Project Report

Business Research Methods

Research Topic: - Impact of packaging on FMCG products.

Group No: - 4
Sec:-A

Submitted To Submitted By
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. Many
marketers 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 the
product 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 natural

resources; 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, like
product 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 for
influencing 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 define
them 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 about
product 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.
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 is
a 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 it
depends 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 reflected
by 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 consumers
are 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 deals
with cognitive and affective orientations in the process of decision-making. Four main
packaging elements potentially affect consumer purchase decisions, which can be
separated 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 technologies
used 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 not
search 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 products
are simply not very important. The lack of substantial evaluation often results in the
inability to distinguish much difference among leading brands (McWilliam, 1997). A
common 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 substitute
easily when it is not available.
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 : Packaging
Case : Product

2. Hypothesis : Relational
Variable : Life, reliability and packaging
Case : Product

3. Hypothesis : Descriptive
Variable : Packaging
Case : Customers

4. Hypothesis : Descriptive
Variable : Packaged products
Case : High income customer
5. Hypothesis : Explanatory
Variable : Packaging
Case : Product
Concept/ : Positioning
Construct
Indicator : Image of the product

6. Hypothesis : Descriptive
Variable : Packaging, Premium
Case : People
 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 be
highly 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: Customer’s 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)Don’t 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
10. Does shape & design as an attributes of packaging attracts you?

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

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

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

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

attracts you?

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

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

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

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?

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

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

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

18. How far do you agree that good packaging of a product ensures high quality of a
product?
 (a)Strongly agree (b) agree (c) neutral (d) disagree (e) strongly disagree

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

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

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

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