a study on the impact of packging on purchasing decision of

Upload: pawan0123

Post on 08-Apr-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    1/57

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    2/57

    CERTIFICATE

    This is to certify that the research project entitled, A Study On The Impact

    Of Packaging On Purchasing Decision Of The Customer has been completed

    by Bhavnesh a student of MBA (Marketing) under my supervision. He has

    showed tremendous zeal, enthusiasm and innovativeness towards this

    project.

    This project is completed in the partial fulfillment of the requirement for

    award of MBA. The matter used in the project is original and authentic to

    the best of my knowledge. I recommend that the project is fit for

    evaluation.

    I wish all success in his future.

    (Miss Gunjan)

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    3/57

    DECLARATIONDECLARATION

    I, Bhavnesh the Student of MBA (Marketing) final year,

    Directorate of Distance Education of Guru Jambheshwar University of Science

    And Technology Hisar. Hereby declare that the Research Project work on

    entitled A Study On The Impact Of Packaging On Purchasing Decision Of

    The Customer is my original work and this has not been submitted to any

    other institution for the award of any other degree.

    (BHAVNESH)

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    4/57

    Acknowledgement

    Theoretical knowledge stands nowhere and can not yeild positive results

    unless and until supplemented with the real practice and study of environment.

    Actually it is the implementation of the theory in practical that makes real

    sense.

    It is a great pleasure to express my deepest sense of obligation Miss Gunjan,

    Lecturer of ODM, Hisar.

    I am thankful to Miss Gunjan, lecturer of ODM Hisar, for her assistance and

    cooperation at every step without which it wont be possible to complete the

    study successfully.

    I deem it my most pleasant duty to express my deep sense of gratitude to my

    parents and friends for their love, affection and ever encouraging approach.

    Last but not least, am thankful to all the people whom met and who gave me

    good response.

    (BHAVNESH)

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    5/57

    PREFACE

    In the business management field the Master of Business Administration

    (MBA) is one of the most reputed professional courses in the field of

    management. This course includes both aspects theory & its applications as its

    content of Curriculum. Project Report is an integral part of this program. Every

    student is required to complete a project in his or her field of interest in the

    fourth semester. The purpose of this project is to expose the students on

    practical and research front of his or her area of interest. The project gives aunique experience to aspirants who can visualize things what they have been

    taught in classroom.

    Today the market is passing through a transforming stage. There is cut

    throat competition and marketers have realized the importance of satisfying the

    customers to the extent possible. Thus no business organization can afford not

    to be consumer oriented. To take care of competition it needs to plan its strategy

    and anticipate future needs and requirements. The firm needs to take care of the

    market changes, environmental condition and latest technology.

    Packaging is playing an important role on Purchasing Decision of the

    Customer in marketing. Today marketing strategies are revolving around

    packaging. It has started attracting the services of experts of different fields.

    Today majority of buying decision are impulsive and made at point of purchase.

    Their package is the most important element to influence buying decision.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    6/57

    Introduction

    We all have known that good packaging does not mean simply putting

    product in container and cover them with wrappers. First of all packaging

    material serves the basic purpose of protecting the product and maintains its

    functional form. The package should prevent damage that could affect the

    products usefulness. Since product tempering has become a problem for

    marketers, packaging techniques have been and are being developed to counter

    this danger. Packages are also being developed/ designed foil shoplifting.

    Packaging has four major aspects that are surmised as VIEW (visible,

    informative emotionally appealing and workable). Apart from holding,

    protecting, preservation, handling storage, convenience too is an important

    function that package is expected to offer to consumers. The size and shape of

    product may relate to product storage, convenience in use, or replacement rate.

    Small, single-serving cans of vegetables, for instance may prevent waste and

    make storage easier. Another important function of package is to promote aproduct by communicating its features, uses benefits and image. At times a

    reusable package is developed to make product more desirable.

    Packaging plays the role of promotion of the product by both verbal and

    non-verbal communication. The package can inform the potential customer

    about the product contents, features, uses, advantages, and hazards etc. a

    package can create desirable image of the product by using appropriate color

    combination design image shape and texture many cosmetic manufacture

    design their package to create impressions of richness, luxury and

    exclusiveness. A package performs promotional function when it is designed to

    be safer or more convenient to use and such characteristics help stimulate

    demand.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    7/57

    Another function of package is expected to perform is meeting the need

    of middleman. Wholesalers and retailers consider whether a package facilitates

    transportation, storage and handling. Reseller may refuse to carry certain

    products if their package is cumbersome, loosely packaged, poorly protected

    and difficult to store.

    A package must protect what it swells and sell what it protects. Modern

    methods of consumer marketing would fail if the proper message is not

    communicated on the package. It is not only the primary package that must

    communicate. Warehouses and distribution centers would be less effective if

    secondary and tertiary package lacked label or carried incomplete details. When

    international trade is involved and different languages are spoken, the use of

    unambiguous, readily understood symbols on the distribution package is

    essential.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    8/57

    1.1 MEANING OF PACKAGING

    Packaging means the activity of enclosing in a package. The fortune

    executive encyclopedia defines Packaging to be planning and fashioning the

    complete form and structure of a products package. A products package

    generally includes aspects like size and shape, color, closure, outside

    appearance, protection and economy, convenience, labeling and to safeguard

    the product from the effect of environment.

