the effect of packaging on consumer buying decision in the small scale industry (A case study of tiwajo industry limited, Ghana.)

THE EFFECT OF PACKAGING ON CONSUMER BUYING DECISION IN THE SMALL SCALE INDUSTRY (A CASE STUDY OF TIWAJO INDUSTRY LIMITED, GHANA)

ABSTRACT

Packaging is focal of effective circulation, deals and utilization of products and administrations. Many manufacturing firms have gone to the acknowledgment that one of their important resources is their packaging related with products. This investigation was to recognize and look at the job which packaging plays on consummer buying decisison in small scale industries in Ghana, particularly, in the soap and cream industry, because the industry under consideration in this paper (Tiwajo Industry Limited) deals on soap and cream manufacturing. Packaging exercises of the soaps and Creams of Tiwajo Industry Limited, Greater Accra, Ghana were utilized for this appraisal. In leading this examination, the researcher utilized structured questionnaires for primary data collection and pertinent data from secondary sources. Taking all things together, three arrangement of questionnaires were planned and focused at Consumers, distributors and management of Tiwajo Industry Limited Ghana Restricted individually. It was discovered that consumers are especially mindful of the job of packaging. Customers and distributors think about packaging at the purpose of procurement. They are subsequently inspired to purchase a greater amount of product and administrations that have appealing packaging regarding color and name and are of high caliber. Quality packaging conveys a positive picture about a product, making it all the more engaging and attractive to consumers. The investigation further uncovered that when effective packaging methodologies are executed, it helps with separating a company’s products from that of its rivals. It is accordingly prescribed that, companies in the soap and cream industry ought to think about packaging as an effective device in marketing their product. In planning packaging, the brand name, color and graphic ought to have the option to impart the trait and advantages of the products to the consumer. Packaging is central of effective distribution, sales and use of products and services. 

 CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. ( Selke S ,2004). Packaging as we know it today is the result of a long development process. It is the product of continues research aimed at finding better methods of packaging  the various goods we use , including our food  in order to ensure the best protection for them . The very first people to tread the earth, back in the depths of prehistory, sought to conserve the surplus food collected during their hunting, fishing and food gathering for the longest possible time so as to be well pre pared for any future food shortage. They used leaves from trees, woven baskets and animal skins to store their food. Terracotta was used to make vessels to carry liquids.

The remains of these earthen pots and leather pouches are today the treasure-troves of archaeologist and paleontologist. They teach them much about our ancient ancestor’s lifestyle s. But it is now clear that these early forms of packaging were very rudimentary and not hygienic with the result that daily life at that time revolved around the search for food. Most developing countries still suffer today from lack of packaging, a deficiency that results in the loss of some 50% of their resources.(Selke S, 2004). In the middle Ages, wooden barrels became the most frequently used way of preserving goods. They were used for storing all kinds of solids and liquids, protecting them from light, heat, dampness. Their considerable robustness allowed them to be transported on the perilous roads of the age and to be carried by boat. It was during the industrial revolution in Europe that packaging really took off. The vast range of products made  available to the consumer brought about a change in lifestyle, providing Consumers with greater choice allowing trade to flourish. The need for food packaging grew.

This continuous quest by mankind to find new methods of conserving food and transporting products has allowed us to move from a society living from one day to the next, dependent on available food sources to a world which manages its resources in the long term. Efficient packaging which can be adapted to all kind of goods has made this possible. Modern packaging is what allows us to reheat a frozen meal as well as to ensure that the Mona Lisa can be sent to the other world and arrive in one piece. (MckinlayA. H, 2004)

Ghanaian companies adapted to the new marketing concept that started Modern packaging as part of their strategic marketing tools. The new marketing concept was borne out of post – war economy of scarcity, pent up consumers demand and growing customer confidence, sophisticated and informed Consumers and global competitors, delivering superior value based on their distinctive competences. In the olden days, Ghanaians firms were considering packaging as just containers, boxes and bottles that were used to hold, store and protect a product. Modern packaging go beyond this  Ghanaian manufacturing companies  now see packaging as a marketing tool which can send message  to consumers and also influence their purchasing decisions.

In the soaps and cream industry the final stage of the manufacturing of soap and cream is packaging. In this stage the finished product is packed for final supply to Consumers. During the packaging stage, bar soaps are either wrapped or cartooned in single packs or multipacks. Creams, including household cleaners, dishwashing cleaner’s laundry cleaners are packed in cartons, bottles pouches, bags or cans. Because of the intense competition, companies are trying to make packaging attractive in order to win Consumers and to attain a greater market share, seeking legal protection for their brands so that they can be used in the long term in order to gain sustainable competitive advantage.

