THE EFFECT OF PACKAGING ON SALES OF GOODS

MITTAL SCHOOL OF BUSINESS

Course Code: MGN206 Course Title: Research Methodology

Academic Task No: 1 Academic Task Title: REPORT BASE

Date of Allotment: 25/01/2021 Date of Submission: 15/02/2021

Student Roll No: Q1912B35 Section: Q1912

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 ACKNOWLEDGEMENT

I offer my honest thanks and humble regards to Lovely Professional University, Punjab for
informing us very valuable professional training in BBA. I pay my thankfulness and sincere
regards to Dr. Gursimranjit Singh, my project guide for giving me the cream of his
knowledge. I am thankful to him as he has been a continuous source of advice, motivation,
and inspiration. I am also appreciative to him for giving his proposals and encouragement
during the project work. I am also thankful to my family and friends for continuously
supporting me to complete the project and providing me an environment which improved my
knowledge.

INTRODUCTION

The packaging is a marketing tool and it is closely interwoven with the performance of
marketing functions. It is disturbed with the wrapping of materials and the process used.
Well-designed packaging can make convenience value for the consumer and promotion value
for the producer.

Packaging is a promotional tool has been an important marketing consideration, all over the
world. It is one of the marketers most vital tools for selling. It is the general activities in
product planning which involve designing and producing container or wrapper for a product.
Many products have a different image in the consumers‟ minds through their packaging,
thus, creating awareness. Packaging performs some important function which failure in any
way may destroy the general utility of the package. Some of these purposes are of dynamic
relevance through the life of the product packaged.

First, it makes the product in such a way that the product can be moved carefully from one
place to another. Second, it protects the content from spoilage or deterioration. It also
communicates and gives out the necessary information about the product and lastly, it serves
as a silent salesman who tends to attract the attention of consumers and move them to buy the
product. Packaging as a function considers, convince, economy and promotion.

A packaging may comprise up to three levels of material. The primary packaging, which is
the product instant container example bottle holding old spice after shave lotion, is a primary
packaging, secondary packaging refers to the material that protects the primary packaging
and it is discarded when the product is about to be used.

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The cardboard containing the bottle of after-shave lotion is a secondary packaging and it
offers additional protection and promotion. Packaging necessary for storage, identification,
and transportation; thus a carriage box carrying six dozens of old spice aftershave is a
shipping package.

Conclusively, necessary measures should be taken against the criticism of packaging of the
package, such defect as mis-heading health hazards, depleting natural resources, and the
expensiveness of packaging products. The packager should see to these reproaches and take
the possible precautionary steps against them and to see the effective development of
packaging.

1.1 HISTORICAL BACKGROUND OF THE STUDY

Packaging could be drawn back to the history of man because no man knows for sure when it
used, mainly to hold liquids wild barriers and other foods provided by nature. Later, as the
man began to cultivate, they were probably employed to hold his crops. Primitive people had
to carry embrace barrier and additional fruits from the forest to the caves and as a result of
this, they used animal skin and grass basket as containers.

Shells, leaves, tunneled piece of wood, earthen wares and animal skin maybe made up the
earliest packaging materials. Earthen wares were developed over eight thousand years ago in
China and were formed into a change of container for holding solid and liquid objects. Glass
seemed in ancient Egypt and became a major container for liquids.

The early trade includes the movement of agricultural products from Egypt to Mesopotamia
and the movement of manufacture product from Mesopotamia along with some from India
and possibly to China.

By the middle of age, the packaging materials included leathers, cloths, woods earthen wares,
stone or those made of clay or woven natural fibers. For periods, the main role was to hold
and protect the transport goods.

At this same time, the Egyptians using sand and clay to invent the mould. These days or at
that recent time period, packaging has taken an additional role of a product marketing tool.

1.2 OBJECTIVES OF THE STUDY

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The objective of this project work is to observe the effect and importance of packaging on
sales and protection of goods. It also known to which extent of packaging could be used in
product differentiation and identification.

