PACKAGING AS A TOOL OF ACHIEVING HIGHER PROFITABILITY IN A MANUFACTURING COMPANY
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PACKAGING AS A TOOL OF ACHIEVING HIGHER PROFITABILITY IN A MANUFACTURING COMPANY
ABSTRACT
This study investigates packaging as a means of increasing profitability in a manufacturing organisation.
The survey was designed using a well-structured questionnaire. Respondents were picked using a simple random sampling procedure. The Nigeria Bottling Company’s personnel were given one hundred (100) questionnaires.
Two hypotheses were developed and tested using Chi-squared analysis. The study resulted in rejecting both null hypotheses and approving the two alternate hypotheses.
Based on the results of the tested hypotheses, it was concluded that there is a substantial association between product packaging and organisational productivity, as well as a considerable influence on sales volume.
Recommendations were made to the Nigerian Bottling Company and other manufacturing companies.Chapter one
INTRODUCTION
1.1 Background of the Study
A study of the evolution of packaging is intrinsically tied to the evolution of consumer patterns in particular, and society as a whole (Zeithaml, 1988). In the agricultural life that existed until the industrial revolution of the nineteenth century, packing was as primitive as the living conditions of the time.
Packaging was frequently standardised and could be used for a variety of reasons, including conveying food, wood, and tools. We’re talking about receptacles rather than packaging, which they didn’t do particularly well. Packaging’s sole purpose was to ensure product conservation and transportation.
The industrial revolution significantly increased the demand for packaging. Mass production and advancements in ways of transportation created new demands. We progressed from a society in which trade was limited and each community produced items as needed to one in which activities were increasingly specialised.
Products were no longer used by the manufacturer or his or her close neighbours, but were instead transported, sold, and consumed. New production techniques and transportation conditions dictated the shapes that packaging should take. That is how barrels arose, specifically for sea shipping, as well as boxes that were easy to carry and store.
The primary goals of product packaging were to protect them and make them easier to carry, so making them more accessible to more people. Retailers would simply unpack the merchandise before selling them.
Individual packaging had not yet been used, and no consideration had been given to packaging as a source of communication or a sales technique.
Products were packed and sold in quantity. Shopkeepers handled the products with little regard for sanitation, weighing and wrapping them individually, while their clients kept a close eye to ensure they received what they ordered.
The second packaging revolution occurred following World War II, coinciding with the expansion of the postwar economy. Packaging began to focus on the demands of the consumer after previously serving the needs of the product (protection) and later the producer (transport).
Distribution networks were rapidly evolving, from open markets and small local grocery stores to supermarkets. From that point forward, each individual product was packaged such that it was ready for the consumer to pick up from the shelf and take home. The packaging of pre-packed products ushered in the era of self-service.
Products were pre-packaged. Another consequence of this new manner of consumption was the ability to print product information on the box. After all, the shopkeeper was no longer pleased to provide the necessary information in a major store. Consumption increased significantly, as did the population.
This was the age of the baby boom, which was accompanied by a consumption boom, with packaging serving as the foundation for modern retail trade. Packaged products quickly became a popular commodity, and packaging had to adapt to the latest trends. It is no accident that the widespread use of plastic packaging began in this age.
Packaging was to emerge as an industry, with automation to keep up with the rapid speed of progress. As quality demands increased, so did the desire for cutting-edge technology. The growing emphasis on the individual, as well as the rise in the number of working women, necessitated that packaging find a way to outperform itself.
Consumption became mobile, people were on the go, and time was valuable. Packaging responded to this new problem by vacuum-packing food in materials that could resist the impact of being removed from the deep freezer and placed in a microwave. As if the increasing complexity wasn’t enough, consumption has become increasingly global.
Products manufactured on the other side of the world had to be in great shape when they arrived in shops. Packaging had to be made more durable, protective, and portable.
The (provisional) conclusion to this story is visible in shops and daily life. Supermarkets should be able to provide increasingly exotic products, our domestic appliances have sometimes gone long distances before reaching our homes,
and our refrigerators are stocked with convenience foods (Rettie R. et al. 2000). The globe is becoming a true global village. Packaging has played an important part in this.
1.2 Statement of the Problem
The general public knows nothing about packaging because they are more interested in the product. The consumer/customer package may influence the consumer/customer at the moment of purchase, whereas the transportation package is solely relevant to manufacturers and distributors (Firstenfeld, J. 2005).
Some organisations do not value packing; they consider it solely as a means of safeguarding products during transportation. As a result, they package things with low-cost materials to ensure protection during delivery.
Small-scale manufacturers do not spend much money packaging their products. Some perceive it as a waste of money, primarily because they are afraid of increasing the cost of production.
Packaging businesses are also faced with the task of providing tools to explain how to use packaging in product development, making items more competitive in varied markets.In addition, to get a thorough grasp of the supply chains that serve various industries and organisations, assess the repercussions of new supply structures and changes that affect packaging.
