CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Today, with the increasing importance of food hygiene, consumers all over the world are increasingly preferring single-serve packaging to bulk packaging. This consumer preference has increased the importance of packaging in a product marketing mix and marketers will use this aspect to better understand and serve their customers, to better meet their needs, and to gain a competitive advantage in a market where consumers have a multitude of choices to choose from as consumers attach great importance to packaging (Shashikiran & Aashna, 2018). Packaging design plays a key role in the success of any food or beverage company and in today’s competitive market, just providing quality products is not enough (Shaw, 2019). Additionally, packaging should be created to draw potential buyers in and immediately communicate the value of your goods. A successful brand identity may be developed through packaging, which can also enhance consumer confidence and, eventually, sales (Shaw, 2019). Therefore, product packaging helps to inform the customer through the product label that is part of the package while also attracting the consumer through the ingenuity and creativity of the packaging (Shashikiran & Aashna, 2018).
Global supply chain operations rely on the synchronicity of key players to ensure that demand is met as efficiently as possible, however, a single factor that has a wide range of influence that directly affects every mode of the logistics process is product packaging (Danielle, 2019). Product packaging is more than just packing products into boxes, considering how everything is streamlined, product packaging performs multiple functions in distribution, and warehousing, and impacts both business operations and consumer behaviour (Danielle, 2019). Also, Popa (2022) noted that packaging plays a vital role in the supply chain and is an integral part of both the product process and the product supply chain.
According to Kwaku & Fan (2020), product design and packaging are crucial to a product’s marketability as they express the product’s brand identity, intrinsic quality and philosophy, and provide the interface between the product and the consumer. Design and packaging are the first selling point of a product and are important for its market positioning (Kwaku & Fan, 2020). The shape, colour, design, and texture of the packaged product are those that make the consumer feel ready to approach, pick up, look at, read, buy, take home and use ((Kwaku & Fan, 2020). Also, Rounak (2023), noted that product packaging design is always a priority for big companies. Packaging design influences consumer behaviour, product experience and choice and ultimately, it has a significant impact on the brand’s success (Rounak, 2023).
According to the Global Association for Marketing at Retail, also known as POPAI cited in Himadri & Upakul (2019), consumers spend two-thirds of their time on the visual aspects of packaging, looking at a drink for just 5-10 seconds before choosing it. Hamdar (2018), noted that companies in the global space must understand that packaging itself has become a promotional tool to attract customers and increase product acceptance in the market because today consumers are presented with over 20,000 product choices in a 30-minute shopping session. Considering the impact of packaging, it is argued that, the packaging is no longer used to enclose the product and protect it from damage but to increase the marketability of the product (Hamdar, 2018). A survey conducted by Packaging Digest cited in Shaw (2019) revealed that 72% of consumers purchasing decisions are influenced by the packaging design. Coca-Cola a globally recognized brand has established a strong brand identity through effective packaging design, the classic red and white colour scheme, unique bottle shape, and the brand’s iconic logo all contributed to its success. Coca-Cola’s packaging design is instantly recognizable, and this has helped make the Coca-Cola brand one of the most recognizable brands in the world (Shaw 2019).
In Africa, the importance of good packaging is often underestimated and limited to the functional purpose of transportation, therefore, many African producers focus on cost reduction, resulting in efforts to reduce packaging to a minimum, often sub-optimal levels (Kurt, 2019).
The Food and Agriculture Organization of the United Nations (FAO) cited in Kurt (2019), noted that the majority of food loss and waste in Africa is simply due to poor packaging and care. Packaging design is therefore not only an economically viable investment opportunity but also essential for food security and poverty reduction (Kurt, 2019). According to a study conducted by Kwaku & Fan (2020), most consumers are interested in purchasing products produced and/or packaged outside of Ghana as the design is attractive compared to products produced in Ghana. This simply suggests that local products will continue to lose importance compared to foreign products until the market relevance of good product packaging design is grasped and integrated into Ghana’s food and beverage production system (Kwaku & Fan, 2020). This scenario raises further concerns about the manufacturing firms, manufacturers, and marketers in Ghana’s level of knowledge regarding the effects of package design on their goods’ whole supply chains.
The local beverage production companies are very relevant in the fortunes or otherwise of the general economy due to their market relevance. Therefore, beverage production companies must understand what influences their product distribution. They must also understand what factors influence buying behaviour, and what is the role of product packaging concerning product distribution. It is therefore of great importance to understand how product packaging design impacts the distribution chain of beverage companies in Ghana. Ghana’s beverage industry has a huge potential to grow and compete in the world market as beverage production and consumption are increasing every year (Ashitey, 2019). Aside from the fiscal contribution of the beverage industry to Ghana’s economy, the industry is expected to show an annual growth rate of 14.82% from (2023- 2027) with a projected market volume of US$24.61m by 2027 (Statista Market Insights, 2023). Beverages are indispensable in Ghanaian culture. They are often at the centre of all gatherings be it joyous occasions such as marriage ceremonies, naming ceremonies, parties or sombre moments, such as funeral rites, beverages are used to make symbolic proclamations and execute traditional rites (GCB Strategy and Research Department, 2019). This is the motivation behind the decision to zone in on beverage production and how product packaging design impacts the sector. Moreover, the literature reveals little or no studies focusing on how packaging design influences beverage distribution and sales in Ghana from the producers’ and consumers’ assessment hence the decision for the study.
