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A study effects of packaging on sales and exports

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A study effects of packaging on sales and exports

  1. 1. INDEX S. No. Topics Page No. 1 Certificate 1 2 Certificate of Originality by Student 2 3 List of Tables 3 4 List of Figures 4 5 Chapter 1: Introduction 5 6 Chapter 2: Literature Review 22 7 Chapter 3: Research Methodology 31 8 Chapter 4: Data Analysis 37 9 Chapter 5: Results & Findings 47 10 Chapter 6: Summary, Conclusion & Scope of Further Research 51 11 Chapter 7: Suggestions & Recommendations 54 12 References 56 13 Annexure: Questionnaire 58
  2. 2. List of Tables S. No. Table Name Page No. 1 Analysis 31 2 Effects of Packaging 36 3 Effects on Sales 37 4 Pack own goods 38 5 Packaging Strategy 39 6 Problems during packaging 40 7 Kind of problems 41 8 Export 42 9 Identification of products 43 10 Benefits of Packaging 44
  3. 3. List of Figures S. No. Name of Figure Page No. 1 Effects of Packaging 36 2 Effects of Sales 37 3 Pack own goods 38 4 Packaging Strategy 39 5 Problems during Packaging 40 6 Kind of problems 41 7 Export 42 8 Identification of Products 43 9 Benefits of Packaging 44
  4. 4. CHAPTER-1 INTRODUCTION
  5. 5. 1.1 About Packaging Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business and institutional, industrial, and personal use. Packaging is a process of covering, wrapping of goods into a package. Packaging involves designing & producing the wrapper for a product. Packaging is next to grading and branding and Packaging is essential for offering goods in safe, and secured position to consumer. Packaging Definition: Packaging can be defined as, "All the activities of designing and producing the container or wrapper of a product". The container is called package. Packaging is a structure designed to contain a commercial food product, i.e. to make it easier and safer to transport, to protect the product against contamination or loss, degradation or damage and to produce a convenient way to dispense the product. Packaging also pertains as a Container or Wrapper for a consumer product that serves a number of purposes including protection and description of the contents, theft deterrence, and product promotion. Innovative and attractive packaging may actually add value to the product if it meets a consumer need such as portion control, recyclability, tamper-proofing, child-proofing, easy-open, easy-store, easy-carry, and non-breakability. The main aims of packaging are to keep the goods in good condition until it is sold and consumed, and to encourage customers to purchase the product. Correct packaging is essential to achieve both these objectives. The importance of packaging can be summarized as follows.
  6. 6. • If adequately packaged, the shelf-life of local surpluses of goods may be extended, and this allows the goods to be distributed to other areas. In doing so, consumers are given more choice in terms of goods available, resources can be more equitably distributed, and rural producers may be able to generate income from surplus produce. • Correct packaging prevents any wastage (such as leakage or deterioration) which may occur during transportation and distribution. • Good packaging and presentation encourages consumers to buy products. We are going to conduct whole research to find a conclusion regarding how packaging affects the sale of goods and in what ways packaging makes the transit process convenient and safe. Packaging is concerned with designing and producing of appropriate packages for a product. In this project we will demonstrate both theoretically and empirically about how packaging effects the sale of export goods. Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. The wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote and otherwise make the product marketable and keep it clean. Packaging is more than just your product's pretty face. Your package design may affect everything from breakage rates in shipment to whether stores will be willing to stock it. For example, "display ability" is an important concern. The original slanted-roof metal container
  7. 7. used for Log Cabin Syrup was changed to a design that was easier to stack after grocers became reluctant to devote the necessary amounts of shelf space to the awkward packages.  Other distribution-related packaging considerations include: e label of your product when it is distributed in specific ways. For e.g., labels of food products sold in retail outlets must contain information about their ingredients and nutritional value. to--and should be able to--sample or examine it before buying, your packaging will have to be easy to open and to reclose. If, on the other hand, your product should not be opened by anyone other than the purchaser--an over-the-counter medication, then the packaging will have to be designed to resist and reveal tampering. ulky or heavy packaging may add too much to transportation costs. ultimate consumer. If your distribution system can't be relied upon to protect your product, your packaging will have to do the job. Packaging is now generally regarded as an essential component of our modern life style and the way business is organized. Packaging is the enclosing of a physical object, typically a product that will be offered for sale. It is the process of preparing items of equipment for transportation and storage and which embraces preservation, identification and packaging of products. Packing is recognized as an integral part of modern marketing operation, which embraces all phases of activities involved in the transfer of goods and services from the manufacturer to the consumer.
