ASSESSING THE RELEVANCE OF PACKAGING ON THE MARKETING OF CONSUMER GOODS: A CASE STUDY OF NESTLE GHANA LIMITED
(Francis Owusu)
A dissertation submitted in partial fulfillment of the requirements of Masters in Business Administration – International Business at the Amity Center for E-learning Amity University, Noida
June, 2012
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CANDIDATE’S DECLARATION I hereby declare that this submission is my own work towards the MBA and that to the best of my knowledge no part of it has been presented for another degree in this university or elsewhere except for the references to other people’s work which have been duly acknowledged.
Francis Owusu (Student’s Name)
……………………. (Supervisor’s Name)
...................................... Signature
.......................................... Signature
.............................. Date
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DEDICATION I dedicate this project to my dear family, without their support this project would not have been possible.
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ACKNOWLEDGEMENT I am greatly indebted to God whose grace has been sufficient for me throughout the writing of this project work. I also owe a lot of gratitude to my dear family through whose love and untiring support I have been able to complete this work. Finally, I am grateful to all my friends and wellwishers for their prayers and support.
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ABSTRACT This research sought to assess the relevance of packaging on the marketing of consumer goods using a case study of Nestle Ghana Limited by examining the role of packaging in product marketing, Assessing the impact of packaging on consumer product sales and assessing the relevance of the role of packaging in product marketing. The target population for the research comprised all customers and employees of Nestle Ghana limited. The study was conducted with a quantitative method, executed through questionnaires, which are handed out to two hundred (200) respondents. Statistical Package of Social Sciences (SPSS) was used to analyze data obtained from field research. Findings showed that Packaging has lots or roles/ relevance in consumer product marketing: packaging protects goods from damage, packaging help in the promotion and marketing of goods, packaging allows efficient distribution of consumer products, has service benefits, guarantee, and sales functions. Packaging has a significant impact on consumer product marketing and Packaging is relevant in consumer product marketing. The study therefore recommended that management of Nestle Ghana Limited Strive to improve package design by conducting more research into packaging and how to maximize its benefits and investing in improving Product Package Design.
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TABLE OF CONTENTS CANDIDATE’S DECLARATION...................................................................................... ii DEDICATION............................................................................................................... iii ACKNOWLEDGEMENT................................................................................................. iv ABSTRACT................................................................................................................... v LIST OF TABLES.......................................................................................................... ix
1.2 Statement of the Problem....................................................................................................2 1.3 Research Questions.............................................................................................. 2
1.4 Objectives..............................................................................................................................2 1.5 Justification of the Study.....................................................................................................3 1.6 Scope of the Study................................................................................................................3 1.7 Organization of the study..................................................................................................3 xiii.Color............................................................................................................... 5 xvii.Packaging size and shape.............................................................................. 6
xviii.Informational elements.....................................................................................................6 xix.Product information........................................................................................ 6 xx.Packaging technology...................................................................................... 6
2.1 Conceptual Framework.......................................................................................................6 2.2 Functions of packaging........................................................................................................8 2.2. 1 The Levels of Packaging...........................................................................14
2.3 Package Design Literature................................................................................................15 2.3.1 Gestalt Psychology and the Part–Whole Distinction..................................16 2.3.2 Factors Underlying Holistic Package Designs............................................17
2.4 Package Design...................................................................................................................18 2.4.1 Shape........................................................................................................ 19 2.4.2 Graphics.................................................................................................... 21 vi
2.4.3 Brand name............................................................................................... 22 2.4.4 Typography............................................................................................... 23 2.4.5 Pictures..................................................................................................... 25 2.4.6 Color.......................................................................................................... 25 2.4.6.1 Objectives of color use...........................................................................27 2.4.6.2 Color Symbolism.................................................................................... 28
2.5 Analyzable Characteristics of Color................................................................................31 2.6 Packaging size and shape..................................................................................................31 2.7 Informational elements......................................................................................................32 2.7.1 Product information...................................................................................32
2.7.2 Packaging technology.....................................................................................................33 2.8 Packaging as a marketing issue........................................................................................34 2.9 Consumer studies on packaging......................................................................................35 2.10 Package Design and Consumer Impressions.................................................................37 2.11 Consumer Benefits...........................................................................................................38 2.12 Conceptual framework....................................................................................................41 CHAPTER THREE....................................................................................................... 43 RESEARCH METHODOLOGY...................................................................................... 43
3.0 Introduction........................................................................................................................43 3.1
Research Design..............................................................................................................43
3.2 Population of the Study....................................................................................................44 3.3
Sample and Sampling technique..............................................................44
3.4 Data Collection...................................................................................................................45 3.4.1 Primary Data............................................................................................. 45 3.4.2 Secondary Data......................................................................................... 46
3.5 Instrumentation..................................................................................................................46 vii
3.6 Pre-test of the study instrument.......................................................................................47 3.7 Data Collection Procedure................................................................................................47 3.8 Data Analysis Procedure...................................................................................................48 3.9 Limitations of the Study....................................................................................................48 3.11 Ethical Considerations ....................................................................................................48 3.11 Organizational Profile.....................................................................................................49 4.1 Findings...............................................................................................................................55 4.1.1 Demographic Characteristics of Respondents...........................................55 4.1.2. Section B – Treatment of Research Questions..........................................59
4.1 Analysis...............................................................................................................................61 6.1 Discussion and Interpretation of Findings.......................................................................64 5.0 Introduction........................................................................................................................68 5.1 Conclusion...........................................................................................................................68 5.2 Implications.................................................................................................. 69 5.2.1 Companies................................................................................................ 69 5.2.3 Policy Makers............................................................................................ 69 5.2.4 Academia.................................................................................................. 69
5.2 Recommendations..............................................................................................................69 5.2.1 Strive to improve package design ............................................................70 5.2.2 Research more into packaging and how to maximize its benefits.............70
5.3 Suggestion(s) for Further Research..................................................................................71 REFERENCES............................................................................................................. 72 APPENDIX A.............................................................................................................. 81
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LIST OF TABLES Tables
Pages
Table 4.1
Statistics………………………………………………………………………56
Table 4.2
Age Distribution of Respondents……………………………………………..57
Table 4.3
Gender Distribution of Respondents………………………………………….57
Table 4.4
Marital Status of Respondents………………………………………………...58
Table 4.5
Respondents' Work Experience……………………………………………….58
Table 4. 6
Respondents Level Within Company………………………………………….59 ix
Table 4.7
Respondents' Levels of Education……………………………………………..59
Table 4.8
Packaging roles………………………………………………………………....60
Table 4.9
Packaging is relevant in consumer product marketing…………………………60
Table 4.10
Packaging has a significant impact on consumer product marketing…………...61
Table 4.11
Forced entry regression of Packaging on Product Marketing…………………..61
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CHAPTER ONE GENERAL INTRODUCTION 1.1 Introduction Packaging is the container for a product – encompassing the physical appearance of the container and including the design, color, shape, labeling and materials used” (Arens, 1996). Packaging is an integral part of the marketing of consumer goods (Solomon et al., 1999). The role of packaging in consumer goods marketing is to protect goods from damage, allow efficient distribution, informs the consumer and helps to promote goods in a competitive environment (Silayoi and Speece, 2004). The need for packaging is also informed by product marketing reasons and consumer decision considerations. Though a product might be best among its competitors content-wise, the consumer would not know when making a choice as to which product to buy from amongst other competitive products. Most consumers don’t have the time, ability or information to assess all the pros and cons before purchase. Instead they rely on various cues (e.g. brand name, packaging, etc.) to help them make their decision (Zeithaml, 1988). The package is a critical factor in consumer product marketing and consumer decision-making process because it communicates to consumers. The package standing on the shelf, affects the consumer decision process and package design must ensure that consumer response is favorable (Silayoi and Speece, 2004). However, several conflicting trends in consumer decision making has made the consumer goods package design and marketing challenging. Some consumers are paying more attention to label information, as they become more concerned about health and nutrition issues (Coulson, 2000). Some researchers (Green and Srinivasan, 1978, 1990; Enneking et al., 2007) have found correlation between product packaging and the effective marketing of 1
consumer goods. These researchers contend that packaging helps significantly in the marketing of consumer goods. Other researchers (Osei, 2001) also contend that packaging has no relevant importance in consumer goods marketing but only serves to increase the price of the product. 1.2 Statement of the Problem Louis Cheskin (1930) discovered that people didn’t make a distinction between the product and the package. Instead how we feel about the package is often transferred to how we feel about the product itself. In essence, for consumers the product is the package and the product combined. Asking customers directly how they feel about a product or package is going to result in just that, their perceptions about the package. What is generally more relevant is how the package makes them feel about the product itself. Though the relevance of packaging in consumer product marketing is an important subject matter, there have been a few empirically studies on the subject matter. most studies on the subject have dealt with consumer behavior (solomon et al., 1999), packaging in branding (Silayoi and Speece, 2004), consumer decision making process (Zeithaml, 1988), etc. Though these previous studies provided a framework for this study, it was necessary to empirically examine the relevance of packaging on the marketing of consumer goods using a local setting. 1.3 Research Questions The following research questions were used to guide the study 1. What role does packaging play in product marketing? 2
What is the relevance of the role of packaging in product marketing?
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What is the impact of packaging on consumer product sales?
1.4 Objectives 2
The study primarily aims to assess the relevance of packaging on the marketing of consumer goods using a case study of Nestle Ghana Limited. The primary objective would be achieved by achieving the following sub-objectives 1. Examining the role of packaging in product marketing. 2. Assessing the relevance of the role of packaging in product marketing. 3. Assessing the impact of packaging on consumer product sales. 1.5 Justification of the Study The researcher is confident that such a study would be beneficial in many ways. First, the study would inform Nestle Ghana Limited to focus more attention and importance or otherwise on product packaging. Secondly, the findings of the study would also serve as a good store of information to packaging companies in the area of package designing. Thirdly, the research would also serve as an invaluable reference for Students, Academician, institutions, corporate managers and individuals who want to know more about product marketing. Lastly, the study will serve as a platform for other researchers conducting studies in related areas. 1.6 Scope of the Study This research work focused on assessing the relevance of packaging on the marketing of consumer goods. The study covers customers and employees of Nestle Ghana Limited. Geographically, the setting of the study is Tema, near Accra in the Greater Accra Region. This is because Nestlé Ghana Limited (the case study company) is situated in Tema.
