Effect Of Product Packaging On Customer Loyalty (A Study On Nestle Plc, Ogun State)

Project and Seminar Material for Marketing

Effect Of Product Packaging On Customer Loyalty (A Study On Nestle Plc, Ogun State)


Abstract


The topic of this research work the effect of product packaging on customer loyalty (a study on nestle plc, ogun state). This study was carried out to investigate the effect of product packaging, on the purpose of this the question experimental research design was adopted to study consumers towards various product packaging. The primary data was collected from the respondents using the questionnaire. After a critical analysis of the data collected, the hypothesis, were tested using analysis with the aid of statistical product and service solution (SPSS) packaging and the following hypothesis were realized there is a relationship between product packaging and the consumer buying preference of a products. Moderating factors to regulate the relationship between packaging and consumer buying preferences of business firm based on these findings, the following were recommended product packaging should be look upon as a cost tool or a production problem. Again product should be lease with user of their product package so as to enable them know when there is need for improvement.


Table of Content


  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of Content
  • List of Tables
  • Abstract

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One


Introduction

1.1 Background of the Study

Historically, management has considered product packaging only for the purpose of ascertaining the product and had assigned the role responsibility of the packaging to the production department. However modern marketing managers regard packaging as a supplementary promotional tool for their product. It has been shown that in self service store, it is packaging on product that does the selling. No wonder it is often regarded as the silent salesman. Product packaging involves enclosing mechanism in a container for marketing display, sanitation convenience in handling and use of safety and preservation. Since 1978 when folding cartons was discovered the packaging industry has grown expansively with period of rapid expansion occurring intermittently. The major resolution mechanizing era when mass production teaching were inaugurated and individual sealed product packaging replace bulk merchandise.

The most commonly used product packaging material includes corks, asbestos, rubbers, plastics, papers and several types of strong materials such as lead glass, packaging has gone all the way back to the down of history when primitive societies carry barriers continues packaging primary roles was to hold, protect and transport goods from manufactures to the users of individual goods. Packaging products therefore keeps a product intact and available to the final consumers in its original states. It protect the quality of the product from physical damage where the traditional purposes. Kohler (1984:72) defined product packaging as the activities of designing and producing the containers for a product. He added that the container is called packaging and it mighty include there levels the primary that contains the outhits (the secondary that covers the primary container and the tertiary that protect the entire product during haulage).

The type and levels of product packaging adopted depends on the types of product market promotion on the other hand represents all those activities embarked upon the company to communicate its products merits and to persuade target customers to buy them. Arowomole and Adeyemi (2004:148) product packaging as the general group of activities in product planning that involved designing and producing the container or wrapper for a product. Packaging provide two major services for both consumers and producers that is it services as a product measure for the product and also promotional device some product packaged such as coke bottles and world famous. Materials use to protect goods also on opportunity to present the brand and Logo. Product packaging has recently been in importance. At times it becomes very difficult to determine whether greater emphasis should be put on the protective functions of packaging then its promotion functions. Formally, most firms saw product packaging as only container for the physical product without realizing the other marketing importance of the product especially its importance towards the promotion of the product due to the increase importance which is presently attached to promotional functions of to be regarded as any person jobs. The job of packaging now rest on the hands of quality product managers or specialist trained in that particular filed or marketing in most organizations. The ever increasing customers demands on organizations for more tolerant package has pushed marketing managers to develop packing with more acceptable material shapes and forms. Poor packaging kills a product and can also dissatisfaction among channel intermediaries.