1.2 Problem of the Study
Product package design does not provide a competitive advantage, but rather the combination of the right components that give it a perfect look. Designers often make the mistake of applying the same decisions to multiple projects, which can lead to generic designs instead of innovative ones (Babich, 2021). Technological development and global market competitiveness require proper design and product packaging that appeals to customers. By focusing on the components of product package design, manufacturers and marketers can maximize the benefits of product packaging design (Kwaku and Fan, 2020). Designers often become overly enthusiastic about continuously adding new features without considering the necessity of the product itself, resulting in excessive and unnecessary additions (Babich, 2021). For instance, the kind of components used for designing cereals and grains cannot be replicated in designing beverage products. The literature however does not specify the unique components of designs required for beverage drinks. This study among other things seeks to determine specifically the components of product package design in the beverage distribution of Promasidor Ghana Limited.
The assumption that product quality drives distribution and sales is misleading, as packaging design significantly influences sales. For instance, Tropicana’s redesigned packaging caused a 20% drop in sales within two months, but when it returned to its original packaging, sales increased by 5%. This highlights the importance of considering product quality and packaging design when promoting a product. The Institute of Packaging Ghana reports that low-quality packaging design in Ghana hinders the competitiveness of quality products in both local and international markets (Kwaku and Fan, 2020). This lack of investment in packaging design is causing significant costs for local manufacturers and marketers, as their products are unable to reach the international market. Proper packaging design is crucial for advertising and influencing impulse buying, making it an essential aspect of marketing. The packaging industry is undervalued, possibly due to manufacturers prioritizing cost-cutting. Proper packaging design is crucial for attracting customers and advertising products, which some manufacturers overlook. This trend negatively impacts local manufacturers and marketers, as their products struggle to compete in the international market. Although there is extensive literature on product packaging and design, there is limited information on its impact on Ghana’s beverage distribution chain. To address this gap, this study seeks to assess the impact of product package design on the beverage distribution chain of Promasidor Ghana Limited.
The Indeed Editorial Team (2023) emphasized that a supply chain professional oversees the entire supply chain, from purchasing raw materials to delivering products to customers. Their ultimate goal is to ensure smooth and efficient processes, focusing on every aspect of the supply chain and distribution. Product package design is a key marketing tool, as 72% of respondents in a Packaging Digest survey cited by Shaw (2019) believe that their purchase decisions are influenced by packaging design. It appears supply chain professionals often entrust design engineers or product designers with tasks to achieve their objectives, leading to tension between supply chain managers and designer engineers (Dave, 2022). This is due to the differing goals of the two teams, with supply chain teams focusing on financial targets and managing risks, and product designers focusing on creating high-quality products and bringing them to market. The challenge lies in the unclear role of supply chain professionals in product package design. This study, therefore, seeks to determine the role of supply chain professionals in product package design in the beverage distribution of Promasidor Ghana Limited in Accra, the Greater Accra Region of Ghana.
1.3 Research Questions
The study is guided by the following questions:
- What are the components of product package design in the beverage distribution of Promasidor Ghana Limited?
- How does product package design affect the beverage distribution of Promasidor Ghana Limited?
- What role do supply chain professionals play in product package designing in the beverage distribution of Promasidor Ghana Limited?
1.4 Research Objectives
The objectives of the study were to:
- Determine the components of product package design in the beverage distribution of Promasidor Ghana Limited.
- Examine the effects of product package design in the beverage distribution of Promasidor Ghana Limited.
- Identify the role of supply chain professionals in product package designing in the beverage distribution of Promasidor Ghana Limited.
1.5 Significance of the Study
The outcome of the study had both theoretical and practical dimensions.
Theoretically, the outcome of the study would inform students of the impact of product package design in the beverage distribution chain and various sectors of production. It would serve as reading material and a reference for other researchers who would be undertaking similar studies. The findings of the study are expected to fill considerable gaps identified in the literature regarding the common components of product package design in beverage distribution, the effects of product package design on beverage distribution and the role of supply chain professionals in product package design. The findings of the study are expected to serve as a source document for teaching product package design and its impact on the distribution chain.
Practically, the outcome of the study would expose producers and marketers to prioritize product packaging design as an integral component in the production process and invest in product packaging design to maximize its full benefits. Emerging or upcoming producers and manufacturers would take a cue from the outcome of the study to shape their approach towards product packaging design and prioritize the same.
1.6 Scope of the Study
The study seeks to assess the impact of product package design in the beverage distribution chain. The study was limited to only the beverage products of Promasidor Ghana Limited. The outcome of the study would be premised on only the beverage distribution chain.