  8. 8. Packaging is an important part of the branding process as it plays a role in communicating the image and identity of a company. Kotler defines packaging as "all the activities of designing and producing the container for a product." Packaging can be defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean. Packaging is the outer wrapping of a product. It is the intended purpose of the packaging to make a product readily sellable as well as to protect it against damage and prevent it from deterioration while storing. Furthermore the packaging is often the most relevant element of a trademark and conduces to advertising or communication. 1.2 Functional Requirements of packaging: (i) Protection and preservation A basic function of package is to protect and preserve the contents during transit from the manufacturer to the ultimate consumer. It is the protection during transport and distribution; from climatic effects (heat and cold, moisture, vapour, drying atmospheres); from hazardous substances and contaminants; and from infestation. Protection is required against transportation hazards spillage, dirt, ingress and egress of moisture, insect infection, contamination by foreign material, tampering pilferage etc. A package should preserve the contents in 'Factory Fresh' condition during the period of storage and transportation, ensuring protection from bacteriological attacks, chemical reaction etc. (ii) Containment Most products must be contained before they can be moved from one place to another. To function successfully, the package must contain the product. This containment function of
  9. 9. packaging makes a huge contribution to protecting the environment. A better packaging help to maintain the quality of the product and reachability of the product in the consumer's hand without spillages it gives better image to the organisation. (iii) Communication A major function of packaging is the communication of the product. A package must communicate what it sells. When international trade is involved and different languages are spoken, the use of unambiguous, readily understood symbols on the distribution package is essential. It is the interest further that to get appropriate communication to the consumer about the product, how to use it and other utility information’s. Packaging protects the interests of consumers. Information includes: quantity; price; inventory levels; lot number; distribution routes; size; elapsed time since packaging; colour; and merchandising and premium data. 1.3 Types of packaging An important distinction is to be made here between two types of packaging o Transport packing: The product entering in to the trade need to be packed well enough to protect against loss damage during handling, transport and storage. E.g.: fibreboard, wooden crate etc. o Consumer Packing: This packaging holds the required volume of the product for ultimate consumption and is more relevant in marketing. Eg: beverages, tobacco etc. 1.4 Hazards of Transport There are four main hazards of transport * Drops and impacts
  10. 10. * Compression forces * Vibration * Climatic variations 1.4.1 Various Mechanical Tests o Drop Test: This test help to measure the ability of the container and inside packing materials to provide protection to its contents and to measure the ability of the container to withstand rough handling. o Vibration Test: This test is to determine the ability of the container to withstand vibration and the protection offered by materials used for interior packing. o Compression Test: This test is carried out, generally, on empty containers, to measure the ability of the container to resists external compressive loads applied to faces or applied to diagonally opposite edges or corners. o Inclined Impact Test: This test help to study the extent of damage in a way of crushing, breaking, cracking, distortion, and shifting during handling storage and transport which occurs to the container and its content. o Rolling Test: This test helps to evaluate the overall strength of the container and the cushioning material provided inside and any failure of the content. o Drum test: This test help to evaluate loaded shipping containers with respect to general overall durability and for the protection afforded to the contents against certain hazards of handling and shipment. 1.4.2 Various Climatic Tests o Rain Test: This test is conducted in a simulated rain condition to assess its impact on the test area for two hours.
  11. 11. o Sand and Dust Test: This test is to evaluate the resistance of a package to the penetration of sand and dust. o Salt Spray Test: This test is to evaluate the resistance of a package to corrosion by salt spray and to serve as a general standard for corrosion. o Fungus Resistance Test: This test is to evaluate all the materials used in the fabrication of shipping containers for fungus resistance. 1.4.3 Importance of Cushion Materials Cushioning is that part of packaging, which protects the article from damage due to shock and vibration. The main functions of cushioning materials can be detailed as follows: o Shock protection against vibration o Protection against abrasion o Protection of grease proof and water proof barriers at ponut of contact with solid blocks o Protection of moisture vapour barriers at points of contact with sharp edges of the article itself. o Protection of small projections o Filling of void space in the container o Other secondary purposes 1.4.4 Packaging Cost The most important aspect when we look into packaging is the packaging cost. Packaging cost include the following: * Material cost: It means the cost of the pack and quality control cost. * Storage and handling cost of empty packages: This include the handling cost of bulky packages, heavy materials of construction, drums etc.
  12. 12. * Packaging operation costs: This includes the cost involved in operations like, cleaning the package product filling – closing, labeling – unitizing, stencilling, handling cylindrical slums etc. * Storage of filled packages: This includes the cost incurred to shift the goods from one form of packaging to another. * Transportation cost of filled packages: This involves the transportation cost by sea, air etc. (freight by volume) * Loss and Damage cost: It is related to the loss and damage during operation, transportation delivery etc. * Insurance cost: It varies depending on the vulnerability of package * Effect of packages on sales: The package that influence on sales. * Obsolescence Cost: This cost involves when changes in the packaging materials, packages and labels happen. * Package developmental cost: This include the evaluation cost, pilot test cost, field testing cost, consumer research cost, feedback cost, final trial cost etc. 1.5 Importance of packaging: An Overview Some of the major significance of packaging can be detailed as follows: * Can make a product more convenient to use or store, easier to identify or promote or to send out a message. * Can make the important difference to a marketing strategy by meeting customers' needs better. * Packaging plays a key role in brand promotion and management. Packaging is of great importance in the final choice the consumer will make, because it directly involves convenience, appeal, information and branding.
