THE EFFECTIVENESS OF ADVERTISING IN THE MARKETING OF CONSUMER ORIENTED PRODUCT (A CASE STUDY OF 7UP BOTTLING COMPANY NIGERIA PLC IKEJA LAGOS STATE)
ABSTRACT
The title of this research project is the effectiveness of advertising in the marketing of consumer oriented product (A case study of 7up bottling company Nigeria Plc Ikeja Lagos). This project is divided into five (5) chapters; chapter one talked about the introduction of the topic, background of the study, significance of the study, research questions, scope and definition of the terms while chapter two talked about the review of related literature and its reference. Chapter three gives an insight of area of study, population of the study, sample of the study, instrument for data collection, validation of the study, distribution and retrieval of the instrument and method of data analysis. Finally, chapter five talked about the summary of research findings, the recommendation and conclusion, limitation of the study and suggestion for further research.
CHAPTER ONE
1.0 INTRODUCTION
The need to study this topic, the effectiveness of advertising in the marketing of consumer oriented product in Nigeria is very vital to identify the impact advertising has on sales volume, especially the sales volume of 7up bottling company Plc,a company in Nigeria which has a competitive market environment.
In the early 1960s the economy of Nigeria was dominated by few well-known companies and competitive economy then was more or less perfect. Advertising was therefore focused on top management and in effect different kind of products were advertised including beverages. The consumers had more money at their disposal for goods and services. However, it was indeed and economy of surplus, lower process, subsidized goods and higher disposable income. The economic recession of the 1980, had changed all these and oil price dropped to a certain level and different kind of trade restriction were introduced to restrict the economy. Firms as well as individuals started feeling the impact of the recession, price of goods and services skyrocketed, different fees and taxes were instantly imposed. Consumers’ disposable income dropped and large amount of consumer oriented goods were not sold(e.g.) soft drinks. Producers and manufacturers of soft drinks such as 7up bottling company experienced low sales, profits and turnover. This gave rise to the importance of advertising which objective is to create awareness of a particular product and in this context consumer oriented goods like soft drinks of 7up bottling company and impact more ledge and desire to persuade consumers to patronize their product that will satisfy the need of which it is bought.
1.1 BACKGROUND OF THE STUDY
7up bottling company is a company in Nigeria that has the sole right to bottled and distributes 7up products. One of the most perspective multi-national companies, 7up is fully known as one of the best soft drink producers in Nigeria.
In order that 7up is made, the first is to select the bottles (both new and returned) and dispose of these with defects. The bottles are closely scrutinized to ensure that they are hygienically clean and not clopped. In order section of the plant, purifies sugar is added to pure drinkable water to produce a solution called single syrup. In the next stage, the syrup is passed through a filter bed to ensure its purity. This then flow to a point where it is mixed with the undiluted 7up solution called concentrate carbon (iv) oxide. A gas known as (Ho2) is added to give a refreshing 7up soft drink.
Facts gathered suggest that Nigeria drink about 9,000,000 (nine million) bottles of 7up soft drinks every day. 7up products dominated the market share in early 1970s. Few soft drinks companies were in existence then and competition among them were not keen and perfect.
Advertising played an important role in the increase of sales volume of this company in question. It is through advertising and other marketing activities that people get to know about 7up. The advertising was done in over 20 (twenty) different languages in Nigeria. It was as a result of this that there is an increase in sales volume of 7up bottling company products.
The company devoted much importance on advertising of their product and this recorded much profit yield for the company. The company generated and annual turnover of about N 1.8 billion last year. This turnover is limited to Lagos state which is my case study. The company had also made some impact in the sponsorship to qualified candidate in primary secondary and also institution of higher learning. The relevance of this section relates to the fact that as early as the foundation of the company, 7up has attended and created a reputable image for itself through advertising.