Geographically the study was confined to Promasidor Ghana Limited located in Accra, the Greater Accra Region of Ghana.
1.7 Limitations of the Study
The researchers encountered some challenges which include but are not limited to the following:
The study was confined to Promasidor Ghana Limited in Accra, the Greater Accra Region of Ghana, with their beverage distribution department therefore the findings of the study cannot be generalized to other beverage companies in the region and other regions.
1.8 Organization of the Study
The study is in five chapters. Chapter One addresses the background of the study, the problem of the study, research questions and objectives, the significance of the study, the scope of the study, the limitations of the study and the organization of the study.
Chapter two contains reviewed literature under headings marked as an introduction, conceptual review, theoretical review, empirical review, conceptual framework and chapter summary. Chapter three outlines the methodology used in the study. It highlights the research design, population, sample and sampling procedures, research instrument, data collection procedures as well and data analysis procedures. Chapter four entails the analysis of results and discussions. Finally, chapter five provides a summary of the major findings of the study, the conclusion, and recommendations based on the findings as well as areas for further studies.
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
This chapter examines pertinent research that is connected to the subject. The conceptual framework, theoretical review, empirical analysis, conceptual review, and a summary of the literature are included.
2.1 Conceptual Review
This consists of the concept of product package design, the concept of supply chain and supply chain management, supply chain professionals, elements of product package design, the importance of product package design and the challenges associated with product package design.
2.1.1 The Concept of Product Package Design
According to Keenan (2022), product packaging design is the creation of the outer container that holds the product. It defines how it looks and feels, how it protects its contents, and how comfortable it is to open (Keenan, 2022).
Daphne (2022), also defines product packaging design as the art of creating packaging that attracts customers and persuades them to purchase a product. Daphne (2022) argued that product packaging design is a combination of science and art. It requires not only an understanding of how people interact with products but also knowledge of materials and graphics (Daphne, 2022).
Also, Waqas (2019), opined that product package design is the process of creating the exterior of a product and it combines the choices in graphics, form, material, colour, and fonts on the type of container chosen for a product. Similarly, product packaging design is the creation of the outward appearance of a product which includes all the essential design elements like colour, imagery, font, text, size, and shape and also requires consideration for things like feel and texture and what materials the packaging is made from (Fountain, 2023).
Candice De Beer (2020), explains packaging design as a process of constructing and ascertaining the physical form, visual look and feel of the outer packaging of a product considering the amalgamation of typography, imagery, illustration, structure, dimension and colour.
Subsequently, Miller (2022), defines product packaging design as the art of creating packaging that attracts customers and ameliorates the brand experience. It is an immanent part of marketing and branding and a key factor in determining how consumers interact with a product (Miller, 2022).
Again, Bandma (2021), sees product packaging design as the combination of shape, structure, colour, materials, typography, imagery, regulatory information and complementary design elements to make the product merchantable. The goal of product packaging design is to communicate the personality and function of a product and generate sales to achieve marketing objectives. It is about designing and manufacturing a product’s container and how it looks to the consumer who buys it (Bandma, 2021).
Product Package design is the art and science of designing the product package or its wrapper. Product package design is a visual communication tool that conveys information, appeals to consumers and affects purchasing decisions, thus, it is a communication tool that is sometimes overlooked (Harmon, 2022).
2.1.2 The Concept of Supply Chain
A supply chain is a system between a company and its suppliers to produce and distribute a specific product and represents the steps it takes to get the product or service to the customer (Jha, 2020).
Supply chain entails all the business activities required to design, make, deliver, and use a product or service. It involves all the stages and processes directly or indirectly, in fulfilling a customer demand (Jha, 2020). Similarly, Probasco (2022) argued that supply chain is the process of producing and distributing an item. It consists of all the steps and processes, including logistics, required to transport these products or services from the point of manufacturing to the consumer who utilizes them.
Luther (2020) explained supply chain as a synchronized network that includes all the businesses, facilities, and business activities involved in sourcing, developing, manufacturing, and distributing products. Every business relies on its supply chain process to produce products and convey them to the market; a business may itself be a crucial link in other businesses’ supply chains.
Duggan (2022) espoused that supply chain is a network of all the entities involved in the creation and sale of a product. Supply chains spring from the delivery of raw materials from a supplier to the manufacturer and the subsequent delivery of the product to the end user.
Supply chain includes the manufacturer, suppliers, transporters, warehouses, wholesalers, retailers, customers and every person involved in the processes during and before the goods or services reach the final consumer (Jha, 2020).
Luther (2020) on the other hand puts it differently, a typical supply chain integrates functions such as designing a product, procuring needed raw materials and parts, estimating demand, planning the product introduction, arranging supply, selecting sales channels, delivering support and providing customers with visibility into orders. Supply chain starts with obtaining raw materials followed by refining those materials into basic parts and components. Those parts are then combined to create a product, and the product is sold to consumers. The part of the supply chain that encompasses getting the product from the manufacturer to the consumer is called the distribution channel (Duggan, 2022).