  13. 13. * The paramount concern of packaging is the reachability of the product without any damage. No matter where and how the products are transported or shipped, they arrive at the customer's door in working condition without need of repair or adjustment. * Packaging is especially important in certain industry where future sales may be based largely on the quality, integrity and performance of a company's previous delivery. 1.6 Purposes of packaging and package labels Packaging and package labeling have several objectives: 1.)Physical protection – The objects enclosed in the package may require protection from, among other things, mechanical shock, vibration, electrostatic discharge, compression, temperature etc. 2.)Barrier protection – A barrier from oxygen, water vapour, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function. A barrier is also implemented in cases where segregation of two materials, prior to end use is required, as in case of special paints, glues, medical fluids etc. At consumer end, the packaging barrier is broken or measured amounts of material removed for mixing and subsequent end use. 3.) Containment or agglomeration – Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and granular materials need containment. 4.) Information transmission – Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical
  14. 14. products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes. Most items include their serial and lot numbers on the packaging, and in the case of food products, medicine, and some chemicals the packaging often contains an expiry/best-before date, usually in a shorthand form. Packages may indicate their material with a symbol. 5.) Marketing – The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. Most packaging is designed to reflect the brand's message and identity. 6.) Security – Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage or the theft and resale of products: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Counterfeit consumer goods, unauthorized sales (diversion), material substitution and tampering can all be prevented with these anti-counterfeiting technologies. Packages may include authentication seals and use security printing to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention. 7.) Convenience – Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, reuse, recycling, and ease of disposal
  15. 15. 8.) Portion control – Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It also aids the control of inventory: selling sealed one- litre-bottles of milk, rather than having people bring their own bottles to fill themselves. 1.7 Packaging types Packaging may be looked at as being of several different types. For example a transport package or distribution package can be the shipping container used to ship, store, and handle the product or inner packages. Some identify a consumer package as one which is directed toward a consumer or household. Packaging may be described in relation to the type of product being packaged: medical device packaging, bulk chemical packaging, over-the-counter drug packaging, retail food packaging, military materiel packaging, pharmaceutical packaging, etc. It is sometimes convenient to categorize packages by layer or function: "primary", "secondary", etc. *Primary packaging is the material that first envelops the product and holds it. This usually is the smallest unit of distribution or use and is the package which is in direct contact with the contents. *Secondary packaging is outside the primary packaging, perhaps used to group primary packages together. *Tertiary packaging is used for bulk handling, warehouse storage and transport shipping. The most common form is a palletized unit load that packs tightly into containers.
  16. 16. These broad categories can be somewhat arbitrary. For example, depending on the use, a shrink wrap can be primary packaging when applied directly to the product, secondary packaging when combining smaller packages, and tertiary packaging on some distribution packs. 1.8 Symbols used on packages and labels Many types of symbols for package labeling are nationally and internationally standardized. For consumer packaging, symbols exist for product certifications (such as the FCC and TÜV marks), trademarks, proof of purchase, etc. Some requirements and symbols exist to communicate aspects of consumer rights and safety, for example the CE marking or the estimated sign that notes conformance to EU weights and measures accuracy regulations. Examples of environmental and recycling symbols include the recycling symbol, the recycling code (which could be a resin identification code), and the "Green Dot". Food packaging may show food contact material symbols. In the European Union, products of animal origin which are intended to be consumed by humans have to carry standard, oval-shaped EC identification and health marks for food safety and quality insurance reasons. Bar codes, Universal Product Codes, and RFID labels are common to allow automated information management in logistics and retailing. Country of Origin Labeling is often used. Some products might use QR codes or similar matrix barcodes. Packaging may have visible registration marks and other printing calibration/troubleshooting cues. 1.8.1 Shipping container labeling Technologies related to shipping containers are identification codes, bar codes, and electronic data interchange (EDI). These three core technologies serve to enable the business functions in the process of shipping containers throughout the distribution channel. Each has an essential
  17. 17. function: identification codes either relate product information or serve as keys to other data, bar codes allow for the automated input of identification codes and other data, and EDI moves data between trading partners within the distribution channel. Elements of these core technologies include UPC and EAN item identification codes, the SCC- 14 (UPC shipping container code), the SSCC-18 (Serial Shipping Container Codes), Interleaved 2-of-5 and UCC/EAN-128 (newly designated GS1-128) bar code symbologies, and ANSI ASC X12 and UN/EDIFACT EDI standards. Small parcel carriers often have their own formats. For example, United Parcel Service has a MaxiCode 2-D code for parcel tracking. RFID labels for shipping containers are also increasing in usage. A Wal-Mart division, Sam's Club, has also moved in this direction and is putting pressure on its suppliers for compliance. Shipments of hazardous materials or dangerous goods have special information and symbols (labels, placards, etc.) as required by UN, country, and specific carrier requirements. With transport packages, standardized symbols are also used to communicate handling needs. Some are defined in the ASTM D5445 "Standard Practice for Pictorial Markings for Handling of Goods" and ISO 780 "Pictorial marking for handling of goods". 1.9 Major Package Labels: Flammable liquid Explosives
  18. 18. This way up Fragile material Keep away from water 1.10 Packaging machines A choice of packaging machinery includes: technical capabilities, labour requirements, worker safety, maintainability, serviceability, reliability, ability to integrate into the packaging line, capital cost, floor space, flexibility (change-over, materials, etc.), energy usage, quality of outgoing packages, qualifications (for food, pharmaceuticals, etc.), throughput, efficiency, productivity, ergonomics, return on investment, etc. 1.10.1Packaging machinery can be: 1. Purchased as standard, off-the-shelf 2. Purchased custom-made or custom-tailored to specific operations 3. Manufactured or modified by in-house engineers and maintenance staff
  19. 19. Efforts at packaging line automation increasingly use programmable logic controllers and robotics. 1.10.2 Packaging machines may be of the following general types: Accumulating and Collating Machines Blister packs, skin packs and Vacuum Packaging Machines Bottle caps equipment, Over-Capping, Lidding, Closing, Seaming and Sealing Machines Box, Case and Tray Forming, Packing, Unpacking, Closing and Sealing Machines Cartooning machines Cleaning, Sterilizing, Cooling and Drying Machines Coding, Printing, Marking, Stamping, and Imprinting Machines Converting Machines Conveyor belts, Accumulating and Related Machines Feeding, Orienting, Placing and Related Machines Filling Machines: Handling dry, powdered, solid, liquid, gas, or viscous products Inspecting: Visual, sound, metal detecting, etc. Label dispenser Orienting, Unscrambling Machines Package Filling and Closing Machines Palletizing, Depalletizing, Unit load assembly Product Identification: labelling, marking, etc. Sealing Machines: Heat sealer Slitting Machines Weighing Machines: Check weigher, multiheadweigher
  20. 20. Wrapping machines: Stretch wrapping, Shrink wrap, Banding Form, Fill and Seal Machines Other specialty machinery: slitters, perforating, laser cutters, parts attachment, etc. 1.11 Significance of Packaging The significance of packaging has come to be increasingly recognized in export as well as in marketing of a wide range of consumer goods and industrial products within the country. The volume of exports depends not only on the quantity of the production and prices, but also to a substantial extends on the standards of packaging adopted for the products. Goods damaged in transit or arriving at the destination in an unacceptable condition tarnishes the reputation of the manufacturer as well as the country as a whole, besides colossal wastage of scarce economic resources. Further, packaging has a crucial role to play in the fetching higher unit values for our consumer goods (like tea and cashew) through the substitution of the bulk packs by consumer packs. In the recent past packaging has been increasingly recognized as a significant factor in the nations export promotion effort. Effort should be there to understand the importance of packaging there by to avoid the loss and damage cost incurred during transport and delivery. Keep in mind that a conscious effort on the part of marketing managers can increase the volume of sales and there by improve the reputation of the product and organisation.
