CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
We live in a world of packaging our foods, our supplies and to a large extent our clothing. We use packaging in wide variety of forms, shapes and materials.
Packaging means all the activities in the product planning that involves designing and producing the container or wrapper for a product. The wrapper container is called the package. The exterior cover for a product packaging is often referred to as the silent salesman because it has the ability to persuade people to impulse buying. It calls for immediate attention to the product, stimulate demand and increase sales. It is often said that, packaging cost often exceed all other marketing tools that are used to move goods from the manufacturing to the consumers and also used to determine the price of goods and services.
It can be stressed also that, considering packaging as a marketing tool, emphasis is also given to vast and environment concerns that is involved in packaging. These acts were emphasized through cost analysis research conducted by Lemar and Dobler (1992) it has found out that while advertising only accounts for about two of the total cost, packaging materials were responsible for about twenty two percent in most manufacturing organizations.
In terms of environmental concerns, packaging makes up a third of the rubbish by weight, which we put in our dustbin.
The research project is aimed at evaluating the cost incurred in packaging and the effects, it has on the profitability of manufacturing organizations.
It further explains in details the benefit of packaging and its disadvantages on the society and the economy.