2.1.3 The Concept of Supply Chain Professionals
According to Weaver (2021), supply chain professionals are persons who coordinate, organize, and manage all logistics required in the production and distribution process of a company’s goods. They oversee the entire life cycle of a product.
The Indeed Editorial Team (2023) argued strongly that a supply chain professional is a person who oversees the supply chain at every stage. The role of a supply chain manager is to plan and execute all the stages required to purchase raw materials, allocate them to various units of the business, ensure that production is running smoothly and producing enough to meet customer demands and deliver the end products to customers at the right time. They argued further that supply chain managers also work to minimize costs and maximize efficiency. There are several ways they might do this. For instance, outsourcing processes such as transportation can provide a more cost-effective solution, automating processes can advance the speed and consistency of processes, and removing internal errors, overproduction, and over-shipment can prevent costly delays. A supply chain professional are person who oversees and coordinates an organization’s entire supply chain process. They are critical in safeguarding the efficient flow of goods, services, and information from the supplier to the end customer. Supply chain professionals are involved in strategic planning, managing suppliers, tracking inventory, optimizing transportation logistics, and analysing data to make informed decisions (Kothari, 2023).
Weaver (2021) stated that supply chain professionals are people who are directly responsible to:
• Create business relationships with suppliers and clients. Supply chain managers must be outstanding networkers and appreciate the demands of the client to meet their needs.
• Develop high-quality products. Supply chain managers need to advance and deliver high-quality products as efficiently as possible. They are required to continuously assess logistical functions and detect areas of improvement. They must propose strategies to minimize the cost of time required to deliver goods.
• Direct allocation of materials, supplies, and products. Supply chain professionals must be proactive leaders to lead teams, manage a financial budget, and develop a product that meets the current and future needs of clients.
To the Indeed Editorial Team (2023), the typical responsibilities of a supply chain professional include:
• Working with procurement managers and suppliers to make sure the right set of products is procured.
• Negotiating contracts with suppliers.
• Overseeing inventory and planning for storage.
• Managing day-to-day orders.
• Controlling and monitoring delivery processes.
• Minimizing wastage of raw materials.
• Overseeing logistics and improving shipping practices.
• Coordinating with multiple stakeholders and ensuring there are no communication gaps among various departments.
• Analysing performance and forecasting future needs.
• Innovating processes and managing risks.
2.1.4 Supply Chain Management
To produce, distribute, and transport products or services from their point of origin to the final customer, a variety of tasks must be coordinated and monitored. This process is known as supply chain management. From locating the raw materials for a product to directly delivering the finished good to the customer, everything falls within this category (Coursera, 2023). According to Ellis & Santagate (2018), supply chain management is all the activities involved in the handling of products or service’s full manufacturing flow, from the raw materials up until the end product is delivered to the customer. Wailgum, Perkins, & White, (2021) hold the view that the process by which an organisation oversees the sourcing of raw materials to produce a good or service and deliver it to clients is known as supply chain management or SCM.
2.1.5 Elements of Product Package Design
Fishes (2019), noted that colours have a great psychological impact and can draw attention to your product. To stand out, brands often choose colours that do not belong to their brand colour palette and this disruptive behaviour is good, but may not always work in favour of the brands (Fishes, 2019).
Colours are known to be the most important part of packaging because they subconsciously reflect the personality of a brand; also, it is the first thing to be noticed and can be visible at a distance as well (Fishes, 2019). In addition, Chan (2019), observed that the right colour combination can evoke certain emotions and have a psychological impact on the consumer and this affects perceptions of products and companies, which in turn influences purchasing decisions. Nearly 90% of shoppers make an instant decision about what they want to buy based on colour, demonstrating how important colour is to drive sales (Chan, 2019). Wadhwa (2023), opined that visuals and mascots are elements of product package design. A visual is a graphical representation of the product it contains, making it easy to understand what the product is without reading it mascots, on the other hand, are additional elements that can reinforce a brand’s identity in some cases (Wadhwa, 2023).
According to Chan (2019), size is an important element in product package design and choosing the right carton size is important to ensure that consumers have the right perception of your product. According to the Asian Journal of Social Sciences and Management Studies cited in Chan (2019), research shows that when customers have adversity judging a product’s quality, their purchasing decisions are greatly influenced by package size and consumers also tend to think that rectangular packs are more suitable for containing larger products (Chan, 2019). Typography is also an important part of product package design and brand identity (Wadhwa, 2023). Just like colours have meaning, typography represents brand values and each font has a different meaning and uniquely expresses what the brand stands for. Brands often use bold fonts and serifs to attract attention because they are clear, simple and easy to read (Wadhwa, 2023).
Wadhwa (2023), listed packaging format as an element of product package design. The packaging format is designed to grab the consumer’s attention and be easily found on the shelf and the form of packaging varies greatly from product to product, taking into account consumer needs and convenience (Wadhwa, 2023). For example, products such as shampoos, oils and ketchup come in a variety of sizes and pouches that encourage consumers to try them out (Wadhwa, 2023). Also, Chan (2019), noted quality as an element of product packaging design, thus, product packaging reflects quality. Quality product packaging design will not only determine the integrity, quality and legitimacy of your product but also the reasonable price you charge potential consumers (Chan, 2019). If the product’s packaging design is attractive, high quality, and attracts potential buyers, it will sell more often and high-quality packaging presents your product as premium and gives you more pricing freedom, regardless of what you sell (Chan, 2019).