    Other people take the concept of packaging as definition of what the

    package should basically be or do for the particular product but other

    component elements like size, color, shape, material, text and brand mark also

    need to be tested for various alternatives and combinations.

    Other things being the same, it was fifth P i.e. packaging which could

    match will target consumers i.e. younger college going consumers.

    A package is a wrapper or container in which a product is enclosed or

    sealed. Packaging, therefore, may be defined as an act of designing and

    producing the package for a product.

    Packaging concept and considerations concept

    While formulating packaging policies and strategies, it is important for

    marketers to develop a packaging concept around which these are to be

    formulated. A packaging concept is description of product packaging and the

    functions it is suppose to perform in respect of the particular product.

    Considerations

    However, while developing packages according to the concept developed, the

    flowing factors should be considered.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    9/57

    1) marketing considerations

    All packaging decisions must be guided by marketing considerations. It

    means that the package concept should be determined by considering

    requirements of consumers and retailers. It is relevant because these two form

    the ends the distribution channel with which companies are usually concerned.

    Some of the important considerations include from consumers standpoint.

    1) Ease of product use

    2) Ease of storage

    3) Ease of handling, carrying and opening

    4) Ease of understanding directions for use

    5) Ease of package of disposal

    6) Possibilities of package re-use

    From retailers standpoint

    1) Shelf - space required per package.

    2) Ease of price of marking

    3) Number of packaging per case

    4) Ease of case identification

    5) Ease of handling

    6) Whether package does selling job.

    2) Product protection

    One the important package function is to protect the product being packaged. It

    is, therefore, essential that marketers decisions regarding package should be

    guided be the consideration of protection. The protective factors to be

    considered should include water vapor protection, infestation, strength,

    pilferage, odor, and contamination and light effects. In India, where package

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    10/57

    care during handling and transportation is relatively less these protective factors

    assume added significance as package determining factors. For example, on

    account of the, by and frozen foods, is of extreme importance; resistance

    against impact and shock is also significant; protection against loss of drug

    potency owing to sunlight is essential.

    3) Economic Considerations

    As package has a profit function to perform it is essential that the packaging

    cost is optimum. This can be achieved by avoiding both over- and under-

    packaging. This former is cost adding while the letter is protection depriving.

    Some of the costs to be considered include:

    a) Cost of packaging inputs.

    b) Cost of package fabrication.

    c) Cost of manpower.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    11/57

    1.2 FUNCTION OF PACKAGING

    As an important peripheral attribute of product, a package has the

    following functions to perform:

    1. Utilitarian function

    Package performs a utilitarian function by retaining and enhancing the product

    value to consumers in the following ways:

    (a) Package protects products from deterioration, spilling, spoilage and

    evaporation during its transit from manufacturer to consumer.

    (b) It enhances product use convenience by keeping it clean and undisturbed.

    (c) It helps easy brand identification.

    (d) It makes product handling easier and safe on the retail store shelves.

    Communication Function

    Package performs a communication function by becoming an important

    adjunct to the components of the communication-mix, namely, advertising and

    sales promotion. It performs this function in the following ways:

    a) It makes product identification and differentiation both easy and

    effective. In a competitive market when differences in the tangible

    product attributes are not conspicuous, it is the package whose unique

    presentation makes products look different from the competing brands.

    b) Package features communicate product message and motivate consumer

    to buy.c) A change in product package design and message considerably facilitates

    implementation of product / brand repositioning strategy of a company.

    d) Package repeats the selling message imprinted on it before consumer

    when it is repeatedly handled during a series of uses. This encourages

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    12/57

    repeat and replacement purchases.

    (e) It promotes product at the point of purchases and triggers impulse

    buying.

    1.3 POLICIES AND STRATEGIES OF PACKAGING

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    13/57

    Having developed an appropriate package concept, a company has got more

    than one policy options to consider in respect of product packaging. These

    include the following:

    Packaging Changes

    The company may adopt the policy of periodic changes in product package in

    order to achieve one or more of the following purposes:

    (a) The changes may flow from managements desire to provide

    more product protection and use convenience.

    (b) These may be introduced to correct defects in the package,

    for example, leakage in containers after opening, difficult

    opening, defective air tightening, and discouraging wrong use

    of package after product is used.

    (c) Innovations in packaging material may also necessitate

    product package changes. For example, introduction of

    cellophane has revolutionized the whole packaging concept.

    (d)Package change may be necessitated by the expediency of the

    promotion programmers or repositioning strategies. In such

    cases, package change and innovation may be the focus of the

    promotion programmed. For example, the Metropolitan

    Trading Company, manufacturers of the famous Zodiac

    neckties, kerchiefs, belts, etc., has been experimenting with

    new packaging ideas so as to promote sales. As a

    consequence, it repeatedly won the India Star and Asia

    Star packaging awards in the seventies.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    14/57

    1.4 TYPE OF PACKAGING

    Family packaging:-

    It is a kind of packaging strategy in which packaged of the entire

    product-line closely resembles one another or alternatively major features of the

    packages in the respect of the entire product live closely resemble one another.

    For example the packaging of old spice shaving cream, after shaves lotion and

    other related items have an identical picture of a white boat on them. The major

    strength of this strategy is that any new product in an identical package enjoys

    the same market reputation and acceptance as the others. Also there is an

    econo0maly in packaging cost on account of cost cuts in bulk buying of raw

    materials, printing cost.

