ABSTRACT
This study examined the role of packaging in product concept development and product positioning in the Food and Beverage industry in Nigeria. It explicitly assessed the effect of package design on successful product concept development; ascertained the effect of package size on product acceptability; determined the effect of package colour uniformity on product attractiveness; and examined the effect of package information on product distinctiveness in Nigeria’s Food and Beverage industry. Survey research design was adopted in this study. The population of the study comprised of 208 staff and 240 customers of twelve (12) firms in Nigeria’s Food and Beverage industry. The customers and staff of the twelve (12) firms were randomly selected across the six geo-political zones of Nigeria. Data for the study were garnered through questionnaire and hypotheses were tested with simple linear regression. The findings of the study include that package design significantly influence product concept development, package size greatly influences product acceptability, uniformity of package colour significantly impacts on product attractiveness, and package information significantly affects product uniqueness. The researcher concludes that packaging is a potent business activity that is important to the customers as much as it is to the manufacturing and service firms. It begins from when the idea of a product is conceived, as it largely determines the product concept that would be fully developed and commercialized, then follows the product through its journey in the marketplace. Recommendations made include that product concepts should be presented to the management in varied attractive packages that could factually elicit approval; and information on the product package should be made unique, succinct and unambiguous in a manner that distinguishes the firm’s product from those of competitors.
TABLE OF CONTENTS Page
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of contents vi-viii
List of tables ix
List of figures x
Abstract xi
CHAPTER 1: INTRODUCTION 1
1.1 Background of the Study 1- 3
1.2 Statement of the Problem 3-4
1.3 Research Objectives 4-5
1.4 Research Questions 5
1.5 Research Hypotheses 5-6
1.6 Significance of the Study 6
1.7 Scope of the Study 6
1.8 Limitations of the Study 6-7
1.9 Organization of the Study 7
CHAPTER 2: REVIEW OF RELATED LITERATURE 8
2.1 Conceptual Review 8
2.1.1 Concept of packaging 8-10
2.1.2 Role of packaging 10-13
2.1.3 Features of packaging 15-16
2.1.4 Product concept development 16-17
2.1.5 Concept of product positioning 17-20
2.1.6 Package design and product concept development 20-21
2.1.7 Package Size and product acceptability 22-23
2.1.8 Package colour uniformity and product attractiveness 23-25
2.1.9 Package information and product distinctiveness 27-28
2.2 Theoretical Framework 28
2.2.1 Diffusion of innovation 28-29
2.2.2 ‘View’ theory of packaging 29
2.2.3 Positioning theory 30
2.2.4 Theory of attractive quality 30-31
2.3 Review of Empirical Studies 31-35
2.4 Summary of Review of Related Literature 36
CHAPTER 3: METHODOLOGY 37
3.1 Research Design 37
3.2 Area of the Study 37
3.3 Population of the Study 38
3.4 Sample Size and Sampling Technique 39-40
3.5 Sources of Data 40
3.6 Research Instrument and Administration of the Instrument 40
3.7 Validity of the Research Instrument 41
3.8 Reliability of the Research Instrument 41
3.9 Operational Measure of Variables 41
3.10 Method of data Analysis 41
3.11 Model Specification 42-43
CHAPTER 4: DATA ANALYSIS AND PRESENTATION 44
4.1 Effect of Package Design on Product Concept Development 45
4.2 Effect of Package Size on Product Acceptability 46
4.3 Effect of Package Colour Uniformity on Product Attractiveness 47
4.4 Effect of Package Information on Product Distinctiveness 48
4.5 Discussion of Findings 49-51
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS 52
5.1 Summary of Findings 52
5.2 Conclusion 52-53
5.3 Recommendations 53-54
5.4 Contribution to Knowledge 55
5.5 Suggestion for Further Studies 55
References 56-63
Appendices 64-81
LIST OF TABLES Page
1 Key roles and functions of packaging 14
2 Colour connotations in daily life and marketing 26
3.1 Selected firms and number of staff 38
4.1 Regression analysis of the effect of package design on product concept development 45
4.2 Regression analysis of the effect of package size on
product acceptability 46
4.3 Regression analysis of the effect of package colour uniformity on
product attractiveness 47
4.4 Regression analysis of the effect of package information on
product distinctiveness 48
LIST OF FIGURES Page
1 Conceptual framework of the study 20
