recent study by Connolly and Davidson (1996) estimated that 73% of purchase decisions are made at the point of sale. As such the package becomes a critical factor in consumer decision making process because it communicates to consumers at the time they are actually deciding in the outlets.

2.2.6 Positioning

Positioning has evolved from market segmentation, targeting and market structure changes during 1960s and early 1970s (Shekar, 1989). The concept of positioning was strongly advanced by Ries and Trout (2001). They stated that many products already have a distinctive position in the mind of customers and these positions are very difficult to dislodge. For example “Parle” biscuits positioned as a value for price product and it has an image that generates respect and belief of good quality in the minds of buyers. In this respect Dovel (1990) contends that positioning should not be just a part of the strategy of an organization but it should be the backbone of business plan.

2.2.7 Product Life Cycle

As coins by Hofer (1975) the most fundamental variable in determining an appropriate strategy is the phase of product life cycle as it has distinct attributes that offset the operation of a business and consequently marketing programs. To be successful in food market, managing PLC is crucial (www.infor.com). Brassington (2003) states that PLC acts as a useful guide for product’s achievement and where it is heading in the future.

Perhaps the most important stage of PLC happens before the graph starts known as Research and Development phase. Marketing effort is centered on identifying market needs and specific product characteristics (Levit, 1965; Cunningham, 1974; Wasson, 1974; Enis et al., 1977). The product is generally unknown in Introduction phase. Firms spend heavily on marketing expenditure. Afterwards, there is growing market acceptance in Growth phase. Hence marketing endeavor is towards efficient distribution and to guarantee that a workable version of the product is available in adequate volume (Cunnongham, 1974). Then there is Maturity stage where rate of sales growth slows down as the product has been widely distributed and sold. Eventually demand and sales fall off in Decline phase and marketing manager would either harvest the product or reposition it so as to rejuvenate the product.