    Re-use Packaging:-

    re-use packaging is a strategy in which marketers offer products in such a

    package which may be re-use for other purpose once product has been

    exhausted or taken out of it. For example, Nescafe Instant Coffee is being

    offered in a glass jar which later may be used as a tumbler. Likewise, Quality

    Ice-cream is being offered in a plastic cup which may be re-used for keeping

    cream, butter, curd etc.

    Re-use packaging stimulates repeat purchases as it offers and additional

    benefit for the same price. in case of Nescafe coffee, for instance, housewives

    had to buy four to six jars so as to develop a full complement of beverage set.

    However, purchase stimulation cannot be taken too for. In order to sustain

    consumer interest the package has to be changed periodically. One good

    example is that of Nescafe coffee whose container design undergoes periodic

    changes.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    15/57

    Multiple Packaging:-

    Multiple packaging is a strategy in which a number of heterogeneous products

    to be used by one consumer are placed in single package. For example, a shirt,

    necktie, and kerchief are placed in one package or say, many cosmetic items are

    placed in one box. This kind of strategy has not become popular in India

    although it helps a company to build up considerable total sales. it facilitates

    acceptance of a new product idea by a consume4 who may normally not like or

    be inclined to venture into buying it. it is specially useful when the items in the

    package are in dissimilar life-cycle stages, for example, one in the growth stage

    whereas others in the introductory and saturation stages. Nonetheless consumer

    resistance may be difficult to break in respect of some product items. In such

    cases, company loses of other acceptable products also.

    Ecological packaging:-

    In order to preserve the physical environment, a company may formulate a

    compatible packaging strategy. Some of the elements of this strategy may

    include:

    a) use of returnable bottles and containers

    b) use of containers that decompose over a reasonable period of time

    c) use of lightweight package material

    d) Arranging for retrieval of packaging material and recycling it.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    16/57

    1.5 IMPORTANCE IN MARKETING

    Marketing is the vehicle through which a company can achieve its short-

    term goals and strategic aims in terms of a long-term survival in the face ofchange, particularly competitive change. The marketing professionals set about

    this task by recognizing the current needs in existing are an ongoing and

    dynamic process.

    We increasingly seek, product that serve our specific individual needs.

    Our shopping behavior is changing and therefore packages are required to

    provide more information and motivation to buy.

    An increasing number of products are sold through direct marketing

    (mail & Internet) where packaging may be considered less important than in a

    retail store since consumer to not make choices based on package. But

    packaging for such products has a much more important post-purchase role.

    Packaging is responsible for cost-effective and damage free delivery of small

    orders and needs to help ensure satisfaction and customer loyalty, including

    providing a means for products returns.

    Packaging has become more impotent than POP material and

    retailers advice at the place of purchase. It becomes all the more important in

    case of marketing of cosmetics, food products, medicines and FMCGs as

    people giver due weight to package while buying products if these categories.

    Packaging material, color and design are very important aspects of package in

    influencing consumers. People claim that protection, Handling, preservation,

    storage and identification are the most impotent functions which package is

    expected to perform perfectly to gain consumer loyalty. So Packaging is

    playing an important role in marketing.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    17/57

    1.6 CONSUMER BEHAVIOUR

    Consumer behavior refers to behavior that consumer display in searching

    for, purchasing suing, evaluating and disposing of products are service they canexact will satiety their needs. The study of how individuals make decision to

    spend their available resource time, money, and effort on consumption related

    items. It includes the study of what they buy, where they buy, when they but it,

    where they but it, how often they but it, and how often they use it.

    The primary purpose of studying consumer behavior is to understand

    why and how consumer makes their purchase decision. The se insights enables

    markets to design more effective marketers understand consumer behavior; they

    are able to predict how consumers are able to shape their marketing strategies

    accordingly.

    A sound understanding of consumer is essential to the long run success of any

    marketing program. This is because the essence of marketing is captured in

    three orientations.

    Identifying consumer needs and want

    Companys objectives to select specific needs and wants.

    Application of an integrated strategy: this is only through the study of consumer behavior

    that first orientation is known as well as the levels of satisfaction among consumers.

    Moreover study of consumer behavior further enables marketers to select target market.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    18/57

    1.7 Company profiles

    Tulsi Packaging

    Tulsi Packaging is a corrugated box plant that has served the greater Saurashtra

    marketplace since 1998. This is a family managed company. We are based at

    GIDC Wadhwan, surrendranagar that are close to all major interconnecting

    roads and highways of our region. We believe that we are the premier low cost

    producer in our market place.

    In 1999 Tulsi spent in capital improvements to further the machinery and

    technological advantage we now enjoy over our major competitors. Our

    marketing sphere includes entire saurashtra.

    In the last several years, due to plant wide efficiencies, we have found our

    market place widening.

    We are a lean, effective, growth-oriented producer of corrugated products.

    Tulsi Packaging:

    Excels in prompt efficient service.

    Designs and produces innovative, cost-efficient packaging and displays.

    Provides quick turnaround and helps reduce the costs of shipping and box

    inventory...improving your cash flow

    Uses a streamlined manufacturing facility with efficient state-of-the-art

    equipment...and passes the savings on to you.

    Features an exceptionally well-trained, committed work force with years of

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    19/57

    experience.

