research has been in the main, to determine the

effect of product package on Nigerian consumers. The study was

postulated to stimulate a review of marketing consequences arising from

good product package.

In pursuance of this, eight research questions were asked using

questionnaire and one hypothesis was postulated which was tested

against data collected from respondents, the results are iummarized

below:

I. Packaging of products is important to Nigerian consumers

2. Packaging has an effect on consumers decision making process

3. Packaging affects product brand acceptance

4. Consumers can pay more for convenience, appearance,

dependability and prestige of a better package

5. A good package makes a product brand appear superior to others

6. Re-usable value of a package influences consumers to buy a

product

7. New affordable packaging in small packs influences consumers to

buy a particular product brand.

8. Packaging has substantial marketing coilsequences

An understanding of product package will help Loti1 manufacturers and

marketers in ensuririg that their products are well protected throughout the

distribution channel tu the consumers.

In reality, there is r ~ o substitute for good arid well designed packaging as it - does not only ensure product brand acceptance but goes further to create

a sound image for the company and brand name.

5 .3 - RECOMhIErlDATION TO MANUFACTURERS ':

Developing an effective package for a new product requires several

decisions., The first task is to establish the "Packaging Concept". The

packaging concept defines what the package should basically be or do for

the particular product. Should the package main function be to protect the

product, introduce a novel dispensirlg method, suggest certain qualities

about the product brand, convey vital information or something else?

Once the packaging concept has been determined, decisions must be

made on additional packaging elements: size, shape, materials, colour,

text and brand mark. Decisions must be made on how much or little text,

cellophane or transparent films, a plastic or laminate trays and SO on

where a product safety issue is involved decision must be m a d e on

tarnper proof devices. The various packaging elements niu.;t be

harmonized; the packaging elemer is riiust also L;. i larriwi :.. 1 4 1

decisicns on pricing, advertisiris an1 ( ~ : i IC; i r w ~ k l i : IU ,L, is.

-,-,/, ', -*,. --. -. . , . .y r 7 - r . .- :i--'. 5.4 REC0?.!!'+3Et~rllAi L + . < d s . L , . + . 1 4 b ~ t i ~

The scope of this study was limited to an evaluation of effect of product

packaged on tdiyerian corisumers. It did not involve such area as

brcnding; brand mark, trademark and brand policy decisions. It is my

recommendation that in future, a n y study on product package s;~uulil

cover the above mention areas, as it will help in no small measure in

maximizing (marketing)effects of product packaging.

Crouch, S. (1985) Marketir~q Rzsearch for h'hna~ers. William Meinemann Ltd. London

Davidson. J.H. (1972) Oflensive Markeiinq. Cassel and Company Ltd. London

Douglas Foster (1 984) Mastering Marketing. Macmillan Master Series.

Eheduru, G.C (1990) rnoduction To Research Methods In Science, Social Science, Education And Management. Pegasus Printers, Benin City.

Fisher, R.A. Statistical Methods for Research Workers. Oliver & Boyd Ctd., Edinburgh

Goke, 0 91999) Research Method in Public Administration (BehaviouraJ and Social Science ) Gokus Publishers, Lagos.

Hearne, J. J. (1 979) Marketing for Manaqers. Edward Arnold (Australia) Pfy Ltd

Hisrich R.D and Peters M.P (1978) Marketing a New Product: Its .. . .

Planning ,-Development and Control. The Benjan~inlCumniir~gs Fublisiriry Cor~lparly.

Kinsey J. (1 988) Marketing iu Dcvi;-!upi~ ~g C U U ~ ~ i r ics. I'v;acr~~illar~ Educaiioml Lld. Njy eria

Kotlcr, P (2003) Marketing Manayc~ncrt. Ana\ysis, Planning, Impleme~~tation and Control (I lm edition) Norilmestern University. Pearson Education Inc.

Nnanidi A (2000) Research Methods in the Behav i~rml Sciences. Longman Nigeria Plc.

Onah J.0 ti Thomas M.J. (1993): Maik;irl[;l hilanage~~~crit. Paciiic Publishers, Nigeria.

Osuola E. C. (1 993) Introduction to Research Methodology AFP Publishers Ltd, Onitsha

Popoola T.0 (1999) Business Methods: An and Ragogical Approach University of Lagos Press.

Pride W.M. 8 Ferrel O.C. (1995) Marketing: Concepts and Strateqies (gth Edition) Houghton PJliff\in Company, Boston.

Sufforl; R & Stapleton, J (1995) Marketing Clay. The Chance Press Ltd.,

Dear Respondent,

SUBJECT: THE EFFECT OF PRODUCT PACKAGE ON NIGERIAN CONSUMERS

This questionnaire being presented for your completion is purely for

academic research purpose in partial fulfillment for an award of

MBA Degree in Marketing of University of Nigeria - Centre for

Management Development.

It is design to gather information relating to product package and

Its effects on Nigerian consumers. It is also my request, therefore

that you sincerely answer these questions as the success of this

work depends on your willingness to do so.

Yours sincerely,

OSAGHAE E .R , CMD - UNN I Pa I EMBAI 9910421

BRIEF STATEMENT

Please read the questions below and tick D only one agreement that most clasdy represents your opinion. Each ariswer indicates your attitude.

For exaruple:

em) Strongly disagree n SECTION A

QUESTIONS

1. Sex

Male

Female

2. Age

a) Between 18 - 29

b) 30 -39

C) 40 -49

d) 50 and above

3. Marital status

a. Married

b. Single

4. Occupation

a Business Owner

b. Worker

c. Unemployed

d. Student

5. What is your liiyflest educational qualification

a) First School Leaving Certificate -El b) G C E I S S C E E l C) O N D I I I N D

d) B A I B S c

e. M A I M Sc and above n SECTION B

5. , Packaging of products is important to Nigerian Consumers

a) StrongVj agree

b) Agree El

c) indifferent I

d) Disagree

e) Strongly disay ree

7. Packaging has an effect on consumer decision

making process

Packaging affects product acceptance

a) Strongly agree

b) Agree

c) Indifferent

d) Disagree

c) Strongly disagree

Consumers can pay more for convenience, appearance,

dependability and prestige of a better package

a) Strongly agree I b) Agree r-7 c) Indifferent r - I

d) Disagree . E l Stror~y\y disagree 'd

10. A good package makes a product cppear superior to others

a) Strongly ayree

1'1. Reusable vaiue of a package it~fluerlces consumers to buy a

Product

a) Strongly ayree

b) Agree

c) Indifferent

d) Disagree

e) Strongly disagree

12. New affordable packaging in small packs and bags can

influence consumers to buy a product

a) Strongly ayree

b) Agree

c) Indifferent

d) Disagree

e) Stronylydisayree

13. Packaging fias substantial marketing consequences

a) Stronylyayree

b) Agree

c ) 111zlIs"cr cr I'

d) Uisag~cr!

e ) St! m g ! y disagree

Tt~nillt you for your co-opcraliorl.