The research work titled “The Effect of Advertising on Consumer
Preference Patterns for Malt Drinks (A Comparative Study of Amstel Malta
and Guinness Malta) in Enugu Metropolis, was carried out with
· To determine how advertising has affected the decision to buy, Guinness Malta or Amstel Malta.
· To determine the brand of malt that is more available than the other and the consumer demand for it.
· To suggest ways the companies should follow to
make better progress in boldling their brands and for them to satisfy
their customers effectively and to maximize profit.
To achieve the above objectives, related literature were reviewed on
consumer preference patterns for malt drinks. In addition primary and
secondary data were collected to solve the research problem, and
questionnaires were used as research instruments.
The population of study comprised the consumer’s distributors and the
management and relevant staff of both Guinness and Amstel Malta
Companies in Enugu Metropolis.
The researcher used census survey on management and relevant staff
because the population under study was small, while Topman’s formula was
used to determine the sample size for consumers and the distributors.
In organizing and presenting the data collected, tables, frequencies
and percentage were used, while hypothesis were tested with Z score.
Based on the analysed data, the following findings were made.
Ø The consumers in Enugu indicate that the price of Amstel is higher than that of Guinness.
ØThey also observed that advertising helps to create awareness of both products.
ØConsumers are more satisfied with the advertising that leads to purchase of Amstel than Guinness.
Based on the findings, recommendations were made.
- Both companies should engage in advertising strategy that
are effective and other promotional activities that appeal to consumers
for efficient and effective goal achievement.
- The two companies should maintain continuous availability of their products.
- Nigeria breweries Plc should reduce the price of their product order to attract more customers.
- Guinness should look into the advertising that leads to more purchase of their product.
- If the above suggestions and recommendations
are effectively and efficiently implemented, both companies will
experience a profound change in their advertising performance and
consumers will be better served.
TABLE OF CONTENTS
Table of Contents
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problems
1.3 Research Objectives of the Study
1.4 Research Hypotheses
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Definition of Terms.
CHAPTER TWO: RELATED LITERATURE
2.1 Advertising an Overview
2.2 Forms of Advertising
2.3 Role of Advertising in the Marketing of Consumer Goods.
2.4 The Effect of Advertising on Product Brands
2.5 Impact of Advertising in Consumer Decision Making Process.
2.6 An Overview of Consumer Preference patterns
2.7 Impact of Advertising on the Preference for Malt Drinks
2.8 Impact of Advertising on the Preference for Amstel to Guinness Malta.
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Sources of Data
3.2 Population of Study
3.3 Sample Size Determination.
3.4 Distribution of Questionnaires
3.5 Research Instruments.
3.6 Method of Data organization.
3.7 Limitation of Study
CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA.
4.1 Presentation and Analysis of Data
4.2 Test of Hypotheses.
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings
1.1 BACKGROUND TO THE STUDY
It is a common belief that advertising is as old as human history,
yet as a promotional tool, it started with the development of
commerce. “In the early days, advertising was practiced in different
forms at different parts of the world”, according to Samson (1981 :
180). He maintained that “there were small stone printing stamps which
were used by the “Quacks of Roman times’ to impress on surface of their
solves. During these period, there are different Era of advertising
which include “pre-marketing Era, this started as a product exchange in
prehistoric times to the middle of eighteenth century, buyers and
sellers communicated in very primitive ways for most of this period,
“Media” such as clay tables, town criers, and favarn signs were the best
way to advertise a product or a service towards the end of this era was
printing used. In other words, people have for centuries communicated
their ideas and their needs to one another through advertising, as one
can see, advertising takes many forms and has considerable influence on
contemporary society and commerce. (Connor and Hart 1999 : 5).
During the last 50 years, (Research Era) advertisers have
methodically improved the techniques of identifying and reaching
narrowly targeted audience with messages prepared specifically for each
groups or individual, modern communication technology has aided in this
quest for the perfect advertising campaign.