Also, when it comes to item bundling, it is vital to consider the surface and the way your bundling fabric feels when a client holds the item and opens the bundling (Jansen, 2022). In any case, it is one of the foremost neglected components of a bundling plan and a bundling creator, including a textural wrap-up to your bundling not only as it works when the client touches the item but also highlights the item sitting on the rack among various competitors’ items (Jansen, 2022). Moreover, it depicts how particular the brand is, through its branding and showcasing (Jansen, 2022). Again, Baliga (2022), is of the view that perceived value is an element of product package design. The finest packaging is one that completely legitimizes the value shoppers see in items and for the packaging to carry the product from racks to carts, one may estimate the product esteem within the advertise (Baliga, 2022). Product packaging design will have to reflect the benefits the item offers shoppers and along with a design that reflects the brand, the packaging represents an elevator pitch that convinces consumers to pick it up and give it a try, so a sharp and engaging strategy would go a long way towards helping the product to stand out (Baliga, 2022).
2.1.6 The Impact of Product Package Design on Distribution and Sales
Product packaging design determines product acceptance and success, an attractive package design is persuasive every time one look at it (Scyphus, 2019). Additionally, product packaging design capabilities help producers engage with customers and build brand identity and a good design and branded packaging create a strong visual impression on customers and make them memorable (Scyphus, 2019).
A study conducted by Scyphus (2019) on analysing the value of packaging design for brands revealed a strong correlation between packaging and purchase, that is 73% of customers surveyed indicated heavily reliance on product packaging design when making purchasing decisions. According to Higgs (2019), when consumers are faced with a wide variety of product choices in stores and online, product packaging design becomes a key factor in decision making and many shoppers choose products with eye-catching packaging design. The majority of shoppers buy products because the packaging caught their eye in the store and this highlights the importance of using packaging design to differentiate products (Higgs, 2019).
According to Aditya (2019), product packaging design is the most significant marketing tool that helps in communicating and influencing the behaviour of customers. The packaging is the first visible element of a product that communicates the message of a brand and shows why a particular product is better than the other alternatives and that is why companies pay special attention to creating the most attractive, unique and eye-catchy packaging design for their every product to boost their sales (Aditya, 2019). Similarly, Wong (2021) opined that product packaging design is used by companies as an instrument for promoting their marketing offer, and for boosting their sales and good packaging design helps to identify and differentiate products to the consumers.
Also, Bynum (2018) noted that product packaging design attracts attention and brands often sell more of their products in gratitude to the product packaging design used. For example, one can assume that facial cleanser cleans a person’s face and toothpaste cleans their teeth, however, when there are many different brands in the store and consumers are wondering which one to buy, the first thing that catches their eye is the product packaging design (Bynum, 2018).
Packaging design that grabs their attention and emphasizes the value of product attracts more attention and therefore often drives more sales (Bynum, 2018). AZ Business Magazine (2020) reveal that the right packaging design increases brand recognition. That is consumers have favourite brands that are memorable, and any change to the packaging often results in disappointment on the part of the public which leads to a decrease in sales and distribution. Coke, for example, changed its packaging slightly over the years, however, the company kept the original look mostly, as consumers already shared the information that they were satisfied with this package in its current state (AZ Business Magazine, 2020). A major change to a product’s package design often leads to a backlash from consumers who are not happy with the company’s decision to make the alterations (AZ Business Magazine, 2020).
Also, according to Bynum (2019), product packaging design offsets price. Many consumers prefer to purchase products that look pretty when displayed in their homes and this is especially true if a product is going to remain visible for an extended period (Bynum, 2018). Many shoppers also like to spend their money buying products from companies they believe align with their own beliefs and values and when companies present good looks and favourable values on product packaging, consumers will sometimes spend a little more money to buy products from them (Bynum, 2018). Walker (2023), also noted that in a highly competitive market, distinctive product packaging design can set a brand apart from its competitors. Product package design creates a unique selling proposition and gives the brand a competitive advantage and when customers can easily identify a product based on its packaging, it becomes memorable and increases the chances of repeat purchases (Walker, 2023).
2.1.7 Challenges of Product Package Designing
Babich (2021) strongly argued and espoused the following as the key challenges often faced by designers during product package designing:
- Confirmation bias is a problem in design where creators favour their preconceived notions or ideals above user feedback, resulting in the creation of products that are intended for the creators rather than the consumers. Designers strive to make people’s lives better, not to satisfy their egos. An alternative solution should be created if research shows that a design is not appropriate, according to a notion that needs to be ingrained in any organization’s design culture.
