CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Packaging is an important marketing tool that makes a product attractive and draws the consumer's attention. In some cases it is so important that it costs more than the product itself, because it is intended to persuade consumers to buy. Packaging has a strong case for being treated as part of the marketing mix, alongside product, place, promotion and price. Most consumers form a judgement about a product from its package before buying it, so attractive packaging is essential for winning first-time buyers, and an unattractive package can end a product's chances of entering the market.

Packaging has several functions. Its basic function is to protect the product against damage in storage, distribution and handling. It also serves as a means of presentation and communication, and it is often described as a "silent salesperson" that captures consumers' attention at the point of purchase (Sanni-Bamigbade, 2025). In a retail environment that is crowded with competing brands, packaging has to work harder than ever for a product to be noticed, and for many brands that cannot afford heavy advertising it is one of the most important ways of communicating the brand message directly to the target consumer. Packaging also supports security. Tamper-resistant and tamper-evident features, authentication seals and security printing help to reduce pilferage and counterfeiting and so to prevent loss.

Recent evidence from Nigeria and elsewhere supports the view that packaging affects what consumers buy. Yeo et al. (2020) found, in a study of consumers in Malaysia, that three of four hypotheses on the effect of packaging were supported and that packaging plays a vital role in creating appeal and influencing purchase intention. Adesanya (2024), in a study of fast-moving consumer goods (FMCG) in Osogbo, found that package shape and colour have a positive and significant impact on consumer purchase decisions. Unukpo (2025) concluded that product packaging has a positive effect on consumers' buying decisions for bread brands in Delta State. Sanni-Bamigbade (2025) studied the influence of packaging colour and background imagery on consumers' purchase decisions for a cereal-based FMCG brand in Lagos State. Jatto et al. (2023), in a survey of 344 respondents in Ilorin, studied the impact of branding and packaging on consumer purchase intention at PZ Cussons Nigeria Plc, and they found that packaging colour has a substantial effect on consumer perception, which shows the importance of strategic design.

A new package can also be the centre of a marketing strategy. A better box, wrapper, can or bottle can enable a relatively small, little-known firm to compete with established rivals, and a change of package can create what is effectively a new product by giving existing or new customers the product in a more satisfactory form or quantity. Most of the recent Nigerian evidence, however, concerns the effect of packaging on purchase decisions and intentions, and not on the sales turnover and profitability of the firm itself. This study therefore examines the impact of product packaging on organisational sales turnover, with special reference to PZ Cussons Nigeria Plc (referred to in this study as PZ Nigeria).

1.2 Statement of the Problem

Packaging can be a major element of a marketing strategy, and a new package can improve the total sales and turnover of a product. Studies in Nigeria show that packaging influences consumers' perceptions and purchase decisions (Adesanya, 2024; Jatto et al., 2023; Sanni-Bamigbade, 2025; Unukpo, 2025). It is much less clear how far these effects translate into the sales turnover and profitability of the firm that uses the packaging, and firms need this information to decide how much to invest in packaging. This study examines the impact of packaging on organisational sales turnover in PZ Nigeria.

1.3 Objectives of the Study

The objectives of the study are to:

1. examine the impact of packaging on organisational sales turnover in PZ Nigeria;
2. examine the strategic importance of packaging in PZ Nigeria; and
3. examine the impact of packaging on organisational profitability in PZ Nigeria.

1.4 Research Questions

The study seeks answers to the following questions:

1. What is the impact of packaging on organisational sales turnover in PZ Nigeria?
2. What is the strategic importance of packaging in PZ Nigeria?
3. What is the impact of packaging on organisational profitability in PZ Nigeria?

1.5 Research Hypotheses

H₀₁: There is no significant relationship between packaging and organisational sales turnover in PZ Nigeria.

H₁₁: There is a significant relationship between packaging and organisational sales turnover in PZ Nigeria.

H₀₂: There is no significant relationship between packaging and organisational profitability in PZ Nigeria.

H₁₂: There is a significant relationship between packaging and organisational profitability in PZ Nigeria.

1.6 Significance of the Study

The study is significant in two ways. First, its results will educate business managers and the general public on the importance of product packaging, especially in relation to organisational sales turnover, and they can help managers decide how much to invest in packaging design. Second, it will contribute to the literature on packaging and firm performance in Nigeria, and so provide empirical material for future research in the subject area.

1.7 Scope and Limitations of the Study

Scope

The study is limited to PZ Cussons Nigeria Plc, and it covers the impact of packaging on organisational sales turnover.

Limitations

1. Financial constraints. Limited funds restrict the researcher's ability to obtain the relevant materials, literature and information, and to collect data through the internet, questionnaires and interviews.
2. Time constraints. The researcher is carrying out this study alongside other academic work, which reduces the time that can be devoted to it.
3. Generalisability. Because the study concentrates on a single company, its findings are indicative and cannot be generalised to all firms or industries.

References

Adesanya, O. (2024). Product packaging and consumer purchase decision: A study of FMCG in Osogbo, Nigeria. UNIZIK Journal of Marketing, 1(4), 16–28.

Jatto, A. A., Bello, K. A., & Zubair, O. S. (2023). Impact of product branding and packaging on consumer purchase intention: A study of PZ Cussons Nigeria, Plc. Bayero Journal of African Entrepreneurship Studies, 5(2), 25–37.

Sanni-Bamigbade, S. A. (2025). Influence of packaging on consumer purchase decisions of cereal-based fast-moving consumer goods. The Nigerian Journal of Business and Social Sciences, 12, 1–11.

Unukpo, A. O. (2025). Product packaging characteristics and consumer buying decision of bread brands in Delta State, Nigeria. International Journal of Scientific Research and Management, 13(4).

Yeo, S. F., Tan, C. L., Lim, K. B., & Khoo, Y. H. (2020). Product packaging: Impact on customers' purchase intention. International Journal of Business and Society, 21(2), 857–864.