  21. 21. CHAPTER – 2 LITERATURE REVIEW
  22. 22. Literature review is the significant aspect in the research process because it is the only aspect that can be used to find the research data from published information sources. Different ideas and opinions of scholars can be considered and analyzed in a critical manner in order to fill the research gaps. Literature review chapter of this research study includes the significant information on different aspects related to problem statement such as packaging industries in Madhya Pradesh, buying behavior of customers, and packaged export strategies. Reviews contains- 1. Packaged exports in Madhya Pradesh and other states. 2. Growth and scenario of packaging industries. 3. Potential for Growth History. 4. Various complexities of packaging. The prime objective of this literature survey is to identify those variables, which are involved in this research study about perception of food packaging, that how consumer perceive about food packaging in industry and how they are influence the purchase of consumer decision in choosing any FMCG food products. In early times, prior to World War II, Packaging was used primarily to surround and protect products during storage, transportation, and distribution. Some packages were designed with aesthetic appeal and even for ease-of-use by the end consumer, but package design was typically left to technicians. After World War II, however, companies became more interested in marketing and promotion as a means of enticing customers to purchase their products. As a
  23. 23. result, more manufacturers began to view packaging as an integral element of overall business marketing strategies to lure buyers. Rita Kuvykaite (2009) has descriptive research. According to Rita, package attracts consumer’s attention to particular brand, enhances its image and influences consumer’s perceptions about product. Also imparts unique value to products. (Underwood, Klein & Burke, 2001; silayoi&speece, 2004), works as a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar products, stimulates customers buying behaviour (wells, Farley & Armstrong, 2007). Thus package performs an important role in marketing communications and could be treated as one of the most important factors influencing consumer’s purchase of package, its elements and their impact on consumers buying behaviour became a relevant issue. He basing on theoretical analysis of package elements and their impact on consumers purchase decision empirically reveal the elements having the ultimate effect on consumer choice. Research methods that Rita used is systematic and comparative analysis of scientific literature; empirical research there are six variables that must be taken into consideration by producer and designers when creating efficient package: form, size, colour, graphics, material and flavour. Similarly, Kotler (2003) distinguishes six elements that according to him must be evaluated when employing packaging decisions: size, form, material, colour, text and brand. The research result of Rita shows the impact of package elements on consumers purchase decisions can be stronger. He conclude that package could be treated as one of the most valuable tool in today’s marketing communications, necessitating more detail analysis of its elements and an impact of those elements on consumers buying
  24. 24. behaviour. The impact of package and its elements on consumers purchase decision can be revealed by analysing an importance of its separate elements for consumer’s choice. Bed nath Sharma Dec. (2008) studied new consumer products branding, packaging and labelling in Nepal. This paper focuses on existing practice of branding, packaging and labelling of new products in consumer product manufacturing units. The study method was descriptive presentation of facts collected through questionnaire survey concerned with different section of consumer new products (Soap, biscuit, noodles, cigarettes and the study further investigates the new consumer product packaging and labelling status in manufacturing units. They are aware about the value of packaging and labelling. Majority of the consumer products 84.37% (27 out of 32 responses) are using product label as a simple tag attached to the product or an elaborately designed graphic that is part of the package. Alice louw (2006) has studied the power of packaging the people belonged to age 20-30 years old university graduates were taken for research. 20 representatives were asked to rank 5 water bottles in terms of their overall appeal. Following this, they were given a questionnaire and asked to rate each of the bottles on 20 statements related their packaging. For the remaining 20 respondents, the order of the process was switched: that rated the bottles first and then ranked them. The statements ranged from functional attributes (e.g. I like the colours, high quality). For the both groups there was a clear winner and a clear loser in terms of the rankings. However, although the top brand chosen was consistent in both groups, the worst brand differed. The group that ranked the bottles first showed more variance in terms of their responses (variance 1.33) than the second group who rated the attributes first (variance 0.89). This packaging plays an
  25. 25. important role in the marketing context. His research results that right packaging can help a brand carve a unique position in the marketplace and in the minds on consumers. John ThGersen (2000) worked on The Ethical Consumer. Moral norms and packaging choice published in journal of consumer policy Kluwer Academic Publishers. Printed in the Netherlands. The paper presents a study of a case with these two characteristics: Danish Consumer’s choice presents a study of a case with these two characteristics: Danish consumer’s choice of environment friendly packaging. With regard to this case, the evidence supports the claim. A majority of Danish consumers have developed personal norms about choosing environment friendly packaging and the personal norm is a significant predator of their (self- reported) propensity to choose environment friendly packaging in the supermarket. Renaud LUNNARDO (2007) has a great research on the influence of label on wine consumption. Its effects on young consumer’s perception of authenticity and purchasing behaviour. The main objective of the paper is to identify the effects of authenticity on purchase behaviour. They used a repertory grid (RG) approach as a methodological framework in order to know which pattern of features is better at inducing purchase. All the relationships between authenticity provided by the label of bottles and consumer behaviour attributes (performance risk, perceived price and purchase intentions) have all been tested by using linear regressions. This study was intended to provide a more complete understanding of the influence of the authenticity perceive from the label of bottled wine. As an attempt to extend the research on the influence label of bottled wine can have on consumer’s decisions of buying, the current it is clear from these findings is the major role played by labels.
