A study effects of packaging on sales and exports

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

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

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

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.

• 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

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.

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

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

* 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.

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.

* 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.

* 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

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

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.

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

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

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

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

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.

CHAPTER – 2
LITERATURE REVIEW

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

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

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

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.

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

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.

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).

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.

CHAPTER – 3
RESEARCH
METHODOLOGY

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.

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:

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

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;

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.

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

Q2. What kind of effects you see onsales?
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

Q3. Do you pack your goods at your own?
Yes 3
No 2
Total 5
Table4. Pack own goods
Fig3: Pack own goods
60%
40%
Pack own goods
Yes
No

Q4. On what basis you change your packaging strategy?
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

Q5. Do you face any problem in packaging?
Yes 4
No 1
Total 5
Table6. Problems during packaging
Fig5: Problems during packaging
80%
20%
Problemsduring Packaging
Yes
No

Q6. What kind of problem do you face in packaging?
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

Q7. Do you Export?
Yes 3
No 2
Total 5
Table8. Export
Fig7: Export
60%
40%
Export
Yes
No

Q8. Is your product easily identified because of the packaging of other products?
Yes 5
No 0
Total 5
Table9. Identification of Products
Fig8: Identification of Products
100%
0%
Identification of Products
Yes
No

Q9. What are benefits of packaging?
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

CHAPTER – 5
RESULTS & FINDINGS

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.

 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.

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.

CHAPTER – 6
SUMMARY, COCLUSION &
SCOPE FOR FURTHER
RESEARCH

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.

 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.?

CHAPTER – 7
SUGESSTIONS &
RECOMMENDATIONS

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.

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.

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

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.

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.

12) What are the benefits of packaging?
a. Increased sales.
b. large access to market.
c. More customers.
d. Above all.

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

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

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

A study effects of packaging on sales and exports

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