- The new trends obsession presents a challenging situation for product package design. New graphic concepts are constantly emerging on sites like Dribble and Behance, but not all designs are beneficial to consumers. For example, the neomorphism style, a cosmetic reimagining of the skeuomorphism design movement, gained popularity at Dribble in 2020 but did not improve user experiences. Designers should be aware of current trends but carefully consider them and select ones that deliver real outcomes, rather than gimmicks.
- Adherence to a strictly linear process seems challenging to designers. Linear design, which affects a team when it works in a “waterfall model” where criteria are carved in stone at the beginning of the design process and do not alter until the product release, is an issue that is particularly prevalent in organisations with a defined budget and time frame. It is simple to see how this strategy can fail. Design is an iterative process that improves solutions by discovering more about users. The “Build, measure, learn” methodology is used by teams, starting with an MVP and iterating through user testing to improve the final product.
- Poor communication is a challenge for every organisation and activity including product package design. In the design process, good communication is essential, and inadequate information channels, particularly among stakeholders, can result in project failure. The outbreak of covid-19 saw an increase in communication difficulties brought on by distant employment and fewer in-person encounters. In product design teams, transparency is a competitive advantage, thus project goals and milestones are defined during a kick-off meeting. To keep the team on track and informed, regular weekly meetings are arranged to present design concepts and solicit input from stakeholders.
- The lack of creativity on the part of designers happens to be another challenge confronting product package design. Many items look generic because designers adhere to established standards, which might not encourage original thinking. It is advantageous to take a “go crazy” attitude and start from scratch without depending on industry norms to develop something novel and fascinating. The important thing is not to be constrained right away, even though user testing of decisions is crucial. Innovation may result from adopting a “go crazy” mentality since creativity is a state of mind.
- In many businesses, the maxim “test early, test often” is essential since it lowers costs and aids in the discovery of important design flaws. However, a lot of teams wait until a product is published before conducting usability testing, which might cause problems. To prevent this, strategies like the “fake door” strategy can be used, which entails making a visual representation of a product or important feature and displaying it to clients even though it is not yet operational. A straightforward landing page with a “Sign up for early access” button may do this.
According to Raffles Design International (2022), product package design teams face many problems in a bid to launch new products. They argued that the first problem designers face is:
- Getting answers to the questions. A product designer’s responsibility is to provide solutions for certain challenges. A product designer must address several concerns before creating products, including understanding the intended audience, their challenges, the problems your product can solve, the issues it will address, and the budget they are willing to spend. This ensures that one can effectively address the needs of their target audience.
- The lack of communication between teams is another challenge facing product designers. There are several phases involved in product design, and each stage requires a team of experts. There will undoubtedly be some form of team misunderstanding in this situation. This is due to the distinct ways that engineers and designers think.
- Understanding the purpose of the design also appears to be one challenge facing product package design. The usual error made by designers and developers is to place more emphasis on a product’s aesthetic appeal than on its function. They must keep in mind, nevertheless, that goods are made to address issues.
- Knowing about clients’ expectations can equally be challenging when designing a product package. Working with several clients might result in conflicts and unforeseen intervention throughout the product creation process. To ensure successful cooperation, product designers must strike a balance between creating goods that are both practical and aesthetically pleasing.
- By using visual representation, wire frames assist in communicating the flow, layout, idea, and concept of goods. However, when using Sketch or other forms of tools to create wire frames, product designers run across issues. Justify it by pointing out that “wire frames being static” makes it challenging to predict how goods will interact with end customers.
2.1.8 The Role of Supply Chain Professionals in Product Packaging Design
It is generally argued that the supply chain involves every activity that occurs right from the purchase of raw materials through to production and distribution till the product reaches the final consumer. Therefore, every innovation or development that would facilitate the supply chain is of high importance to supply chain professionals. As argued by Heigl (2018) packaging plays a significant role in the buying decisions of consumers around the world. In reality, packaging is a primary marketing instrument that directly influences sales at the point of purchase. Supply chain is believed to be complete only when the product reaches the final consumer as argued by Duggan (2022) that the supply chains spring from the delivery of raw materials from a supplier to the manufacturer and the subsequent delivery of the product to the end user. The end user/consumer preference in many cases is believed to be influenced by product package, supply chain professionals then have a high stake in product package design to help speed up distribution and sales.
Supply chain professionals procure the needed raw materials and parts for production, this by extension includes raw materials for product package design (Luther, 2020). It can therefore be argued that the first role of supply chain professionals in product package design is procuring materials for the design of the product. Supply chain professionals oversee the production process, ensuring materials are available when needed and that products are manufactured according to quality standards including product designs as it makes up a complete product. Supply chain professionals also work closely with other departments to identify and resolve bottlenecks and inefficiencies related to the production and design of product packages (Pysmenna, 2023). Supply chain professionals contribute to product package design by collaborating with design engineers, product designers and procurement managers to integrate the highest quality material or decide on the utmost element in the integrated final product to gain customer loyalty. By enticing designers to focus more on getting to the point of imbibing the highest possible features in a product design (Jagtap, 2020).