1.2 STATEMENT OF THE PROBLEM
ADVERTISING: This is a form of communication said for by and identified sponsor and it is relayed by mass media. It is also a sort of paid non-personal communication about a company and its product which is passed to the general public through the mass media. A contains and good definition of advertising must contain these features:
It is paid form of communication There is identified sponsors It influence consumer to do something It is transmitted through the media It must be non-personal
Advertising helps in the creating of awareness to the public and the consumer on the arrival of a new product and how such product is being used. Manufacturer produces a new product, but the consumer will not know how to use it, then advertising help in telling them how to use the product and create in them the knowledge of the new product. Advertising leads to and induces repeat purchases and greater sales volume. It therefore inducting greater output and cheaper cost per unit, apart from giving information about the existence of a product, it also afford the company the opportunity of explaining the differential advantage of the product to the target market over the competitors own.
CONSUMER: This is the individual who pays or obtains and uses such good for his own final consumption. Industrial users however, are those persons or institutions that purchase individual product or machine for the purpose of further production. Without advertising, these consumers of different group will not know the available product but when this information is relayed to them through advertising, the producers will sell and the consumers will as well buy.
7up bottling company unlike other companies, is facing some problems in advertising, but the research work is specifically on the advertising problem of 7up bottling company.
For instance the best advertising medium to be used, some have argued that there is no best medium to use in advertising of their product to the specific target market while others said that not every prospect or consumer have the capability to purchase a television set and that is now a problem that need to be tackled. Another problem according to research is the ability of the advertising manager to determine the best advertising budget to be used. Whether to use affordable method, competitors expenditure, or percentage of sale method.
Another problem facing 7up bottling company is what kind of advertising to use.
Finally the best advertising agency will service their account well.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to find out the effect of advertising in marketing of consumer oriented product. It is an obvious fact that this study is promoted to identify the different advertising media employed by 7up bottling company in promoting the 7up products they manage, making radical effort to make sure the message gets to the respective target market. Another objective of this study is to find out among all the existing advertising media which one does 7up bottling company sees as the best. By this selection it enable 7up bottling company to determine which of these advertising media make the most impact on the company’s sales volume.
This study is also interested to know how 7up bottling company is making use of advertising to improve their old market, capture new and create new ones and winning new customers. Also among these objectives of the study is to determine the level at which 7up bottling company carries out advertising or is making use of it to correct bad image and to create an image that would appeal to the consumer or the target market to create goodwill. It is also set out to find out whether promotional mix strategies are making impact or are more efficient ways to promotion of 7up product than advertising.
1.4 RESEARCH QUESTION
The following research questions brought answers for obtaining information for advertising observed events to this study:
Which department is involved in taking charge over the sales officers and the cadre? How can the product of advertising on sales be improved? What reaction do the consumers take on the advertising of a product? How does the advertising of a product get to the consumer? How effective is advertising on the sales volume of 7up bottling company? Does advertising increase the cost of a plant? Is advertising better than other promo tools?
1.5 SIGNIFICANCE OF THE STUDY
This study signifies or entails that advertising helps to increase sales volume of a product. In other words advertising encourages repeat purchase.
Advertising also serves as an employment opportunity to make it clear when you want to advertise your product you must employ one or more people in one way or the other. This research therefore will be meaningful to all consumer oriented marketing companies. This study will be beneficial to them since it will expose both favourable factors towards the effectiveness of advertising in marketing of consumer oriented product especially 7up bottling company.
1.6 SCOPE OF THE STUDY
The researcher is restricted to 7up bottling company Ikeja and its products like 7up, pepsi and mirinda.
1.7 DEFINITION OF THE TERMS
Advertising: It is defined as any form of non-personal presentation and promotion of ideas, goods and or services by an identified sponsor through a medium or media.
Marketing: It is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
Disposable Income: Money that is available for use and free to spend after paying taxes.
Consumers: They are individuals and households buying for personal use, i.e. they buy in order to enjoy the satisfaction the product offers.
Producers: They are individuals and organizations buying for the purpose of producing i.e. for furthering production.