    Manufactures in an environmentally conscious manner, using safe and

    recyclable materials and processes

    Tulsi`s Quality

    FastTurnaround:

    We are the most cost-efficient producer in the business. We are a 100% on time

    delivery manufacturer. We maintain an inventory according to customers

    requirement. In addition, our long-term relationships with key suppliers ensure

    rapid, reliable delivery of the materials we need to meet your requirements.

    TotalQualityControl:

    We have implemented a Total Quality Assurance plan that focuses on our

    vendors, our internal manufacturing process and our response to customers

    needs. Not only do we deliver what you want when you want it, we get your

    order right the first time...every time.

    What Tulsi Offers:

    1. Solutions: We redesign and analyze your packaging systems.

    2. Quality: We will improve your graphics, assess structural integrity, and

    optimize the use of substrates.

    3. Reliability: We are a 100% on-time delivery system to our customers.

    4. Expertise: Highly experienced packaging consultants that add value to

    your product and your processes.

    Improved Bottom Line for our Customers: We want our customers to store

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    20/57

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    21/57

    quality performance and excellence. The groups strength lies in the quality of

    products being manufactured. The satisfaction of the customers is reflected in

    their constant orders. The growth of the group is indicative of consciousness

    towards the customers satisfaction and ability to manage.

    Jothi Packaging Industry

    Jothi Packaging Industries:

    It was established in the year 1987 and has been supplying corrugated

    boxes and rolls to the leading companies in and around Tirupur and

    Coimbatore. It caters to most of the garment export units in Tirupur. We have a

    monthly capacity of 140 Metric tones per month. The company has an excellent

    infrastructure to meet the ever increasing demand of corrugated boxes through

    its quality and delivery which is made possible by the dedicated and

    hardworking people of the company. We have 60 people who make this

    happen. We have the state of the art technology machines to make each and

    every process in making the box. The machines available are:

    1 single face corrugating machine with semi high speed of 30 meters per

    minute using conventional electric heating.

    1 single face corrugating machine with semi high speed of 60 meters per

    minute using thermo fluid heating to give better flute formation for a

    better product.

    6 nos of pasting machine

    2 nos of creasing machine

    2 nos of slotting machine

    1 no. of high speed printer, creaser & slitter combined machine to give

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    22/57

    more output

    gluing machine to produce totally recyclable metal free box to meet the

    present day requirement

    1 no of platen punching machine (30 inches x 40 inches)

    6 nos of stitching machines.

    The range of our products include Corrugated Sheets, Boards in Various types

    like Universal, Telescopic, Overlapping Type & Interlocking type and other

    specialized boxes to pack knitted garments, Consumables like Fruits,

    Vegetables & Beverages, Electronic Items and Air Conditioners. We also have

    our sister concern namely JYOTHI INTERNATIONAL, where we are

    exporting garments to the European and US markets.

    Anupam Plasto Engg. Pvt. Ltd.

    Welcome to Anupam Plasto Engg. Pvt. Ltd. Our goal in life is to service the

    Industrial box user using the most advanced manufacturing technology

    available. Every one of our people are trained professionals from production to

    design, customer service, accounting, and sales. You won't find a more

    dedicated group in India.

    Here at Anupam Plasto Engg. Pvt. Ltd. we buy the paper, corrugate it into a

    sheet and turn that into a finished box as efficiently as humanly possible. Our

    commitment to service is legendary. Our 8-year history and experience is

    unequaled. No one is better equipped in Gujarat to handle volume-corrugated

    production with an emphasis on service, quality, and design.

    Browse our pictures; see for yourself, we have a huge capital investment in our

    factory to provide the highest industrial quality and to maintain our competitive

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    23/57

    edge. Fill out the RFQ page and give our sales staff a chance to examine your

    needs. Then come and visit our plant and I am confident you will appreciate the

    fact that we mean business and will work hard to earn yours. Thank you for

    your consideration.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    24/57

    2.1 RESEARCH METHODOLOGY

    Marketing research methodology is ass old as the marketing is without

    which it is almost impossible to reach at any tangible decision. Although

    various method are adopted to undertake this activity but the goal is almost

    impossible to reach at any tangible decision. Although various methods are

    adopted to undertake this activity but the goal is almost same i.e. reaching to the

    right customer.

    There is very famous quote if you are confident of doing something, half of the

    work is done. And confident comes when you have proper framework for the

    particular job. Hence to carry out any work it is necessary to chalk-out a

    framework. To carry out the research project we first define the methodology

    that is to be used for the research.

    Research methodology is the way of systematically solving the research

    problems. It may be understood as a science of studying how research is done

    scientifically. In this way study the various steps that are generally adopted

    during the research along with logic behind them. It is necessary for the

    research to know not only research methods but also the methodology.

    The purpose of the research is to discover answers to questions through the

    application of scientific objective we may think of research objective as falling

    into a number of the following broad groupings.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    25/57

    To gain familiarity with a phenomenon or to achieve new insights into

    it.

    To portray accurately the characteristics of particular individual,

    situations occur to with it associated with something else.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    26/57

    2.2 NATURE OF STUDY

    The problem researcher took up was to analyze the The Impact Of Packaging

    On Purchasing Decision Of The Customer. To make the study more precise

    and feasible the customer response is taken into consideration. This is basically

    a survey that is conducted in hisar through the structured questionnaire. This

    study is related to the behavioral pattern of consumers with to the impact of

    packaging on purchasing decision of the customer in market.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    27/57

    2.3 OBJECTIVES OF STUDY

    The study of research project entitle of A Study On The Impact Of

    Packaging On Purchasing Decision Of The Customer is to find out the

    following objectives:

    The main objective of the study is to find out the impact of packaging on

    purchasing decision of the customer. To achieve the this objective, the

    following sub objective is set:

    1. To identify the function of packaging.

    2. To identify the awareness Level abouts the packaging among

    customer.