1.1.1 Historical Background Nestle PLC

Nestle Foods Nigeria plc is a Nigeria-based company. The Company manages its food and beverages business through three geographic zones and globally for Nestle Waters and Nestle Nutrition. The pharmaceutical activities are managed on a global basis. The secondary segment format, which includes the product group, is divided into six product groups.
According to the Consolidated – Non-Audited financial statement for the Year of 2011, total net operating revenues increased with 22.29%, from NGN 80,105,000 thousands to NGN 97,961,000 thousands. Operating result increased from NGN -45,380,696 thousands to NGN -2,023,000 thousands which means 95.54% change. The results of the period increased 33.38% reaching NGN 16,808,000 thousands at the end of the period against NGN 12,602,000 thousands last year. Return on equity (Net income/Total equity) went from 84.78% to 71.54%, the Return On Asset (Net income / Total Asset) went from 20.88% to 21.84% and the Net Profit Margin (Net Income/Net Sales) went from 15.73% to 17.16% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 227.52% compared to 305.95% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 0.44 to 0.41 when compared to the previous year. Nestlé Nigeria Plc engages in the manufacture, marketing, and distribution of food products in Nigeria. The company offers infant cereals under the Nestlé NUTREND and Nestlé CERELAC brand names; family cereals under the Nestlé GOLDEN MORN brand name; beverage drinks under the Nestlé MILO brand name; confectionery under the Nestlé CHOCOMILO brand name; and bouillon under the MAGGI CUBE, MAGGI CHICKEN, MAGGI CRAYFISH, and MAGGI MIX’PY brand names. It also provides table water under the Nestlé PURE LIFE brand name; coffee under the NESCAFÉ CLASSIC, NESCAFÉ Crem 3-in-1, and NESCAFÉ Breakfast brands; and full cream milk products under the Nestlé NIDO brand name.


1.2 Statement of Problem

Despite the fact that numerous studies in the past have contributed to the theoretical and practical knowledge on packaging demonstrated that products packaging play sufficient role in marketing of goods and services from all sectors of productive economy, yet quite a number of small and huge scale manufacturers have shown less concern to packaging their product effectively confectioneries especially the small one have been found wanting in the area. The ability to incorporate into product packaging preference the right choice of material, colour, shape, design, style, size and promotional information has been a major challenge facing marketing managers in the small and medium scale ventures. Also inadequate budget devoted to product packaging that effects effective packaging preference of organizations .it is as a result that this study is concerned with investigating how and the extent product packaging has changed consumers preferences.


1.3 Objective of the Study

The purpose of carrying out this study is to ascertain the effect of products packaging of materials, design, shape, style, colour and promotional information on consumer buying preference for product in Aba metropolis, Abia State.

The study also has the following specific objectives:

  1. To find out whether the choice of packaging materials affect consumer patronage of products.
  2. To understand how the promotional information/label contribute to consumer choice of products.
  3. To determine the role of packaging feather (colour, shape, design, style, size and weight) affect the consumer buying preference.
  4. To know whether the cost structure of packaging is justified by the marketing growth of products.
  5. To investigate whether moderating faction a government policies technology competition affect the consumer buying preference of products.

1.4 Research Question / Hypothesis

Below are the research questions which the work is set to tackle.

  1. Does choice of packaging materials affect consumer for purchasing of products.
  2. What roles do the packaging features (colour, design, shape, style, size and weight) play in the consumer for goods.
  3. How do promotional messages contributes to the consumption of products.
  4. Does the cost structure of packaging correspond with the expected marketing growth of products.
  5. Do the moderating factor (government policies, technology) competition affect the relationship between packaging and the consumer buying preference of products.

1.5 Hypothesis of the Study

The following hypothesis where formulated for the study:

Hypothesis one:
  • H1: The influence of packaging on products in Aba Metropolis responsible for the consumers buying preference.
  • H0: The influence packaging on products in Aba Metropolis is not responsible for the consumer buying preference.
Hypothesis Two:
  • H2: Consumers are influence by products packaging
  • H0: Consumers are not influence by products packaging.

1.6 Significance of the Study

It has been proven that effective packaging preference of firms enhance the market ability of their product, this work is relevant in the sense that it well enlighten manufacturers on the measure to be adopted to sustain the effect of product packaging has on consumer buying preference process and in building a loyal customers. This study will also be of academic value since the contents could be used as a basis for other studies on product packaging. The findings of the intended is expected to contribute to the body of existing knowledge in the area of product packaging and its influence.