1.7 Organization of the study 3
This work is divided into seven chapters. Chapter one introduces the study, defines the problem, and clarifies the objectives of the study and limitations and how the research is organized. Chapter two reviews related literature. This covers objective and analytical reviews of the theoretical framework within which the study is conducted as well as previous essays, commentaries and accepted publications on the subject area. The study also relied on published material both in print and on accepted internet sites. Chapter three focused on the methodology used in gathering data. It described the research design, the population, sampling procedures, and data gathering instruments, pre-testing technique, data collection procedures and methods of data analysis. Chapter four focused on data presentation, chapter five covers the analysis of data whilst chapter six presents Discussion and Interpretation of Findings. Chapter seven deals with a Conclusions, Implications and Recommendations
CHAPTER TWO 4
LITERATURE REVIEW 2.0 Introduction This chapter presents a comprehensive review of relevant literature in an attempt to position the study in an appropriate conceptual and theoretical framework. The chapter discusses findings of related researches obtained from relevant articles, textbooks, journals, speeches, web sites and other credible sources of information to this study. This chapter also presents the works that have been done by other researchers which were considered relevant for the subject of study. The following topics were reviewed for the study i.
Conceptual Framework
ii.
The concept of Packaging
iii.
Functions of packaging
iv.
Package Design Literature
v.
Gestalt Psychology and the Part–Whole Distinction
vi.
Factors Underlying Holistic Package Designs
vii.
Package Design
viii.
Shape
ix.
Graphics
x.
Brand name
xi.
Typography
xii.
Pictures
xiii.
Color
xiv.
Objectives of color use
xv.
Color Symbolism 5
xvi.
xvii.
Analyzable Characteristics of Color Packaging size and shape
xviii.
Informational elements
xix.
Product information
xx.
Packaging technology
xxi.
Packaging as a marketing issue
xxii.
Consumer studies on packaging
xxiii.
Package Design and Consumer Impressions
xxiv.
Consumer Benefits
xxv.
Conceptual framework
2.1 Conceptual Framework 2.1.1 The concept of Packaging A number of definitions of packaging have evolved in the literature (Frey and Albaum, 1948; ILDM, 1993; Stewart, 1996; Issues Paper, 1997; Lee and Lye, 2002; Ampuero and Vila, 2006). Wikipedia.org defines Packaging as 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. Garber et al., (2000) also defines Packaging as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer." While subtle differences exist between these definitions three key roles of packaging with regard to the product have consistently been highlighted; these are: protection, containment and 6
identification; although it is clear that the latter role can also be expanded to include packaging’s ability to communicate with the consumer. Rundh (2005) discusses the multiple facets of packaging as a marketing tool; he identifies the key relevance of packaging to a number of aspects of marketing, including pricing, marketing communications, and distribution. More widely within the literature it is clear that packaging is relevant to, and spans the boundaries of, a number of marketing disciplines: _ The marketing communications literature has provided insights into packaging’s ability to communicate with consumers (Nancarrow et al., 1998; Underwood and Ozanne, 1998); how it can influence consumers’ perceptions and evaluations of products (Dick et al., 1996; McDaniel and Baker, 1997; Raghubir and Krishna, 1999; Rettie and Brewer, 2000); and how it can be used to gain their attention (Underwood et al., 2001). Indeed packaging has a powerful effect on consumers at the point of sale (Welles, 1986; Phillips and Bradshaw, 1993; Grossman and Wisenblit, 1999; Prendergast and Pitt, 2000; Wells et al., 2007) and can hence improve product sales (Sara, 1990; Beharrell, 1994; Garber et al., 2000; Silayoi and Speece, 2004). •
The brand management literature highlights packaging’s importance as a brand tool (Underwood and Klein, 2002; Underwood, 2003) and to differentiate products in the eyes of the consumer (Wells et al., 2007).
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The distribution management literature has focused on packaging’s key role within the supply chain and as a logistics tool (Johnsson, 1998; Bjarnemo et al., 2000).
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The importance of packaging in terms of the organization’s environmental responsibilities and commitment to sustainable marketing has also been documented in the literature. This highlights that packaging’s traditional key roles must be balanced with these new environmental concerns (Kassaye and Verma, 1992; Prendergast and Pitt, 7
1996). Indeed, in the coming years there is likely to be an increasing emphasis on this aspect of packaging within the literature, particularly with new government initiatives increasingly placing the responsibility of disposal and waste on the brand owner. By drawing together this diverse literature on packaging it becomes possible to develop a clearer understanding of the powerful nature of packaging as a marketing tool, and to recognize that packaging is a critical part of the product offering that should be highly regarded within all areas of marketing. While packaging is associated with many key aspects of marketing, it is most strongly associated with the product; indeed packaging is sometimes integral to the product; for example, bottled water, which in many respects is defined by the bottle itself. In fact, the literature even suggests that as far as the consumer is concerned, the packaging can effectively become the product (Silayoi and Speece, 2004). The development of new packaging ideas should therefore be central to the new product development process.
2.2 Functions of packaging 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.
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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
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relate to information provided and technologies used in the package, and are more likely to address the cognitive side of decisions. 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. Such habit loyalty is fairly common in the West, e.g. IGD (2002a) notes that about one-third of women shoppers, and slightly fewer men, buy food products through habit. It is also quite common in Thailand and more broadly in Asia (Speece, 1998, 2003). Survey data from Thailand indicate that packaging plays a strong role in reminding consumers about the brand (Silayoi et al., 2003), i.e. it helps to reinforce habit loyalty. Some observers, though, note that not all consumers view grocery shopping as a low involvement activity. Beharrell and Denison (1995) show a range of involvement among European consumers. Those with higher involvement tend to be more strongly brand loyal, including willingness to postpone purchase or go to another store if the brand is not available. In Thailand, about 20-40 percent of consumers for most FMCG shows this level of loyalty, and will postpone or search rather than simply switch to a substitute (Speece, 1998, 2003).
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Clearly, consumer use of packaging elements is quite an important issue for products - generally, informational elements require more mental effort to process than do visual elements, which evoke more of an emotional response. Some consumers are not willing to put forth this small effort, and food products which is of truly low involvement for them (Koffka 1922; Wertheimer 1925). Others may consider the product more carefully, so that involvement level might shift the package elements which are most critical. We look at these various elements in more detail in the remainder of this section, to examine how consumers are likely to use each one. Packaging should provide the correct environmental conditions for item packed starting from the time the item is packed through to its consumption. A good package should therefore perform the following functions (Underwood et al. 2001).
Protective function The protective function of packaging essentially involves protecting the contents from the environment and vice versa. The inward protective function is intended to ensure full retention of the utility value of the packaged goods (Speece, 1998, 2003). The packaging is thus intended to protect the goods from loss, damage and theft. In addition, packaging must also reliably be able to withstand the many different static and dynamic forces to which it is subjected during transport, handling and storage operations. The goods frequently also require protection from climatic conditions, such as temperature, humidity, precipitation and solar radiation, which may require "inward packaging measures" in addition to any "outward packaging measures". The outward protection provided by the packaging must prevent any environmental degradation by the goods. This requirement is of particular significance in the transport of hazardous materials, with protection of humans being of primary importance. The packaging must furthermore as far 11
as possible prevent any contamination, damage or other negative impact uponthe environment and other goods (Underwood et al. 2001).
The inward and outward protective function primarily places demands upon the strength, resistance and leak-proof properties of transport packaging (Koffka 1922; Wertheimer 1925).
Storage function The packaging materials and packaging containers required for producing packages must be stored in many different locations both before packaging of the goods and once the package contents have been used. Packaging must thus also fulfill a storage function.
Loading and transport function Convenient goods handling entails designing transport packaging in such a manner that it may be held, lifted, moved, set down and stowed easily, efficiently and safely. Packaging thus has a crucial impact on the efficiency of transport, handling and storage of goods. Packaging should therefore be designed to be easily handled and to permit space-saving storage and stowage (Speece, 1998, 2003). The shape and strength of packages should be such that they may not only be stowed side by side leaving virtually no voids but may also bestow safely one above the other. The most efficient method of handling general cargo is to make up cargo units. Packaging should thus always facilitate the formation of cargo units; package dimensions and the masses to be accommodated should where possible be tailored to the dimensions and load-carrying capacity of standard pallets and containers (Koffka 1922; Wertheimer 1925).
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Where handling are to be entirely or partially manual, packages must be easy to pick up and must be of a suitably low mass (Koffka 1922; Wertheimer 1925). Heavy goods must be accommodated in packages which are well suited to mechanical handling. Such items of cargo must be forklift able and be provided with convenient load-bearing lifting points for the lifting gear, with the points being specially marked where necessary (handling marks) (Speece, 1998, 2003).The loading and transport function places requirements upon the external shape of the package, upon the mass of the goods accommodated inside and upon the convenient use of packaging aids. The strength of the package required for stowing goods on top of each other demonstrates the close relationship between the loading and transport function and the protective function (Koffka 1922; Wertheimer 1925).
Sales function The purpose of the sales function of a package is to enable or promote the sales process and to make it more efficient.
Promotional function Promotional material placed on the packaging is intended to attract the potential purchaser's attention and to have a positive impact upon the purchasing decision. Promotional material on packaging plays a particularly important role on sales packaging as it is directly addressed to the consumer. This function is of subordinate significance in transport packaging. While product awareness is indeed generated along the transport chain, excessive promotion also increases the risk of theft (Speece, 1998, 2003). Service function 13
The various items of information printed on packaging provide the consumer with details about the contents and use of the particular product. Examples are the nutritional details on yogurt pots or dosage information on medicines (Koffka 1922; Wertheimer 1925). The package may also perform a further function once the contents havebeen used (e.g. storage container, toy).g. Guarantee function By supplying an undamaged and unblemished package, the manufacturer guarantees that the details on the packaging correspond to the contents. The packaging is therefore the basis for branded goods, consumer protection and product liability. There are legislative requirements which demand that goods be clearly marked with details indicating their nature, composition, weight, and quantity and storage life.
Additional function The additional function in particular relates to the extent to which the packaging materials or packaging containers may be reused once the package contents have been used(Koffka 1922; Wertheimer 1925). The most significant example is the recycling of paper, paperboard and cardboard packaging as waste paper (Speece, 1998, 2003).
2.2. 1 The Levels of Packaging Levels of packaging differ mostly in the quantity of their contents and theimportance of their communication function (Batra and Homer 2004): •
Primary or sales packaging 14
. This reaches the consumer. It has the smallest product quantity, and communication is very important. The packaging is indirect contact with the product. It may include such elements as: bottle, cap, label, printed box, enclosed leaflet (Batra and Homer 2004). •
Secondary or grouped or unit packaging
. It is primarily used to safely transport several primary packages. The most common example is the corrugated paperboard case (box). It is generally plain and has little communication function beyond a bar-code to identify it. Secondary containers also used to display primary packages at the point of sale may have further communication elements inside. The package proportions should allow it to be stacked on to a pallet or similar tertiary package with least waste space and least packaging materials. This requirement may affect the size and shape of the primary package (Batra and Homer 2004). •
Tertiary or transport packaging
. Used for the safe handling and transport of secondary packages, e.g. shrink-wrapped pallets; metal shipping containers. Contain the largest product quantities and have little communication function (Batra and Homer 2004).