Supply chain professionals convey customer feedback through the supply chain management staff called customer-service associates in some institutions, and work closely with sales, marketing, and customer support teams to improve product package design (Pysmenna, 2023). For instance, Tropicana a leading orange juice brand in America redesigned its packaging to update its image and possibly increase sales. This however never worked as consumers’ dislike for the new design resulted in a 20% drop in sales in just two months of introducing the new design. In just two months after returning to the original packaging, sales increased by 5% (Shaw, 2019). The feedback from the customers conveyed to the supply chain management by customer-service associates plays a key role in product package design.
The core tasks of supply chain management professionals working in analytics and technology are typically evaluating and implementing warehouse management systems, transportation management systems, and supply chain visibility, product packaging mechanism which no longer refers to a box or a carton but a coordinated system of preparing goods for safe, cost-effective, and efficient movement throughout the whole supply chain that eventually leads to maximizing consumer value, sales, and hence profits (Pysmenna, 2023; Magasura, 2018).
2.2 Theoretical Review
2.2.1 The Classical Conditioning Theory
Premised on Pavlov’s classical conditioning, discovered by the Russian physiologist Ivan Pavlov around the beginning of the 20th century, Ridgway (2019) argued that the theory influenced consumer behaviour. According to Ridgway (2019) in light of the classical conditioning theory, the consumer is treated as a subject who gets exposed to a product on the shelf, wrapped in its packaging, as the stimuli. The classical conditioning theory suggests that product packaging directly influences a consumer’s perception of a product, which in turn affects their buying decision. Consumers go through several cognitive and affective mental stages before making a purchase. Ridgway (2019) espoused that consumers recognise a need and actively consume information from various channels. Hence based on what consumers see, an attitude is formed towards certain choices trusted. After making a purchase, consumers continue to evaluate their decision while enjoying the product experience. This heavily cultured approach to consumer behaviour helps shape purchasing decisions (Ridgway, 2019).
Mittal (2014) contends that consumers often seek input from reference groups, such as family, friends, and colleagues, to make buying decisions. These inputs act as signals that influence consumers’ attitudes and perceptions of a product. However, filtering and retaining information can be challenging. Consumers retain information that appeals emotionally or strengthens a belief. When exposed to conflicting signals, consumers may exhibit impulsive buying behaviour. To cope, consumers may rely on product packaging to provide visceral cues, allowing a skip through the decision-making stages. Ridgway (2019) states that consumers are more cautious when the perceived value of a purchase decision is high, as it has financial or social implications. This is evident when purchasing gifts or planning special occasions. Consumers are willing to invest time and effort into the process, ensuring they choose the best option under given circumstances. However, when the perceived value is low, consumers tend to make impulsive decisions, leading to over 70% of unplanned purchases in supermarkets (Ridgway, 2019). According to Ridgway (2019), this is due to cognitive responses to visceral cues from product packaging and instant judgments about product quality. The importance of these cues in shaping purchase decisions is evident, as 9 out of 10 consumers prefer in-store purchases despite having already researched online (Ridgway, 2019).
2.2.2 The Theory of Attractive Quality
Inspired by Herzberg’s Motivation and Hygiene Theory (M-H Theory) in Behavioural Sciences, Professor Kano and colleagues developed the Theory of Attractive Quality (Löfgren & Witell, 2005). The theory posits that the factors that cause job dissatisfaction are different from the factors that cause job satisfaction (Löfgren & Witell, 2005). The attractive quality theory is useful to better understand different aspects of how customers value a product or an offer (Gustafsson, 1998) cited in (Löfgren & Witell, 2005). Over the past two decades, the theory has grown in visibility and acceptance and is applied to strategic thinking, business planning, and product development to demonstrate lessons learned in innovation, competitiveness and product compliance (Watson, 2003).
According to Kano (2001), attractive quality theory stems from the lack of explanatory power of one-way recognition of quality. For example, people are satisfied if a package of milk extends the shelf life of milk and are dissatisfied if the package shortens the shelf life of milk (Kano, 2001). For quality attributes such as leaks, people are not satisfied if the packaging does not leak, but will be very dissatisfied if it does leak, and a one-sided view of quality may explain the role of the date. expiration rather than the role of leakage (Kano, 2001). To comprehend the role of quality attributes, Kano et al. (1984), cited in Kano (2001), presents a model that evaluates quality models, based on customer satisfaction with specific quality attributes and their adequacy. This theory explains the relationship between adequacy and customer satisfaction with a quality attribute that can be classified into five types of perceived quality: “attractive quality”, “one-way quality”, “inevitable quality”, “indifferent quality” and “reversible quality” (Kano et al., 1984) are cited in (Kano, 2001). According to Kano et al. (1984) cited in Kano (2001), their ideas are similar to the quality theories proposed by Mizuno and Ishikawa, but in addition to the theory, Kano and colleagues provide a methodology to use.