1.7 Scope of the Study

The topic of this research is the influence product packaging on consumer buying preference in Aba metropolis, Abia State which is with is the researchers case study.

The finding were obtained through the use of questionnaire defined alternative responses and oral interviews. The researcher was involved using Azikiwe Road, Ngwa Road, Ogbo hill, Clifford Road, Park Road also Osisioma Ariara Market Area.

The present study was aimed to investigate the product packaging as it affects many manufactures of Aba metropolis in Abia State. It will outline the various roles of product packaging play in selling off product.

Again in carrying out this research, the researcher was confronted with a number of problems and limitation owning to financial and time constraint, the researcher was unable to travel to other parts of the country for effective data collection hence the research for effective data collection was carried out in Aba Metropolis. Respondents were equally reluctant to respond to the questionnaires inspite of the fact that assurance was given by the researcher that every information gathered would be held in strict confidence finally some respondents didn’t have the requisite knowledge or are unwilling to disclose the facts where they are available.


1.9 Operational Definitions of Terms

(a) Self Service Store:

These are specialize outlets which he have stock
displayed on shelf for customer easy access.

(i) Product:

This is anything that can be offer to a market for attention, consumption and must satisfy consumer need.

(ii) Silent Salesman:

This refers to the ability of a product packaging to include an exchange process.

(b) Binding Prefernce:

This is the ability to quickly check and confidently on which product that will be preferable to buy, how to buy, where to buy it and when to buy it.

(i) Packaging Influence:

This is the power to produce and affects, specially on character beliefs or actions.

(c) Brand Mark:

This refers to the aspect of a product that has a legal right and protects the production from limitations.

(d) Various Products:

These are those product made by various companies:

  • Magic Wooden Toys Product: It is a company that made most of the toys from beech wood, it is carefully selected and processed very free from any chemical. The wood is coloured and polished through a special technology through company method which has been developed and improved over many years. It is a traditional manufacturer of wooden toys and decorations.
  • Jam Bottle Product: It an Aba made product manufactured in china, the company product had mainly the ampulla, wine bottle, perfume bottle, pickle bottle, can bottle, drink bottle etc. The company product packaging with height mass high standard, preferential price, enthusiastic service, your presence is welcomed.
  • Beverages Company: Cheesecake Factory, American Beverages Association, Nigerian Breweries etc.
  • PZ Cussons Products: These are the product made by Pz e.g. bathing soap, Powder for babies etc. that is well for babies.
(e) Loyal Customers:

These are group of people who believe that a company’s products are the best. As such they develop confidence in buying the firms product.

(f) Manufacturers:

A company or person who makes or produces goods on large scale with the help of machines.


1.10 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows.

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was to examine the effect of product packaging on customer loyalty using nestle plc, ogun state as a case study. The study specifically was aimed at highlighting the choice of packaging materials affect consumer patronage of products, understanding how the promotional information/label contribute to consumer choice of products, determine the role of packaging feather (colour, shape, design, style, size and weight) affect the consumer buying preference,whether the cost structure of packaging is justified by the marketing growth of products, investigate whether moderating faction a government policies technology competition affect the consumer buying preference of products.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 100 responses were validated from the enrolled participants where all respondent are drawn from selected staff and management of nestle plc, Ogun state.


5.2 Conclusion

Based on the finding of this study, the following conclusions were made:

  1. The choice of packaging materials affect consumer patronage of products.
  2. Promotional information/label contribute to consumer choice of products.
  3. Packaging features (colour, shape, design, style, size and weight) affect the consumer buying preference.
  4. Cost structure of packaging is justified by the marketing growth of products.
  5. Moderating faction of government policies technology competition affect the consumer buying preference of products.

5.3 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

  1. Nestle PLC should endeavour to make their product accessible with the aid of promotional advertisement so that it will be easier for consumers to locate their product.
  2. Nestle PLC should improve on the quality of their product and their packaging method.
  3. The packaging of a product should be easy to open for the consumers , if not consumers will avoid such product and go for the alternative ones which are easy to open.

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