CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF STUDY

 Marketing strategy is a method by which a firm attempts to reach its target markets. Marketing strategy starts with market research, in which needs and attitudes and competitors' products are assessed and continues through into advertising, promotion, distribution and where applicable, customer servicing, packaging, sales and distribution. Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost.

        Though there are many marketing strategy, but in this study, the researcher will discuss on packaging as one of the marketing mix which has to do with the way and manner a wholesaler has to convince his targeted customers to buy whatsoever he has to offer. As far as marketing mix is concern.

Packaging is one of its crucial components, it is the least expensive form of advertising, and it’s of particular importance of point of sale (Anonymous 2006).

  Packaging plays a central role in promoting the appeal of products to first time users. The package serves as a strong image identifier among residents of townships. Blem (2005) stipulates that customers expect their goods and services to be packaged and presented conveniently. Attractive packaging, before purchase, is an aid to selling. However, after purchasing a product, the packaging becomes an aspect of service.

The customer needs packaging that is suitable for transporting and storage and that is easy to remove. Consumer preferences and consumer buying behavior are the major issues that should be taken into account when designing a new package. In spite of factors such as new technology or material development, consumer’s choices and desires are the important elements that drive the marketing process.

Consumers are the key actors in planning and implementing packages. Hereby, the key issue for packaging design is to understand the consumer (Stewart 2004). Consumer identifies needs and desires, afterwards makes a purchase. The process of identification includes the process of consumption where customer sets the product within three stages: pre-purchase, purchase, and post-purchase activity. Therefore, the perception and the evaluation of the product, in this case product package, assist customer to make a purchasing decision. There are many studies that are done in the area of packaging.

Nevertheless, Holmes and Paswan in the article "Consumer reaction to new package design" (2012, pp. 109 -110) deem that a little is known about the impact of the consumer’s experience with the package on the evaluation of the product itself. Concerning the previous researches, it can be seen that not a lot of studies are about the package design perception and direct customer experience with the package.

However, it has an essential role in product performance because the package tells the consumer as well the information about the product as the quality of this article.

1.2   STATEMENT OF THE PROBLEM

The study on packaging as a marketing strategy for increasing sales amongst businesses came about as a result of lack of interest of consumers to a certain commodity that is found in the market due to the way and manner the commodity is being packaged or presented to the consumers. Though the quality of the product might be to the taste of the intended customer (if only he can ignore the packaging that is not up to his taste to get the product) but due to how well an inferior product is being package he might then patronize the inferior products thereby neglecting what might be good for him. Just like raw gold will not be appreciated by many until it has passed through a process that is how an unattractive packaging will not be appreciated by many not until it is attractively packaged. Finally, most of the research has been carried out marketing strategy but not even a single research has been carried out on packaging as a marketing strategy for increasing sales amongst businesses.

1.3   AIMS AND OBJECTIVES OF STUDY

The main aim of this study is to determine packaging as a marketing strategy for increasing sales amongst businesses. Other specific objectives of the study include:

1. to determine the effect of packaging on sales amongst businesses.
2. to investigate the factors affecting packaging as a marketing strategy on sales amongst businesses.
3. to identify elements of the packaging design and its importance in increasing sales amongst businesses.
4. to determine the effect of pattern, colors and graphics on packaging which may lead to increase in sales amongst businesses.
5. to proffer possible solution to the stated problems.

1.4   RESEARCH QUESTIONS

1. What is the effect of packaging on sales amongst businesses?
2. What are the factors affecting packaging as a marketing strategy on sales amongst businesses?
3. What are the elements of the packaging design and its importance in increasing sales amongst businesses?
4. What is the effect of pattern, colors and graphics on packaging which may lead to increase in sales amongst businesses?
5. What are the solutions to the problems stated?

1.5   STATEMENT OF RESEARCH HYPOTHESIS

H0:    Packaging has no significant effect in increasing sales amongst businesses.

H1:         Packaging has a significant effect in increasing sales amongst businesses.

1.6   SIGNIFICANCE OF STUDY

The study on packaging as marketing strategy for increase sales amongst businesses will be of immense benefit to Guinness Nigeria Plc in the sense that it will educate them on how to operate even in a competitive environment by listening to the consumer’s complains about the packaging design, thereby creating a package design that will suite the test of the consumer. Finally the study will contribute to the body of existing literature and knowledge in this field of study and provide a basis for further research.

1.7   SCOPE OF STUDY

The study on packaging as a marketing strategy for increasing sales amongst businesses is limited to Guinness Nigeria Plc.

1.8   LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9   DEFINITION OF TERMS

Package   An object or group of objects wrapped in paper or packed in a box.

Marketing       Is the study and management of exchange relationships. 

Strategy          A plan of action designed to achieve a long-term or overall aim

Increase          Become or make greater in size, amount, or degree.

Sales         Is activity related to selling or the amount of goods or services sold in a given time period

Business         A privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange.