THE EFFECT OF PACKAGING ON THE CONSUMER BUYING DECISION” ( A CASE STUDY OF BENA COSMETICS ABA)

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sales and use. Packaging contains, protects, preserved, transports, informs and sells.

In the past the primary purpose of packaging was to defend the product, but currently according the varying marketing environments packaging is being used as an instrument for increase sales, attracting customers and product communication to its customers. Now are days the role of packaging has changed due to increasing changes in the consumer desire. More companies are interested as a tool to increase their sales.

Product packaging plays an important role in the marketing mix, design, shape and colour. The purpose of well-considered  design, creature printing and finishing is and its content and attractiveness and major distinctive features and are in fact essential in some product segments beautiful packaging design is of central important in the cosmetic demand good packaging.

Packaging is also used for the promotional purpose as well as differentiates the product from other brand. Rundh said in 2005 that good packaging catch consumer perception said that package works as a tool for differentiation of the brands. In 2007 wells fairly and Armstrong said that packaging is used for marketing communication purpose and they are the importance elements which influence the buying  behaviour of the individual.

The other reasons for packaging of goods includes;

1. To identify a product among other competitive brand.
2. To communicate the product brands price and denomination, ingredients and method of usage.
3. The only significant way a company can use to differentiate its products the product brands price and denomination, ingredients and method of usage.
4. The only significant way a company can use to differentiate its products.
5. Apart from serving to prevent a product on differentiate a product, it is also an important form of promotion.

Hence, the package should help persuade and convince consumers try the product. Packaging that can be felt, smelled and heard as well as looked at wins the customer’s favour, so much as that they are willing to pay a higher price for this multisensory appeal.

HISTORICAL BACKGROUND OF BENA COSMETIC INDUSTRY LTD.

Getting products into the market, in the desired state and act affordable price is a right race for manufacturers as well, yet packaging appears to be indispensable.

Bena cosmetic  industry Ltd is located at 16/17 Chief Ogbuji Street Aba Abia State of Nigeria.

Bena Cosmetic industry Ltd was established in October 1990 by Mr. Emmanuel Ezeakunne and Mrs Bernadette Ezeakunne. The name Bena was coined from the name of the CEO Bernadette. The land area measuring 1800m2 is made up of the factory, warehouse, administrative area and their residence.

With the establishment of National Agency for Food and Drug Administration and control (NAFDAC) in 1993. Tummy-Tummy was registered under the above Agency in 2009. From inception, Bena cosmetic industry was conceived to deals with manufacturing and making of Bena cosmetic products in Aba Abia State. Example of Bena Cosmetic products are powder, soap, eye shadow, lipstick, mascara, shampoo, hair conditioner, nail polish, hair treat etc.

Today, the industry has developed not only in country but has now extended it market to other countries. The industry has over 200 workers whose salaries are being paid as at when due. From the above history one can vividly accept that Bena cosmetic industry has recorded meaningful contribution in developing, creating employment and boasting the economy of the nation.

1.2   STATEMENT OF THE PROBLEM

Packaging serves a practical purpose helping to stores, handles, transport and display the product. Packaging also provide a means to market products, it is considered to be an important indicator of quality. The quality of the product therefore has to be communicated by good packaging and not just by promises of quality made in the text on the packaging of the product.

Hence, the packaging problems inherent in product package designs especially in Bena cosmetic product lines. The study is out to evaluate the influence of packaging on consumers purchase behaviour. However, many problems implies of effective marketing of a company’s product. One of these problems is in appropriate packaging or completely lack of packaging a product.

Therefore, many products fail due to poor packaging while others especially consumer products produced by Bena cosmetic flourish and perform very well as a result of adequate packaging. Consequently upon the non-challant of most of these producers whose product failed they have therefore experience the following problems.

1. Their products are not accepted by consumer more frequently due to poor packaging, thereby lowering their ability to stimulate demand.
2. Ineffective packaging of product leads to damages, pilferage and customers dissatisfaction.

iii.    Poor packaging by industries leads to low market share.

