The Impact of Packaging Arrangements on Consumer Satisfaction, Supply Chain Cost and Profitability” the Case of Heineken Breweries S.C. Ethiopia
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Date
2024-03
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Addis Ababa University
Abstract
This thesis investigates the impact of a 100% returnable packaging system on consumersatisfaction, consumption behavior, supply chain costs, and profitability in Ethiopian
breweries, specifically focusing on Heineken Breweries S.C. The qualitative analysisuses sales personnel data as a proxy to gauge consumer satisfaction, revealing that a fully
returnable packaging system reduces home consumption due to convenience limitationsand lack of pricing incentives. Multivariate analysis based on data from 28 countries
shows that home consumers are significantly affected by the 100% returnablearrangement, while the impact on out-of-home consumption remains statistically
insignificant. Regression analysis further demonstrates that as the share of returnablepackaging decreases (replaced by one-way packaging), consumption levels rise.
Predictive modeling suggests that shifting to a mixed packaging model—60% returnableand 40% one-way—could increase per capita beer consumption from 12-13 liters to
approximately 22.1 liters. Financial analysis based on quantitative results and Heineken’ssupply chain data indicates that while the 100% returnable packaging arrangement
benefits overall cost savings through package reusability, it negatively impactsoperational efficiency and revenue potential. The findings suggest that transitioning to a
mixed packaging arrangement could improve customer satisfaction, boost homeconsumption, and increase profitability for Heineken Breweries S.C.
Key Words: 100% returnable packaging, consumer satisfaction, home consumption,
supply chain efficiency, profitability