It intends to identify the importance of packaging as a promotional tool for the sales of the
product. To know the problems and prospects of packaging, to identify and possible to
suggest a way of enhancing improved package product.

1.3 SIGNIFICANCE OF THE STUDY

This study is meant to be reference material for other subsequent researches who might be
interested in delivering into a similar or related subject topic.

It will also assist the manufacturers in principles and methods of packaging concept, which is
the definition of what packaging, should be or do for a particular product and compatible
with public policy. It will also benefit them in designing packages for their products to suit
the taste and preference of the target market and to enable them to know what consumers
expect on the package.

The study will highlight the promotional characteristic of packaging to the producers. It will
also contribution them in packaging their products to accomplish the function of product
differentiation and identification.

To the consumers, the study will help them with what they should expect on the product
packaged. Such as the brand, name, product content and ingredients with safety warning
manufactured and expiry date and how to use the product etc.

1.4 SCOPE OF THE STUDY

This study shall agreement extensively with “The Effect of Packaging on Sales of Good” to
the consumers as well as the manufacturer. The researcher will cover the outcome of
packaging from the general viewpoint hence, a case of a particular firm will not be required
in a study like this.

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1.5 LIMITATION OF THE STUDY/DELIMITATION

In the process of writing this extended essay, one of the problems encountered was
inadequate funds i.e. lack of finance which forced the researcher to boundary the scope of the
study.

Another constraint had to travel some time to source for information, this was not easy
because it was done alongside my lectures and study.

In other words, time was not on one side. The difficulty of placing my hands on present
journals and magazines also did not heel matter. The author had to trust mostly on
information gathered from practitioners.

2. LITERATURE REVIEW

 Packaging achieves multi-tasks and functions which defines the product & its features
and also communicate with the consumers and also precaution the product. (Silayoi &
Speece, 2007). For example, packaging of the product talks about different ingredients,
usage of the product and also it tells about some precautions if the product has any side
effects. The packaging sometimes includes different features like attractive colours,
pictures, symbols that will enhance the attractiveness of any product.

 Packaging itself acting an important part in marketing mix as it differentiates company‟s

product from its competitors and is also the way to communicate with its consumers.
According to (Ahmed, Billo & Lakhan, 2012) Packaging is the last impression for
consumers and they make purchasing decisions on the basis of product packaging which
built a awareness in the customers mind, therefore it is very imperative that packaging is
working hard to secure the sale, this may be in the form of brand image, brand values,
product quality and innovations.

 Packaging is one of the primary component of promoting products, designing and plays a
n important role in marketing .An honest and effective packaging will absorbs a lot of
customers and will increase individuals intentions on buying products (Shruti,2014).If
the product have a good quality and unique packaging it remains in the mind of the
consumer‟s for a long period of time and by this the customers desires to purchase that
product at the time of shopping, so it itself did the promotion of that product by its
packaging.

 Packaging should also be considered to promote the product sales. As the packaging will
influence customers and hence modification their buying behavior towards that brand

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 which will help company to generate revenue. (Deliya&Parmar, 2012). When people
attract towards any product so it is common that they will buy that product which will
increase its sales and company’s income and this all can do only by attracting customers
towards any product at first sight and usually the first impression is the last impression
that will lead to increase the current sale performance. The packaging is most important
key factor which we can use to attract our customers at first sight.

 The role of packaging is a medium for communication and branding its increasing in
competitive markets for FMCG products. Packaging is the jar or a container or a safety
for a product. Packaging contains the name of the brand names, brand logos, pictures of
the product, different kinds of labels and with information such as ingredients,
manufacturing and expiry date, warnings, price, using technique of the product, company
name, company place etc. and the main function of the packaging is to distribute the
products easily and safely. (Neeta &Sudha, 2014).