2.3 Package Design Literature There is both theoretical and empirical support for generalizable, prototypical, holistic package designs and their relationship to generalizable response dimensions. First, drawing from Gestalt psychology (Koffka 1922; Wertheimer 1925) and work on nonconscious preference formation (Kunst-Wilson and Zajonc 1980; Lewicki 1986), classification (Berlyne 1971), and type (Pepper 1949), current design processing theory suggests that specific design elements are perceived and organized into more complex components (Veryzer 1999). Second, several studies have directly 15
explored fundamental factors that capture differences among key types of designs (Henderson and Cote 1998; Henderson et al. 2003; Henderson, Giese, and Cote 2004). Third, a significant amount of literature attests to package design’s ability to generate a variety of impressions (e.g., Aaker 1991; Batra and Homer 2004; Batra, Lehmann, and Singh 1993; Keller 1993; Schmitt and Simonson 1995; Underwood 2003; Underwood and Klein 2002; Underwood and Ozanne 1998). Thus, we put forward the idea of generalizable holistic package designs, which are systematically related to generalizable brand impressions. Next, we review the supporting literature in greater detail. 2.3.1 Gestalt Psychology and the Part–Whole Distinction Two features of the Gestalt psychology research on part versus whole perceptions are relevant to our work on holistic design types. First, the general idea of part–whole perceptual differences was one of the pioneering contributions of early Gestalt psychologists (Koffka 1922; Wertheimer 1925). For example, consider one colored dot versus a grouping of colored dots versus a whole painting in the classic pointillism style. A single painted dot might look ominous when seen alone, but it adds richness to a flower that is part of a still-life painting of a bouquet. Likewise, any one of the pure dots of color taken in isolation fails to convey the painting itself, but content and meaning emerge from the orchestration of numerous parts to construct a far richer perceptual whole. Second, Gestalt psychology also recognizes the importance of stimulus categorization, though more in terms of stimulus recognition. Consider figure–ground distinctions, according to which two designs might have similar features but differ in terms of which ones are made more prominent (the figure) and which are treated more as the background. A typical example is the so-called Rubin vase (named after Edgar Rubin, the Danish psychologist who studied such
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images), a vase–face, figure–ground reversal stimulus. On first sight, people might categorize the image as that of a white vase against a black background, whereas a closer look might reveal two human heads facing each other with contours of chins, lips, noses, and other facial features outlining the shape of the original vase. 2.3.2 Factors Underlying Holistic Package Designs In addition to Gestalt psychology, recent design theory and empirical evidence suggest that consumers perceive “constitutive” elements (e.g., colors, textures, surfaces) and organize them into more complex components (Veryzer 1999). Such a hierarchical processing explanation draws from studies on nonconscious preference formation (e.g., Kunst-Wilson and Zajonc 1980; Lewicki 1986) and from findings that more abstract, multidimensional design characteristics are determined by more basic and measurable design elements (Geistfeld, Sproles, and Badenhop 1977). Design elements are combined into more complex (cognitive) components or factors of design, which are then aggregated during perception and convey particular characteristics (i.e., of a brand) to consumers. This interpretation is consistent with fluency-based attributions (Janiszewski and Meyvis 2001) and perceptions of beauty (e.g., Grammer and Thornhill 1994).
Furthermore, categorization, classification, and type theories suggest that generic dimensions exist during the progression that occurs as initial design perception moves to interpretation. Common to those theories is their reference to the recognition of a particular class of objects without the ability to identify all its details and peculiarities (Berlyne 1971) as consumers try to understand a stimulus by placing it within an existing category (Loken and Ward 1990). Thus, categorization is based on the perceived similarity between a given package and exemplars of various categories. A consumer first encountering a package may initially categorize the design 17
as belonging to a particular category, but as perception becomes more complete and the object is more fully understood, the person moves past the
2.4 Package Design For many consumers in low involvement purchases, the package is the product, particularly because impressions formed during initial contact can have lasting impact. As the product attribute that most directly communicates to the target consumer the design characteristics of the package need to stand out in a display of many other offerings. (Nancarrow, Wright, & Brace, 1998) According to Bloch (1995) the form or design of a package or a product could contribute to a success in several ways. Bloch (1995) goes on to explain that when designers make choices regarding form, characteristics such as shape, scale, color, texture, materials, proportions, and ornaments are included. First, in cluttered markets, form is one way to gain the consumers notice (Dumaine, 1991). With new product offerings, a distinctive design can render older competitors obsolete and make later competitors appear as shallow copies (Bloch, 1995). Second, according to Bloch (1995), the form or exterior appearance of a product is important as a means of communicating information to consumers. Product form creates the initial impression and generates inferences regarding other product attributes in the same manner as does price. For example, a compact and simple form of a computer could be used to communicate the ease of use. Third, in addition to managerial considerations, product form is also significant in a larger sense because it affects the quality of people’s lives. The perception and usage of a beautifully designed object may provide sensory pleasure and stimulation. In contrast, objects with 18
unattractive form may evoke distaste. Fourth, form can also have long lasting effects. Although many goods are quickly discarded, the aesthetic characteristics of more durable products can have an impact for years on users and non-users alike as products become part of the sensory environment, for good or bad. 2.4.1 Shape Everything about the package plays a role in communicating product imaginary to the consumer (Meyers, 1999). The package shape can be used to communicate images that influence consumer perception, appeal to the consumer’s emotions, and establish desires for the product before the consumer ever reads the label or sees the actual product. According to Silayoi and Speece (2004) package size, shape and elongation affects customer judgments and decisions, however they state that it does not always occur in easily uncovered ways. Consumers, according to Silayoi and Speece (2004), often appear to use these things as simplifying heuristics to make volume judgments. Generally they perceive more elongated packages to be larger, even when they frequently purchase these packages and can experience true volume.
Meyers (1999) claims that it is possible to manipulate the imaginary and position of a product by selecting and using a certain form, material and features of the package that will influence the perception of the product and thereby directly influence the consumer’s buying decision. Meyers (1999) also explains that it is very easy to become to eager in the will to be unique and the form can then easily contradict the marketing strategy of the product. This is according to Meyers (1999) particularly true when it comes to price/value perception. Different sizes also appeal to consumers with somewhat different involvement. For example, low price for some low involvement products, such as generics, is made possible through cost savings created by 19
reduced packaging and promotional expenses. Generics are usually packaged in larger sizes, which communicate to consumers who are specifically looking for good deals. Such consumers find the low price generics, in the right size of packaging, offers excellent value for money. In addition, this could imply that when product quality is hard to determine, as with generics, the packaging size effect is stronger. According to Danger (1987) there cannot be fixed principles governing the physical shape of a package because it is usually dictated by the nature of the product, by mechanical considerations, by selling conditions, by display considerations, and the way that the package is used. However there exist some basic rules that should be followed. Danger (1987) lists them in the following order: •
Simple shapes are preferred to complicated ones.
•
A regular shape will have more appeal than an irregular one and the latter may cause a mental blockage, which impels the customer to something else.
•
A shape that is not balanced will be unpleasing.
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Squares are preferred to rectangles and a rectangle that has a square root to one that does not.
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Shapes should be tactile and soft.
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A convex shape is preferred to a concave one.
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Women prefer round shapes and they like circles better then triangles. Angular shapes are preferred by men and are considered more masculine, men also prefer triangles to circles.
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Shapes should be easy on the eye.
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2.4.2 Graphics If structural design has the ability of creating images that appeal to the consumer’s emotions, graphics design – the visuals that decorate the surface of the package – has an even greater opportunity to encourage the purchase of your product. To do so, the packaging graphics must be based on a distinct positioning strategy for the product and project this strategy in the most forceful and comprehensible manner. Graphics includes layout, color combinations, typography, and product photography, all of which create an image. For low involvement, there is a strong impact from marketing communications, including image building, on consumer decisionmaking. (Meyers, 1998) Evaluation of attributes is of less importance in low involvement decisions, so graphics and color become critical (Grossman and Wisenblit, 1999) The opportunities to communicate product attributes through packaging graphics are almost limitless. Graphics are capable of communicating informative and emotional messages. Informative messages include the following (Meyers,1998): •
Brand identity
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Product name
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Product description
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Flavor or variety identification
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Attribute description
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Benefit statements
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Sell copy
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Promotional messages
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Usage directions
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•
Cross-references to other products
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Nutritional elements (for food)
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Warning or caution statements (for drugs and chemicals)
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Size and contents
Beyond providing pure information, the emotional aspects of packaging graphics are more subliminal. They evolve from the styling of various graphics elements, including logo styling, copy styling, symbols, icons, colors, textures, photography, and illustrations.
2.4.3 Brand name The brand name that identifies your brand and product on your package is responsible for creating memorability, building brand recognition and loyalty, and providing information. Styling of the brand name in a unique manner is, therefore, of primary importance to the current and future well-being of your product. A uniquely styled brand identity creates a recognizable signature that creates recognition among consumers and enhances their familiarity with your products. A uniquely shaped signature is referred to as the brand’s logo. (Meyers, 1998) The logo can take many forms. It can be based on the brand name in some sort of unique typographic format or a uniquely styled configuration of the corporate initials. The logo can also take the form of a symbol that has an association with the product or can simply be an abstract shape designed to achieve brand recall. A bold logo will communicate strength, masculinity, and effectiveness. A cursive logo usually communicates elegance, lightness, femininity, and fashion. An angled or script logo provides an image of casualness, fun, movement, and entertainment.
