Dissertation (MA Business Administration)The study aimed at assessing the effectiveness of the packaging of a product on sales performance. Packaging of a product is a category which is seen obvious by the consumers and therefore it can directly affect the decision making of the consumers toward the product just as soon as they get eye contact with the product. Since the packaging of a product has effect on the consumers’ decision making on buying, then the managers must think critically on how to make the packaging of their products attractive so that through the purchases sales performance may be increased. The study involved three wards namely Iyunga, Iwambi and Mbalizi in Mbeya city. A questionnaire, structured interviews and observation were used as data collecting methods. SPSS and Microsoft Excel were used to encode and analyze data. The findings from this study indicate that the majority of the respondents are aware of product packaging and its relevance. The study observed that there are some packages which are more preferred than others and if they will be used effectively they may produce positive results on sales products. The study further revealed that packaging plays a significant role among the categories of product because it ensures safety of the product against damages, improves image of the product, and provides innovation opportunities as well as convenience for self service. Study findings also revealed that packaging also traps the sales of the customers who like to buy products either for privilege of its package appearance or multiple usefulness of the package. Innovative packaging is recommended to ensure attractiveness of the package thereby convincing customers to purchase the product. Mechanisms for receiving regular feedback from customers on packaging are also recommended.