CHAPTER ONE

1.0  INTRODUCTION

GENERAL DESCRIPTION OF THE STUDY

Packaging is that part of product and development which relates to the design of the item and to enhance its value to the customer. It is an important part of a product planning and development and therefore important in the total marketing strategy. Packaging involves the activities of designing and producing the container or wrapper for a product (Kotler, 1984 page 400). The origin of packaging is as old as man kind. Human beings have always had need to protect and store their values. The early men used such crude packaging materials as animal skin, animal bladder hallow tree truck and leaves. Some of these early method to wrap such product as moi-moi. Some of them have undergone some transformation as a result of the industrial revolution. for example, cell phone or waterproof has replaced animal skin and bladder.

Modern packaging designing are a sophisticated of marketing, design theory and even research into an aesthetically pleasing packaging. The packaging is an integral part of the product in the most favorable way. It therefore serves dual purpose of being a container or wrapper (protector) and being a promotional to packaging serves as a sales appeal, motivates customers and product differentiation it gives utility or convenience in time and place, and enables consumers and distributors to identify a product and its manufacturers (Kalu 2002, page 104).

In vast number of consumer goods, packaging is critically important to the buyer’s recognition of the product and subsequent purchasing. Most buying decision is based in the packaging, especially for new product and for customers that do not already have particular brand in mind before entering a supermarket. Both the seller and buyer benefit from packaging for the seller, it permits the protection of the product more efficient physical distribution, promotion of the product ultimately higher sales and profits the buyer gain similarly. It enhance the product and sometime provides storage for the product when not in use. It also helps the customers to recognize the product, provide information concerning its use and help keep it fresh and undamaged until it is needed. Furthermore, packaging reduces unit cost and promotes dealer acceptance, introduces product to adapt to new firms and uses. It helps customers make better and more require use of product and thereby increase the firms turnover and sales profit. (kalu 2002, page 105).Re-packaging is the strategy of retaining the back product already known to consumers while changing its package design shape or size. This has the effect of revitalizing a product image. Customers now see the re-package of product as a new and improved version of the old one. To this end, product re-packaging as a selling strategy could have a positive effect on the sales revenue of a firm. This is why in some instances packaging and re-packaging is the most important aspect of a firms marketing program (Ogbechie 1989, page 15) The greatest merit of this strategy is that all user of the product will be happier with the product while many users, draw from competitors, product will be more willing to try the re-packaging product.

1.1  BACKGROUND OF THE STUDY

Nestle Nigeria Plc is associated the Nestle group, the single largest food company in the world and renewed worldwide for its top quality product and its strategy of re-packaging a product. Nestle Nigeria Plc began simple trading operation in Nigeria in 1961 and has today grown into a leading food manufacturing and marketing company. It is publicly quoted company listed since 1978, on the Nigeria shareholders participation in appropriately 43% of the company’s equality. About 57% of company equity is owned by Nestle of the S.A of Switzerland.  Its head offices complex is located at 22-24 industrial avenues, illupeju Lagos Badagry express way Agbara Industrial estate in Ogun state occupying an area of 16 hectors.

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