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Because the brand identity on packages is so critical in communicating a positive image to the consumer, it is important to keep it as constant as possible. Whether the logo is a stylized name or a symbol, whether it identifies a single product or an extensive line of products, whether it is used as a master brand or a sub-brand, it is advisable that the logo style and proportions are maintained on all packages, regardless of packaging form, shape, and size. 2.4.4 Typography Next in importance to brand identity on packaging are the verbal communication elements, i.e., the words that appear on the packages identifying the product and various information about the product. The verbal communication elements are of critical importance because they are responsible for communicating specific information about the product and its attributes. Depending on the package size, this must often be accomplished within extremely limited confines of the label or package proportions. (Meyers, 1998) The graphics techniques used to display the words create a distinct impression, resulting in that the appearance in the type also carries meaning. Typography is the study of how letterforms are used to create effects, from bold to elegant, and from delicate to aggressive. (Moriarty, 1991)
The styling of the words by the graphics designer can tell the consumer much about the product. Every information element on the package has to be precisely targeted and presented in an easyto-read manner to communicate the intended brand and product information. Even numbers can be important. The identification of weight, fluid contents, and product counts are all important to the consumer. (Meyers, 1998) One of the most important types is the serif typeface (Moriarty, 1991), in which the end of each stroke is finished off with a little flourish (Wells, Burnett & Morarity, 2000). It is this finishing detail that is the actual serif. Serif letters are considered 23
traditional and easy to read. The other typeface is the sans serif typeface, which is one that is missing the serif, in other words missing the little detail at the end of each stroke. Most sans serif typefaces are clean and blocky, and reproduce well in newspapers and on cheap paper. Long masses of copy, on the other hand, usually do not appear in sans serif. (Wells et al., 2000) Bold sans-serif typefaces can communicate strength of product performance. Serif lettering can convey high quality, while delicate script-styles can suggest softness, femininity, discretion, and elegance. (Meyers, 1998). In addition to such package design elements as brand identity, product identification, and attribute statements, many copy segments on packages are regulated by federal laws and sometimes by industry control such as
•
Usage copy to instruct the buyer how to hold, open, dispense, assemble, or store the package or the product within
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Nutritional copy for food and beverages to guide consumer regarding dietary concerns Directions, indications, warnings, and dosage instructions for pharmaceutical products to ensure that they are used properly
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Storage instructions, transport instructions, and various warnings for chemical products to avoid accidents
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Contents statements, such as net weight, fluid ounces, and piece count for products that are bought by weight, size, or numerical preferences
These copy elements are often difficult to accommodate in the small space available on the package or label, but they are needed to be strictly adhered to in terms of text, size of typography, and placement. (Meyers, 1998) 24
2.4.5 Pictures One of the most effective means of communicating product information and imagery is, of course, the use of pictures on the package. Photographs and illustrations on packaging identify products, describe their use, make them desirable, or create an emotional response by the consumer to the product inside. Photographs and illustrations on packaging are powerful design tools for (Meyers, 1998): •
Identifying product differences
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Communicating product functions, such as describing step-by-step assembly of a modular product or procedures for applying a fixing compound or preparing a meal
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Adding emotional appeal to a gift item, such as showing beautiful flowers to enhance imagery of a gift item
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Showing the end result of using the product in the package
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Imparting emotional imagery by creating, for example, a feeling of speed (a runner) or relaxation (a sunrise), even though the product in the package has no direct relationship to such visual portrayal.
2.4.6 Color Researchers have suggested that color associations may have been formulated early in human history when man associated dark blue with night, and therefore, passivity and bright yellow with sunlight and arousal. To this day, cool colors, such as blue and green, are considered calming and warm colors, such as red and orange, are considered arousing. Knowledge of the physiological effects of color has been used by institutions to sedate people without the use of drugs. In one study, pink was found to calm inmates in institutions and is now used for this
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purpose when anger is detected. Dentists have been known to paint the walls of the office blue to allay patient fears. (Grossman & Wisenblit, 1999) Because colors have specific meanings associated with them, colors are important image cues. The meanings of colors may also have implications for the associations that consumers make about a brand’s position in the marketplace. Certain colors manifest pan cultural meaning associations. Strategic use of these colors affords opportunities for products, packages, logos, and the like to convey specific images associations across national markets. (Madden & Hewett, 1999) Many consumers today shop under higher levels of perceived time pressure, and tend to purchase fewer products than intended (Herrington and Capella, 1995). Products often appear to be chosen without prior planning, representing a form of impulse buying (Hausman, 2000). A package that attracts consumers at the point of sale will help them make decisions quickly in-store. As the customer's eye tracks across a display of packages, different new packages can be noticed against the competitors. However, eye movement does not necessarily mean attention. When scanning packages in the supermarket, the differential perception and the positioning of the graphics elements on a package may make the difference between identifying and missing an item (Herrington and Capella, 1995). In psychology research, brain laterality results in an asymmetry in the perception of elements in package designs (Rettie and Brewer, 2000). The recall of package elements is likely to be influenced by their lateral position on the package, as well as by factors such as font style, size, and color. Recall is better for verbal stimuli when the copy is on the right hand side of the package, and better for non-verbal stimuli when it is on the left hand side. This may imply that, 26
in order to maximize consumer recall, pictorial elements, such as product photography, should be positioned on the left hand side of the package. Consumers also learn color associations, which lead them to prefer certain colors for various product categories (Grossman and Wisenblit, 1999). Using color as a cue on packaging can be a potentially strong association, especially when it is unique to a particular brand. However, people in different cultures are exposed to different color associations and develop color preferences based on their own culture's associations. Simply taking the colors of a particular logo, package, or product design from one market to another should only be done under a thorough understanding of how colors and color combinations are perceived in each location (Madden et al., 2000). 2.4.6.1 Objectives of color use Moriarty (1991) discusses color, mentioning that color in advertising serve a variety of specific purposes. Color is used for a variety of specific purposes. It creates moods, it draws attention, it emphasizes, and it intensifies memorability. Morarity further states that color can be used as a cue, to either associate with or symbolize something else. Morarity also claims that the primary function of color in advertising is to help create mood and emotional responses. •
Attention
Certain colors are inherently eye-catching. Yellow is powerful because of its luminosity, and it is especially powerful when used with black. Red is aggressive and a strong attention-like pink will stand out when a bright shade is used. Strong attention-getting color can be sued with the center of interest to make sure the eye is attracted to the most important element. (Morarity, 1991)
•
Emphasis 27
Using strong attention-getting colors to attract the eye is another way to emphasize what you believe is the most important element to be seen. Emphasis means contrast, and to make something stand out it has to contrast with everything around it. (Morarity, 1991)
•
Color coding
Color coding is a process of establishing visual cues. Colors are easy to remember and, if you can create an indelible association between a color and a product, then you will be assisting the retention process. (Morarity, 1991). In packaging, the first objective of the color is to command the eye. It has to be seen, to jump of the shelf, if it is to survive the intense competition of the self-service environment. Next the package color is chosen for its ability to be associated with certain desired qualities such as elegance, naturalness, softness, and so on. (Morarity, 1991) 2.4.6.2 Color Symbolism The notion that color preferences are formulated through associations is a potentially important finding for marketing practitioners interested in determining colors for products. Rather than examine general color preferences among consumers, it may be preferable to learn consumers’ color associations as a basis for understanding the emotional aspects of color. For example, Pentel, a company that makes school supplies, found that red and green were not preferred colors in school supplies because teachers grade in these colors and they may have negative associations for students. Marketers can also use the theory of associations to create meanings for particular colors or to develop a brand image around a color. For example, Owens Corning uses the color pink to denote its brand of fiberglass insulation. They then use the image of the Pink Panther to signify that the product is hip and cool. In other words, they created their own color association and developed an image around it. (Grossman & Wisenblit, 1999) 28
Here below the basic colors and their what they commonly are associated with will be presented. Red: Red is perceived to be generally exciting, cheerful, disobedient, and powerful. Is also associated with heat, anger, passion, war, and blood. Is considered stimulating. (Morarity, 1991) Other characteristics associated with red are expensive, premium, high quality, good tasting. Young, warm, fun, loud, playful and happy. Dangerous, adventurous, luxurious and exciting. Life, love, passion, power and aggression. (Grimes & Doole, 1998)
Blue: Often considered a happy color. It means peace, calmness, loyalty, security, and tenderness. Is also associated with intellectual appeals as opposed to emotional (red). Can be identified with cold, ice, distance, and infinity as well as calm reflection. (Morarity 1991) Blue is also perceived heavy, reliable, high quality and expensive. Male mature, quiet, subdued calm and thoughtful. (Grimes & Doole, 1998) Yellow: Associated with the sunlight and openness as well as radiance and vividness. Because of its brightness, it is highly attention getting. (Morarity, 1991) High quality, expensive, reliable, light and good tasting are other characteristics associated with yellow. Yellow is also associated with luxury, sophistication and to some extent safety, but also life, happiness, tenderness and warmth. (Grimes & Doole, 1998)
Green: Like blue, also associated with serenity and calmness as well as nature. It is a quiet color, used symbolically to suggest hope, meditation, and tranquility. (Morarity, 1991) Is also perceived inexpensive, light, reliable and good tasting. Old, traditional, trustworthy, life,
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tenderness, health, and happy, environment, natural, pure and fresh are all characteristics associated with green. (Grimes & Doole, 1998)
Black: Associated with distress, hopelessness, and defiance. Used to suggest hate and death, but can also be used to express power and elegance, especially if it is shiny. (Morarity, 1991) Black is also associated with expensive, high quality, hi-tech and premium products. Mysterious, luxurious, sophisticated and dangerous, dignity, power and aggression are all associated with black. (Grimes & Doole, 1998)
White: In Western cultures, white means purity as well as sanitary and clean. By its lack of apparent color, it also conveys emptiness, infinity, and the incomprehensible. White is used visually to express total silence. (Morarity, 1991) Madden and Hewett (1998) conclude that an interesting pattern of colors forming a spectrum of meanings is evident across all countries. The meaning associations along this spectrum run from “active,” “hot,” and “vibrant (associated with red) to “calming,” “gentle,” and “peaceful” (associated with the blue-green-white cluster). The remaining six colors tend to locate approximately equidistant between these endpoints.
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2.5 Analyzable Characteristics of Color Moriarty (1991) states hue, saturation, and brightness as three characteristics in which color can be analyzed. The hue is the color such as blue, red or green. Saturation is the relative strength or purity of the color, as, for instance, off-white or grayish-blue. These differentiations in color suggest that it is possible to modify the saturation by adding shades of black or white to the basic hue. Brightness is a measure of the intensity of the light a color reflects. A bright color, for instance, reflects lots of light, while a dull color instead absorbs light. Colors can be bright or dull depending on their capability of reflecting light.