  26. 26. L. Renaud (2007) worked on the influence of Eco-labelling on consumer behaviour. The main objective of this study was to assess the relative importance of the labelling in packaging compared to other product attributes (like brand, price, etc.) for consumers buying decisions. The methodological approach that they chose was discrete choice analysis, which is particularly powerful for this kind of analysis. Further this study attempts to analyse if the importance of the labelling and packaging differs between product groups. They surveyed a total of 302 customers; two thirds of the interviews were conducted in the German speaking. The variables chose within this study are, present mood, time, buying purpose with regard to sustainability marketing time. The most important result of analysis is the significant willingness to pay for packaging energy products. AdelinaBroadbridge& Henry Morgan (2007), consumer buying behaviour and perception toward retail and brand baby products. A two stage research methodology consisting of both qualitative and quantitative research technique was adopted. The population was defined as “parents of children under the age of five who use baby care products”. Both the qualitative and quantitative research showed that respondents adopted similar risk reduction strategies in their purchase of baby care products. This research investigated consumer perceptions and buying behaviour of baby care products. The results of the primary research indicated that consumers need to feel confident with the product in terms of reliability and performance and packaging. BytyqiHysen, VegaraMensur (2008), have research on analysis of consumer buying behaviours in regard to dairy products in Kosovo. This survey was carried out by the Department of
  27. 27. Livestock and Veterinary Sciences, Agriculture Faculty of Pristina, Kosovo during 2007. Interviews of 304 respondents were conducted in supermarkets (677) and mini markets (397) and later 23 interviews were completed in green market mainly for sharri cheese and curd. To study the reasons for choosing milk products upon supply a coding approach from 1-5 was used (1= very important; 2=highly important; 3= average; 4= less important; 5= not Important). Perception of consumers about dairy products was assessed using different variables i.e. habits, trust, price, quality, package, age of consumer, origin of product, type of shop, brand and gender of consumer. It was conclusion after analysis that the packaging has great effect on the purchase of dairy product. Rita Kuvykaitel, AisteDovaliene, Laura navickiene (2009) worked on impact of package elements on consumer purchase on consumer purchase decision economics & management. Material are the most important visual elements for purchasing both milk and washing powder whereas in this case form, colour and graphic could be treated as unimportant elements of package. When analysing importance of verbal elements, it could be stated that product information and country of origin are the most important elements. Furthermore its worth to add, that producer and brand couldn’t be underestimated too, because the importance of both of these elements is treated by customers above the average. Comparing the impact of visual and verbal elements of package on consumers purchase decision it could be stated that verbal elements are more important than visual ones, when purchasing both milk and washing powder. According to the research model developed the impact of package’s elements on consumers purchase decision depending on time pressure, consumers involvement level and individual characteristics were analysed.
  28. 28. H. Ahansul, K Ali (2009), measured the factors influencing buying behaviour of piracy impact to Malaysian. A structured questionnaire was used to collect data whereby it was served as primary data to answer the research questions and objectives planning to find out the factors that the dependent variable is consumer’s perception on piracy. Where else the independent variable is consumer perception on piracy. Where else the independent variables would be divided to social influences, personality/believe, culture and the economy. These are the factors that could influence perception on piracy thereby supporting out dependent variable. Social influence would include susceptibility which means an individual might purchase a pirated product merely because his/her friend or family members bought the product and introduced it to them. Ulrich R. Orth (2009) worked on packaging design as resource for the construction of brand identity. A thorough review of the literature on packaging design reveals that there are no meaningful guidelines for developing holistic packaging design, shapes, finishes, sizes, images, typography, colours, impressions, purchase intentions and brand. This research was conducted by collecting information and data in stages. Several studies have investigated issues such as package as means of attracting the attention of consumers (Underwood et. Al. 2001; Garber et al. 2000). Other studies researched packages as a means of communications as well as a means of communicating brand and product meaning (Underwood & Klein 2002; Garber et al, 2000, Schoormans&Robben 1997).