    3. To find out the impact of packaging on marketing of various

    product category.

    4. To identify the various aspects of packaging those influencing the

    consumers.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    28/57

    2.4 RESEARCH PLANING

    Planing is the most essential part of a survey. A right

    approach has to be decided before heading forward keeping in mind

    the objectives.

    Due consideration has to be given at this stage towards:

    1. Purpose of survey

    2. Scope of survey

    3. Units of the data collection

    4. Source of data

    5. Techniques of data collection

    6. Degree of accuracy desired

    7. Miscellaneous consideration

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    29/57

    2.5 SAMPLAMING PLAN

    A structured questionnaire is prepared for respondents for

    the collection of data from a defined sample size. The sample size taken is of

    100 respondents. Descriptive research is used as research design and the

    sampling technique used is stratified random sampling. This sample is selected

    from different occupations, income, age, sex and material status taking into

    consideration the importance of each. The present study is an empirical analysis

    of consumer behavior towards the impact of packaging on purchasing decision

    of the customer in the region of hisar.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    30/57

    2.6 SURVEY METHODOLOGY

    1. Collection of data:

    This is the first of step of the process. It forms the foundation for

    the whole of statistical analysis. Faculty data can lead unreliable conclusions so

    the most care is required while collecting the data.

    Nature of data collection:

    Primary sources of data Customers

    Area covered Hisar

    Instrument of survey Questionnaire & observation.

    Type of questions Close ended.

    2. Organizing the data

    Data collected are meaningless unless presented in a proper

    manner to take useful in decision making. The data obtained I edited, classified

    and put in a tabulated form to make it understandable.

    3. Presentation of the data:

    After collecting and organizing the data, it is ready for

    presentation. There are different modes of presentation including charts,

    diagrams, graphs etc. the main purpose of presentation is to put the collected

    data into an easy readable form. In the present project report data has been

    presented in tabular form and graphically by bar diagram.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    31/57

    4. Analysis of data:

    Having gathering the data, the researcher has to proceed towards

    drawing conclusion by logical inference. At this stage, the data is in a

    tabulated form and required to be interpreted. Thus, analysis involves the

    refinement and manipulation of data. It basically involves:

    - Bringing the raw data into measured data.

    - Summarizing the data.

    - Applying analytical method to manipulated the data so that their

    interrelated and quantitative meaning become evident.

    Tolls of analysis:- weighted average and percentage.

    5. Interpretation of data:

    Interpretation means to bring out the meaning of data or to

    convert data into information. The climax of the research process to draw

    conclusion from the data analyzed. The whole investigation culminates and

    reaches in drawing inference that leads to conclusion. This phase calls for a

    high degree of interpretive skill both quantitative and logical.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    32/57

    2.7 LIMITATION OF THE STUDY

    Every study conducted may have certain shortcoming and

    unfortunately ours is also not an exceptionone. Researcher has put his

    best efforts to avoid them and make the study much relevant in spite

    of some of the limitation.

    As the study is based on the primary data, the possibility of Business

    cannot be ruled out. The researcher had an intention to reach a large

    sample but due to lack of time the initiation could not be

    accomplished up to the desired level.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    33/57

    3. ANALYSIS AND INTERPRETATION

    in the process of the analysis, relationship or difference supporting or

    conflicting with original or new hypothesis is subject to statistical tests of

    significance to determine with what valued data can be said to indicate any

    conclusion.

    Analysis is basically aimed at giving inference of association

    between different variables, which are present in the research. In this present

    work the analysis is conduced with the help of statistical tools by which the

    meaning of the data may be interpreted. Statistical percentage and weight

    average is used to analyze the data for this particular research work.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    34/57

    Table 1. Packaging is an important element of product:

    The region for asking this question to felt that consumers are agree or not that

    the packaging is an important element of product or not

    80

    20

    0 0 00

    102030405060708090

    Strongly

    agree

    Agree Neutral Disagree Strongly

    disagree

    Scale

    Respo

    nden

    The table no. 1shows,mostly respondent are strongly agree that the packaging is

    an important part of product 80% are strongly agree and 20% are agree no one

    is there to say packaging is not important part of product

    No ofrespondent

    Item

    1

    Stronglyagree

    2Agree

    3Neutral

    4Disagree

    5

    Stronglydisagree

    100

    No.ofresponse

    80` 20 - - -

    Percentage 80% 20% - - -

    Cumulativefrequency 80% 100%

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    35/57

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    36/57

    Table 2. Packaging is the element of cost: -

    Region:To find out the consumers are felt that the packaging is the element of

    cost or not. For this I design five-lickert scale question for knowing the agree or

    disagree level of this:-

    No of

    respondent

    Item 1

    Strongly

    agree

    2

    Agree

    3

    Neutral

    4

    Disagree

    5

    Strongly

    disagree

    100

    No. of

    response

    10 60 20 5 5

    Percentage 10% 60% 20% 5% 5%

    Cumulativefrequency

    10 70 90 95 100

    10

    60

    20

    5 5

    0

    1020

    30

    40

    50

    60

    Strongly

    agree

    Agree NeutralDisagreeStrongly

    disagree

    Scales

    The above table shows thatthe 100 respondents 60% 0f respondent are agree

    that the packaging is the element of cost, 10% are strongly agree for that point20% are neutral to this point and 5%-5% respondent are disagree and strongly

    disagree to this point they said that the packaging is not the element of cost.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    37/57

    Table 3. Labeling is the important part of Packaging: -

    Region:The region behind this question, to knowing that the respondent are felt

    or not that the labeling is the important part of packaging.