 Colors have many effects on consumer’s thoughts, feelings, and behavior; so, marketer
should focus on the long employed of colors as a visual device to support cognition and
thoughts and grasp consumer’s attention towards the product. (Labrecque, Patrick, &
Milne, 2013). As it is supposed that green color attracts the people as it is a part of
nature, so it attracts individuals towards itself. Like this, a company should be more
focused while choosing a packaging color which will affect on product for a long term
and will also have influence on the buying behavior of the consumers.

 The research conducted by Saeed, Lodhi, Mukhtar, Hussain, Mahmood, and Ahmad
(2013), incorporate the impression of brand image, brand attachment and environmental
effects on consumers purchase decision and the study discloses that brand image have no
positive relationship with the customer purchase decision and brand attachment and
environment effects have reasonable positive relation but no positive relation with the
consumer purchase decision.

 Behzad (2014) describe in his research that colors and pictures play important key roles
in promoting product sales. Color is an excellent source of information to communicate
with the consumers either negatively or positively and it is estimated that 62-90% of
people assessment and evaluation is based on colors alone. (Singh,2006)

 Producers have to build the applicable changes in product to satisfy the consumers need
and differentiate them with their competitors. Innovation in a product measures some
important factors for rising potency and effectiveness. (Noorani& Setty, 2007). Because
everyone wants something new after a certain period of time and for this a company
always keep changes its strategies and product designs, features, colors and sometime
they add more flavors to that product line to involve the consumers towards that
particular brand.

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 A study conducted by (Borin et al. ,2011) completed an investigation in which he takes
out the result of wide-ranging levels of environmental information on key client metrics&
also appraised environmentally caring products versus those peoples who have negative
environmental impacts. These client perceptions of product quality, value was reportable
by them and also, they get intentions didn’t disagree considerably between product and
positive messages from the environment and people with no message. They find out that
product with negative environmental communications were through lower than products
with positive environmental messages.

3. Methodology

3.1 Independent Variable

Packaging Color

Colors play a vital role in the consumer’s decision making and they attract customers towards
any product. Different colors have different meanings and can help to draw attention
according to the consumer’s mood.

Packaging Material

Packaging materials have a great influence on consumer’s purchasing decisions. High-quality

of packaging attracts the consumer’s then the low-quality of packaging.

Design of Wrappers

The design of the wrapper also plays an important role to attract the customers. Companies
uses creative designs to attract customers to increase the sales.

Innovations

Innovation in packaging may add the extra value according to the needs and comfort of the
consumers such as easy-open, easy carries protection, child-proofing, recyclability, and no
breakability.

3.2 Dependent Variable:

Consumer’s Buying Behavior

The consumer’s buying behavior is the total of the attitudes, preferences, and decisions
concerning the purchasing of any product or service.

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3.2. Research Design

There are the two types of research quantitative research and qualitative research.
Quantitative research is asking about people for their opinions in a structured way so that you
can produce hard facts and statistics to lead you. To get consistent statistical results, it's
important to survey people in equally large numbers and to make sure they are a
representative sample of your target market. The research conducted to recognize the impact
of packaging on consumer’s buying behavior is quantitative.

3.3. Tools of Data Collection

There are two kinds of approaches in data collection first is primary data collection which is
used when we want to find new results which are mostly the Questionnaires and secondary
data collection in which we use data like books, journals, newspapers, etc. for the research.
To collect data to find out the role of packaging on consumer’s buying behavior, we will
collect data by identifying the impact of 3 independent variables on 1 dependent variable. For
this, we use a primary data collection technique in which we use a questionnaire to find out
the actual impact of product packaging on consumer's buying behavior.

3.4. Sampling Technique & Size

There are two major types of sampling techniques which are probability sampling and
nonprobability sampling. We are using the probability sampling technique in which we use
convenience sampling. The reason for choosing this technique is that every individual is
using the FMCG product and they all know their impacts on the buying behavior so we can
find out the consequences on the behalf of the available population sample. The sample size
of our research we are using suitability sampling so the size is 300 questionnaires.

3.5. Population

The population of sample is from Karachi, Pakistan.