  29. 29. Packages are found to attract attention (underwood et al 2001; Garber et al 2000; Goldberg et al 1999). In fact, Goldberg (1999) found that by dismissing such non-verbal signs as colours, the attention of verbal science can be increased. Pictures on packages are emphasized to attract attention, particularly when consumers are not very familiar with the brands (underwood et al 2001). Liang Lu (2008), worked on a paper: packaging as a strategic tool university of Halmstad school of business and engineering. Packaging is an important of the product that not only serves a functional purpose, but also acts as a mean of communicative information of the product and brand character.
  30. 30. CHAPTER – 3 RESEARCH METHODOLOGY
  31. 31. 3.1 The Study It is a study of export scenario of Packaging industry in India. This research is about India’s packaging process, contribution of packaging in protection of goods and marketing, and various procedures of packaging. The study was formed on the companies who are dealing in packaging in Indore. Companies were approached to know the current scenario. Total 5 companies respondent were recorded. 3.2 Stages of Research 3.2.1 Preliminary stage Actions Packaging is always considered to be an important aspect of product design, to know its scenario was the main reason for selecting this topic. The agenda of the research was analysis of packaging of goods and its effects on export, understanding of packaging technology and process of packaging in India. On the basis questionnaire was formed and discussed with mentors. it include questions related to understand the effects of packaging and on what basis its done, after which it was circulated among group of people for pilot testing, through which some mistakes were identified and corrected. 3.2.2 Data collection Stage Actions The questionnaire was then distributed among various companies who deal in packaging of various goods to have a mixed response. They were approached directly by visiting their offices or some also replied through email. Before filling the questionnaire each respondent was informed about the topic and the reason behind it. During their response to the questions proper guidance was provided, if they had any problem it was solved.
  32. 32. 3.2.3 Data Analysis and Presentation Stage Actions After the questionnaires were filled they were checked twice to identify the wrong and unfilled questionnaires, as if they were removed from the final collection. Once all the improper questionnaire were removed these steps were followed for the analysis. The questions were coded in order to identify them ↓ Then there entries were made in excel sheet on the basis of the responses by the respondent to the questions ↓ Then after the completion of excel sheet final data was converted into tabular form ↓ The data was then interpreted in form of charts and graphs ↓ Lastly the data was analysed using Z test and chi square analysis on the basis of objectives and hypothesis Table1. Analysis 3.3 The problem The problem identified was the effects on packaging of goods in India. 3.3.1 Objectives The objective of my research is:
  33. 33. 1. To examine the effect and importance of packaging on sales and protection of goods. 2. To know to which extend packaging could be used in product differentiation and identification. 3. To know the problem and prospects of packaging, to suggest way of enhancing and improving package product. 3.4 The Design 3.4.1 Basic research Design This research is completely a descriptive kind of research it includes the scenario of packaging on the basis of following factors. 3.4.2 Sources of Data Primary data was collected through questionnaires and secondary data was collected through websites and other internet resources. 3.4.3 Research Approach and Contact method This research was started with identification of problem and then on the basis questionnaire was formed to be filled by the respondents companies in Indore. After this, the target participants were approached to get the questionnaire filled. The respondent included companies who are dealing in export of soybean. They were approached by visiting their offices some respondent also replied through mail. Before filling the questionnaire each respondent was informed about the topic of research and the reason behind it. 3.5 The sample 3.5.1 Research Population
  34. 34. In this research we are taking sample population as packaging firms, who is dealing in export or domestic sale of packaged goods. 3.5.2 Sample unit The sample unit for this research is companies who are dealing in packaging. 3.5.3 Sample size The sample size for this research was taken as 5 companies. 3.5.4 Sampling techniques Simple random sampling as well as purposive sampling was used as the sampling techniques for this study. 3.5.5 Sample distribution Companies who are dealing in packaging 3.5.6 Sampling frame. The companies who package goods at Indore in Madhya Pradesh is the sampling frame. 3.6 The Tools 3.6.1 Data collection tools Primary data collection through sampling via questionnaires was used as the sampling tool in this research. Secondary data collection through internet resources 3.6.2 Data analysis tools Data analysis was done through testing of hypothesis. Tests applied were test of significance (z- test) and test for uniformity of data (goodness of fit-chi square test). Z= (X-np)/ npq X= Number of objects satisfying the given attributes;
  35. 35. n= Total number of objects (samples); p= proportion of objects satisfying the given attributes under the hypothesis; q= 1p Under chi square () test, the value of the test-statistic is given by: 𝜒2 = ( 𝑂 − 𝐸)2 𝐸 Where; ∑= summation (sum) O= observed frequency E= Expected frequency 3.7 Ethical issues in research As it is a primary research which involves involvement of participants while doing research so their confidence is must. All the participants are taken into confidence and their confidentiality is maintained. It is genuine research done by the researcher by maintaining confidentiality of all the participants who have contributed immensely to this research projects.