    No ofrespondent

    Item

    1

    Stronglyagree

    2Agree

    3Neutral

    4Disagree

    5

    Stronglydisagree

    100

    No.ofresponse

    35 40 25 - -

    Percentage 35 40 25 -- --

    Cumulative

    frequency35 75 100

    35

    40

    25

    0

    0

    0 10 20 30 40 50

    Strongly agree

    Agree

    Neutral

    Disagree

    Strongly disagree

    Scale

    Score

    The table shows that in 100 respondents no one said that the labeling is not the

    important part of packaging. In these 40% are agree to this and 25% are

    strongly agree and 35% are neutral.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    38/57

    Table 4. Do you read the label while purchases the product: -

    Region:

    For this question, I know the awareness level of consumer. They are read

    or not the given information on label.

    Item Yes No

    No. Of response 955

    Percentage 95 5

    Cumulativefrequency

    95 100

    Yes

    95%

    No

    5%

    Yes

    No

    The above table depicts that the amazing finding of this question, the mostly

    respondent are aware about the information provide on the label.

    95% respondent are read the information provide on the label only 5% people

    are not read the information provide the label.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    39/57

    Table 5.Do you agree packaging helps in misbranding: -

    Region:To find out, is the consumer think that the packaging helps in

    misbranding through the copy of other manufacturer packaging.

    No of respondentItem Yes No

    100 No. of response85 15

    Percentage 85 15

    Cumulative

    frequency85 100

    Yes85%

    No

    15%

    Yes

    No

    The table shown that the mostly respondent are in the favors of the packaging

    helps in misbranding. 85% respondents are said yes and only 15% respondent

    said no the packaging is not helps in misbranding

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    40/57

    Table 6. Do you think well-packaged products are always better in quality as

    compare poor packaged product:-

    Region:For this question I am find out the attitude of consumer regarding the

    well packaged product and poor packaged product.

    No of respondentItem Yes No

    100 No. of response55

    45

    Percentage 55 45

    Cumulative

    frequency55 100

    Yes

    55%

    No

    45%Yes

    No

    The table no.6 show that there different-different attitude regarding thisquestion.

    45% people are said no and 55% people are said yes that the well-packaged

    product is good and poor packaged good are not good.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    41/57

    Table 7. Do you think the information provides on the label is adequate:-

    Region: What they people think that the information provide the label isadequate or not.

    No of respondentItem Yes No

    100 No.of response70

    30

    Percentage 70 30

    Cumulative

    frequency

    70 100

    Yes

    70%

    No

    30%

    Yes

    No

    The table shows thatthe 70% people said yes the information provide on the

    label is adequate only 30% people are said the information provide on thepackaging is not adequate.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    42/57

    Table 8. If no than what information should be added /avoided: -

    Region:

    Region for this question to clarify that why they are not satisfy the given

    information in the packaging label are not adequate and proper.

    Mostly respondent are demanded that in the label the address of the

    manufacturer and marker are not properly given so give the address of the

    company proper sequence and correct.

    Many of them ask the manufacturing date and expiry dates are not

    properly highlighted on the package of product. They are demanded that the

    manufacturing and expiry date are given in clear and proper wording.

    Some of them said that the price of product is also given in proper

    wording and proper place of package.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    43/57

    Table 9. Do you always check the seal while purchasing the product:-

    Region:

    For this question, I know the awareness level of consumer. That They are

    check the seal of the product /package or not.

    No of respondentItem Yes No

    100 No.of response100 --

    Percentage 100 --

    Cumulative

    frequency100 --

    Yes

    100%

    No

    0%

    Yes

    No

    The table no.9 showsthe 100% people check the seal of the product /package.

    No said no that they are not check the seal.

    Table 10. Do you think your purchasing decisions are effected by the

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    44/57

    packaging:-

    Region:

    Region behind for asking this question to know that there purchasing

    decision are effected by the packaging or not.

    No of respondentItem Yes No

    100 No.of response90

    10

    Percentage 90 10

    Cumulative

    frequency90 100

    Yes90%

    No

    10%

    Yes

    No

    The above table shown that the 90% of respondent said the packaging effect

    there purchasing decision many of product they purchase by impulse buying.

    Only 10% people said that their purchasing decisions are not effected by thepackaging.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    45/57

    Table 11.what factors influence your buying decision at the point of purchase: -

    Region:

    The region of this question to find out what factor influence the

    customer to buy the product. There are various factors are there that areinfluence the customer.

