THE RELEVANCE OF PACKAGING ON THE MARKETING PERFORMANCE OF A MANUFACTURING FIRM (A CASE STUDY OF UNILEVER NIGERIA PLC ABA)
ABSTRACT
This research is aimed at revealing the relevance of packaging on the marketing performance of manufacturing firms. The quasi-experimental research design was adopted in this study. The population covers the management and staff of Unilever Plc, while the judgmental sampling technique was adopted in selecting the population as whom questionnaire were administered. The information from questionnaires was presented and analyzed using the table and percentage method. The statistical tool used in testing the hypothesis is chi-square (X2) test. The research findings reveal that packaging contributes to growth in the market share of the manufacturing firm. It also observed that, there is no correlation between packaging and profit growth of the organization. Base on these findings, the researcher recommends that organizations should adopt packaging as one of its major marketing objectives. Also recommended that government should endeavor to set policies guiding packaging of consumer goods to ensure adequate protection of consumer’s health.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Packaging is the external features of a particular product, it includes building, labeling and literature insert. When a product lends to sell itself without the company’s promotion, then we say the package is serving as silent salesman.
The importance of packaging in any customer oriented business organization cannot be overstressed. It is a powerful selling tool and propels consumers into buying, unlike a salesman who runs around for selling of goods and services.
Packaging will adequately perform its function provided the package of the product is attractive. Most companies now recognize the packaging for protection and promotional functions. It should be noted that packaging presently plays an important role in the purchase or non-purchase of products. Packaging can be defined as the general group of activities in product planning that involved designing and producing the container or wrapper for a product.
A package should be designed to perform many functions amongst which are protection function and promotional function, and others
According to Johnson and Wood (1977) in their discussion on protective functions of packaging said that for a package to have performed a protective function, the package must:
Restrain the product from undesired movement.
Protect of the contents from outside violation and shock.
Provide sufficient exterior surface so that identification and shipping labels can be applied along outside specific instruction such as the side up.
Enclose the materials both to protect them and protect other items from them.
Support the weight of identified container that will be stacked above it as part of the building block concept.
Protect the product against damages through handling and distribution processes and also be used to reduce contamination by dust and dirt.
Packaging performs other vital functions which are as follows;
1) It should be made useful in self service retailing it should perform the function of a sales man as consumer (buyer) just go to the shelves, inspect and decides after seeing the description and the use of the item.
2) Packaging should add to image prestige and beauty of a product. This could lead to impulse buying purchase.
3) It should establish product differences as could be evidenced in the art of design, the sample or shape or the materials used
4) It should attest to the qualities of the product. A good packaging is a moral booster to the image of the company. An appearance they say shows the manner.
5) It should refresh the memory of one of time purchase
Unilever was the former lever brothers of Nigeria but they now decided to be on their own as unilever Nigeria plc. The headquarter is at Lagos state of Nigeria. Due to business expansion, the company has developed more branches in and outside the country.
This company produces many items in the market such as quality creams, soaps, tooth brush, paste, hair creams, perfume and other expensive items and their products have never been beaten by any competitor in the market.
Unilever is one of the existing leading companies on packaging and cosmetics product among other competitors both in the way of establishing/distribution, they make sure that goods reach to all their various departments and countries. The company spends so as to attract customers to make more profits for the organization.
The company started since 1992 first at Lagos and extended the company to other African countries e.g. Ghana, Kenya, Uganda, Ethiopia, Tanzania and Zambia.
1.2 STATEMENT OF THE PROBLEM
Many years back, packaging and its relevant methods are greatly ignored by many manufacturing industries. This was because these industries did not seem to recognize the vital role packaging played towards their survival.
However, having gone through the process of packaging and its functions, as a result of problems to industries that engages in packaging for its products.
One of the problems is that packaging is in the socio-economic forefront today because of its relationship to environmental pollution issue. The greatest challenge confronting packaging is how to dispose off used containers which are major consumer’s contribution to the solid waste disposal problem.
Meanwhile, the researchers believe to use this research study to determine and evaluate the effect of cost, design and shape of a particular product to a growth in sales volume. Also if a growth in market share affects the production method/style of a particular product. Invariably promotional messages, colour, size and labeling influence the market share as well as profit growth of an organization.
Nevertheless, these are problems which this research study has proven to evaluate to confirm its relevance on market performance.