  36. 36. CHAPTER – 4 DATA ANALYSIS
  37. 37. Q1. Are there any effects of packaging on sales? Response Number of Responses Yes 5 No 0 Total 5 Table2. Effects of Packaging Fig1: Effects of Packaging 100% 0% Effects of Packaging Yes No
  38. 38. Q2. What kind of effects you see onsales? Response Number of Responses Increase in Customer Demand 2 Reduce Cost 2 None of the above 1 Total 5 Table3. Effects on Sales Fig2: Effects on Sales 40% 40% 20% Effects on Sales Increase in Customer Demand Reduce Cost None
  39. 39. Q3. Do you pack your goods at your own? Response Number of Responses Yes 3 No 2 Total 5 Table4. Pack own goods Fig3: Pack own goods 60% 40% Pack own goods Yes No
  40. 40. Q4. On what basis you change your packaging strategy? Response Number of Responses On the basis of price 1 On the basis of class/age group 0 On the basis of gender 1 On the basis of marketing purpose/advertisement 3 Total 5 Table5. Packaging Strategy Fig4: Packaging Strategy 20% 0% 20%60% PackagingStrategy Price Class/Age Gender Purpose/Advertisment
  41. 41. Q5. Do you face any problem in packaging? Response Number of Responses Yes 4 No 1 Total 5 Table6. Problems during packaging Fig5: Problems during packaging 80% 20% Problemsduring Packaging Yes No
  42. 42. Q6. What kind of problem do you face in packaging? Response Number of Responses Increase in cost of product 4 Decrease in sales 0 Decrease in profit 0 Total 4 Table7. Kind of problems Fig6: Kind of Problems 100% 0%0%0% Kind of Problems Increase in cost of product Decrease in sales Decrease in profit
  43. 43. Q7. Do you Export? Response Number of Responses Yes 3 No 2 Total 5 Table8. Export Fig7: Export 60% 40% Export Yes No
  44. 44. Q8. Is your product easily identified because of the packaging of other products? Response Number of Responses Yes 5 No 0 Total 5 Table9. Identification of Products Fig8: Identification of Products 100% 0% Identification of Products Yes No
  45. 45. Q9. What are benefits of packaging? Response Number of Responses Increased sales 0 Large access to market 0 More customers 1 Above all 4 Total 5 Table10. Benefits of Packaging Fig9: Benefits of packaging 0% 0% 20% 80% Benefits of Packaging Increased Sales Large access to market More customers Above all
  46. 46. CHAPTER – 5 RESULTS & FINDINGS
  47. 47. 5.1 Results &Findings As per the Data Analysis, the data has been extracted from 5 companies regarding the packaging concept. The findings that have been concluded are as follows: 1. According to the questionnaire filled, 100% companies i.e. all the 5 companies says that packaging of the products has a vital effect on the sales in the company. 2. Now if we talk about what kind of effect packaging makes on the sales of the companies then it is given below:  40% of the companies i.e. 2 companies says that packaging increases the customer’s demand.  40% of the companies i.e. 2 companies says that packaging reduces the cost of the product  20% of the companies i.e. 1 company says that packaging makes no effect on the sales of the company 3. According to the data, 60% of the companies i.e. 3 companies packs their products at their own and 40% i.e. 2 companies gets it done from the outside. 4. I asked the companies, how they change their packaging strategies and the results was this:  20% companies i.e. 1 company changes its strategy on the basis of Price.  0% companies i.e. no company changes it on the basis of class/age group.  20% companies i.e. 1 company changes it on the basis of Gender.
  48. 48.  60% companies i.e. 3 companies’ changes it on the basis of Purpose/Advertisement. 5. Accordingly, 80% of the companies i.e. 4 companies faces problems during the packaging and 20% i.e. 1 company doesn’t face any problem while packaging. 6. Kinds of problems faced by the companies while packaging its products are:  Increase in cost of products – 80% companies i.e. 4 companies  Decrease in sales – 0 companies  Decrease in profit – 0 companies 1 company did not respond for this question. 7. I also asked about the Export programme of companies and we got to know that, 60% of the companies i.e. 3 companies does the Export and 40% companies i.e. 2 companies doesn’t Export their products. 8. Then i asked them if their products are identified differently and easily because of the packaging of their and other’s products, so all the 5 companies said yes on this i.e. 100% Yes. 9. I finally asked about the benefits of packaging of the products from them and the answers were as follows:  20% companies i.e. 1 company said the benefit is more customers.  80% of the companies i.e. other 4 companies said the benefits are all i asked for i.e. Increased sales, Large Access to market and More customers.
  49. 49. The objective of the research can be best discussed as under; 1. To examine the effect and importance of packaging on sales and protection of goods. According to the fig. 1 and fig. 2, we can see that packaging has a major effect on the sales of the product for every company. Effects which are mostly seen are Increase in customer demand and Reduced Cost. 2. To know to which extend packaging could be used in product differentiation and identification. As we can see in fig. 8, 100% of the companies say that packaging helps a lot in the differentiation and identification of their products from other products. As packaging makes the product’s look and feel different and makes it easy for the customers to identify and differentiate their preferred products easily. 3. To know the problem and prospects of packaging, to suggest way of enhancing and improving package product. As given in the fig. 5, most companies says that they face problem in packaging, as 60% of the companies pack their products on their own and 40% of them get it done from outside as per the give fig. 3. The kinds of problems we discussed with the companies about the packaging of the products were increased cost of products, decreased sales, decreased profit; but the problem which all the companies are facing is Increase in cost of products according to fig. 6.
