CHAPTER ONE

1. INTRODUCTION
1.1 Background of the Study
Many companies have enjoyed the impact of branding in their days to day activities. So
many product produced today get to the satisfaction of the consumer based on the infor
mation that displays on the brand, as well a quality of packaging. Levitt (1983)
It is also important of notice there is need to keep improving on the new branding and g
ood quality to meet up with the modern business requirement. It is equally important to
notice that the improvement level of product been mentioned should be a long way to
meet up the consumer satisfaction. (kotler et al.1998)
Branding has helped many production industries in differentiating their product from ma
ny other products in the market. It gives a deep meaning to the product in order to convi
nce the consumers. In the same or company give along duration to their product order it
need or required by the final consumers.
• In the ever increasing competition of today's global market the need for effective prod
uct branding is crucial. The product has come to play a more important role as a brand
communication vehicle. Today, virtually all goods that are manufactured or processed r
equire some in some phase of their production or distribution. This research will focus
on the assessment of branding and packaging on Consumer buying behaviour in case o
f Bekoji natural spring water.
1.2 Statement of the Proble
m
1.2 Statement of the Problem
• The motive that had called for the research into the m
ineral water market has been that today in Ethiopia, t
o locally manufacture mineral water called Bekoji wat
er which were almost of similar mineral content and c
onsumers were likely to switch from one brand to ano
ther easily and this had made the competition very int
ense. With the increase of competition due to improv
ed brands and packaging, Consumers were faced with
infinite choices to satisfy their needs and wants. Man
ufacturer must critically understand the concept
 1 .
1.3 Objectives of the Study
1.3.1 General objective of the study
The main objective of this study was to assessment of branding and packaging on cons
umer buying behaviour in Bekoji natural spring water in Bekoji town.
1.3.2 Specific objective of the study
Objective of our research study was To assess how Consumers are using the brand and
the package of the product.
To identify how the nature of branding and packaging serve as a means of attracting t
o purchase decide.
To identify important element of packaging and branding related to the Consumers bu
ying behavior.
To identify how consumers prefer the package
To identify how Consumer were satisfied with the brand and package of Bekoji natural
spring water
•
1.5 Scope of the Study
The scope of this study was strictly limited only to Bekoji spring Water Company in Bekoji town by emph
asizing the role of branding and packaging of product on consumers buying behaviour.

