IMPACT OF BRANDING AND PACKAGING ON SALES TURN OVER OF NESTLE FOOD NIGERIA

CHAPTER ONE

1.0     INTRODUCTION

One element that has undergone tremendous change in the past decade is branding and packaging according to Rahim,  liberalization by allowing for easy imports of printing technology. Made a vast difference to packaging and branding Simplistic, almost primitive packaging has given way to vibrant, colorful labels with more pictures. Packaging is also no longer meant merely for storage; the label nowadays addresses concerns about the product, ingredients shelf life and so on (Rahim 2002) .

According to Rahim, packaging is “now more a component of the brands image than ever” Tins and cartons have given way to sleek pouches, satchets and plastic containers. Therefore, we can define packaging as all activities of designing and producing the container for a product, the container is called the package.

Branding is a major issue in product strategy, perhaps the most distinctive skill of professional marketers in their ability to create, maintain, produce and enhance brand. Branding is the art and corner stone of marketing. The American marketing association defines a brand as a name, term, sign, symbol or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Thus a brand identifies the seller or maker.

Branding has nothing to do with the design of a product which include both the intrinsic and entrinsic qualities of a product, that is packaging, textile, colour, names tastes and so on.

Branding is infact the composite of activities in establishing brand names, brand mark, copyright and the like. In the absence of branding, there cannot be any better described marketing situation than confastic marketing.

Therefore, when branding and packaging came, it becomes so strong              that today hardly anything goes unbranded. Example salt is packaged in distinctive manufacturers containers or sacks, oranges are stamped with growers names, common belt and nuts are packaged in cellophane with distributors label and automobile companies, spark plugs, tyre, bear separate brand names from the auto makers.

The brand name and trade marks provide legal protection of improving product features which will otherwise be copied by competitors. moreover, branding gives the seller the opportunity to attract a loyal and profitable set of customers and also gives sellers some protection from competitors greater control in planning their marketing mix. All these make companies to spend a lot on branding and packaging with the sole aim of product differentiation and identification thereby changing the taste of customers as a result, making good sales turnover.

1.1     BACKGROUND OF THE STUDY

Branding and packaging has become an essential motivating factor in the area of sales turnover in any organization, whether manufacturers of industrial or consumer products.

The researcher choice of the subject matter was as a result of the keen interest he has on sales turnover especially the packaging and branding involves to identify the level of dependence of customers to this effort and to the organizations.

Hence, the impact of branding and packaging on sales turnover, of Nestle foods Nigeria Ltd.

The researcher also deliberated on the effectiveness, achievement and the results that branding and packaging has brought to the organization in terms of sales volume and profitability.

Nestle Plc began simple trading operation in Nigeria in 1961 and ha today grown  in to a  leading  food manufacturing and marketing company. It is a  publicly quoted company  listed, since 1978, on the Nigeria stock exchange (now known as Lagos stock exchange) the main production units were designed in line with modern manufacturing method  which ensure efficient production of the following products. NESTLE NUTREND, NESTLE  CERELAC MAIZE AND NESTLE CERELAC CHOCOLATE, NESTLE GOLDENMORN, NESTLE MILO, CHOCOMILO, MAGGI CUBES, etc. nestle Nigeria Plc has its regional sales office in Lagos region, east region North-West region and north east region. It  has its depot in  Ibadan, Benin, Kaduna, Makurdi Kano, Aba and Jos.

1.2     STATEMENT OF THE PROBLEM

The issue of branding and packaging of food products in the Nigeria context can not be over emphasized, some are of the view that food product branding and packaging will constitute a problem to the society at large while other disagree with this issue. To be more precise, an example is that we have different types of soft drinks which, when consumed by the customers will give the same satisfaction, but the issue is, these products have to be branded so as to give each and every product its own identity that will differentiate it from others or rather its competitors.

1.3  OBJECTIVES OF THE STUDY

i.       The main objective of this study is mainly to find out the role that branding and packaging play in enhancing consumer patronage to effect sales turn-over.

ii.     The study will also look at ways that branding and packaging food products can be marketed.

iii.  The research will also look at various aspects of branding and packaging.

1.4     SIGNIFICANCE OF THE STUDY

Similar studies might have been carried out in this area of human endeavour, however, the simple fact that business environment is never static, alot of changes might have rendered parts of the result of these findings obsolete.

This research  work will be beneficial to the organization under review(Nestle Nig Ltd) as the researcher will search into various aspects of marketing branded and packaged food products within the organization to ascertain whether the huge amount of money spent to brand and package food products is justified.

The study is also expected to serve as a reference material for future research work in this important aspect of business administration as it can be consulted as a reference material especially if there is the need to improve on the study.