    Item

    No.

    ofrespo

    ndent

    Rank

    Item

    1 2 3 4 5 Totalscore

    Look ofpackage

    100No. of

    response15 25 45 10 5 335

    Weight age 5 4 3 2 1Score 75 100 135 20 5

    Point of

    purchasematerial

    100No. of

    response10 10 5 40 35 220

    Weight age 5 4 3 2 1

    Score 50 40 15 80 35

    Retailer

    s advise100

    No. of

    response- - 5 40 55 150

    Weight age 5 4 3 2 1

    Score - - 15 80 55

    Price 100No. of

    response20 35 40 5 - 370

    Weight age 5 4 3 2 1

    Score 100 140 120 10 -

    Quality 100No. of

    response55 30 10 5 - 435

    Weight age 5 4 3 2 1

    Score 275 120 30 10 -

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    46/57

    335

    220150

    370435

    0

    100

    200

    300

    400

    500

    Lookof

    package

    Pointof

    purchase

    material

    Retailers

    advise

    Price

    Quality

    Factors

    Score

    Series1

    The table depicts that the primarily there are five elements influencing the

    buying decision at the point of purchase, 1. look of package, 2. point ofpurchase material, 3. retailers advice, 4. price, 5. quality,. on the basis of score

    and given chart quality is the most important factor who influence the buying

    decisions of consumer and price, or look of package scored less than quality

    so these are the less important factors who influence the purchase decision of

    buyers and other on the basis of given score we can interpret that point of

    purchase material, and retailers advice are not influence the purchase decision

    of the customers.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    47/57

    Table 12. what type of product category packaging you like most:-

    ItemNo ofrespon

    dent

    RankItem

    1 2 3 4 56 7

    Tosco

    Cosmetics 100 No. ofresponse

    25 40 20 10 - - 5 56

    Weight age 7 6 5 4 3 2 1

    Score 175 240 100 40 - - 5

    FMCG 100No. of

    response30 5 35 20 5 5 - 52

    Weight age 7 6 5 4 3 2 1

    Score 210 30 175 80 15 10 -

    Medicine 100No. of

    response20 20 15 15 5 10 15 44

    Weight age 7 6 5 4 3 2 1

    Score 140 120 75 60 15 20 15

    Foodproducts

    100No. of

    response10 30 25 15 5 10 5 47

    Weight age 7 6 5 4 3 2 1

    Score 70 180 125 60 15 20 5

    Highinvolveme

    nt goods

    100 No. ofresponse

    5 - - 10 45 25 15 27

    Weight age 7 6 5 4 3 2 1

    Score 35 - - 40 135 50 15

    Engineeri

    ng goods100

    No. of

    response5 - - 10 25 20 40 23

    Weight age 7 6 5 4 3 2 1

    Score 35 - - 40 75 40 40

    Whitegoods

    100 No. ofresponse

    5 - 5 15 20 30 25 26

    Weight age 7 6 5 4 3 2 1

    Score 35 - 25 60 60 60 25

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    48/57

    Chart

    560520

    445 475

    275230 265

    0

    100

    200

    300

    400

    500

    600

    Cosmetics

    FMCG

    Medicine

    Food

    products

    High

    involvement

    goods

    Engineering

    goods

    White

    goods

    Industry

    Score

    All consumer products have been divided into seven product categories.

    Respondent were asked to rank the package of the product categories in order

    their liking.

    To see the chart and score of responses, package of cosmetic product is the

    most liked by buyers, FMCG, medicine and food product are second one whosepackage is liked by buyers. High involvement goods, engineering goods, and

    white goods having less score then prior so these products package is not liked

    buy the buyers. So marketer has to make some effective changes in the package

    of high involvement goods, engineering goods and white goods.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    49/57

    Table 13. what type of packaging element influence you to liking the package:-

    Item

    No of

    respondent

    Rank

    Item

    12 3 4 5

    Total

    score

    Packaging

    material100

    No. of

    response45 15 10 15 15 360

    Weight age 5 4 3 2 1

    Score 225 60 30 30 15

    Color of

    package100

    No. of

    response20 20 10 45 5 305

    Weight age 5 4 3 2 1

    Score 100 80 30 90 5

    Design ofpackage

    100No. of

    response20 35 30 10 5 355

    Weight age 5 4 3 2 1

    Score 100 140 90 20 5

    Size ofpackage

    100No. of

    response5 25 20 20 30 255

    Weight age 5 4 3 2 1

    Score 25 100 60 40 30

    Graphics

    on package100

    No. of

    response10 5 30 10 45

    225

    Weight age 5 4 3 2 1

    Score 50 20 90 20 45

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    50/57

    0

    100

    200

    300

    400

    Packaging

    material

    Color of

    package

    Design of

    package

    Size of

    package

    Graphics

    on

    package

    Packaging component

    Sc

    ore

    Series1

    The above table shows that on the basis of given graph and scored table we find

    that packaging material, color of package and design of package are the most

    influenced elements who influence the liking of package. Size of package and

    graphics of package having fewer score than other so these are less influencing

    elements of package.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    51/57

    Table 14. There is various function of packaging give rank your liking pattern:-

    Item

    No

    of

    resp

    ondent

    Rank

    Item

    1 2 3 4 5 6 7 8 9Total

    score

    Identification

    No. of

    response15 5 20 5 10 15 10 15 5 520

    Weight age 9 8 7 6 5 4 3 2 1

    Score 135 40 140 30 50 60 30 30 5

    Protection 100No. of

    response35 15 5 25 10 - 5 - 5 690

    Weight age 9 8 7 6 5 4 3 2 1

    Score 315 120 35 150 50 - 15 - 5

    Handling 100 No. ofresponse 5 25 15 5 15 20 15 - - 580Weight age 9 8 7 6 5 4 3 2 1