2.3 Empirical Review
In a study conducted by Hamdar, Khalil, Bissani, & Kalaydjian (2018), on the economic assessment of the impact of packaging design on consumption, indicates that 56% of their respondents agree that the colour has an impact on the buying behaviour of consumers, and 23% strongly agree with this statement. However, only 5% of the respondents strongly disagree with this statement (Hamdar et al., 2018). The study used a sample size of 150 respondents using a purposive sampling technique and data was collected with a structured questionnaire. It reveals that packaging elements are crucial in marketing communications, with colour being a significant factor. Labels provide product information, while printed information helps customers distinguish between similar products. Language on packaging is essential for a wide range of customers. Innovative packaging design helps compete with similar products and retain customers. The study concludes that factors such as quality, innovation, and practicality are the most important for product selection during the consumer buying process (Hamdar et al., 2018).
Also, Gomez, Consuegra and Molina (2015) cited in Akinruwa (2019), studied the importance of packaging in milk purchase and consumption behaviour in Spain. The results show that the technical, functional and informative quality of the packaging contributes significantly to customer satisfaction. Meanwhile, Gomez et al., survey was on satisfaction rather than patronage, the fact remains that since satisfaction is an antecedent of patronage, it makes the study consistent with other studies. To achieve the objectives, a 7-point Likert scale questionnaire was used to collect data, while the convenience sampling technique was used to select the sample for the study.
Again, a study conducted by Shashikiran & Aashna (2018) on the impact of product packaging and labelling on consumer purchase intention of soft drinks indicated that there is a positive correlation between consumer purchase intention and beverage packaging creativity since Pearson r = 0.196 and p < 0.01 at the 99% significance level (Shashikiran & Aashna, 2018). The innovation of non-alcoholic beverage packaging has a positive impact on the purchase intention of consumers but the level of impact is relatively low and the level of creativity that captures the attention of the consumer and encourages them to decide to buy directly linked (Shashikiran & Aashna, 2018). The sample size of the study was 350 and the convenience sampling technique was to select the sample, whereas, data was collected using questionnaires. Data collected were analysed with the use of regression and correlation to study the relationship between the independent variables (package design elements) and the dependent variable (consumer purchase intention).
Also, a study conducted by Yeo, Tan, Lim & Khoo (2020), on how product package impacts consumers’ purchasing intention revealed that 67.7% of the respondents’ purchasing intention was affected by independent variables which are packaging colour, packaging material, packaging graphic and packaging size and shape. The purposive non-probability sampling technique was employed to select 250 respondents. Closed-ended questionnaires were distributed to 250 respondents and a total of 212 questionnaires were returned, while only 200 were usable for further analysis. Items on the questionnaires were measured using a 5-point Likert-type scale.
2.4 Conceptual Framework
The model in Figure 1 explains the relationship between product packaging design and customer purchasing. From the assumed relationship of model, size, colour, shape, quantity of product components and quality of packaging material are independent variables, while the customer is the dependent variable (Akinruwa, 2019). In the model, it is shown that product packaging can evoke dual customer behaviours such as satisfaction and dissatisfaction (Akinruwa, 2019). The concept goes on to say that in cases where consumers are happy, it builds a customer base and boosts sales, but in cases where customers are dissatisfied, they will search for an alternative, which will result in a drop in sales (Akinruwa, 2019).
Independent Variable Dependent Variable
Figure 1 Conceptual framework showing the model of independent and dependent variables.
Adopted from Akinruwa (2019)
2.5 Summary of Chapter
Product packaging design is a crucial aspect of a company’s overall product life cycle, encompassing the production, distribution, and use of a product or service. It involves the use of materials and graphics to create an appealing outer container that defines the product’s appearance, feel, protection, and comfort. The supply chain, a system between a company and its suppliers, involves all business activities required to fulfil customer demands from design to delivery. Supply chain professionals coordinate and manage logistics in this process, integrating supply and demand management across various participants and channels.
The psychological impact of colours on packaging is significant, as they subconsciously reflect a brand’s personality and influence purchasing decisions. Packaging design significantly influences product acceptance, success, and brand identity, creating a persuasive visual impression and memorable experience for customers. Challenges faced by product package design teams include audience questions, potential solutions, budget constraints, communication issues, aesthetic appeal-functionality balance, client expectations, and static wireframes.
Supply chain professionals play a vital role in facilitating innovations and developments, facilitating the entire process from raw material purchase to product delivery to the final consumer. Packaging plays a significant role in consumer buying decisions and is a primary marketing tool.
Pavlov’s classical conditioning theory suggests that product packaging directly influences consumer behaviour, influencing their perception and buying decisions. Consumers go through cognitive and affective stages before making a purchase, forming attitudes based on their experiences. Mittal (2014) suggests that consumers seek input from reference groups, but retaining information can be challenging. High perceived value leads to more cautious decisions, while low perceived value results in impulsive choices. Professor Kano’s Theory of Attractive Quality identifies five types of quality attributes, aiding strategic thinking, business planning, and product development. Studies have shown that colour influences consumer buying behaviour, while packaging quality significantly contributes to customer satisfaction.
The relationship between product packaging design and customer purchasing is complex, with satisfied customers building a customer base and boosting sales.