Others that the research work will benefit include lecturers, student and other researcher that may make reference to the project in future just as the researcher will review literatures of other authors in the course of this research work.

1.5     STATEMENT OF HYPOTHESIS

Hypothesis may be defined  as a declarative statement of relationship between two or more variable used for better understanding of the problem of study. In other words, hypothesis are formulated in order to facilitate the conduct of the research.

From the beginning, the  researcher advanced some theoretical assumption to guide the conduct of the project. Having  carried out this study, it would be necessary to test and prove the validity of this assumption against findings. They are state as follows:

        Ho: product branding and packaging does not influence product. 

          H1: product branding and packaging influences product. 

1.6     SCOPE OF THE STUDY

The topic “effect of branding and packaging on sales-turnover” has a very wide dimension consequent to the vast nature of the topic. There fore, the researcher restricts his study specifically to Nestle (Nig) ltd.

The researcher also limits his research works on books and journals. To the researcher, such restrictions is to enable him come out with accurate findings as well as saving time and cost to be involved.

1.7     LIMITATION OF THE STUDY

When undertaking an academic work of this nature, one is bound to encounter a lot of problems in one way or the other. Some of the problems encountered are;

1.     A number of respondents are not willing to cooperate, in filling the questionnaire, other that agrees to cooperate are not honest about their answers.

2.     The manufacturer (Nestle Nig Ltd)whom the researcher consulted concerning the research  work cooperated, but one problem encountered was their unwillingness to disclose monetary terms involved in branding and packaging of their products which they referred to as confidential.

3.     Time constraint also possess another limitation which did not allow the researcher enough time to gather vital information to make the study a whole.

          BRIEF HISTORICAL BACKGROUND OF NESTLE (NIG) LTD.

Nestle Nigeria plc is associated with the Nestle group, the single largest food company in the world renowned world-wide for its top quality products. Nestle Nig plc began simple trading operation in Nigeria in 1961 and has today grown into a leading food manufacturing and marketing company. It is a publicly quoted company listed, since 1978, on the Nigeria stock exchange (now known as Lagos stock exchange) with about 19, 500 Nigeria shareholder participation in approximately 43 percent of companies equity. About 57 percent of companies equity is owned by Nestle S.A of Switzerland.

Nestle Nigeria plc manufacturing complex is located at Agbara industrial estate in Ogun state, occupying an area of sixteen hectares. The main production units were designed in line with modern manufacturing methods which ensure efficient production of the following products. NESTLE NUTREND,NESTLE CERELAC MAIZE AND NESTLE CERELAC CHOCOLATE, NESTLE GOLDENMORN,NESTLEMILO,CHOCOMILO,MAGGI CUBES,MAGGICHICKEN,MAGGICRAYFISH,ANDMAGGI SUPER ONION FLAVOUR.

Nestle Nigeria plc obtains most of its agricultural materials (maize, soya beans and sorghum) locally from contract farmers and out-growers in a partnering arrangement that enable them benefit from the technical advice and assistance of the  company’s agricultural services department and at the same time guarantees to the company’s continuous  supply of raw materials that meet their high quality standards.

Nestle Nigeria plc employs a total number of 1,096 comprising 832 junior staff and 264 management and senior staff.

Nestle Nigeria plc market its products far and wide as a consumer product manufacturer, its products has penetrated all corners of the states and the country in general. Its customers are cut across homes, hotels, parties, corporate organization.

This organization like many other firm is facing the problem of procuring its raw materials in the manufacture of its wide range of products.
Nestle Nigeria plc has its regional sales office in Lagos region, East region North-west region and North East region. It has its depot in Ibadan, Benin, Kaduna, Makurdi, Kano, Aba and Jos.

1.8     DEFINATION OF TERMS

BRANDING: A design of a specific product or service by a brand or company names, sometimes referred to as selective demand stimulation

PACKAGING: All the activities of designing and producing the container for a product

PRODUCT: A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, service persons, places, organizations and ideas.

BRAND LEADER: Product which holds the greatest single share of a market

BRAND MARK: This is described as that part of a brand which can be recognized but is not alterable, such as a symbol design or distinctive colouring or lettering

          SALES: This  is the exchange of products (goods) for money

TRADE MARK: a brand or part of a brand that is given legal protection because it is capable of exclusive appropriation. A Trade mark protects the sellers exclusive rights to use the brand name  and/or brand mark..

BRAND GOODS: Goods identified with a proprietary name, normally by name for promotional security or teaching purpose. Branded goods offer some protection to the retailer or distributor.

TURNOVER: This is the change that occurs in the amount of money within a period of time during business transaction.

The above terms have been defined in accordance with the context in which they appear in the research work.                                                  

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