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Project Report

Business Research MethodsResearch Topic: - Impact of packaging on FMCG products.

Group No: - 4Sec:-A

Submitted To Submitted By

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INTRODUCTION

Packaging of the product is one of the most vital decision companies have to make. The

packaging of a product answers many questions in consumers mind when deciding on

which product to buy.

A package is the face of a product. Packaging involves the activities of designing and

producing the container and wrapper for the product. Up to three levels of material may be

used in packaging, i.e. primary package, secondary package and shipping package. Manymarketers have called the packaging a fifth P; the other four Ps are Product, Price, Place

and Promotion. So packaging is used as a marketing tool. Good packaging creates

convenience and promotional values. It serves several purposes, such as protecting theproduct on its way to the consumer, protecting the product after it is purchased, helping to

gain acceptance of the product, helping to persuade consumer to buy the product,

supporting self-service company and brand recognition, and innovation opportunity .Initially, packaging was intended largely to provide protection to the product. With its

increasing significance in marketing, it has become a major factor in gaining customers.

Packaging is criticized largely because of its environmental impact on depleting naturalresources; certain form of packages are health hazards; and there is problem of disposal of

packages; some packages are deceptive; others are expensive. Marketing executives have

to address these criticisms. They must enhance the positive features of packaging, likeproduct protection, consumer convenience and marketing support. To remain competitive

in the market, packaging strategies should be reviewed annually.

Packaging is a key component of marketing, according to recent studies by the Point of

Purchase and Advertisement Institute (POPAI), which indicate that 70% of consumers

buying decisions are made at the point of sale. The packaging is a very effective tool forinfluencing impulse purchasing. Consumers feel that the package is very helpful in

identifying and distinguishing products.

(Source: Research paper on impact of packaging by Mahavir Sehrawet and Subhash C.

Kundu)

Literature Review

Prendergast and Pitt (1996)review the basic functions of packaging, and definethem by their role in either logistics or marketing. The logistical function of packaging is

mainly to protect the product during movement through distribution channels. In the

marketing function, packaging provides an attractive method to convey messages aboutproduct attributes to consumers at the point of sale. It may be difficult to separate these

two package functions, as they are usually needed. The package sells the product by

attracting attention and communicating, and also allows the product to be contained,apportioned, unitized, and protected.
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Whatever be the logistics considerations, packaging is one key food product attribute

perceived by consumers. It cannot escape performing the marketing function, even if a

company does not explicitly recognize the marketing aspects of packaging. The package isa critical factor in the decision-making process because it communicates to consumers.

Intention to purchase depends on the degree to which consumers expect the product to

satisfy them when they consume it (Kupiec and Revell, 2001). How they perceive itdepends on communication elements, which become the key to success for many

marketing strategies.

The package's overall features can underline the uniqueness and originality of the product.

In addition, quality judgments are largely influenced by product characteristics reflectedby packaging. If it communicates high quality, consumers assume that the product is of

high quality. If the package symbolizes low quality, consumers transfer this low quality

perception to the product itself. The package communicates favorable or unfavorable

implied meaning about the product. Underwood et al. (2001) suggest that consumersare more likely to spontaneously imagine aspects of how a product looks, tastes, feels,

smells, or sounds while they are viewing a product picture on the package.

Consumer decision-making can be defined as a mental orientation characterizing a

consumer's approach to making choice (Lysonski et al., 1996). This approach dealswith cognitive and affective orientations in the process of decision-making. Four main

packaging elements potentially affect consumer purchase decisions, which can beseparated into two categories: visual and informational elements. The visual elements

consist of graphics and size/shape of packaging, and relate more to the affective side of

decision-making. Informational elements relate to information provided and technologiesused in the package, and are more likely to address the cognitive side of decisions.

Most FMCG are low involvement products. In low involvement, consumers do notsearch extensively for information about the brands, evaluate their characteristics, and

make a weighty decision on which brand to buy (Kotler et al., 1996, p. 225). One

reason for this is low risk(Chaudhuri, 2000; Mitchell, 1999), i.e. these productsare simply not very important. The lack of substantial evaluation often results in the

inability to distinguish much difference among leading brands (McWilliam, 1997). Acommon result is relatively weak habit brand loyalty. Thus, when consumers find a

brand which meets their standards, they tend to stay satisfied with it, especially, if they

are constantly reminded of the brand. But they are not very committed, and substituteeasily when it is not available.
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Management Dilemma:

Should FMCG companies pay special attention on packaging of the products?

Management Problem:

Impact of packaging on the consumers.

Research Problem

Does product packaging significantly influence consumer purchase decisions?

What are the effects of Packaging on sales?

How does packaging help to create shelf impact?

Hypothesis

1. Attractive packaging helps to increase the sales of the product.

2. Packaging increases life and reliability of the product.

3. Better packaging attracts more customers.

4. High income customers look for better packaged products.

5. Packaging helps in positioning of the products.

6. People even purchase a good packaged product on premium.

Types of Hypothesis, Variable and Cases

1. Hypothesis : Descriptive

Variable : PackagingCase : Product

2. Hypothesis : Relational

Variable : Life, reliability and packagingCase : Product

3. Hypothesis : DescriptiveVariable : Packaging

Case : Customers


Variable : Packaged products

Case : High income customer

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5. Hypothesis : Explanatory

Variable : Packaging

Case : ProductConcept/ : Positioning

Construct

Indicator : Image of the product


Variable : Packaging, PremiumCase : People

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Questionnaire

Dear Sir/Madam, We a group of student from Gautam Buddha University, are conducting

a survey on preferences of consumers on packaging of FMCG product. Please help us in

this survey process by filling the Questionnaire given below. Your cooperation will behighly obliged.

Section A: Personal profile

1. Age Group: (1)15-25years 2. Gender: (1) Male(2)26-35years (2) Female

(3)36-50years

(4)More than 50years

3. Education: (1) Professional 4. Occupation: (1) Service

(2) Matriculation (2) Business(3) Primary (3) Farming

(4) Graduate (4) Student

(5) Post-graduate (5) Other

5. Income (Yearly in Rupees): (1) Less than l,00,000

(2) 1,00,000 3,00,000(3) 3,00,001 5,00,000

(4) More than 5,00,000

Section B: Customers preference

7. How do you think that packaging of a product is important?

(a) Strongly unimportant (b) unimportant (c) neutral (d) important (e) strongly important

8. How many times do you purchase daily required products/FMCG products in a

week?

(a)Dont purchase (b) 1to 5 (c) 6 to 10 (d) more than 10 times

9. Does size as an attribute of product packaging attracts you?

(a) Strongly agree (b) agree (c) neutral (d) disagree (e) strongly disagree

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10. Does shape & design as an attributes of packaging attracts you?


11. Does color as an attribute of packaging attracts you?


12. Does product description details as an attribute of a product packaging

attracts you?


13. Quality of packaging as an attribute attracts you to buy the product.


14. How often the good packaging of a product influence your purchasing

decision?

(a) Frequently (b) less frequently (c) never (d) rarely (e) hardly

15. How far do you agree that good packaging keeps product useful for long time?

(a)Strongly agree (b) agree (c) neutral (d) disagree (e) strongly disagree

16. How far do you agree that good packaging of a product leads to increase in cost

of product?


17. How far do you agree that good packaging comes only with big brand products?


18. How far do you agree that good packaging of a product ensures high quality of a

product?

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19. How far do you agree that color is one of the factors that influence your

purchasing decision?


20. How far do you agree that size is one of the factors that influence your

purchasing decision?


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