THE EFFECT OF PACKAGING IN CONSUMER BUYING DECISION

CHAPTER ONE

1.0   INTRODUCTION

The word packaging is fast becoming a vital element in industries at recent time worldwide, owing to the fact that the introductions of packaging in the industrial business have contributed immensely in protecting products against damage and against degradation.

Getting products into the market, in the desired state of affordable price is a nightmare for manufacturers and alike. The packaging appears to be indispensable due to the high cost of package materials. A package keeps a product intact and available to the final consumers in its original state, protecting the quantity of the product from the physical damage, which was the traditional purpose.

In a nutshell, packaging in industries is vital even more for perishable and non-perishable such as blue band, margarine, Royco bulhon cubes and many other PZ products. The conventional purposes of packaging are meant to perform two basic functions.

i)  Protecting the products against damage

ii)  Protecting the products against degradation.

These functions are mainly aimed at controlling the possibilities of spoilage, either physical or chemical. The packaging as we know acts upon the protection of industrial products which enables the marketers of these products to confront the issue of packaging n the case of any physical product that will be offered to the market.

Initially, packaging was a minor element in the marketing mix for a product but today, the entire controllable products attracts the attentions of consumer and thereby motivates their decision to buy the product. It was also found that packaging plays an important role for promotion of product apart from its traditional role of production.

On the other hand, it was discovered that PZ Company advertise their products but they still rely on the power of products packaging which enhanced all the promotion. The belief that packaging is a silent “salesman”. Also apart from packaging consumers are motivated to buy a particular product by the price, quality and quantity. Therefore, for the company to achieve its goals the management should give packaging an intelligent leadership and support since packaging is dynamic, complex and controversial business area. This involves improving their packaging policy and ideas and ensure that these polices are properly implemented.

1.1   BACKGROUND OF THE STUDY

The background of these study emphases on the effect of packaging Paterson Zochonis industries limited which was incorporated on the 4th December, 1948, under the name of P.B Nicholas company limited to take-over the soap making activity of Mr. P.B Nicholas who had some years prior to date establish a factory of that purpose.

Paterson Zechonis and company limited of Manchester (PZ) subscribed 75.5% of the company’s issued share capital and has since directly or through subsidiary companies, retained its controlling interest P.Z itself was incorporated in England in 1884, become a public company quoted in the London and Northern exchange in 1933. Its principal activities are that of general merchant in West Africa and it has been established in this capacity in Nigeria since 1899. PZ interest now include industrial venture in Nigeria, Ghana and Sierra Leone.

In 1951 Mr. P.B. Nicholas sold out his interest in the company to PZ. Two years later the company changed its name to Alagbon Industries limited in 1960 adopted the name association industries. During the same year, the company achieved the first indigenous Nigeria equality participation and by the end of 1972, it had sold 40% of its share capital to indigenous Nigerians.

Following the merger of PZ and company Nigeria limited, and association industries limited in 1976, the company changed its name to Paterson Zochonis limited an in 1990 adopted the name Paterson Zochonis Nigeria plc.

It is pertinent to note that after in-corporation in 1948 new factor buildings were erected and in 1948 modern soap making equipment installed at Aba thereby creating one of the earlier major industries manufacturing facilities were further developed during 1960 both by addition to the soap making capital and by the introduction of a wide range of perfuming cosmetics and medical products. The original soap factory premises at Aba are no longer used for manufacturing purpose but extensive factory and administrative premises has been built up there over the years.

During the year 1967 to 1970 (Nigeria civil war manufacturing operations at Aba factory were disrupted and in consequence the company operated in rented premises in Lagos, a factory which enable it to maintain suppliers of all but its soap product to its customers.

This manufacturing unit eventually moved to modern built and equipped factor premises on company’s property in the Ilupeju industrial estate near Lagos. The company’s range of products include bar and toilet soap performing cosmetics, confectionery medicaments, and pharmaceuticals of all which are distributed throughout Nigeria with buffer stock held at strategic centers. Additionally, the company has significant expert of glycerin and oil cause by-products of the soap making process which utilizes substantial tonnages of palm oil and other vegetable oil purchase locally.

1.2   STATEMENT OF THE PROBLEM

In the running of the duties of packaging in PZ Nigeria plc, there are some problems they encounter in the packaging of their products. A product package apart from protecting the product content it is also expected to communicate the brand of the product, prices, dominations, ingredients, method of usage and legal phrase. All these combinations portray an ideal and effective product package design.