2.6 Packaging size and shape Package size, shape, and elongation also affects consumer judgment and decisions, but not always in easily uncovered ways. Consumers appear to use these things as simplifying visual heuristics to make volume judgments. Generally they perceive more elongated packages to be larger, even when they frequently purchase these packages and can experience true volume. This implies that disconfirmation of package size after consumption may not lead consumers to revise their volume judgments in the long term, especially if the discrepancy is not very large (Raghubir and Krishna, 1999). Different sizes also appeal to consumers with somewhat different involvement. For example, low price for some low involvement products, such as generics, is made possible through cost savings created by reduced packaging and promotional expenses. Generics are usually packaged in larger sizes, which communicates to consumers who are specifically looking for good deals. 31
Such consumers find the low price of the generics, in the right size of packaging, offers excellent value for money (Prendergast and Marr, 1997). In addition, this could imply that when product quality is hard to determine, as with generics, the packaging size effect is stronger. 2.7 Informational elements 2.7.1 Product information The behavior of consumers toward products characterized by high involvement is less influenced by image issues and visual response (Kupiec and Revell, 2001); in such cases consumers need more information. Written information on the package can assist consumers in making their decisions carefully as they consider product characteristics. However, packaging information can create confusion by conveying either too much information or misleading and inaccurate information. Manufacturers often use very small fonts and very dense writing styles to pack extensive information onto the label, which lead to poor readability and sometimes confusion. Mitchell and Papavassiliou (1999) suggest that one way consumers reduce confusion from information overload is to narrow down their choice sets. Reducing choice alternatives and evaluative attributes decreases the probability that they will be confused by excessive choice and information overload. This strategy could apply to more experienced consumers, because heavy users potentially look at fewer brand alternatives. In other words, experience makes consumers selectively perceptive and restricts the scope of their search (Hausman, 2000). This is effectively a form of brand loyalty, brought about because consumers do not necessarily want to continue reading labels every time they buy a particular product. Many consumers appreciate food labeling, but are not satisfied with standard formats. For example, UK survey data indicates that nearly two-thirds of consumers now read food labels, but 32
one-third want to see clearer labeling (IGD, 2003c). Other research in the UK also shows that many consumers find the format prescribed in law for both voluntary and compulsory labeling difficult to use (FSA, 2003). In another recent survey, 90 percent of people agreed that nutritional information panels should be laid out in the same way for all food products so that they are easy to understand quickly (Mitchell and Papavassiliou, 1999). While not all consumers use it, the trend seems to be toward increasing attention to such label information. Partly concerns about food safety and nutritional health drive this trend (Coulson, 2000; IGD, 2003d; Smith and Riethmuller, 2000), but it is also driven by the gradually increasing consumer sophistication. During Thailand's recent recession, for example, consumers were loathed to sacrifice living standards, but they did have to watch budgets more carefully. They began evaluating products more carefully to make sure they were worth the prices charged (Speece, 2003). Whatever be the reasons, more highly involved consumers evaluate message information, relying on message argument quality to form their attitudes and purchase intentions (Vakratsas and Ambler, 1999). On the other hand, packaged food products remain low in involvement for many consumers. In general, consumer acquisition of low involvement products is often done without carefully examining brand and product information. The lack of commitment and attention implies that information on the package carries relatively less value with consumers who view packaged food as low involvement products. 2.7.2 Packaging technology Technology developed for packaging comes directly from the current trends in products and consumer behaviors. Powerful retailers also seek greater responsiveness and flexibility from 33
manufacturers, including packaging, to satisfy consumers who are more demanding and sophisticated (Adebanjo, 2000). Customers are often prepared to pay slightly more for enhanced product value, indicating desire for more quality. However, product and packaging development also constrained in creating products that fully meet the consumer and channel criteria. Such constraints might be categorized as ingredient, processing, and cost restraints. Innovation must respond and develop new products that are more efficiently produced, packaged for a longer shelf life, environmentally friendly, nutritionally responsive to each of the emerging segments of society, and meet maximum food safety requirements (McIlveen, 1994). Technology embodied in the package plays a big role in this, making it somewhat of a special form of informational element. In addition to its technical role, packaging technology also conveys information which is often linked to the consumer's lifestyle. Therefore, in order to survive in high growth, competitive markets, technology becomes very important for developing packaging, materials, and processes. It is clear from the review of literature that the importance of packaging development is high, as packaging plays a major role in consumer decisions of fast moving packaged food products. Earlier research, however, is not very extensive, and has not looked very carefully at differences in how packaging elements are used for decisions based on levels of involvement and time pressure. In the next section we discuss focus group research to examine these issues among middle class consumers in Bangkok. 2.8 Packaging as a marketing issue “Our understanding of good packaging is a package that sells”, concluded one Finnish consumer product manager, and package’s role as a sales clincher at the point of purchase cannot be 34
underestimated. It will be soon 50 years when Pilditch (1961) wrote about the supermarkets’ silent salesmen and illustrated the marketing potential of consumer product packaging. Pilditch argued that package is the connecting link between company and consumer, and consumer’s purchase decision is dependent on the package. Pilditch’s basic argument seems to hold true even today although the ways how companies connect with consumers and the factors that determine consumer’s purchase decisions have changed. There can be identified three main reasons why packaging has remained a topical concern of marketing and product decisions: First, given the amount of brands in the market and the varied range that consumers find at the point of purchase force companies to differentiate their products. In cluttered markets a distinctive design of product package is an effective way to gain consumer notice (e.g. Bloch 1995; Hine 1995; Meyers & Gerstman 2005). Second, it is estimated that the majority of product decisions are made at the point of purchase. When consumers are scanning packages at the point of purchase, perception is rapid, and quick recognition is important for inclusion in the decision process (e.g. Clement 2007; Kauppinen 2004). Third, the traditional means of advertising have lost their grip on consumers. Consumers do no longer respond to audiovisual messages which they get an overflow of from all media channels. Given that, consumers make their purchase decisions at the point of purchase only a very few advertising messages stay in consumers’ memory this far. (Underwood 2003; Young 2004;2008) These features describe the current context of packaging and set the basic motives for packaging design from the marketers’ side. 2.9 Consumer studies on packaging As suggested earlier, the basic goal of marketing is to get consumer to buy the product (brand) and to get more sales. Marketers compete on consumers’ attention at the point of purchase and 35
several studies have been carried out to understand how consumers respond to different packaging designs. The majority of the packaging research is concerned with consumers’ visual perception. With package appearance, it is generally accepted that the visual aspects of a product or its package have an important effect on consumer’s choice at the point of purchase (Clement 2007; Garber 1995; Young 2008). Colour is recognised to be the most powerful one of the package design elements (in comparison with shape and graphics). Colours help consumers to categorize products and recognize brands especially among daily products. Using a colour as a cue can be potentially strong association, particularly when it is unique to a particular brand. Brand colours attract attention, evoke aesthetic response, and convey meanings on the product and product class. (Grossmann & Wisenblit 1999; Kauppinen 2004; see also Ampuero & Vila 2006; Clement 2007; Silayoi & Speece 2007; Underwood 2003) In addition to colours, package design has been studied, for example, with focus on verbal and visual elements (Rettie & Brewer 2000), graphic variables (Ampuero & Vila 2006), and pictures (Underwood, Klein & Burke 2001; Underwood & Klein 2002). The overall visual appearance of a package has also inspired researchers to conduct studies on how consumers choose between the different packages at the point of purchase (Clement 2007; Garber 1995; Orth and Malkewitz 2008; Schoormans & Robben 1997). From the perspective of this research the most interesting studies are the ones that view package design as a coherent whole and emphasise the role of packaging as a means of communication. Underwood (2003) has studied the role of packaging as a part of brand identity and marketing communication. He argues that packaging communicates brand personality via multiple structural and visual elements and suggests that packaging is an essential brand communication vehicle. Also other studies (e.g. Ampuero & Vila 2006; Clement 2007; Kauppinen 2004; Orth and Malkewitz 2008; Silayoi & Speece 2007) emphasize package’s 36
role in marketing and brand communication.
2.10 Package Design and Consumer Impressions The design of a package elicits various responses from consumers (for a review, see Bloch 1995). Different from previous work that addresses the aesthetic aspects of design (e.g., Hirschman 1986; Holbrook 1986; Veryzer and Hutchinson 1998) or focuses on global cognitive evaluations and their effects on consumer behavior (e.g., Folkes and Matta 2004; Garber, Burke, and Jones 2000; Rahgubir and Krishna 1993; Schoormans and Robben 1997), our research focuses on generalizable consumer brand impressions inferred from package design. The literature has documented numerous impressions generated by packages, and design has been repeatedly emphasized as an instrument for conveying meaning and generating brand impressions (Aaker 1991; Batra and Homer 2004; Schmitt and Simonson 1995). Depending on the research context, these impressions are related to the terminology of designers (Forty 1992), to brand management objectives (Underwood 2003), or to consumer benefits (Batra and Homer 2004; Batra, Lehmann, and Singh 1993). Many researchers emphasize that a particular design should evoke the same intended meaning across people (e.g., Borja de Mozota 2003; Henderson and Cote 1998; Henderson et al. 2003; Henderson, Giese, and Cote 2004; Rettie and Bruwer 2000; Schoormans and Robben 1997; Underwood 2003; Underwood and Klein 2002; Underwood and Ozanne 1998). This perspective is consistent with current marketing thought that brand communications should convey a single, clear message that is difficult to misinterpret (Keller 1993; Underwood 2003). Brand personality has emerged as a key tool to capture and categorize facets of brands systematically in terms
of generalizable impressions responses (Aaker 1997, 1999; Aaker, 37
Benet-Martinez, and Garolera 2001; Aaker, Fournier, and Adam 2004). Consumer researchers have given a considerable amount of attention to the concept, focusing on how brand personality enables consumers to express their actual self (Belk 1988; Sirgy 1982), ideal self (Elliott and Wattanasuwan 1998), or specific dimensions of the self through brand acquisition and use (Fournier 1998; McCracken 1986). In her seminal article, Aaker (1997) conceptualizes brand personality and explores the meaning of five basic dimensions: “sincerity,” “excitement,” “competence,” “sophistication,” and “ruggedness.” Subsequent studies confirm the number and nature of these dimensions (Sweeney and Brandon 2006). Managers also view brand personality as both a means of differentiating a brand (Vernadakis 2000) and a common denominator for marketing a brand across cultures (Aaker, Benet-Martinez, and Garolera 2001; Sung and Tinkham 2005). Insights into the processes of personality inferences about brands further emphasize the role of design for brand personality impressions (Johar, Sengupta, and Aaker 2005). Package designs are especially critical for impressions formed for new brands (Underwood and Klein 2002). However, although the brand personality concept appears well suited to capture generalizable response dimensions, there are no guidelines on how a firm can develop holistic package designs for achieving desired brand personality impressions. 2.11 Consumer Benefits It is commonly acknowledged that effective marketing communications must recognize the relationship between a product, a brand, and the consumption values or benefits consumer seek. The choice of corresponding benefits to communicate and emphasize would seem to be especially important in situations where consumers may vary widely in benefits sought and evaluate brands rather than products. (Ulrich, McDaniel, Shellhammer, and Lopetcharat, 2004) 38
The major difference between product and brand consists in that a product is something that offers a functional benefit while a brand is a name, symbol, design, or mark that enhances the value of a product beyond its functional value . Benefits are the personal value consumers attach to the product or service attributes – that is, what consumers think the product or service can do for them (Keller, 1993). Benefits can be further distinguished into three categories according to the underlying motivations to which they relate (Park, Bernard, Jaworski & McInnis, 1986): Functional benefits, Experiential benefits, and Symbolic benefits. Functional benefits are the more intrinsic advantages of product or service consumption and usually correspond to the product-related attributes (Keller, 1993). These benefits often are linked to fairly basic motivations, such as physiological and safety needs (Maslow, 1970), and involve a desire for problem avoidance or removal (Fenell, 1978).