1.3 OBJECTIVES OF THE STUDY
The purpose of this study is to examine the concept of packaging as it affects the marketing performance of an organization.
According to the problems which this research study tries to evaluate, it is an important thing to note that product variables such as size, cost, shape, colour, design, label etc are most useful in determining the profit growth, sales volume and indeed, the market share of any organization.
As such, packaging aims at carrying out the design and planning of a product in order to differentiate it and make it more attractive to consumers. It helps to protect, promote provide convenience and attract attention of the consumers. Unlike other variables, they help in determining the shape of an organization whose major work is protect packaging such as unilever Nig plc. A product package can make difference in a marketing strategy.
A good package sometimes gives a cream more promotional effect than it could possibly affords with advertising. The important features of packaging are compatibility with computerized inventory control. The Universal Product Code has a series of curves, imprinted directly on the type of product electronic scanner to read the type of product and its price and enter information in each cash record.
1.4 RESEARCH QUESTIONS
In view of the problem stated above, one may ask, the following research questions.
Does management consider packaging as an effective tool for marketing performance?
Do you consider product packaging as an effective concept in marketing performance?
Are there significant relationships between packaging and organization marketing performance
Does packaging contribute to growth in market share?
Are there correlations between packaging and profit growth
1.5 RESEARCH HYPOTHESIS
Ho: There is no significant relationship between packaging and sales growth of an organization.
H1: There is significant relationship between packaging and sales growth of an organization
Ho2: Packaging does not contribute to growth in market share.
H1: Packaging contributes to growth in market share
Ho3: There is no correlation between packaging and profit growth.
H1: There is correlation between packaging and profit growth
1.6 SIGNIFICANCE OF THE STUDY
This research would be based on the relationship between packaging and marketing performance of an organization with special emphasis on cosmetics and toiletries.
Other areas that would also be covered in the course of this research are the importance and development of packaging as a marketing tool, packaging policies as stagers, the type of materials used in packaging and their effects on market performance.
Economic, time constraint and other influences participated being problem in the materials used but the research was able to gather information needed to help the researcher develop some areas of importance in this research.
Packaging is very important in the development of any product, it is the first thing a consumer should first consider when looking at any product. A product benefits good name from a nice package. A company who has a very strong package never run to excess production because, customers will always come to look for the product. The importance of packaging can finally be highlighted if one tries to see what poor package can do to this product, it will not only kill the production on the long run, but it may also create dissatisfaction among channel, Intermediaries.
The interest part of this study is that it will up bring young managers (future leaders) to have also regard this section (packaging) as another marketing strategy which will help the product to sake itself in a competitive market.
1.7 SCOPE OF THE STUDY
The extent of coverage of the study is within the frame of the topic. As such, the study will examine the concept of packaging as it affects the marketing performance of Unilever Nig plc Aba Abia State.
The research could be based on the relationship between packaging and the marketing performance. This is because most of the high consumer products are bases on cosmetics and toiletries, the product wishes to understand the level of packaging and size to use in the market so as to attract customers.
1.8 LIMITATIONS OF THE STUDY
During the research work, the researcher encountered difficulties on deriving information, such as biased responses, non response, and error, non disclosure of vital information, unavailability of materials, selection of suitable data analysis tool.
Meanwhile, these constraints militated against effective record of information and the general report on the subject matter in order to determine its usefulness.
1.9 OPERATIONAL DEFINITION OF TERMS
Behavior: This has to do with the attitude of the consumer in the market.
Compatibility: This can be defined as the consistent use of product together.
Innovation: This is the process of introducing something new
Inventory control: The steps taken to control the purchase storage and dispatch of products.
Materials: Raw materials used in producing goods
Marketing mix: this has to do with the elements of marketing, product, price, place and promotion
Management: This is the process of coordinating, planning and managing the people who manages the business.
Merchandise: These are agents that sell goods for companies
Packaging: This is a process of arranging a product in order to make it more attractive.
Price: An amount of money for which a product is bought or sold
Product: This is an item derived by transferring new materials to finish goods.
Promotion: This is the process of raising a product to a higher rank.
Quality: A degree of excellence of a product or a distinctiveness of a product.
Quantity: This a total amount or a number of products produced.
THE RELEVANCE OF PACKAGING ON THE MARKETING PERFORMANCE OF A MANUFACTURING FIRM (A CASE STUDY OF UNILEVER NIGERIA PLC ABA)