PACKAGING - AN EFFECTIVE COMMUNICATION TOOL IN

MARKETINGA CASE STUDY OF PROMASIDOR GHANA COMPANY

LIMITED

PRESENTED BY: LORD BANIBAH (CEMBA 2)

1.0 INTRODUCTIONPackaging has assumed immense importance in the production and marketing of goods, especially consumer goods and great attention is being paid to it by manufacturers. Packaging has evolved into a very vital communication tool for consumers, producers and dealers as they are learning to rely on packaging and other forms of promotion to provide them with information they can use in making purchases, marketing and even fighting for shelf space. Packaging and labeling provide handy information on product features, benefits, productions and expiry dates and places of origin, among others to consumers. This has led to an enormous increase in the variety of packaging equipment, materials and design techniques.

• Prior to this, in Ghana, people had thought of corks and bottles only as packaging components. Ghanaians had seen packaging only as a protective tool rather than a communication tool and it had centered on boxes, containers, bottles, etc. With the growth of merchandising and self-service however, manufacturers and for that matter Ghanaians have come to realize the value of packaging as an effective communication tool in marketing than just a container or wrapper because of intense competition on the market.

• Packaging is to be considered as an aspect of the actual product when seen in the light of the three major components of a product; the core, augmented and extended product. These essential features, benefits, quality level, styling, brand name, logo plus a host of related offerings are what the buyer expects to find and all these are carefully embodied in packaging and labeling. It should be realized that people now purchase products not necessarily because of its functional aspects but because of packaging, brand, logo, colors etc.

Evidence of good packaging is demonstrated by most of the foreign goods we see on our markets – a display of very bright and attractive labels and pack designs that catch the eyes of buyers easily and instantly. In 1996, consumer criticism led to the passage of the federal fair packaging and labeling Act which requires that consumer goods be clearly labeled in easy – to – understand terms to give consumers more information. Due to this most companies today, now place great emphasis on the registration and protection of their brands and labels and distinctive features. Some of them even have centralized departments that control the use of brand names so as prevent imitation especially by trade mark.

• Another significant point to consider has to do with the consumer and how he or she recognizes brands to which he has become loyal. In the market these days, consumers do not have time to consider every aspect of the product. As a result, they normally pick the brand they are familiar with. In this respect, manufacturers in Ghana should strife to make packages that are attractive and different from others which will give maximum and handy information to customers to make purchase decisions. The size, shape, design and closure of the pack should also go a long way to enhance the image of the product and give a visual appeal.

• The Promasidor Ghana Company Limited has been chosen as an area for the study because this company is seen as a model to others. The main concerns are their Dairy, Beverage and Food Enhancement Products.

1.1 TRENDS IN PACKAGINGPackaging is becoming an increasingly important aspect of marketing strategy. Companies are seeking packaging as a way to attract customers to new and existing products or brands. For existing brands there is growing tendency to repackage, that is to redesign the existing package, wrapper or container.

There are two different trends in packaging; one involves reducing the packaging size and the other is increasing the size. A significant packaging issue facing marketers is the environmental impact of packages. Concern is growing about the effect of plastic packaging on animals and human beings. Sea animals and birds mistake discarded plastic packaging and bags for food which results in the destruction of their digestive tracts. Some of these plastic packages have been found to be harmful to the earth’s ozone layer.

Today’s plastic package can remain intact for up to four centuries, and for this reason packaging producers are putting millions of money into research to find biodegradable plastic packaging.

1.2 STATEMENT OF THE GENERAL PROBLEM

• Packaging is designed to protect a product from spoilage and maintain its functional form. It is to offer convenience for consumers to ensure portability and helps in identifying the product with the company.

• Most importantly, packaging and labeling go a long way in communicating

the product features, characteristics, benefits and others to the customers and the outside world. A bad packaging automatically depicts a bad product. A package therefore, must be able to attract attention instantly and create intent to buy.

• A package must tell the consumer all he or she wants to know about a

product to enable her make purchase decision, so that a package and its labeling should act as a silent salesman.

• Packaging in Ghana had not really developed as with the international markets and this had hampered the effective marketing of goods made in Ghana. These goods are sometimes very high in quality and should sell well on the international market but the packaging of these products leaves much to be desired.

1.3 RESEARCH QUESTIONS

• This project work is therefore being undertaken to answer the questions below:

• What provides consumers handy information about a product and company?

• What protects the life of a product? • What do consumers see first about a product before they buy? • What feature attracts consumers to a product? • What determines the quality of a product at a glance?

• How do consumers know and differentiate one product from the other?

1.4 BACKGROUND OF CASE COMPANYPROMASIDOR GH. CO. LTD

Promasidor Gh. Co. commenced operations in Ghana in 1999 but as world group,Promasidor was founded in 1979 by Robert Rose, who left the United Kingdom in 1957 for Zimbabwe to pursue his African dream. He travelled extensively across Africa and gained a unique and thorough knowledge of the food industry throughout the continent. In particular he noticed a lack of availability of the one highly nutritional product that the developed world takes for granted - milk.

• He realised that with technology in the manufacture of milk powders advancing rapidly, there was an exciting opportunity to provide milk powder in small portions that could be packaged in flexible sachets. It was found that removing the animal fat from the milk and replacing it with vegetable fat allowed for a longer shelf life. This meant that for the first time, milk powder could be distributed across the vast African continent, providing access to affordable milk to everyone in Africa.

