Impacts Of Packaging

Impact of Packaging on consumer buying behavior

Research Presentation

Group Members • Muhammad Bassam Asif • Mian Yasir Saleem • Hassan Zaman

Introduction • 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. It is fully

Purpose of Packaging • • • • • •

Physical protection Information transmission Marketing Security Convenience Portion control

Various Household Packaging types

Symbols used in packages & labels

Statement of Problem The study aims to explore the impact of packaging on sales, price, labelling and consumer buying behaviour.

Research Objectives • To determine the impact of packaging in customer buying behavior. • To identify the characteristics of a packaging that help in brand loyalty. • To investigate the reasons for brand preference with respect to packaging. • Customer’s perception of product packaging.

Research Objectives Contd… • To make recommendations for developing customer loyalty through packaging.

Significance of the Study •This study has allowed us to get deepened knowledge about the relationship between packaging and sales of any product or consumer buying behavior. •This study would also help in identifying the various packaging factors that has impact on the sales. It describes different aspects behind the sales of a product. •The study will also take into account the impact of packaging on the consumers and some recommendations. •This study has made us learn how important it is to put down the data we had gathered during the period of research in form of words and paragraphs to portray the actual picture and to rightly express the true side of the story and to do this we found our research advisor very helpful.

Research Design •Primary and Secondary Data Analysis. •Interviews with key informants. •The questionnaire consisted of 12 questions related to research objectives. •The population for the research was the general public because we were studying the impact of packaging on the buying behaviour of the general public i.e. consumer. •In primary research, a structured questionnaire was

Data Collection Data Collection was done through •Face to face interviews. •Questionnaires. •The questionnaires design contained both open and close ended questions. •The questionnaire comprised more of close ended questions to encourage the contribution from the respondents. In such a way the data collected was richer in respondent’s real opinion. For data collection we used

Population & Sample Size •Population included departmental stores, general public and students. •Sample size was of 200 buyers who were involved in the process of day to day purchasing.

Field Work 1) We had 200 sample size. 2) Areas for questionnaire filled: •University Of Central Punjab (UCP) •Garden Town. •Allama Iqbal Town. 3)Prboblems faced during Field Work: •Negative responses from the respondents. •Some of the persons hesitated & refused to fill questionnaire.

But we faced all problems boldly as good researchers.

Data Analysis •Microsoft Excel is used for the data analysis as the nature of the research is descriptive. •Data that we got in response to our questionnaires and interviews was opinion based and was noted down by the research team and they then analyzed and compiled the results from it. •Data analysis process of looking at and summarizing data with the intent to extract useful information and develop conclusions had led to the fulfilling of the objective of our research.

Analysis of Survey Questionnaire 1) Do you generally prefer to buy consumer goods?

No. Of Respondents

 

With Packaging 180 (90%)

Without Packaging 20 (10%)

Analysis of Survey Questionnaire

No. Of Respondents

2) List some of the goods that you had not bought because of poor packaging?

Food Items 71 (36%)

Beverages 79 (39%)

Others 50 (25%)

Analysis of Survey Questionnaire

No. Of Respondents

3) Please rank the following characteristics that you look for when you buy products according to your preference. Give 1 to most prefer and 3 to least?

Analysis of Survey Questionnaire

No. Of Respondents

4) Do you think a strong brand should be a well packed product?

Yes 167 (89%)

No 33 (11%)

Analysis of Survey Questionnaire

No. Of Respondents

5) Have you ever purchased product on the basis of good packaging?

Yes

178 (84%)

No 22 (16%)

Analysis of Survey Questionnaire

No. Of Respondents

6)  How did you first discover that packaging plays a vital role in the buying of product?

Advertising/TV 88 (44%)

Newspaper 27 (13%)

Friends/Family 38 (19%)

In the store 47 (24%)

Analysis of Survey Questionnaire

No. Of Respondents

7)  Are you loyal in buying your brand mainly because it is a well packed product?

Definitely 122 (61%)

Most Probably 61 (31%) Definitely Not 17 (8%)

Analysis of Survey Questionnaire

No. Of Respondents

8) How much are you willing to pay more if you get good packaging?

3% 55 (27%) (9%)

5% 89 (45%)

7% 38 (19%)

Not willing to pay 18

Analysis of Survey Questionnaire

No. Of Respondents

9) To what extent advertising plays role in promotion of the product?

To great extent 102 (51%) To some extent 57 (29%) No Effect 41 (20%)

Analysis of Survey Questionnaire

No. Of Respondents

10) Does any product attract you because of its look?

Yes 163 (82%)

No

37 (18%)

Analysis of Survey Questionnaire

No. Of Respondents

11)  Do you think good packaging of a product enhances promotion?

Yes 117 (59%)

No 38 (19%)

May be 45 (23%)

Analysis of Survey Questionnaire

No. Of Respondents

12)  How likely are you to recommend the well packaged product to others?

Definitely will 77 (39%) Probably will 66 (33%) Not sure 43 (21%)

Definitely will not 14

Findings •In preserved products long lasting packaging is most important. •45%of consumers are influenced by packaging and are willing to pay more for it and may switch from one brand to another cause of a packaging. •61% are loyal in buying a brand mainly because it is a well packed product. •90% Consumers are influenced by Packaging and 10% are not Influenced. •Each positioning strategy appears associated with particular packaging dimensions.

Limitations Our research has the following limitations: 1)Lack of time 2)Cost for collecting data. 3)Sample size was too big as it took long time to get the questionnaire filled.

Conclusion Packaging plays a vital role on the buying behavior of an individual as well as on the sale of any kind of product. Develop innovative packaging. As per the facts from our questionnaire we concluded:  90% of sample respondents preferred to buy products with packaging.  10% respondents out of our selected samples did not prefer packaged products. Analysis shows that majority of the people prefer packaged products. So this analysis supports our research objective that packaging enhances sales because majority of people preferred packaged products. Those who did not prefer well packaged products were those who were price conscious and not focusing on quality and other features provided by packaged products.

Conclusion Contd… There are certain characteristics of packaging that add to the factor of brand loyalty. The characteristics included are: 2)Physical Protection. 3)Information Transmission. 4)Convenience and Marketing etc. For e.g. in Physical Protection the objects enclosed in the package may require protection from other things such as shock, temperature and vibration etc. Similarly Information Transmission i.e. package that communicates how to use, transport, recycle or store also helps in maintaining brand loyalty. •Convenience on the other hand also helps in maintaining brand loyalty because packages can have features that add convenience in distribution, handling, opening, using and reusing. •The above mentioned features are some of the reasons for brand preference with respect to packaging and they also add up positively to consumers’ perception of product packaging. The research work has been successfully completed and it has helped us to understand the mindset of the consumers regarding the packaging of product and

Recommendations •Maximum focus should be given to maintain the quality level of packaging to make the customer more loyal in buying their brands. •Attention should also be given to increase and maintain the level of comfort and durability to increase the customer’s loyalty. •Continuously work on innovative designs in order to retain customers.

Recommendations Contd… •In order to make customer loyal in buying their brand and to keep in touch with customer, company should focus on advertising using effective packaging communication. •Packaging should develop a good image in the minds of customers by continuous focusing on its core competencies so that it may have a good word of mouth. •More focus should be on identifying and satisfying the needs in packaging wanted by the target customers. •Label information accurately as consumers would like it, if simplified.