July, 2021
July, 2021
BY
ASIYA MUSA
[email protected]
BUSINESS ADMINISTRATION
100 LEVEL
SUBMITTED
TO
JULY, 2021
ABSTRACT
This paper was carried out to evaluate the “Cost of Packaging and Its
Implication on the Profitability of an Organization”. The objectives of the
study are to find out the types of packaging materials used in packaging, to
examine the cost of packaging, to identify the motive behind product
packaging, to investigate the problems associated with product packaging,
and to provide recommendations for improved strategies in product
packaging. As gotten from Panwar (2004) definition Packaging is the act of
containing, protecting and presenting the contents through the long chain of
production, handling and transportation to their destinations in as good a
state, as they were, at the time of production. (Sajuyigbe, et-Al., 2013) also
opines that packaging is an important part of the branding process as it
plays a role in communicating the image and identity of a company. It was
concluded that packaging plays a positive role in the consumer purchase
decision. It was recommended that organizations should pay attention to the
information used. It must also be more useful technically. Management
should ensure that their product package is not also deceptive.
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1. INTRODUCTION
We live in a world of packaging our foods, our supplies and to a large extent
materials.
Packaging means all the activities in the product planning that involves
wrapper container is called the package. The exterior cover for a product
packaging is often referred to as the silent salesman because it has the ability
product, stimulate demand and increase sales. It is often said that, packaging
cost often exceed all other marketing tools that are used to move goods from
the manufacturing to the consumers and also used to determine the price of
conducted by Lemar and Dobler (1992) it has found out that while
advertising only accounts for about two of the total cost, packaging materials
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were responsible for about twenty two percent in most manufacturing
organizations.
This paper is aimed at evaluating the cost incurred in packaging and the
confined to article and reprints of talks dealing largely with “how to do it”
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The major reason could be attributed to the tendency of classifying
the pack performs, which tend to shield it from public scrutiny of the type
discernible.
This study on an evaluation of the cost of packaging and its effects on the
packaging.
The significance of this paper lies in its great benefits to individuals and
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materials on the subject of packaging and it’s cost in manufacturing
organizations
Finally, the general reading public will also find this paper very educative
and presenting the contents through the long chain of production, handling
appearance of the container and including the design, color, shape, labeling
and materials used” Packaging has a huge role to play in the positioning of
Alice louw (2006) says that packaging is also important in the marketing
environment. According to him the best packaging leaves the good image of
because it often projects the initial impression he/she forms about a brand,
its quality, or value. For products that are not purchased in their final form,
such as many food items, the shopper frequently relies on the package to
develop an impression of the product in its prepared state. This shows that
and Studd (2003) further stated that today, the pack must come alive at the
are the basics of current packaging designs (Klimchuk & Krasovec, 2007).
Nilsson & Ostrom (2005) state that packaging design contains three
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(2006) state that packaging design has two dimensions: graphic and
structure.
According to the three cited sources (Nilsson and Ostrom, 2005; Ampuero
and Vila, 2006; and Klimchuk and Krasovec, 2007), the packaging design
decisions.
Involvement Level and Time Pressure, Silayoi and Speece (2004) state the
branding device in the competitive packaged food market. The study found
that the elements of packaging are the main factors in the assessment and
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regard to packaging design there are no perceptional differences between
present both the product and its brand attractively to a target group of
information about the product and the brand, and as such, it is an essential
element of product branding. Through the use of text, images and other
characteristics that will position it within the minds of consumers and that
Packaging is often the first point of contact that a consumer has with a
brand, so it is hugely important that it initially draws their attention and also
quickly conveys the messages that both present and support the brand.
fragile and low quality. There has to be a direct correlation between the
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packaging’s physical attributes and the messages that the brand seeks to
project.
(a) Primary Package: Primary packaging is the term used to designate the
primary packaging is constructed both with the product itself and any
only the product, but also the primary packaging, which often is the
packaging most visible to the consumer in retail displays. The most common
protecting products for distribution, storage, sale, and use. Packaging also
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Packaging can be described as a coordinated system of preparing goods for
personal use. In this chapter we shall be looking in details the various types
Have you ever wondered why popular companies such as Apple or Nike
spy" to find one single flaw? The answer is simple. It takes money to make
money, and that is something not all industries comprehend the same way as
Packaging not only protects the product during transit from the manufacturer
to the retailer, but it also prevents damage while the product sits on retail
cometics must have a container and package while apples may have
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packaging for transport but not to sell the product from the produce
When considering the nature of packaging, it must be kept in mind that there
packaging, tertiary packaging and the unit load. The are described below in
details.
immediate contact with the product; in other words, it is the first packaging
constructed both with the product itself and any existing secondary layers of
packaging in mind. For example, a beverage can, a paper envelope for a tea
bag, an inner bag in a cereal box and an individual candy wrap in a pouch
are primary packages, and their main function is to contain and preserve the
product. Beyond this packaging lies the product itself. Primary packages
Therefore it is said to be the packaging that wraps the product when being
sold to the end consumer. It contains the packaging that is in direct contact
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with the product and the other packaging components (e.g. cap and label)
Secondary packaging is intended to protect not only the product, but also the
crates.
It could be said to be the packaging used for gathering the sales units in
order to allow for easy handling practices in the sales environment. This
The secondary package contains two or more primary packages and protects
the primary packages from damage during distribution and storage. Its main
by the beverage, food and cosmetic sectors for displaying primary packs on
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Tertiary packaging is the type which is typically not seen by consumers
secondary packaging in order to prevent the physical damage that may occur
loads during transit. This type of packaging is rarely seen by the consumer.