Awake 22nd August (1998 :5). Many years ago people uses primitive
hand tools to produce goods, they live in small Isolated communities
were artisans and farmers battered goods and services among themselves,
distribution was limited, due to development, Greek and Roman Merchants
expanded contact with other society and with the development of more
sophisticated tools, people achieved a higher level of production.
But ancient civilizations had only unsophisticated hand tools for
producing goods, so quantity and variety of available goods was
There was an increase demand for goods created a greater need to
advertise the availability of these goods. (Marshal 1995 : 81) thus
signs carried in clay, wood, or stone were hung in front of shops so
passersby could see what the merchants has to offer, because most people
at this time could not read, as a result of this, signs are used to
symbolic the good for sale.
“The symbolic and pictorial nature of advertising which gave vent to
out door advert has proved to be one of the enduring form of aid”
(Connor and Hart: 1999 :10).
The introduction of printing marked a dramatic tuning point in1450’s
which was the major event in the history of civilization and probably
the most important development in the history of advertising Jonones
Gutenberg) the investor of printing press and it’s system changed the
way people lived and worked.
In 1740, the first printed outdoor poster known as “Loarding”
appeared in London which become the forerunner of modern out door
In Nigeria, advertising can be traced to one of the earliest mass
communication which is known as “Town crying”, according to Nwabueze
(1980 :28), modern advertising in Nigeria commenced with the
establishment of the first news paper called IWE IOHIN which carries
Advertising is a powerful marketing communication tools used by
companies to fulfil the promotional task, it is impersonal form of
communication or presentation on goods, ideas, or services conducted
through paid media under open or identified sponsorship. It is a
marketing tool that helps to sell goods, services, images, and ideas
through information and persuasion.
Its objectives could be to create awareness, achieve conviction,
build preference, influence choice of purchase and encourage action.
Advertising have a purposeful influence on the choice of purchase
towards a product brand of a consumer when an advert is placed showing
the benefits and advantages the brand has over another, it will be a
motivating factor to entice the buyer, making the advert to suit once
personality there he starts to initiate conviction, the next thing he
takes action (purchase) therefore advertisement has much influence on
the choice of purchase.
Advertising is an agent of choice; one of the most important benefits
is that it facilitates the consumers becoming active rather than
passive agents in the economic cycle. For a consumer to make a
purchase, he needs to be informed, he receives information from variety
of sources and make his decision one.
In Nigeria, there are many manufacturers on different malt drink they
include Nigeria breweries Plc. This is the pioneer and largest brewing
company in Nigeria, it was incorporated in 1946 and recorded a landmark
when the first bottle of STAR Lager bear rolled off the bottling lines
in it’s Lagos brewery in June 1949. This was followed by Aba brewery
in which was commissioned in 1957, Kaduna brewery in 1963 and Ibadan
brewery in 1982. In September 1993, the company acquired the fifth
brewery in Enugu, on Apul, 2001, it recently christened the Ama
Greenfield brewery in Enugu; the Largest in Africa, the brewery was
commissioned in October 2003. Thus from its humble beginning in 1946,
the company now has file operational breweries from which its high
quality products are distributed to all parts of this great
country. They have rich portfolio of high brands star lager beer
(1949) Gulder lager beer, (1970) maltina (1973) with four varieties now,
legend extra stout (1992) Amstel malta (1994)a nd the sehweppes range
of carbonated soft drinks lunched in December 1996. It was followed by
the launch of crush in November 1997 and Schweppes pineapple in October
1999, and they have earlier launched Heinelten in 1998 June. In
August 2001 they decided to exit the carbonated soft drinks market
because of the need to concentrate on its areas of core competence, the
Schweppes franchise was sold off.