Experiential benefits relate to what it feels like to use the product or service and also usually correspond too the product-related attributes. These benefits satisfy experiential needs such as sensory pleasure, variety, and cognitive stimulation. Symbolic benefits are the more extrinsic advantages of product or service consumption. They usually correspond to non-productrelated attributes and relate to underlying needs for social approval or personal expression and outerdirected self-esteem. Hence, consumers may value the prestige, exclusivity, or fissionability of a brand because of how it relates to their self-concept. (Keller, 1993) The basis for reinforcing the image of brands with a functional concept via an image-building strategy should be the brand’s relationship to other performance/related products. For brands with symbolic concepts the image is generalized to referent-based products. Image-bundling strategy for products with symbolic concepts help to create a lifestyle image, an image about themselves or to make inferences about 39
others. A brand with an experiential concept can be reinforced by a bundling strategy that links the brand image to that of other experiential products. (Keller, 1993) Ulrich et al. (2004) summarizes the theoretical and empirical literature on consumer perceived brand benefits by classifying the benefits according to a number of basic dimensions: •
Functional benefit – The product can be perceived to be well crafted, having an acceptable standard of quality
•
Social benefit – The product can by the consumer be perceived to be helping them feel more acceptable, to improve the way they are perceived by others, help them make a good impression on other people, and giving them social approval.
•
Emotional benefit – Makes the consumer feel relaxed, good, smoothened, pleasured, evoke thoughts of happiness.
When Bhat and Reddy (1998) discuss product benefits, two types of benefit emerge: self image benefits (this product will make me look or feel great, intelligent or rich) and functional benefits (this product will save me time or money, do a better job or provide a more enjoyable experience). As Bhat and Reddy show with sports shoes, consumers want both types of benefit – people buy Nike products because they’re associated with Michael Jordan, Tiger Woods or some other sporting hero. But they also want comfort and performance from the shoe. If a pair fell apart after the first time wearing, folk would soon stop believing the aspirational association with sporting celebrities.
To understand packaging benefits one must also understand consumer responses to product attributes. The set of responses addressed by Bloch (1995) are Affective Responses, which 40
consist of positive response and negative response. Perception of a form can evoke several affective responses from consumers . In some cases, the perceptions of the form can lead to a moderately positive response such as simple liking, or they can evoke stronger aesthetic responses similar to those for work of art . Holbrook and Zirlin (1985, pp. 21) define aesthetic response as a “deeply felt experience that is enjoyed purely for its own sake without regard for more practical considerations.” It is according to Bloch (1995) possible to conclude that products can elicit at least moderate level of aesthetic responses in consumers, including an engagement of attention and strong positive emotions. Aesthetic responses derive from the design and sensory properties of the product rather than its performance or functional attributes. Aesthetic responses are typically associated with positive affect and pleasurable experiences. Certainly, it is the goal of product designers to evoke positive reactions among consumers encountering their creations. However, managers must also recognize the possibility of negative affective reactions to form perceptions.
2.12 Conceptual framework According to Miles and Huberman (1994), a conceptual framework explains, either by providing a graphical figure or using narrative form, the primary things that are to be investigated, that is the key factors, constructs and variables. Furthermore, it also presents the presumed relationships between them (Miles & Huberman, 1994). This will be done for each research question. Package Design The most applicable theory when it comes to answering the first research question, how does the design of the product package affect consumer perception of the brand?, will be presented below.
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For research question one we will first look at the element of shape. When examining the shape element we will rely on the following basic rules that Danger (1987) lists: • Simple shapes are preferred to complicated ones. • A regular shape will have more appeal than an irregular one and the latter may cause a mental lockage, which impels the customer to something else. • A shape that is not balanced will be unpleasing. • Squares are preferred to rectangles and a rectangle that has a square root to one that does not. • Shapes should be tactile and soft. • A convex shape is preferred to a concave one. • Women prefer round shapes and they like circles better than triangles. • Angular shapes are preferred by men and are considered more masculine, • Men prefer triangles to circles. • Shapes should be easy on the eye.
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CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction This chapter explains the methods used in gathering, analyzing and presenting data in this study. It discusses the research design, the population sample and sampling technique, instrumentation, data collection procedure and methods of data analysis. The profile of Nestle Ghana Limited is also presented. 3.1
Research Design
The study design used was descriptive analysis with exploratory, quantitative approach. A descriptive study seeks to find answers to questions through assessing opinions or attitudes of individuals towards events of procedures (Cohen & Manon, 1995). Descriptive survey designs are used in preliminary and exploratory studies to allow the researcher to gather information, summarize, present and interpret for the purpose of clarification (Peter 1981). According to Befring (1994) descriptive analysis compromise principles, methods, and techniques to present
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questionnaire, compile and construe empirical data. The study employed descriptive analysis to assess the relevance of packaging on the marketing of consumer goods. The study followed a case study survey design using quantitative model. Quantitative research is the systematic scientific investigation of quantitative properties and phenomena and their relationships. The objective of quantitative research is to develop and use mathematical models, theories and/or hypotheses pertaining to natural phenomena. Again, the quantitative model enabled the researcher to measure or compare associations by using inferential statistics such as independence sample t-test and simple linear regression. 3.2 Population of the Study According to Sekaran (1981), population of research study is any group of individuals that has characteristics in common that are of interest to the researcher. On the other hand, a research population is also known as a well-defined collection of individuals or objects known to have similar characteristics. All individuals or objects within a certain population usually have a common, binding characteristic or trait. Usually, the description of the population and the common binding characteristic of its members are the same. The target population for the research comprised all employees and customers of Nestle Ghana Limited.
3.3
Sample and Sampling technique
A sample size of 200 respondents was selected to take part in the study. Out of this, one hundred were employees of Nestle Ghana Limited and the remaining one hundred were buyers and consumers of Nestle Ghana products. Respondents were randomly selected. This technique was employed to ensure that more gender and ethnically diverse employees had an equal chance of being selected as part of the sample. 44
To ensure random selection with regards to consumers, a first-come-first-chosen approach was chosen (Yin, 2005). The researcher distributed questionnaire to customers who came to buy various nestle products from selected wholesale and retail outlets in Tema. The same first-comefirst-serve approach was used in the selection of employees of Nestle Ghana Limited. The researcher left hundred copies of the instrument at the company’s receptionist office for distribution to employees who came in first to work on that particular day. The questionnaire was captioned with a short instruction which explained the purpose of the study.
3.4 Data Collection The data collected for the study comprised of primary and secondary data. The type of data, their sources and the instruments used in gathering them are discussed as follows: 3.4.1 Primary Data Both structured questionnaires and interview guides were used in the data collection. While the structured questionnaires were used to get the unbiased opinion of respondents, the interviews were used for clarifications of some unclear issues. Specimens of the questionnaire and interview guides are attached as Appendix 1. These data collection instruments made it very convenient for respondents to give the data needed for the analysis. Participants were first contacted on telephone and briefed about the study. They were allowed to schedule the interview time and dates convenient for them. Some of the interviews were conducted outside working hours, late in the evening whilst others chose weekends for the interview. Information on the issues to be covered was given to the respondents to enable them do some preparation as some of the questions may need some figures in view of their technicalities. The major questions were the research questions combined with some follow up 45
and probing questions where necessary, that sought answers necessary to answer the research questions of the study. The flexible nature of these data collection instruments enabled the researcher to probe some of the responses obtained.
3.4.2 Secondary Data The secondary data were sourced from the published information about the company and its operations, annual reports and financial statements. The information covered a period of three years from 2008 to 2011. This category of data was mainly in quantitative form. Access to the data was not a problem as these were published annually in the print and electronic media for public consumption. The researcher benefited in so many ways from the use of this type of information for the study. First, this was less expensive to collect, in terms of time and money. It afforded the researcher the opportunity to collect high quality data which would not have been of the same quality if the researcher were to collect it in its primary form. Saunders et al, (2007) quote Stewart and Kamins (1993) as stating that secondary data are likely to be of higher-quality than could be obtained by collecting empirical data. The data collected contained the main information needed to answer the research questions.
3.5
Instrumentation
A structured questionnaire was used in collecting data. This questionnaire was constructed by the researcher and pretested on a sizeable number of respondents. The questionnaire was a selfadministered tool designed by the researcher. It was a 4-point Likert scale (1= Strongly Disagree, 2 = Disagree, 3 = Agree, and 4 = Strongly Agree) in which higher score indicate more perceived positive responses. 46
3.6 Pre-test of the study instrument A pilot test was conducted with a small group representative of the population to assess the face validity of the questionnaires. The questionnaires were pretested with ten (10) customers and four (4) employees. Respondents were conveniently selected as statistical conditions are not necessary in the pilot study (Cooper and Schindler, 2003). Respondents were asked to fill out the questionnaire accompanied by interviews in order to refine the meaning, understanding, wording and formatting of the questionnaire. During the individual pretest, the researcher and each of the respondents went through each question to determine what they (respondents) think the questions are trying to ask. Likewise, a list of questions was used to check on pertinent issues related to the pretest questionnaire. Revisions were made based on the feedback, comments and recommendations from the respondents. Therefore, respondents in the large survey will have no difficulty in answering the questions.
3.7 Data Collection Procedure Structured questionnaires containing close and open ended questions were administered to respondents. This was done during working days between 10am – 2:00pm. The researcher visited the branches and interacted with the branch manager and with his/her assistance, the researcher appointed a research assistant. The research assistant then assisted the researcher in the administration and collection of the completed questionnaire. With respondents who couldn’t give the necessary responses on the go, the researcher scheduled with them convenient times for which the data could be taken.
47
3.8 Data Analysis Procedure After sorting out the questionnaires, the data were computed and analyzed using the Statistical Package of Social Sciences (SPSS) version 16.0. The statistical analysis such as frequencies and percentages, mean and standard deviations, simple linear regression and independence sample ttests, was used to analyze the data. Simple linear regression was used to analyze the data. The dependent variable was regressed against the scores of the independent variable. 3.9 Limitations of the Study The constraints encountered include finance considerations, inaccessibility of data, limited time and unpreparedness and unreadiness of personnel to give out information necessary for the study.
3.10 Setting The setting of the study is Tema, near Accra in the Greater Accra Region. This is because Nestlé Ghana Limited (the case study company) is situated in Tema.
3.11 Ethical Considerations All human organizations have some ethical issues to observe. Divulging of information by employees that can affect the institution is among several ethical issues relating to the staff of banks. These were addressed by first explaining the essence of the study to the respondents. The confidentiality of the information collected from interviewees was considered by ensuring that their names and other information that could bring out their identities were not disclosed in the data collected. They were also made to understand their role in the data collection activity to find answers to the research questions. To avoid imposing the interviews on respondents, they were given the choice to opt out if the interview would affect them in any way. The methods and 48
procedures explained above were used in seeking the needed data for the analysis which are captured in the next chapter.