Unit load is the group of packaging in which more than one delivery
packaging are brought together for loading/unloading work (e.g. unit which
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Consumer packaging: The packaging that starts from a commercial sales
Anyone who’s purchased anything from Apple in the last decade knows how
exciting process but there’s an aura of intrigue that makes the product
preserve its content. But what are the characteristics of these various
packaging materials?
Food and Drug Administration (FDA) of the United States regulates the
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inventories, and databases related to food packaging and other substances
that come in contact with food. FDA provides regulatory and scientific
and other foods. FDA assesses the environmental impact of its regulatory
Annual Packaging costs for products bought and sold throughout the world
are several billions of dollars. It is estimated that 10% of the overall cost of
There are a large variety of materials and containers that are used for
packaging. Packaging will only vary in every industry depending on how the
types of packaging but the objective will still remain constant. As most
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a fragile item or having it arrive in pieces. Some factors that should be
item being packed, its weight, the value of the item, and whether the
of all these kinds of purpose to have a well done plan when they start to
The complexity of packaging has increased during the last years. Today, no
company can manage this process without the right technology and the right
workflow plan. A well organize program can simplify the packing process
and ensure everything runs efficiently. Basically there are four functions of
communication.
2.3.3.1 Containment
discrete products, all other products must be contained before they can be
moved from one place to another. The "package", whether it be a milk bottle
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or a bulk cement rail wagon, must contain the product to function
protecting the environment from the myriad of products, which are moved
from one place to another on numerous occasions each day in any modern
found that:
supported by information from Russia from the 1970s and 1980s, where a
of:
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55% of fresh fruit
70% of potatoes
50% of grain
relationship between the amount of packaging waste and the amount of food
packaging increased, the amount of food waste is decreased. Note this could
also be partly accounted for by the high use of refrigerators in the countries
2.3.3.2 Protection
This is often regarded as the primary function of the package: to protect its
etc., and to protect the environment from the product. This is especially
important for those products such as toxic chemicals which may seriously
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In the case of the majority of food products, the protection afforded by the
aseptically packaged milk and fruit juices in cartons only remain aseptic for
achieve its desired shelf life if the package permits oxygen to enter. In
longer preserved.
transport, sell and store 1 kg of bread requires 15.8 mega joules (MJ) of
energy. This energy is required in the form of transport fuel, heat, power and
refrigeration in farming and milling the wheat, baking and retailing the
bread, and in distributing both the raw materials and the finished product. To
MJ of energy. This means that each unit of energy in the packaging protects
eleven units of energy in the product. While eliminating the packaging might
save 1.4 MJ of energy, it would also lead to spoilage of the bread and a
increased. In 1982 six people died from cyanide in the US following the
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malicious tampering of Tylenol painkiller capsules. The UK baby food
2.3.3.3 Convenience
life styles and the packaging industry has had to respond to those changes.
One of the major changes has been in the nature of the family and the role of
many couples either delay having children or opt not to at all; there is a
All these changes, as well as other factors such as the trend towards
"grazing" (i.e. eating snack type meals frequently but on-the-run rather than
regular meals), the demand for a wide variety of food and drink at outdoor
functions such as sports events, and increased leisure time, have created a
demand for greater convenience in household products: foods which are pre-
without removing them from their primary package; condiments that can be
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applied simply through aerosol or pump action packages; dispensers for
this context, the package functions by reducing the output from industrial
"apportioned" by filling into 2 litre plastic tubs. Put simply, the large scale
enormous scale and the associated savings which result. But as the scale of
production has increased, so too has the need for effective methods of
open and pour as appropriate) and efficiency in building into secondary and
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international trade, it is clearly inefficient to handle each primary package
a corrugated case) and then for these secondary packages to be unitized into
which is loaded with several pallets). If the dimensions of the primary and
secondary packages are optimal, then the maximum space available on the
2.3.3.4 Communication
There is an old saying that "a package must protect what it sells and sell
were it not for the messages communicated by the package. The ability of
this communication function (i.e. if there were only plain packs and standard
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become a lengthy, frustrating nightmare as consumers attempted to make
on all packages displaying a Universal Product Code (UPC) that can be read
tertiary packages lacked labels or carried incomplete details. UPCs are also
high value are transported the secondary and tertiary packaging may contain
information. The cosmetic industry use this regularly, where there is not
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2.4 CONCLUSION AND SUMMARY
enhances and protects the goods we buy, from processing and manufacturing
Packaging lies at the very heart of the modern industry, and successful
between the product makers and their customers. Unless the packaging
and the goodwill of the customer will be lost. All the skill, quality and
reliability built into the product during development and production will be
wasted, unless care is taken to see that it reaches the user in the correct
When considering the nature of packaging, it must be kept in mind that there
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principal types of packaging which consist of primary packaging, secondary
or an industrial packaging.
regulates the safety of substances added to food. It also regulates how most
Furthermore, there are a large variety of materials and containers that are
used for packaging. Some factors that should be considered when choosing a
packaging material include the strength of the item being packed, its weight,
the value of the item, and whether the package will be subjected to moisture
aware of all these kinds of purpose to have a well done plan when they start
to create and design package for their products. Basically there are four
communication.
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2.7 References
186-216
Journal of ConsumerMarketing.
10, October.
(2) 127-140.
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BAY, D., 2003. The Theory of Trying and Goal-Directed Behavior: The
468.
211- 216.
10 (7), 403-422.
Product Branding from Concept to Shelf. New York: John Wiley and
Sons,.
education news, 3.
27
LEONE, L., Perugini ., 1999. A comparison of three models of attitude-
8, March.
1010-1026.
28
Silayoi, P., &Speece, M. (2004). Packaging and purchase decisions: An
Vazquez, D., Bruce, M. and Studd, R. (2003), “A case study exploring the
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