1. Some packaging are deceptive and misleading, due to dishonesty of the labels.
2. Poor packaging of products leads to devaluation of the product.

1.3   PURPOSE OF THE STUDY

The main aim of this study is to determine the influence of packaging on consumer’s purchase behaviour with special reference to Bena Cosmetic industry Ltd. In an attempt to actualize the broad aim, the following objectives evolved.

1. To determine whether the success of Bena cosmetic to great extent depends on its packaging programme over consumer goods.
2. To know whether poor packaging is the major cause of low demand of a product.

iii.    To know whether a customer can still be satisfied over a well manufactured product with a poor packaging.

1. To know whether increase in profit potential of Bena cosmetics depends on patronage of actual and potential buyers who were influenced by packaging.
2. To determine whether packaging actually stimulate consumer purchase.

1.4   SIGNIFICANCE OF THE STUDY

This study is not a mere academic exercise it will be of great benefit to the following; Firstly, the management of Bena cosmetic because it will uncover some of the requirements for effective and efficient packaging which will enable the company to attract consumers to purchase its products at a profit.

Secondly, the study will be of great benefit to industries and the Nigeria economy. This stems from the fact that good packaging helps companies to gain advantage over competition.

Thirdly, the study will be of immense benefit to customers of Bena cosmetic products as adequate measures that will be recommended will go a long way to boost the satisfaction and value delivery ability of Bena Cosmetic above all the study will not be of benefit to the researcher but also the readers as adequate knowledge and understanding will be gained from the information contained in the study.

1.5   RESEARCH QUESTIONS

The impulse buying behaviour of consumer has led many marketers to come up with new and innovative techniques to attract their product. This research focuses on one of the major issues out of manyin encouraging and stimulating the impulse purchase attractive packaging of the product.

Therefore, the study sought answer to the following research questions.

1. What factors in packaging do you think you can attract your customers most with?
2. How does the package of a product helps in affecting your decision to buy?

iii.    What is the relationship between attractive packaging and in store impulse purchase behaviour?

1. What are the important of packaging?
2. Do you understand what packaging is?

1.6   STATEMENT OF HYPOTHESIS

In determining the use of packaging on the customer buying decision in Abia State, some null hypothesis otherwise known as tentative statement have to be tested. It is only when such statement are tested by way of asking relevant question that solution could be preferred to likely problem in study.

The following tentative statement will therefore be tested to find out their validity.

Ho:   A good packaging design does encourage competition

Hi: A good packaging design does not encourage competition

Ho: A good packaging has a positive effect on buying habit and decision of consumers.

Hi:    A good packaging does not have a positive effect on buying habit and decision of consumers.

Ho:   A good packaging policy helps in protecting company’s image

Hi:    A good packaging policy does not help in protecting company’s image

1.7   SCOPE OF STUDY

The scope of this study is directed on the effects of packaging on consumer buying decision. A case study of Bena Cosmetic industry Ltd Aba Abia State. These scope also covers all parts of Aba North Area of Abia State.

1.7   DEFINITION OF TERMS.

The following terminologies are hereby operationally defined as they are used in this study for a better reading and generally comprehension of this research report.

Packaging: This is the process of putting a generic product into a wrapper or container with a view of making it more attractive better protected and easily portable.

Product: Product is anything that can be offered to a market for attention acquisition or consumption.

Industry: Industry according to Oxford Dictionary (1996:411) is the whole firms dealing in the same kind of product.

Consumer: Consumer are the end users of a given product.

Promotion: All persuasive communication efforts claimed at generating sales or building a favourable attitude for an organisation product or services   and their organization itself.

Communication tools: This consist all promotional mix that influences favoureable response and stimulate profitable sales in market place.

Target Market: Is the most viable and attractive segment of the market who the marketer wants to offer satisfaction through his or her product.

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