  50. 50. CHAPTER – 6 SUMMARY, COCLUSION & SCOPE FOR FURTHER RESEARCH
  51. 51. 6.1. Summary Summarizing, it could be stated that detail evaluation of package elements and their impact on consumer’s purchase decision, taking into consideration involvement level, individual characteristics of consumers, is necessary in order to implement efficient packaging decisions. 6.2. Conclusion As the Research has been done on the Packaging effects on the sales and exports of the company, it has been concluded that packaging is must for the tangible products of every company because of its vital effect on the sales and export of the company.  Package could be treated as one of most valuable tool in today’s marketing communications, necessitating more detail analysis of its elements and an impact of those elements on consumers buying behaviour.  Appropriate and vivid picture or packaging colour which delivers them a happy feeling, or an easy handle/open/dose/dispose package shape.  Empirically testing the research model proposed, package elements having the ultimate effect on consumer choice in a case of different products from group of convenience goods were determined.  Packaging has a better reach than advertising does, and can set a brand apart from its competition. It promotes and reinforces the purchase decision not only at the point of purchase, but also every time the product is used.  Research into packaging has found that different packaging cues impact how a product is perceived.
  52. 52.  According to my research, I found out that most consumers like the product quality after they purchased their desired package products. Based on those facts, we cannot say there is a 100% equal relationship between good package and good product quality, nut there is a positive thinking and trend about well-designed package shows high product quality. 6.3. Scope for Further Research Suggested areas for further research include a more in-depth analysis into the relationship between product attributes and total product assessment – how exactly does the research Process influence overall opinions, what is the best way to gain insight into preference without biasing the results? Is this possible? More research into the elements of pack design and how it influences consumer perceptions – are there universal rules or do they differ by product category, culture etc.?
  53. 53. CHAPTER – 7 SUGESSTIONS & RECOMMENDATIONS
  54. 54. 7.1. Recommendations and Suggestions  Brand is important and its strategy is in consideration in the units. Product packaging is valuable for brand equity, product differentiation, market segmentation, new product introduction, pricing, promotion etc. Brand name using plan implementation must be effective in the units.  All the marketing units pay attention for good packaging. They accept that poor packaging is one of the cause of product failure in the market. It is necessary to set the packaging standard and to implement accordingly for better protection and promotion of a product.  Consumer new product manufacturers mostly use the label in their products. Basically they describe that made it, where it was made, when it was made, what it contains, how to use it etc. Furthermore they believe that the consumers are properly guided by label to use the products. The information given in the label and its value have to be highlighted while promoting the product in the market. It must also be more useful technically.  I do believe that culture difference does have an impact on companies’ initiatives to design the product package, for instance, during our research; the choices of packaging colours are quite different between the West and Far East. Thus, we think that it is important for international companies to take a consideration of culture differences when they design the product package.
  55. 55. REFERENCES
  56. 56. Links:  Bubley packaging research, http://www.bubley.com/t-scopes/research.html  Miriam Webster dictionary,  http://www.m-w.com/dictionary/gestalt  Wikipedia Online Encyclopedia,  http://en.wikipedia.org/wiki/Tachistoscope  http://en.wikipedia.org/wiki/Packaging_and_labeling  eprints.port.ac.uk  dir.indiamart.com/industry/packaging-material.html Books:  Keller, K.L. (2003). Strategic brand management: Building, measuring and managing brand equity, and 2nd ed., Englewood Cliffs, NJ: Prentice-Hall.  Kotler, Ph. (2003) Marketing management, 9th ed. Upper Saddle River. Prentice-Hall.  Grossman, R.P. and Wisenblit, J.Z. (1999), "What we know about consumers' color choices", Journal of Marketing Practice: Applied Marketing Science, Vol. 5 No. 3, pp. 78- 88.  Rettie, R. and Brewer, C. (2000), "The verbal and visual components of package design", Journal of Product & Brand Management, Vol. 9 No. 1, pp. 56 – 70.  Book: Design and Technology of Packaging Decoration for the Consumer Market (Sheffield Packaging Technology, V. 1.
  57. 57. Websites:  Saferapck.com  Worldpackaging.org  Packworld.com  Packagingdigest.com  Global-packaging-alliance.com  www.iip-in.com  www.packaging-india.in  www.parksonspackaging.com  piai.org
  58. 58. ANNEXURE
  59. 59. Questionnaire 1) What is your company name? ……………………………………………………………………………………….. 2) Inception year of the company? ………………………………………………………………………………………… 3) Designation ………………………………………………………………………………………… 4) Are there any effects of packaging on sales? a. Yes b. No 5) What kind of effect you see on sales? a. Increase in customer demand. b. Reduced cost. c. None of the above. 6) Do you pack your goods at your own? a. Yes. b. No.
  60. 60. 7) On what basis you change your packaging strategy? a. On the basis of price. b. On the basis of class/ Age group. c. On the basis of gender. d. On the basis of marketing purpose/ advertisement. 8) Do you face any problem in packaging? a. Yes. b. No. 9) What kind of problem you face in packaging?? a. Increase in cost of product. b. Decrease in sales. c. Decrease in profit. 10) Do you Export? a. Yes. b. No. 11) Is your product easily identified because of the packaging of other products? a. Yes. b. No.
  61. 61. 12) What are the benefits of packaging? a. Increased sales. b. large access to market. c. More customers. d. Above all.
  62. 62. Excel Sheet Respondent Effect of packaging on sales kind of effect on sales pack your goods own yes no A B C yes no 1 1 1 1 2 1 1 1 3 1 1 1 4 1 1 1 5 1 1 1
  63. 63. Basis of change innstrategy of packaging Problem in packaging kind of problem A B C D yes no A B C 1 1 1 1 1 1 1 1 1 1 1 1 1 1
  64. 64. Do you export product identified because packaging Benefits of packaging yes no yes no A B C D 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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