3.6. Measurement/ Instrument

A questionnaire will be given to the sample population to identify the buying pattern of the
consumers based on given variables.

Each variable quantity by asking the questions and ratings type scale ranging from:

1. Agree 2. Disagree 3. Neutral

3.7. Methodology for Data Analysis:

To make correct investigation of the data we use SPSS software in which we make analysis
in two parts:

1. Descriptive Analysis:

It is the procedure in which we use to generate result in descriptive statistics. To shows

maximum, minimum and mean value of data.

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2. Correlation:

The Pearson’s correlation is used to find out the relative between at least two variables. The
values for correlations are:

1. 0.00 = No correlation

2. 1.00 = perfect/positive correlation

Other factors such as group size will be resolute if the correlation is significant. Generally,
correlation above 0.80 is considered pretty high.

CONCLUSION

The result of research will impact of packaging on consumer’s buying behavior are as
follows:

1. The packaging is the most important tool in the marketing of any product. It helps to
communicate with the audience.

2. Packaging has different elements that influence the consumer and hence change their
buying behavior.

3. To analyze the importance of each element for consumer’s choice to identify the
impact of packaging and its elements on the purchase decision of the consumer. For this
reason, the essentials are classified as Color, Material, wrapper designs, and new packaging
techniques.

4. In this research, we have been tested analytically this research model, Packaging
elements, which have a vast influence on the consumer’s preference and choice; from all the
FMCG products.

5. It has clear that the packaging elements are the most important factors for a consumer
purchase decision.

6. The packaging color has a positive relationship with the consumers as the consumer’s
attract towards the dark and attractive colors and mostly, they buy the products.

7. The packaging material has a negative relation with the consumer’s purchasing
behavior. So it is clear that packaging material does not inspiration the consumer's choice.

8. Design plays a very important role in packaging as it captures the attention of the
consumers by its unique and different styles. Hence it has a positive relationship with the
consumer’s buying behavior.

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9. People want some new creations which attract them and change their perception of the
brand.

REFERENCE

 Silago, P. & Speech, M., (2007). The importance of packaging attributes: a conjoint
analysis approach, European Journal of Marketing, Vol.41, pg:11/12, ISSN: 1495- 1517.
 Nawaz, A, Billow, M. and Lakhan, A. A. (2012). Effect of Product or service Packaging
in Consumer Buying Decision, Journal of Business Strategies, Vol.6, No. 2, pp 1-10,
ISSN: 1993-5765.
 Sharma, N., Sudha, R., (2014) The International journal of enhanced research in
educational development (IJERED), Vol.2, Issue 5, pp: 16-20, ISSN: 2320-8708.
 Delia, M.M. & Parmar, B.J. (2012), „Role of packaging on consumer buying behavior:
Paten District‟, The Global Journal of Management and Business Research, Vol.12 (10),
ISSN: 122–137.

 Silago, P. & Speech, M., (2007). The importance of packaging attributes: a conjoined
analysis approach, The European Journal of Marketing, Vol.41 pg.: 11/12, ISSN: 1495-
1517.
 Larocque, L., Patrick, V. M., & Milne, G. R. (2013). The marketers‟ prismatic palette: A
review of on color research and future directions. Psychology & Marketing, Vol. 30(2),
ISSN: 187–202
 Saeed, R., Lodhi, R.N., Rauf, A., Rana, M.I., Mahmood, Z., and Ahmed, N. (2013).
Impact of Labelling on Customer Buying Behavior in Sahiwal, Pakistan, World Applied
Sciences Journal, Vol: 24 (9), ISSN: 1250-1254.
 Behzad, M., (2014), “The art of packaging: An investigation into the part of color in
packaging, marketing, and branding”, The International Journal of Organizational and
Leadership pp. 92-102.
 Noor ani, H.S., & Settee, K. (2007). “Three Steps for Successful implementation of Sales
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 Boring, N., Cerf, D.C., & Krishnan, R. (2011). Consumer effects of environmental impact
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