• A passionate belief in this vision fuelled the pioneering concept of selling milk powder in small sachets and Promasidor began selling the Cowbell brand in the Democratic Republic of Congo (then Zaire) in 1979. Today Cowbell is sold in many countries across the African continent

1.5 PRODUCTS OF THE COMPANY

• Based on the extensive knowledge and expertise gained in manufacturing, packing and distributing products across Africa, the Group has expanded the range of Promasidor products. Its products are now purchased daily in their millions and have developed into strong brands across the African continent, with highly noticeable brand identities.

• Promasidor Ghana have got its energies focused on three fast-moving consumer goods categories, namely: Dairy; Beverage and Food Enhancement. its range of products have become firm favourites among consumers. Cowbell,her leading brand, is a popular filled milk powder. It has grown to include a number of well-received line extensions: Cowbell Coffeemilk, Chocomalt, Maltmilk, Sweetmilk Strawberry and Mocca. Miksi- a creami, tasti alternative - is their other popular milk powder brand. They also have a delicious non-dairy creamer called Kremela

• Promasidor Gh. Co. also market a range of Onga seasoning powders, which are available in a range of delicious flavours ideally suited to Ghanaian tastes. Promasidor Ghana distributes its products in many neighbouring countries; Togo, Burkino Faso, Liberia, Sierra Leone and Cote D' Ivoire.

1.6 RATIONALE FOR THE STUDY

• There are many locally produced goods in the Ghanaian market. In terms of quality, some of them are superior to the imported ones; others are at par with them, while others are in a class of their own. These high quality Ghanaian goods and their prices are relatively affordable. However, invariably the standard of packaging leaves much to be desired.

• Most of these products are not branded well, the packaging is poor and some of these products are labeled incorrectly and have labels made of dull strips of paper. Some of the products do not have packs but are wrapped in cello phone and others have cheap plastic bottles and loose cap tops fastened with cellotapes. In essence, the following reasons make my study ‘packaging as an effective communication tool in marketing ‘, a very important one.

The study will enable manufacturers in Ghana to take better planning decisions as to how to package their products to make them more presentable and attractive to the consumer.

• It will help manufacturers and package designers to know the power of packaging as a contributory factor to instant recognition of the company’s brand.

• The study will create awareness and help manufacturers in particular and Ghanaians in general increase their sales when they have the knowledge that packaging with its associations help stimulates sales

• It is also aimed at, telling the manufacturing companies especially, those who produce consumer goods, how effectively they can promote and preserve their products.

• My study will be an aid for other companies who do not know the need for packaging – that it helps to communicate a product and company.

• The study will enable manufacturers realize the fact that packaging can be used as a marketing strategy to capture a fair share of the market. This will ensure that the company can favorably enter the international market and stay competitive.

1.7 ORGANIZATION OF THE STUDY

• The study will be in five chapters: Chapter one introduces the project work and talks about the trends in packaging, statement of the general problem and also takes a look at the background of the case company (Promasidor Ghana), products of the company, packaging of its products, rationale for the study, and ends with a chapter by chapter outline.

• Chapter two will begin with the literature review, followed by the functions of packaging, importance of packaging in marketing, types of packaging and the perceptual benefits of packaging. Major packaging consideration, packaging and marketing strategy, and criticism of packaging will also be discussed

• The third chapter will deal with the research methodology, which are methods and tools used and the constraints encountered in the research.

• The study will then be carefully analyzed in the forth chapter. The findings of the research, conclusions and recommendations will be discussed in chapter five.

3.1 RESEARCH HYPOTHESIS AND METHODOLOGY

• This chapter of the project work examines the research hypothesis and methodology used. It also determines the sample frame and examines questionnaire administration.

• 3.2 HYPOTHESIS • Research hypothesis relates two or more

variables and it is a question that is formed to guide one in finding out whether a situation actually exists or not

• For this study two variables that are required to be tested. One of such variables is the null hypothesis and the other an alternative hypothesis.

• The hypotheses are that:• 1. Packaging is an effective communication tool in

the marketing of products of Promasidor Ghana and helps increase sales of the above products.

• 2. Packaging is not an effective communication tool in the marketing of products of Promasidor Ghana .

• 3.3 SAMPLE FRAME & SIZE• These refers to the representatives, that is,

individuals or target groups of the whole population to be interviewed. This is necessary to help save time, reduce cost and provide accurate data which would not be possible should the whole population be interviewed.

• The sample frames for this research are consumers as well as some managers of Promasidor Ghana Company Limited specifically those in the marketing, and research and development departments. The sample size covers 30 of the sampling populace and it is made up of students, workers, consumers etc.

• SAMPLE METHOD • The sample method to be used in this study is

simple random sampling. Here, everyone in the target population has an equal chance of being represented. The choice of this approach is on the grounds that it is quicker and cheaper and also has the ability to present a higher degree of accuracy in the data collected.

3.4 METHODOLOGY• Various methods of data collection to be

employed are basically the use of questionnaire and interviews.

• For the purpose of this study the research uses both the close and open-ended questions to make it easier for those who will not be able to construct their own answer and also to have a particular sequence of answers to enable an easier analysis to be made. The open-ended question will also give the chance for free flow of answers.

3.5 SOURCES OF DATA• Data for the study would be elicited from two

sources ie: the primary and secondary data. The secondary data are the already existing data from other sources and the primary data are the data collected to provide first hand information on study.

• SECONDARY DATA• For my secondary data , I would rely on

published books and articles on packaging, newspapers, pamphlets and other materials from other people on the subject.

• PRIMARY DATA• For my primary data sources and for purposes

of the study, questionnaires and interviews would mostly form the main source of primary data for the study by establishing contacts with the public relations, marketing, researchers and business development managers of Promasidor Ghana, consumers, students and workers.