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In this contemporary era where technological advancements are more rapid, consumers’ expectations are largely unpredictable as their needs, tastes and preferences remain diverse. Organizations have to continually innovate to meet customers’ needs, and maintain if not increase their share of the market. Product development is one main source of gaining and maintaining strong competitive position, especially in highly saturated and competitive markets, such as the food industry (Vernuccio, Cozzolino, and Michelini, 2010; Heikkinen 2011). Immediately after the idea generation and screening stages, comes the concept development in new product development process. At the concept development stage, crucial decisions concerning raw materials, packaging materials, costs of formulation, packaging and labeling style, among others are made. In affirmation, Khedkar, Mundada, and Jadhav (2014) asserted that during concept development stage, the needs of the target market are identified, competitive products are reviewed, product specifications are made, product concept is selected, economic analysis is executed, and the development project is outlined. Concept development stage provides the basis for the product development exercise, and if not done properly can emasculate the entire efforts put into new product development. Decision pertaining to attributes that form the product should be carefully made during the product concept development as it is central to product positioning and customers’ value judgments. Oyatoye (2011) in Oghojafor, Ladipo, and Rahim (2012), advised that optimum level of product attributes that balance customer value expectation should be worked out as benchmark for resources allocation, costing and pricing decisions.
Positioning is an attempt to make prospective customers belief that the product can meet their needs better than rival products or brands. Positioning aims at designing the product attribute, spreading the brand value, and finally establishing a unique position for the brand inside the minds of the target customers (Ying, Kun, and Cong, 2014). In positioning a product, the firm must identify and emphasize the rational and emotional benefits that buyers may receive or feel by consuming the product and build it in the product during development.
In addition to new product development, packaging innovations have been found to be an effective way to gain competitive advantage, differentiate the firm and its brands from those of competitors and catch more customers’ attention (Lifu, 2012; Gaafar and Ra’id, 2013; Kesinro, Ojo, and Adenugba, 2015). When the competition is high, like it is today, the products of rivaling companies become very similar in their functions. In recent times, customers select products by the physical appearance of their package (Grundey, 2010). Mohebbi (2014) citing Porter (1999) inferred that changes in retailing and marketing activities have given packaging a central role in large and well-developed industry such as food and beverage industry. Underwood and Ozanne (1998) in Mohebbi (2014), observed that most of consumers make decisions of what to buy at the store shelf; this evidence further highlights the immense importance of packaging in attracting, holding interest and influencing consumers’ purchase decisions.
Packaging has become a sine-qua-non in the success or failure of sale of products in highly competitive market. The four basic functions of packaging are to contain and protect products, promote products, and facilitate the storage, use, and ease in handling of products (Gaafar and Ra’id, 2013).
Food and Beverages are necessities and they ought to be presented in different designs and packages that appeal to customers. Firms in the industry use a range of packaging attributes such as colours, designs, shapes, symbols, and messages to attract and sustain the attention and interest of the customers in particular brand and also identify and differentiate among brands of products from one company and those from other companies.
Contributions of packaging to the product specifically and business success in general are not in doubt. There are evidences in many marketing literature that buttress the pervasive and essential role of packaging in marketing of fast moving consumer goods. Some of them can be found in Lifu, (2012); Gaafar and Ra’id, (2013); Mohebbi, (2014); and Kesinro, Ojo, and Adenugba, (2015). Not much research, if any has been done to explore packaging in product concept development and in product positioning. The researcher deems it worthwhile, through this study, to fill this knowledge gap. Thus, this study examined how packaging affect decisions of management on the product concept that would be accepted for full development, and how packaging affect products position in customers’ minds using selected firms in Nigeria Food and Beverage industry as the thrust.
