THE IMPACT OF MARKETING MIX STRATEGY ON THE GROWTH OF A FIRM (A CASE STUDY OF LUBCON NIGERIA LIMITED, ILORIN)
TABLE OF CONTENT
Front page i
Table of content v
1.0 Introduction 1
1.1 Statement of problem 1
1.2 Objectives of the study 2
1.3 Research question 3
1.4 Statement of Hypothesis 4
1.5 Significant of the study 4
1.6 Scope of the study 4
1.7 Limitation of the study 5
1.8 Historical background of the study 5
1.9 Definition of terms 7
2.0 Introduction 9
2.1 Concept of marketing 9
2.2 Evolution of marketing 11
2.3 Concept of marketing mix strategy 13
2.4 The roles of marketing mix strategy 14
2.5 Marketing mix variable 15
2.6 Product 16
2.7 Pricing 21
2.8 Promotion 23
2.9 Distribution channel 29
3.0 Introduction 38
3.1 Research design 38
3.2 Research population 38
3.3 Sample size and sample techniques 38
3.4 Source of data collection 39
3.5 Research instrument 40
3.6 Reliability and validity instrument 40
3.7 Method data analysis 40
4.0 Introduction 46
4.1 Data analysis and presentation 46
4.2 Test of hypothesis 59
4.3 Summary of findings on the hypothesis 65
5.0 summary, conclusion and recommendation 67
5.1 Summary of findings 67
5.2 Conclusion 67
5.3 Recommendation 68
The aims of every organization is to minimize cost and maximize profit. An effective marketing mix strategy plays an important role towards enhancing the objective to be achieve by the organization.
Those days when product was matched with the market gone. The modern marketing concept enhances the importance of consumer’s preference and consumer’s satisfaction. Therefore, the management is concerned with various policies on four elements of the marketing mix (4p) i.e. the product, the price, the promotional activities and the place.
The marketing mix strategy occupies a paramount position in the function of marketing management. It must also be cleared, that management is decision on one of the element has effects on others because they are inter-related and has weight on the performance and growth of any business form.
1.1 STATEMENT OF THE PROBLEM
Today, business world has become a servant of the society by trying to provide adequately the needs and waste of the society yet some business organization find it difficult to make accurate decision on each element of the marketing mix in order to achieve the organization objectives.
Therefore, the researcher has been able to analyze some of the following problems.
i. Uncertainty of which of the several product designs are mostly likely to be accepted in the market?
ii. What price should company charge for its product?
iii. How will profit change under various pricing strategy?
iv. Where and to whom the company product be sold?
v. How much company spend on promotion in terms of each product and geographical segmentation?
vi. Does the benefit justify the cost of a planned marketing mix strategy?
vii. Then how well can this marketing mix strategy consumer?
1.2 OBJECTIVES OF THE STUDY
This project work is embarked to achieve the following objectives
i. Whether the product of lubcon satisfy the consumer in term of quality.
ii. To find out the distribution method used by the company is adequate to ensure the availability of products to consumers at the right time and of the right place.
iii. To determine whether the pricing strategy of the company is in line with what consumers and channel members satisfaction compares with its competitors.
iv. To determine whether a promoted activities of the company have an impact on the sales volume.
v. And finally to detect and resolve likely problem which management encounter in implementation of marketing mix strategy.
1.3 RESEARCH QUESTION
In order to achieve the objectives of the research certain questions have to be posed to enable the researcher attempts a detailed study. Such questions are:
i. How important is the marketing mix strategy to the organization?
ii. Does quality product promote sales?
iii. How does the company maintain its position in a place of competitive market?
iv. What techniques does the company choose as the best to improve their promotional activities?
v. Is profit adequate in relation to capital employed?
vi. What type of distribution does the firm choose to distribute its products?
vii. What type of distribution channels does the firm use to distribute its product?
viii. What pricing strategy does the company use in fixing price for a new product?