1.6 Limitations of the Study

In carrying out a study like this one was bound to face obstacle, of which the following were:
The research work was limited by time and financial constraints.
Lack of finance: This was lack of adequate finance to cope with the running expenses and the high cost o
f materials the research work was also involve the marketing or operational excellence adopted by the c
ase of Bekoji water, however, they might feel very reluctant to release certain information like market da
ta, profitability, strategies and so on which they see as the company’s secret.
Secondly, there is no much time involved in the gathering of data because it takes much longer for a cont
act to be made and for a questionnaire to be answered.
• Thirdly, the study was conducted on a limited sample and within the Bekoji water Company only. This f
act naturally limits the extent to which the results of the study may be generalized to other contexts an
d environments
1.7 Significant of the Study
This research work was significant because of the following,
To provide policy recommendations as a way forward in the b
randing and packaging of product in Bekoji water product.
• To inform the appropriate authorities involved in the manuf
acturing industry about the need to brand and good packagi
ng in the manufacturing industry properly. The study will als
o to help identify some of the impediments associated with
the branding and packaging of product in BEKOJI PURE WAT
ER.
1.8 Organization of the Study
• The study was present in separate five chapters. Chapter one discus
ses about the introduction, statement of the problem, objectives of
study (specific and general objective) scope of the study and signific
ant of the, study limitations of study. Chapter Two focuses on revie
w of relevant related literature this chapter was present the theore
tical framework and concepts surrounding topics like Branding, pack
aging, consumer behaviour, and buyer decision makes processes. Ch
apter three deals with methodology of the study and it talk about t
he method that we use in the research .chapter four focuses on da
ta analysis and presentation of findings and present the field work
which encompasses the work results, analysis and discussion of the
data. And the last chapter five talks about The Summary of findings,
conclusion and recommendations.
CHAPTER TWO
2. LITERATURE REVIEW
2.1 Introduction
This chapter basically discusses related literature that was directly related to the res
earch topic, Review of related literature was imperative (necessary) in order to prov
ide a clear understanding of the overall background of the research studies done on
this particular topic. Discussion in this chapter has covered topic related to the effec
t of branding and packaging on consumer buying Behaviour on the local BEKOJI WA
TER P.L.C
2.2 Concepts of Branding
• Products were what companies make, but customers buy brands. Therefore mark
eters go for branding in order to distinguish their offerings from similar products a
nd services provided by their competitors. Additionally, it carries an inherent assu
rance to the customers that the quality of a purchase will be similar to earlier purc
hases of the same brand. Branding is a process, a tool, as strategy and an orientati
on, to build long term relationship with the customers Used as a differentiation str
ategy when the product cannot be easily distinguished In terms of tangible featur
es. Kotler (2009)
2.3 Branding
Branding is very general covering brand names, designs, trademarks, symbol etc. which m
ay be Used to distinguish one organization’s product or service from another
• r. Branding according to Kotler (2000) defined a branding “as name term, sign symbol, de
sign or a combination of the, which is intended to identify the good and services of one s
eller or group of seller and differentiate them those of competitors”. Marketing must mak
e many decisions about a product. Including choice, brand name, brand mark, symbol, de
sign or combination of this that identifies the seller goods services and distinguishes the
m from competitor product.Brand, it is a symbol, name, phrase, design or any of the com
bination above. The use of brand is to bring ease to everyone in identifying a product and
tell it’s apart from its competitors. A product with brand name and logo is given its identit
y, value and meaning. According to PR asana Rosaline Fernandez (2009), to fully understa
nd the potential of branding in terms of its growth in markets, marketers are more likely t
o identify the sources of brand meaning, understanding the meaning, and also to manage
it in a fast changing environment. The American Marketing Association (AMA) defines a b
rand as a "name, term, sign, symbol or design, or a combination of them intended to iden
tify the goods and services of one seller or group of sellers and to differentiate them from
those of other sellers.
brand is capable of conveying up to six different levels of meanings and this is kn
own as “Six Dimensions of the Brand”.
Attributes: A brand communicates certain attributes to the minds of consumers s
uch as prestige. NOKIA Company promises the availability of network coverage
“everywhere you go”.
Benefits: The attributes that fortifies a products features by way of stating its be
nefits and makes it more attractive.
Values: That is the brand also represents the company’s values, systems and stru
cture.
Culture: The brand representing the characteristics of the target audience.
Personality: The brand can project behavioral personality patterns of targeted co
nsumers. For example, uses the famous musician, footballer as their brand amba
ssador.
• User: The brand, at certain times emulates the final user.
 2.3.2 The Characteristics
of Successful Brands
A brand can be an everlasting and lucrative asset as long as it is maintained in a goo
d man that can continue satisfying consumers’ needs, Bachelor (1998) and Murphy
(1998). Although successful brands can be totally different in nature; they share so
mething in common, for instances well-priced products and consistent quality, Mur
phy (1998). As mentioned by Levitt (1983), there are four elements for building a su
ccessful brand, namely tangible product, basic brand, augmented brand and potenti
al brand.
Tangible product refers to the commodity which meets the basic needs of the custo
mers.
Basic brand, on the other hand, considers the packaging of the tangible product so
as to attract the attention from the potential customers. The brand can be further a
ugmented with the provision of credibility, effective after sales services and the like.
• Potential brand is established through engendering customer preference and loyal
ty. By doing so, the image of the brand could be well instilled in the customers’ mi
nd.
2.3.3 Branding as a Promotional Tool

Many manufacture companies use branding as a mea

ns of achieving attraction of buyer. They do
• This by using attractive name so that when consum
er hears of the name they will like to get that partic
ular product by all means e.g. sweet which is lotion
used in smoothing the body many customer likes th
e name because they thought that it is sweet just as
the name implies. Mehta (1999)
2.3.4 Important of Branding
to the Market and Customer
2. Many customers are willing to buy new thing but h
ave gamble and won, they will to buy a
“Sure thing” thereafter.
3. Research has shown that the known brand usually
had fairly consistence quality.
4. Brand makes it easy for consumer to identify prod
uct or services.
• 5. Branding increase innovation in society by given
producer on incentive to take a new feature.
2.5.1 Packaging
Packaging according to Kotler
(2003) defined packaging “as
all the activities of designing a
Producing the container for a
product. The container is
called a package. Stanton
defines packaging as the
general group of activities in
product planning that involves
designing and producing the
container or wrapper for a
product.
When raw materials have
undergone full processing
product items need to be put
2.5.2 Packaging decision and types

Packaging can be classified into three different levels namely primary, seco
ndary and shopping Packages the decision on how to carry this level of pa
ckaging is done by the effort of the manufacturers. Keller (1998)
1. Primary Packaging: This refers to product immediate living/wrapper. Th
e primary package Remain on the product until the consumer is ready to u
se it like the toilet soap, sweet, chewing gum etc. In other instance, the pri
mary package is retained throughout the entire life span of the product. Ex
ample perfume, Vaseline etc.
2. Secondary Package: These are additional layers that protect the primary
package which are discarded at the level of wholesaler or retailer for ex
ample, the cupboard boxes containing the bottles of perfume are a secon
dary package and produce additional protection and promotion.
• 3. Shipping Package: This refers to further identification etc. in wooden b
oxes, metal boxes crates.
2.5.3 Packaging as an Aid to Marketing