1.2 STATEMENT OF THE PROBLEM
Nigeria Food and Beverage industry has experienced various levels of growth in recent years. Ringier (2015) asserted that the sector which is oligopolistic in nature will continue an upward trend through 2019 on the back of a healthy economy. The question is: How healthy is Nigeria’s economy given the myriad of challenges like insecurity, exchange rate and interest rates fluctuations, and inflation which are rocking business operations? Unfortunately, these challenges have direct implications for Food and Beverage industry (Okoghenun, 2016). The quantity and accessibility of packaging materials for use in the Food and Beverage industry are greatly hampered by security concerns in the local communities where they are usually sourced from, and the prices of some of the packaging materials which are imported are grimly fluctuating owing to the gyrating rates of inflation, exchange and interest (Francis, 2016). However, many products if not all require packaging at production and distribution levels. But, Simms and Trott (2014) stressed that packaging has not received adequate attention in product development process and there is lack of robust theory in this field of study. Also, Hollywood, Wells, Armstrong and Farley (2013) have maintained that there is limited understanding of how attributes of packaging influence position of products in the minds of consumers. It is against these backdrops that this work attempts an investigation of the role of packaging in product concept development and positioning using selected firms in Nigeria Food and Beverage industry as the thrust.
1.3 OBJECTIVES OF THE STUDY
The broad objective of this study was to examine effects of packaging in product concept development and positioning among firms in Food and Beverage industry in Nigeria. Specifically, the objectives were to:
i. assess the effect of package design on product concept development in the Food and Beverage industry;
ii. ascertain the effect of package size on product acceptability in the Food and Beverage industry;
iii. determine the effect of package colour uniformity on product attractiveness in the Food and Beverage industry; and
iv. examine the effect of package information on product distinctiveness in the Food and Beverage industry.
1.4 RESEARCH QUESTIONS
The following are major questions that steered the study:
i. What effect does package design have on product concept development in the Food and Beverage industry?
ii. What is the effect of package size on product acceptability in the Food and Beverage industry?
iii. What is the effect of uniformity in package colour on product attractiveness in the Food and Beverage industry?
iv. What effect does package information have on product distinctiveness in the Food and Beverage industry?
1.5 RESEARCH HYPOTHESES
The following hypotheses were formulated to guide the study:
Ho1: package design does not have significant effect on product concept development.
Ho2: package size does not significantly affect product acceptability in the Food and Beverage industry.
Ho3: uniformity in package colour does not significantly affect product attractiveness in the Food and Beverage industry.
Ho4: package information does not have significant effect on product distinctiveness in the Food and Beverage industry.
1.6 SIGNIFICANCE OF THE STUDY
This study is imperative to spur firms in the Food and Beverage industry to appreciate the potentialities of packaging in building up or fizzling off traffic to their brands. It awake players in the industry to the consciousness that packaging is critical to the success or failure of a given product and by extension, business. The findings of this study will be intriguing to regulators and the industry’s policy makers as it may guide their future decisions. Besides, this research work would contribute to knowledge in this field, enrich marketing literature and serve as a reference material for researchers conducting similar or related study.
1.7 SCOPE OF THE STUDY
The study basically covered packaging, product concept development and positioning in the Food and Beverage industry. Selected firms in Nigeria Food and Beverage industry is the thrust. The target population of this study comprised of the customers and staff (managers and other staff in Production, Quality control, Design & Engineering, and Marketing departments) of twelve (12) selected firms in Nigeria’s Food and Beverage industry.The firms are selected from each of the six geo-political zones for proper coverage of Nigeria. Thus, the units of analysis are the staff and customers of the selected firms.
1.8 LIMITATIONS OF THE STUDY
Although this study was carefully carried out, efforts in this research were limited in the area of data collection as respondents were not easily reached. Longitudinal effect of time is another limitation as the study was done within an academic programme. Other limitation is the reliability of information in the literature reviewed in this study. The number of firms and customers used as unit of analysis should have been larger though the study covered the six geo-political zones of Nigeria.
1.9 ORGANIZATION OF THE STUDY
In order to accomplish the objectives of the study, the study was divided into five chapters. Chapter one, an introduction, began with a succinct background to the study with highlights on product concept development, positioning and packaging. The chapter also covered the problem statement, objectives of the study, research questions, hypotheses, significance, scope and limitations of the study. Chapter two, review of related literature, covered conceptual framework, theoretical framework and review of empirical researches related to the study. Chapter three provided the methodology of the study, population, sampling and sample size, data collection instruments, and methods of data analysis.
Chapter four presented detailed chronology of empirical analysis, results and discussion of findings. Finally, in chapter five, findings were summarized, conclusion reached, recommendations made, contributions to knowledge highlighted, and areas for further studies suggested.
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