1.4 STATEMENT OF HYPOTHESIS
i. Ho: Quality product leads to consumers satisfaction
Hi: quality product does not lead to consumers’ satisfaction.
ii. Promotion activities have no effects on the sales volumes
iii. Ho: marketing strategy normally pursued by organization without consumers consideration would normally succeed.
iv. Hi: marketing strategy pursued by organization without consumers consideration normally failed.
1.5 SIGNIFICANCE OF THE STUDY
This study will have a prominent place in the operation of virtually of all business organization, most importantly to new investors seeking to establish a new business as it would serve as guide to them in their plan and decision making. It will also give the researcher an experience and exposure to various particular marketing activities.
Not only that, it will similarly serve as secondary date for students embarking on related researches for further reading.
1.6 SCOPE OF THE STUDY
The research topic focus on the impact of marketing strategy on the growth of a firm, and the scope of this research is limited to Lubcon Nigeria limited, particularly it’s Ilorin depot, headhunter, and customers in Ilorin.
1.7 LIMITATION OF THE STUDY
The study was limited by finance particularly, because the researcher has to combine classes with the other academic engagements to the task of writing this project.
Also sort time frame from the completions of the project work did not permit wide latitude of data collection. Not only that the cost of transportation gathering materials for the project and other unanticipated cost were also borne by the researcher.
1.8 HISTORICAL BACKGROUND OF THE STUDY
LUBCON LTD and Gas Company was incorporated in August 1991 as a limited liability company to engage in business of blending lubricants together with distribution and sales of petroleum and allied products.
The company’s head quarters and A’s plant are located at lubcon Avenue, Adeqale Industry Layout, Ilorin Kwara State.
The initial stage of operation in Lubcon Company Started with staff including the Chairman himself (ALH. JANI IBRAHIM).
During these times, they managed to produce 25 cartoons per day and distributed their product with only one pick up van.
Over the years, the company has grown to be the biggest and fastest growing independent lubricant blending company in Nigeria with an ultra modern blending plant of 10,000,000 liters capacity per annum on a single shift located at Adewale Layout, ilorin, in addition the company has a mine blending plant of 2.5 million liters capacity per annum located along Zaria road Tranburawa, Kano.
In 1995,Lubcon became the Association (NATA). In recognizing the quality products of the company, Lubcon was first company in Nigeria to be awarded the prestigious NIS award (Nigeria Industrial Standard) for lubricating oil. In 2002, Lubcon became the first indigenous oil and gas company to be certified in Nigeria.
In 2005, it became the oil company to blend a Lubricant For National Union Of Petroleum And Natural Gas Workers (NUPENG).
Also in 2006, (NURTW) Nigeria Union Of Road Transport Workers made Lubcon its official blender.
Lubcon is product that are of different types and in sizes. It manufactures product like super TV 50, Lubcon Adrenalin 2000/50, Lubcon motor lube, Lubcon Grease, Lubcon 2T, Lubcon perform XV 50, Lubcon super outboard. These product are packaged in different size ranging 0.s liters, 1 liter, 2 liters, 4 liters, 5 liters, 185 liters and 200 liters.
In an attempt to distribute its wide range of products, the company maintain a network of active retain outlets in more than 63 location all over Nigeria. In addition, Lubcon is in joint partnership with Nigeria.
1.9 DEFINITION OF TERMS
MARKETING MIX STRATEGY
It is the combination of four elements of marketing mix in right proportion to achieve a firm objectives.
i. STRATEGY: it is the plan of cost of action that is limited to achieve a particular purpose.
ii. CHANNEL OF DISTRIBUTION: this is the route of the pipeline through which goods and services pass from the producer to its ultimate consumers.
iii. CUSTOMERS: it is an individual or group of individual who buy, use or sell a product.
iv. FIRM: this is the producer of goods and services consumers of used by consumer or business users.
v. PRICE: this is an agreement between buyers and seller concerning what amount.
vi. MARKET: it is the actual and potential buyer of company’s products.
vii. MARKET AND HARE: this is the percentage of consumer that a company has out of the total market.
viii. PROFIT: it is a financial reward to a business firm after the cost and other expenses involved in production of goods and services.
ix. MARKET POSITION: this is the rank of a given product in the market relation to competing product..