Marketing Environment: Is a set of diverse, dynamic and uncontrollable forces that impinge on an organization’s marketing operations and opportunities.
Promotional/Mix: Consist of four (4) main tools viz; personal selling, advertising, sales promotion and publicity.
Sales Volume: This is used to measure the amount, usually in cartoons/crates, etc, of the product being sold at a given point in time.
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY OF THE FINDINGS
The proceeding chapter presented the analysis of information gathered from frame work. The role of advertising in a business is not that discouraging from any finding because 7up product can be said to have the same quality with all other products. The only aspects where marketers of the locally made goods should lay more emphasis, is on the area of consumer perception. The ways of changing the existing perception of 7up product is getting involved in aggressive advertisement and using of merchandising activities like cash out, each individual even they can get involved in sponsoring programs on television but they must make sure that a program will always get attention of the general consumer. The exercise disclosed some relevant issues which include the following:
1. The relationship between total sales volume and total amount expended on advertising.
2. The effect of advertising on consumer of 7up product. Advertising create awareness of an existing product. Advertising helps and increase the sales volume because of a new product is advertising it will create demand and thereby people to run and purchased the product there will be an increase in sales.
3. The best medium for advertising matter a lot because if the medium used the product will succeed while if the wrong medium used there will be a product failure.
5.2 CONCLUSION
As a result of the above finding and recommendation so far, one could conclude this: Nigeria companies have become increasingly aware of the growing importance of advertising as a part of the overall market and has therefore been developed as a tool for stimulating demand in the market place for their product. Although many research works have been extensively carried out in advertising, little effort had been actually devoted to the timing in the face of seasonal demand and competitors of the importance of timing element in a successful advertising campaign has earlier been highlighted in this research work. Therefore, I strongly believe that the findings and recommendation therein will go a long way in improving the profitability and effectiveness of companies in Nigeria engaging in advertising as a promotional tool.
5.3 RECOMMENDATION
As part from the researcher contribution towards increasing the effectiveness of advertising companies particularly in a consumer oriented product company like 7up. The following recommendation are preferred there are arising from research finding. Advertising has an effect from marketing passes performance superiority in a strong point over other it is therefore of paramount important for marketers to developed a strong brand awareness and usage for brands in today’s competitive marketing environment. Management should also utilize great amount of skill and expertise in preparing their advertising message and its finding too, this message has to be said or done. And unnecessary increase in price may lead to negative attitude of consumer behavior towards product. I being the researcher suggest to 7up bottling company Nigeria Plc. to maintain their price by decreasing those expenses that cause high production price which can lead to high cost per unit of product. I also suggest to this company in question, to maintain a good price and also make sure that the consumers receive good value for their money by producing the product that is of right quality. They should also employed qualified, intelligent and good marketers because a firm without good and qualified marketer will soon land into business grave, public relation in many media in order to inform their customer about the company’s service. However, advertising is important as it will help to reach both actual and potential customer in order to enhance the growth of their market.
5.4 LIMITATION OF THE STUDY
It is necessary to talk about the stumbling blocks I saw in the field of research and this led to limitation of this study, they include:
I. Time Element: Despite the fact that the study was carried out through one semester, it was not possible because of time as regular assignments and class quiz from lecturers limited the study of this research.
II. Financial Constraints: Everyone knows about the economic hardship in Nigeria. Additional information could not be obtained because of limited fund. Exorbitant cost of travelling and printing materials is another limitation to this study.
III. Insufficient Data: Unavailability of sufficient data for this research work in libraries, as there were have not enough textbook, journals and magazines essential for the successful completion of the study.
5.4 SUGGESTION FOR FURTHER RESEARCH
The following suggestions were made for further research.
I. This study should be repeated in other states in order to ensure effectiveness of advertising in the marketing of consumer oriented product.
II. Further research should be conducted to identify factors hindering the effectiveness of the consumer oriented product most especially in advertising and marketing of product.
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