3.11 Organizational Profile Brief History The key factor which drove the early history of the enterprise that would become the Nestlé Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. In the mid-1860s Nestlé, a trained pharmacist, began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. He called the new product Farine Lactee Henri Nestlé. Nestlé's first customer was a premature infant who could tolerate neither his mother's milk nor any of the conventional substitutes, and had been given up for lost by local physicians. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life and within a few years, Farine Lactee Nestlé was being marketed in much of Europe. Henri Nestlé also showed early understanding of the power of branding. He had adopted his own coat of arms as a trademark; in his German dialect, Nestlé means 'little nest'. One of his agents suggested that the nest could be exchanged for the white cross of the Swiss flag. His response 49
was firm: "I regret that I cannot allow you to change my nest for a Swiss cross .... I cannot have a different trademark in every country; anyone can make use of a cross, but no-one else may use my coat of arms." Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans Charles and George Page, broadened its product line in the mid-1870s to include cheese and infant formulas.The Nestlé Company, which had been purchased from Henri Nestlé by Jules Monnerat in 1874, responded by launching a condensed milk product of its own. The two companies remained fierce competitors until their merger in 1905. Some other important firsts occurred during those years. In 1875 Vevey resident Daniel Peter figured out how to combine milk and cocoa powder to create milk chocolate. Peter, a friend and neighbor of Henri Nestlé, started a company that quickly became the world's leading maker of chocolate and later merged with Nestlé. In 1882 Swiss miller Julius Maggi created a food product utilizing legumes that was quick to prepare and easy to digest. His instant pea and bean soups helped launch Maggi & Company. By the turn of the century, his company was producing not only powdered soups, but also bouillon cubes, and sauces and flavorings.
Vision Our core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition 'Good Food, Good Life'. 50
Quality Assurance and product safety Everywhere in the world, the Nestlé name represents a promise to the consumer that the product is safe and of high standard. Nestlé Quality Policy (pdf, 85 Kb) Consumer Communication We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. Nestlé Consumer Communications Principles (pdf, 2 Mb) Nestlé Policy and Instructions for Implementation of the WHO International Code of Marketing of Breast-milk Substitutes (pdf, 2 Mb) Human rights in our business activities We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights’ and labour practices throughout our business activities. International Labour Organisation Leadership and personal responsibility Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. Nestlé Management and Leadership Principles and Nestlé Code of Business Conduct Safety and health at work 51
We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. Nestlé Policy on Health and Safety at Work Supplier and customer relations We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers. Nestlé Supplier Code Agriculture and rural development We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable. Nestlé Policy on Environmental Sustainability Environmental sustainability We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustainablymanaged renewable resources, and target zero waste. Nestlé Policy on Environmental Sustainability Water We are committed to the sustainable use of water and continuous improvement in water management. We recognise that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. Nestlé Water 52
report Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. Our mission Our mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. We believe that leadership is about behaviour, and we recognise that trust is earned over a long period of time by consistently delivering on our promises. Nestlé believes that it is only possible to create long-term sustainable value for our shareholders if our behaviour, strategies and operations also create value for the communities where we operate, for our business partners and of course, for our consumers. We call this 'creating shared value'. Nestlé’s objectives Nestlé’s objectives are to be recognised as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry. We believe that leadership is not just about size; it is also about behaviour. Trust, too, is about behaviour; and we recognise that trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviours are encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up our corporate ambition. The Nestlé Roadmap is intended to create alignment for our people behind a cohesive set of strategic priorities that will accelerate the achievement of our objectives. These objectives demand from our people a blend of long-term inspiration needed to build for the future and short-term entrepreneurial actions, delivering the necessary level of performance. 53
Watch a short animation highlighting the company’s performance over the past year and outlining Nestlé’s ambitions for the future: Nestlé 2011 in 3 minutes Management Profile NESTLÉ LEADERS: Peter Brabeck-Letmathe, Nestlé Chairman and Paul Bulcke, Nestlé Chief Executive Officer (CEO). Nestlé has a Board of Directors, led by our Chairman Peter Brabeck-Letmathe, who was the former Nestlé CEO. There are 15 members of the Board of Directors. Full details of each member and the committees that they operate within can be found in our Board of Directors section. The day to day management of the Nestlé business is taken care of by our Executive Board members. The 13 designated Board Members manage diverse parts of the global business and a full curriculum vitea of each member can be found in the Executive Boardsection. You can also download the Organisational Chart (Updated April 2012) The
Nestlé
Group
is
managed
by
geographies
(Zones
Europe,
Americas
and
Asia/Oceania/Africa) for most of the food and beverage business, with the exceptions of Nestlé Waters, Nestlé Nutrition, Nestlé Purina Petcare, Nespresso, Nestlé Professional and Nestlé Health Science which are managed on a global basis - these we call the Globally Managed Businesses. We also have joint ventures such as Cereal Partners Worldwide and Beverage Partners Worldwide.
54
CHAPTER FOUR PRESENTATION OF DATA 4.0 Introduction This chapter sought to present data collected from the two groups of respondents, Nestle Ghana Limited employees and customers. A sample size of two hundred (200) respondents was chosen. Tables were used to present the data for the study. 4.1 Findings 4.1.1 Demographic Characteristics of Respondents. Table 4.1 Statistics Age Gender Distribution Distribution Marital Respondents' Respondents Respondents' of of Status of Work Level Within Levels of Respondents Respondents Respondents Experience Company Education N
Valid
200
200
200
200
200
200
00
00
00
00
00
00
Mean
1.6950
.4600
.5800
.9650
1.6600
1.5685
Median
2.0000
.0000
1.0000
1.0000
2.0000
2.0000
2.00
.00
1.00
.00
2.00
2.00
1.17852
.49965
.49480
1.06746
.60517
.99572
4.00
1.00
1.00
3.00
2.00
3.00
Missing
Mode Std. Deviation Range
55
Table 4.2 Age Distribution of Respondents Frequency Valid
Percent Valid Percent
Cumulative Percent
18-25 yrs
37
12.5
18.5
18.5
26-35yrs
51
17.2
25.5
44.0
36-45yrs
64
21.6
32.0
76.0
46-60yrs
32
10.8
16.0
92.0
Over 60yrs
16
5.4
8.0
100.0
200
67.6
100.0
00
00
Total Missing System Total
200 100.0 Source: Field Survey, 2012
Table 4.3 Gender Distribution of Respondents Frequency Valid
Male Female Total
Missing System Total
Percent Valid Percent
Cumulative Percent
108
36.5
54.0
54.0
92
31.1
46.0
100.0
200
67.6
100.0
00
00
200 100.0 Source: Field Survey, 2012
56
Table 4.4 Marital Status of Respondents Frequency Valid
Single
Percent Valid Percent
Cumulative Percent
84
28.4
42.0
42.0
Married
116
39.2
58.0
100.0
Total
200
67.6
100.0
00
00
200
100.0
Missing System Total
Source: Field Survey, 2012
Table 4.5 Respondents' Work Experience Frequency Valid
0-5yrs
91
30.7
45.5
45.5
6-10yrs
51
17.2
25.5
71.0
11-20yrs
32
10.8
16.0
87.0
Over 21yrs
26
8.8
13.0
100.0
200
67.6
100.0
00
00
Total Missing System Total
Percent Valid Percent
Cumulative Percent
200 100.0 Source: Field Survey, 2012
57
Table 4. 6 Respondents Level Within Company Frequency Valid
Percent Valid Percent
Cumulative Percent
Administrator/Senior Manager
14
4.7
7.0
7.0
Team Manager
40
13.5
20.0
27.0
Individual Contributor
146
49.3
73.0
100.0
Total
200
67.6
100.0
00
00
Missing System Total
200 100.0 Source: Field Survey, 2012
Table 4.7 Respondents' Levels of Education Frequency Percent Valid
Cumulative Percent
BASIC/SECONDARY
39
13.2
19.5
19.5
HND/PROFESSIONA LCERTIFICATE
41
13.9
20.5
40.0
FIRST DEGREE
86
29.1
43.0
83.0
MASTERS DEGREE
34
11.5
17.0
100.0
200
67.6
100.0
00
00
Total Missing System Total
Valid Percent
200 100.0 Source: Field Survey, 2012
58
4.1.2. Section B – Treatment of Research Questions 4.1.2.1. Research Question One – What role does packaging play in product marketing?
Table 4.8 packaging roles Role
Frequency
protect goods from
193
damage informs the consumer
96.5
194
allow efficient
97
174
distribution helps to promote goods
Valid Percent (%)
87
186
93
Storage
184
92
Service
154
77
Guarantee
122
61
sales
138 Source: Field Survey, 2012
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4.1.2.1. Research Question Two – What is the relevance of the role of packaging in product marketing? Table 4.9 packaging is relevant in consumer product marketing Responses
Frequency
Valid Percent
Cumulative Percent
(%)
(%)
Strongly Disagree
4
Disagree
5
2.5%
146
73%
Agree
2%
2% 4.5% 77.5% 59
Strongly Agree
45
22.5%
Total
200
100
100%
Source: Field Survey, 2012
4.1.2.1. Research Question Three –What is the impact of packaging on consumer product sales? Table 4.10 Packaging has a significant impact on consumer product marketing Responses
Frequency
Valid Percent
Cumulative Percent
(%)
(%)
Strongly Disagree
4
Disagree
8
4%
6%
166
83%
89%
Strongly Agree
22
11%
100%
Total
200
100
Agree
2%
2%
Source: Field Survey, 2012
Table 4.11 Forced entry regression of Packaging on Product Marketing Variables
b
Beta
R
R2
t
Sig.