1.1 STATEMENT OF THE PROBLEM

Packaging is one of the most important steps in the manufacturing of soaps and cream and hence should be given prime consideration by manufacturers.However, packaging in Ghana has as not developed as with the international markets. Most companies in Ghana do not regard packaging as an effective tool in marketing of their products and hence refer to packages as mere containers, boxes, and bottles which are used to hold and protect a product. Meanwhile, in the face of stiff competition, packaging goes beyond this.

Some companies too do not know the relationship between product content and packaging. They consider product content and packaging as two separate independent things and hence they do not provide adequate information on the packages regarding the nutritional information required, information on the packages regarding the usage of the product, product content, the manufacturing date and the expiry date of the product: companies do not consider the safety of consumers. Labeling information is too often incomplete or misleading. (Perrault et al).

Most marketers do not have the knowledge as to whether packaging an alter customer perception of products; some of the materials used for packing by some companies do not create good impression about the product. For instance the color of some packages not being visually appealing and bulky nature of some packages makes them difficult to handle. It is on these grounds that the researcher seeks to find out why packaging is used as a marketing tool for gaining competitive edge in the soaps and cream industry, a study of Tiwajo Industry Limited, Ghana.

 1.2 THE OBJECTIVES OF THE STUDY.

GENERAL OBJECTIVE:

To conduct a study into the effectiveness of packaging on consumer buying decision in the small scale industry (A Case study of Tiwajo Industry Limited, Greater Accra, Ghana).

SPECIFIC OBJECTIVES:

• To examine the forms of packaging used by Tiwajo Industry Limited, Ghana in marketing of their products.
• To assess the impact of label information regarding the product content.
• To find out Consumers’ perception of packaging in the soap and cream industry.
• The study seeks to find out the role which packaging play in the soap industry.
• To find out the role which packaging plays in the soap industry?
• To make recommendations that may be adopted to improve packaging as an effective marketing tool in the soap and cream industry.

1.3 RESEARCH QUESTIONS

1. Is packaging an effective marketing tool in the soap and cream industry?
2. What forms of packaging do companies use in their marketing of their products?
3. Do companies have adequate knowledge about how packaging is used to benefit their business?
4. Does packaging influence consumer purchasing decisions at certain times?
5. What are the constraints confronting Tiwajo Industry Limited, Ghana in pursuing a strategic packaging?

1.4 HYPOTHESIS OF THE STUDY

Most companies in Ghana do not regard packaging as an effective tool in marketing of their products.

1.5 SIGNIFICANCE OF THE STUDY

Because of the intense competition in the Ghanaian markets, this study is very important and therefore cannot be overlooked. Companies are striving in becoming market leaders and to gain a fair market share.

The research will be of much benefit to:

• Manufacturing Companies: The study is useful to manufacturing companies because it will help them to plan, implement and evaluate packaging decisions and strategies.
• Policy Makers: It is hoped that this study will be very important to policy makers in formulating and implementing packaging decisions.
• Organizations: It will help organizations to win more customers through better packaging activities.
• Other Researchers: It will make available information to other researchers who might want to undertake a future study in the area.

1.6THE SCOPE OF THE STUDY

The study therefore focuses on only Tiwajo Industry Limited, Ghana. It covered a cross section of management staff, distributors and customers of the company.

• LIMITATIONS OF THE STUDY

Time and proximity constrains limits the quantum of information.  Also, delay encountered on the part of some respondents to fill and submit the questionnaire also formed a limitation to the study.

The top management of Tiwajo Industry Limited was reluctant to give off information due to corporate policy with regards to the lease of information to outsiders. Also, the extent of bureaucracy in the delayed the study. Financial constraint on the part of the researchers because of having to make  numerous  visits to Tiwajo Industry Limited

Notwithstanding the limitations, the researchers made every effort into making this work a success.

1.8ORGANISATION OF THE STUDY

The study comprises of five main chapters of which are as follows:

CHAPTER ONE.

• Background of the study.
• Statement of problem.
• Objectives of the study.
• Research questions.
• Hypothesis of the study.
• Significance of the studies.
• Scope of the study.
• Limitation of the study.
• CHAPTER TWO.

Literature review.

• CHAPTER THREE.

Methodology of the study.

• CHAPTER FOUR.

Data presentation and analysis.

• CHAPTER FIVE.

Summary of findings, recommendations and conclusion study

THE EFFECT OF PACKAGING ON CONSUMER BUYING DECISION IN THE SMALL SCALE INDUSTRY (A CASE STUDY OF TIWAJO INDUSTRY LIMITED, GHANA)

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