    Score 45 200 105 30 75 80 45 - -

    Storage 100No. of

    response5 10 30 10 15 5 - 15 10 430

    Weight age 9 8 7 6 5 4 3 2 1

    Score 45 80 210 60 75 20 - 30 10

    Preservation 100No. of

    response20 25 5 10 10 - 15 15 - 590

    Weight age 9 8 7 6 5 4 3 2 1

    Score 180 200 35 60 50 - 45 30 -Transportati

    on100

    No. of

    response5 - 15 15 10 15 20 10 10 340

    Weight age 9 8 7 6 5 4 3 2 1

    Score 45 - 105 90 50 60 60 20 10

    Security 100No. of

    response5 5 5 30 5 30 5 10 5 485

    Weight age 9 8 7 6 5 4 3 2 1

    Score 45 40 35 180 25 120 15 20 5

    Promotion 100No. of

    response

    5 5 5 - 20 10 15 15 25 360

    Weight age 9 8 7 6 5 4 3 2 1

    Score 45 40 35 - 100 40 45 30 25

    Information 100No. of

    response5 10 - - 5 5 15 20 40 295

    Weight age 9 8 7 6 5 4 3 2 1

    Score 45 80 - - 25 20 45 40 40

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    52/57

    520690

    580430

    590

    340485

    360 295

    0100200300

    400500600700800

    Iden

    tifica

    tion

    Protec

    tion

    Hand

    ling

    Storag

    e

    Pres

    erva

    tion

    Tran

    sportatio

    n

    Secu

    rity

    Prom

    otion

    Inform

    ation

    Functions

    S

    core

    Series1

    The above table shows that out of nine functions of package identified through

    literature reviews, protection and preservation of product is considered the

    most important on the basis of given score and handling, identification security

    and storage are the second important function of packaging. Promotion,

    transportation and information got fewer score than the other function so these

    are the less important function of packaging on the basis of my researchs

    findings. Or given chart or table

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    53/57

    4. FINDING

    This study bring out that till recently packaging was expected only to

    hold the product together, is no more considered so. Now it has acquired the

    position of a strong member of the marketing team. Today marketing strategies

    are revolving around packaging. it has started attracting the services of experts

    of different field. Today majority of buying decision are impulsive and made at

    point of purchase. There package is the most important element to influence

    buying decision.

    Package has become more important than POP material and retailers

    advice at the place of purchase. it becomes all the more important in case of

    marketing of cosmetics, food products, medicine and FMCGs as people give

    due weight to package while buying product of these categories. Packaging

    material, color and design are very important aspects of package in influencing

    consumers. People claim that protection, handling, preservation, storage and

    identification are the most important function which package is expected toperform perfectly to gain consumer loyalty.

    It has been found that customers like the packaging where cloth, paper,

    aluminum foil are used. So it is also harmless to environment. It has

    also been found that packaging used for protection, identification

    beautifications.

    Marketers reconsidered to be serious about packaging and they can

    increase their sales by providing better packaging.

    Package has a close relation with the quality of product and good

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    54/57

    packaged product are considered to be a better quality product by

    customer

    Packaging is considered an important part of product but during survey I

    found that it will increase the cost of the product.

    Packaging is considered as an environment hazard and to preserve the

    plant, it is necessary to minimize the amount of packaging used.

    Packaging is considered the impact on the purchasing decision the

    customer. It is helps marketing mix strategy. It is the important part of

    product. It is not adds value to the product but also helps to maintain

    product quality and product differentiation.

    Respondents are much conscious about labels and seal on package but

    want more information on labels like percentage of ingredients and

    information about multinational value of product.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    55/57

    5. SUGGESTIONS

    Consequences of product should be written on package.

    Standardization must be made compulsory for packaging for all products.

    Butter cake packaging should be improved to handle during summer.

    Packaging of ketchup bottles should be improved to avoid wastage of

    little quantity left at the end.

    Milk packets should be made easy to handle.

    During my study I found that the package of high involvement goods,

    engineering goods and white goods are not liked by the customers so

    marketer has to make some changes in the packaging of these goods.

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    56/57

    6. BIBILIOGRAPHY

    Magazines:

    Packaging India, and other management magazines

    Journals andResearchs reviews

    Dr. kundu subhash c., and Sedhrawet, Mahaver, Impact of Packaging on

    consumer behaviour, the indial journal of commerce, vol. 55 No. 1 & 2 january-june 2002.

    Internet:

    Google.com, khoj.com, sifysearch engine

    Internet journals

    Books:

    Philip Kotler Marketing Management

    Gandhi Elements of Marketing

  • 8/7/2019 A STUDY ON THE IMPACT OF PACKGING ON PURCHASING DECISION OF

    57/57

    CONTENTS

    1. Introduction

    1.1 Meaning of Packaging

    1.2 Function of Packaging

    1.3 Policies and Strategies of Packaging

    1.4 Type of Packaging

    1.5 Importance in Marketing

    1.6 Consumer Behaviour

    1.7 Company Profiles

    2. Research Methodology

    2.1 Research Methodology

    2.2 Nature of the Study

    2.3 Objective of the study

    2.4 Research planning

    2.5 Sampling plan

    2.6 Survey Methodology

    2.7 Limitation of the study

    3. Analysis & Interpretation

    4. Findings

    5. Suggestions