3.551
0.002
Step 1 Constant Product mark’t
1.24 -13.47
-0.163
2.906 0.183
0.012
0.146
Source: Field Survey, 2012
60
CHAPTER FIVE ANALYSIS OF DATA 5.0 Introduction This chapter sought to analyze data collected from the two groups of respondents, Nestle Ghana Limited employees and customers. A sample size of two hundred (200) respondents was chosen. 4.1 Analysis Analysis of findings showed that packaging has lots or roles/ relevance in consumer product marketing. Respondents were given four options to tick plus an option to add other roles the researcher may have left out. 96.5% of respondents contended that packaging protects goods from damage, 97% said packaging gives consumers information about the product whilst 93% suggested that packaging help in the promotion and marketing of goods. 87% of respondents also cited packaging allowing efficient distribution of consumer products. Besides the options provided by the study, respondents also cited other roles of packaging. Over 92% of respondents’ described roles that could be classified under storage, 77% spoke about roles that fall under service, 61% gave description best placed under Guarantee and 69% spoke about packaging having a sales function. All these roles are authentic considering the fact that a consumer product needs packaging that could protect its contents, give it an advantage in terms of sales, stores it perfectly, allow efficient distribution, inform consumer, help in promotion and sales amongst a host of other functions. The study considers the fact most respondents (87%) were highly literate 61
therefore enabling higher understanding of questionnaire instrument and deeper responses of the subject matter. In determining how relevant the roles of packaging were to consumer product marketing, an overwhelming percentage (95.5%) agreed or strongly agreed that packaging is relevant in consumer product marketing. These response directions was not surprising given the overwhelming display of knowledge and grasp of the topic the study respondents showed in selecting the roles of packaging and going further to list a host of others the study left out of the questionnaire. When pressed for the reasons for their responses, most respondents simply said that it was the only true and logical answer. The findings also showed that all but one of the respondents who had disagreed were unmarried or single. Could it therefore be assumed that married people appreciated the value of consumer product packaging more than unmarried people? The study supposes that, married people, owing to the availability of children, especially babies in their living settings, better appreciate the value of packaging in offering protection from harmful products to their children. An example could be made of a bottle of liquid soap, which if not properly package and labeled, could be mistakenly for a bottle of soft drink and easily consumed by an unsuspecting child. The elimination of this sort of dilemma could possibly be the reason for married persons showing better appreciation of the role of packaging in consumer product marketing. In analyzing responses for the impact of packaging on consumer product marketing, the findings showed that an overwhelming majority of respondents agreed or strongly agreed that packaging has a significant impact on consumer product marketing. An insignificant percentage of six (6%) disagreed. when pressed for the reasons for their responses, respondents who disagreed stated
62
that packaging did not really matter in consumer product marketing if a company does it advertising and promotional marketing diligently. Linear simple regression analysis was conducted to assess the effect of packaging on consumer product marketing. In this analysis, product packaging was treated as the study dependent variable, whiles the product marketing was treated as independent. The result are presented in table 4.10 below In table 4.10, it can be inferred that packaging had significant effect on product marketing (beta = - 0.163, t= 2.906, p<0.012). This implies that poor packaging contributes negatively to product marketing figures. The model also predicted that for every unit increase in the product marketing figures, company profitability decreases by 13.47 units. Again, the contribution of packaging in the profitability accounted for 14.6 %( i.e., R2 = 0.146). Therefore the amount of variation in the company profitability scores that was explained by the independent variable (product marketing) was 14.6%. The 14 .6% shared variance was maximum effect size between the variables in the study since the model was able to explain in the variation in the model (Cohen, 1988). Thus, there was statistically significant correlation between packaging and their consumer product marketing. In general, the model predicts the company profitability in the equation that emerges from the model. The equation of a simple linear regression is: Y = a + b1x1, where Y is the value of the dependent variable (what is being predicted), a = constant, and b1 = slope (beta coefficient) for x1, where x1 is the independent variable (product marketing).
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CHAPTER SIX DISCUSSION AND INTERPRETATION OF FINDINGS 6.0 Introduction This chapter sought to discuss and interpret the information collected from the two groups of respondents, Nestle Ghana Limited employees and customers. A sample size of two hundred (200) respondents was chosen. 6.1 Discussion and Interpretation of Findings Analysis of findings showed that packaging has lots or roles/ relevance in consumer product marketing. This finding correlates with that of Prendergast and Pitt (1996) who reviewed the basic functions of packaging, and defined them by their role in either logistics or marketing. They revealed that 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. Kupiec and Revell (2001) contend that 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. How they perceive it depends on communication elements, which become the key to success for many marketing strategies (Kupiec and Revell, 2001). Underwood et al. (2001) also present another side to the functions or roles of packaging. He argues that the 64
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. He adds 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. (Lysonski et al., 1996) states that 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." 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). Packaging should provide the correct environmental conditions for item packed starting from the time the item is packed through to its consumption. A good package should therefore perform the following functions (Underwood et al. 2001). The protective function of packaging essentially involves protecting the contents from the environment and vice versa. The inward protective function is intended to ensure full retention of the utility value of the packaged goods (Speece, 1998, 2003). The packaging is thus intended to protect the goods from loss, damage and theft. In addition, packaging must also reliably be able to withstand the many different static and dynamic forces to which it is subjected during transport, handling and storage operations. 65
(Koffka 1922; Wertheimer 1925) illustrates that fact that the packaging materials and packaging containers required for producing packages must be stored in many different locations both before packaging of the goods and once the package contents have been used. Packaging must thus also fulfill a storage function. Packaging thus has a crucial impact on the efficiency of transport, handling and storage of goods. Packaging should therefore be designed to be easily handled and to permit space-saving storage and stowage (Speece, 1998, 2003). The purpose of the sales function of a package is to enable or promote the sales process and to make it more efficient. Promotional material on packaging plays a particularly important role on sales packaging as it is directly addressed to the consumer. This function is of subordinate significance in transport packaging. While product awareness is indeed generated along the transport chain, excessive promotion also increases the risk of theft (Speece, 1998, 2003). The package may also perform a further function once the contents havebeen used (e.g. storage container, toy) (Koffka 1922; Wertheimer 1925). By supplying an undamaged and unblemished package, the manufacturer guarantees that the details on the packaging correspond to the contents. The packaging is therefore the basis for branded goods, consumer protection and product liability. The additional function in particular relates to the extent to which the packaging materials or packaging containers may be reused once the package contents have been used (Koffka 1922; Wertheimer 1925). The most significant example is the recycling of paper, paperboard and cardboard packaging as waste paper (Speece, 1998, 2003). In determining how relevant the roles of packaging were to consumer product marketing, an overwhelming percentage (95.5%) agreed or strongly agreed that packaging is relevant in consumer product marketing. an overwhelming majority of respondents agreed or strongly agreed that packaging 66
has a significant impact on consumer product marketing. This implies that poor packaging contributes negatively to product marketing figures.
CHAPTER SEVEN CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS 67
5.0 Introduction This chapter presents the conclusions, implications and recommendations for further studies. 5.1 Conclusion The purpose of this study was to assess the relevance of packaging on the marketing of consumer goods using a case study of Nestle Ghana Limited by examining the role of packaging in product marketing, Assessing the impact of packaging on consumer product sales and assessing the relevance of the role of packaging in product marketing. Using both primary and secondary data, the study found out the following. •
Packaging has lots or roles/ relevance in consumer product marketing: packaging protects goods from damage, packaging help in the promotion and marketing of goods, packaging allows efficient distribution of consumer products, has service benefits, guarantee, sales functions.
•
Packaging is relevant in consumer product marketing
•
Packaging has a significant impact on consumer product marketing.
•
Linear simple regression analysis was conducted to assess the effect of packaging on consumer product marketing. In this analysis, packaging had significant effect on product marketing. This implies that poor packaging contributes negatively to product marketing figures.
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5.2 Implications 5.2.1 Companies Numerous market trends suggest a growing role for product packaging as a brand communication vehicle (Underwood, Klein & Burke, 2001). These include a reduction in spending on traditional brand-building mass media advertising (Belch & Belch, 2001), an increase in nondurable product buying decisions at the store shelf (Prone, 1993), and growing management recognition of capacity of packaging to create differentiation and identity for relatively homogenous consumer nondurables (Underwood & Ozanne, 1998). With the move to self-service retail formats, packaging increases its key characteristic as the “salesman on the shelf” at the point of sale (Silayoi & Speece, 2004). With this background, it is incumbent on companies to maximize the benefits and role of packaging to properly managing its design and significance. This study would help companies know how to properly package their consumer products to achieve the maximum benefits packaging has to offer.
5.2.3 Policy Makers Furthermore, the study is expected to create a good base of information and reference to policy makers in their quest to formulate policies and guidelines that would improve marketing and related issues in not only companies, but the country as a whole. 5.2.4 Academia This study contributes new directions and adds new view points to researchers’ efforts to understand the relationship packaging and product marketing. 5.2 Recommendations Based on the findings of the study, the following recommendations are made: 69
5.2.1 Strive to improve package design For many consumers, the package is the product, particularly because impressions formed during initial contact can have lasting impact. As the product attribute that most directly communicates to the target consumer the design characteristics of the package need to stand out in a display of many other offerings. The study therefore recommends that practitioners strive in every way possible to not only research, but more importantly improve the package designs on their products in order to maximize the benefits of packaging. 5.2.2 Research more into packaging and how to maximize its benefits The study recommends that practitioners investigate the fit between the packaging and how it affects the image of the product. Practitioners need to make sure that the product package design in fact communicates what is intended. Regarding the benefits associated with a brands packaging the companies need to investigate what benefits they want to communicate and what the package in fact is communicating. Companies should also consider the fact that the benefits associated with the brand’s packaging can be used to promote the product with the other forms of advertising. An example of this could be to design television commercials that show the benefits of the package. This is especially important for products where the package is an important part of the product.
5.2.3 Invest in improving Product Package Design The study recommends that practitioners invest more in package design and development to come out with package designs that not only does the basic functions of protecting the product but also promotes and sells the product.
70
5.3 Suggestion(s) for Further Research The limitations of this study offer opportunities for future research. The ability to generalize the results of this study could be emphasized further by replicating the study using a broader sample and employing other complex methodology that allays suspicion or fear. Focus group discussions, participant observation method and in-depth assessment of various documents could be used.
71
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APPENDIX A QUESTIONNAIRE
ASSESSING THE RELEVANCE OF PACKAGING ON THE MARKETING OF CONSUMER GOODS: A CASE STUDY OF NESTLE GHANA LIMITED
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Respondents’ Background Information Please help us classify your response by supplying the following facts about yourself and your opinion on the raised issues by ticking an appropriate box. There is no right wrong answer therefore no particular response is targeted. SECTION A: Personal Information of Respondents 1. Gender [
] Male
[
] Female
2. How old are you? [
] 18 -25
[
] 26 - 35
[
] 36 - 45
[
] 46 - 60
[
] Over 61
3. How would you classify your profession? [
]Civil Servant
[
]Self Employed
[
] Military man/Policeman/Fireman/Immigration
[
] Retired
[
] Student
[
] Other (Specify)
4. How far is your residence from the nearest service station? [
] Very near
[
] Near
[
] Far
[
] Very far
[
] Out of Range
5. Educational level 82
[ ] MBA. [ ] 1st Degree [ ] HND [ ] Secondary [ ]
SECTION B Please respond by selecting one or more of the options provided below each answer. Pleases tick as many as may apply. 6. What do you think is the relevance of packaging to consumer product marketing? [ ] protect goods from damage
[ ] allow efficient distribution
[
] informs the consumer
[ ] helps to promote goods
[
] other, (Specify)........................................................................
7. Packaging has a significant impact on consumer product marketing
[ ] strongly disagree
[ ] disagree [
] agree
[ ] strongly agree
8. What do you think is the effects of packaging on consumer product marketing? ……………………………………………………………………………. ……………………………………………………………………………. ……………………………………………………………………………. 9. Give reasons for your answer in 7 above. ……………………………………………………………………………. ……………………………………………………………………………. ……………………………………………………………………………. 10. What is the impact of packaging on consumer product sales? ……………………………………………………………………………. ……………………………………………………………………………. ……………………………………………………………………………. 83
11. Packaging has a significant impact on consumer product marketing [ ] strongly disagree
[ ] disagree
[
] agree
[ ] strongly agree
12. Give reasons for your answer in 9 above. ……………………………………………………………………………. ……………………………………………………………………………. …………………………………………………………………………….
84