This study work aims to propose solutions to the aforementioned issues by investigating packaging as a technique of increasing efficiency.
1.3 GOALS OF THE STUDY
The primary goal of the research is to determine the role of packaging as a means of increasing production. Subsidiary objectives include:
· Investigate how packing shape impacts purchase quantity.
· Determine if packaging and design are a marketing strategy.
· Determine if packaging type affects buyer volume perception.
· Investigate how package design influences consumers’ perception of the product and brand.
· To investigate how package perceptions influence customer purchasing behaviour.
1.4 RESEARCH QUESTIONS.
To fulfil the goal of this research project, the following research questions will be addressed.
· Does packaging increase organisational productivity?
· Does package type impact buyer volume perception?
· Is there a correlation between package shape, visual perception biases, and purchase quantity decisions?
· Is packaging and design considered a marketing strategy?
· Does package shape impact purchase quantity?
· Does packaging influence customer brand choice?
· Do different types of packaging cause different reactions in consumers?
1.5 Research Hypotheses
A hypothesis is a conjectural or preliminary assertion about the relationship between two or more variables. In this research study, the following hypotheses will be evaluated.
Hypothesis One.
Ho: No substantial association exists between product packaging and organisational productivity.
H1: There exists a considerable association between product packaging and organisational productivity.
Hypothesis Two
Ho: Product packaging does not have a substantial impact on sales volume
H1: Product packaging has a major impact on sales volume.
1.6 Research Methodology
This research will employ both primary and secondary data gathering methods to collect the essential data. The key data collection methods will be as follows:
1. Structured Questionnaire
2. Personal, unstructured interview.
3. Observation
Secondary data will be acquired from company reports and papers. In addition, reports from outside the company, as well as library and desk research literature, will be employed.
In this study, data will be analysed using the descriptive approach, and chi-square (X2) will be utilised to test hypotheses. The findings of this research study will be addressed in light of the research problem hypothesis,
purpose research questions, the research literature, and other pertinent concerns. Conclusions will be drawn, along with proposals and suggestions.
1.7 Significance of the Study
The purpose of this research is to generate knowledge on the role of packaging as a way of organisational productivity that will be relevant to:
· Board and council members of Nigeria Bottling Company Plc.
· Organisational leaders, including both high-level and lower-level managers in the industry.
· Financial managers, accountants, auditors, and marketers handle marketing promotion and distribution.
The study would also help to develop a theoretical framework, add to the body of knowledge, and pave the way for future research.
1.8 Scope and limitations of the study
The concept of this study is that product packaging influences organisational productivity, with a focus on Nigeria Bottling Company [NBC]. The research will be conducted using data obtained from NBC in Ikeja, Lagos State. The study will also identify the basic limiting constraint that most managers face in product packaging design.
Limitations
The following are expected to be barriers to the effective conduct of this research effort.
a) The time frame within which the investigation must be finished.
b) Financial constraints.
c) Inaccessible and inadequate data.
Nonetheless, I feel that the restrictions listed above will have no bearing on the research study’s reliability or validity.
1.11 Historical Background of the Study
Nigerian Bottling firm Plc is a marketing firm that specialises in the production of soft drinks, with Coca-Cola dominating their product line.
The reverend Chief A.G. Leventis established the Nigerian Bottling Company in Nigeria in 1951. From humble beginnings in 1951 and under highly inspired leadership, the company has grown to become Nigeria’s largest soft drinks bottler and one of the country’s largest employers,
operating approximately 20 production plants and 65 sales depots across the Federation of Nigeria, with its administrative headquarters in Oyingbo, Lagos State, formerly in Iddo, Lagos State.
The Nigerian Bottling Company is a well-known titan among first-class bottling companies, and it is also regarded to have the same status in all states of the country.
Because of its exceptional success over the years, there is no doubt that its operational characteristics will provide useful information to other comparable organisations.
It suffices to note that the organisation offers a variety of career chances to school graduates and professionals in the fields of commerce and marketing. Given that product packaging is still in its early stages in Nigeria and is only being adopted by larger-scale ventures,
the Nigerian Bottling Company, specifically Coca-Cola, has been recognised for their involvement in packaging their products, which has increased their level of sales and profitability.
There is no doubt, however, that the corporation tinder consideration with its particular qualities and provide a good spotlight of the impact of product packaging on commercial organisations both in the short and long run.
1.12 Operational Definition of Terms
Packaging: A coordinated system of preparing items for safe, efficient and cost-effective transportation, distribution, storage, retailing, consumption and recovery, reuse or disposal, along with maximising consumer value, sales, and hence profit.
The supply chain is the network of organisations, people, technology, activities, information, and resources that move a product or service from supplier to customer.
Purchase Intention: The possibility that a consumer would purchase a specific product based on the interaction of his or her need for it, attitude towards it, and perceptions of it and the company that manufactures it.
Brand Marketing is the art and science of making the proper impression on prospects.
Purchase quantity: The economic lot size for a purchased.
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