While Guinness Nigeria Plc was incorporated in 1967 at Lagos but this
is a company from Britain which started its production since 1750,
Guinness brewery was the first Guinness brewery outside the United
Kingdom and only the third in the world. They have recorded a well
tremendous growth in production over the years. Today it has three
breweries in the country via one in Benin, Aba and Lagos and apart from
its flagship stout product, they also produces a popular lager brand
called Harp beer, Malta Guinness, and gordons spark which they started
in 2001 and is one of the best alcoholic drink in Nigerian market
today. Guinness Nigeria Plc is also well known and have one of the
largest capitalized companies in the Nigerian stock exchange, in other
words they often boast their significant contribution to the economy
through taxes paid into government coffers.
Guinness Nigeria Plc were the manufacturers of Sazzembram which the
target market appreciated but was faced off when other alcoholic company
stated to adulterate it, Guinness Malt is one of their alcoholic drink
which is selling very well in the country due to its content, it is been
produced in their 3 zones in Nigeria but it is the only product
manufactured in their Aba brewery.
Furthermore, these manufacturers of malt drinks try to improve their
sales volume by making the product fit the consumers need than the
competitive products. The links between manufacturers and consumers of
malt drinks was made possible through advertising and has important
economic effect on the consumers.
Advertising jingles are intended to have effect on the consumers or
the recipients and the wide spread on different malt drinks coupled with
the growth of firms that manufacture different brand of malt drinks,
occurred simultaneously with the rapid expansion of malt drink market
(Connor and Hart 1999).
Consumers who could not afford to taste beer turned to non-alcoholic
drinks like malt with the aim that course from advertising
messages. It becomes imperative for, there are many brands of malt
drinks, left for the marketing managers to determine those factors which
necessitate the consumer preference of one brand of malt in the face of
many competing brands, which include Vitamalt, Maltina, Maltex,
Hi-malt, Guinness Malt and Amstel Malta.
However our main aim here is to determine how much influence does
advertising exert on the consumers of Amstel Malt and Guinness Malt also
how it affects the choice of the consumers.
1.2 STATEMENT OF THE PROBLEMS
It has been difficult to pin point exactly the factors that have
motivated a particular consumer to prefer a particular brand of product
to another. Oftenly marketers have fallaciously been myopic, they
exert their attention only on those factors which are salient as the
determinant of consumer preference for their brand while there are other
major factors that play vibrant roles that are completely ignored, and
consequently the effect is the failure of the products to make much
impact in the marketing environment.
Advertising for many years has been working for the manufacturers of
malt drinks, which showcases their product offers to the market and
determines their consumers with some promises, incentives benefits that
will be derived by patronizing their product brands. Advertising to
manufacturers of malt drink is like a river that will never dry, it has
many versions of it, that could be used to project the image, production
offer, showing benefits and advantages of a particular brand to
another. Since the inception of malt drink, there has been a rapid
expansion in the malt drink market through the help of advertising. A
reliable source indicated that a significant proportion of Nigeria
population had been consumers of alcoholic drinks have turned
non-alcoholic also existed strong competition between the consumers of
Amstel malt and Guinness malt, because of these competitions, the need
arise to check on the consumers satisfaction and benefit with the brand
Thus the firm cannot depend on the consumers to voluntarily
bring complains to the dissatisfaction they got by consuming a
particular brand of malt, rather they strive to check other major or
minor factors that may influence the consumer choice of one malt to
1.3 OBJECTIVES OF THE STUDY
The researcher has the following objectives in carrying out thus research.
· To determine how advertising has affected the
decision, selection and choice made by consumers between Guinness malt
and Amstel malt.
· To determine if convenience and availability
influence the consumer choice of either Guinness malt or Amstel malt.
· To know if advertising affects the consumer preference and choice of either Guinness malt or Amstel malt.
· In other to know if selling price for each determine it’s preference.
· To determine if taste alone affects the consumer choice of either of the two.
· To find out if taste variable also affects the choice made by the consumers of both products.
· To identify what special feature are contained
in the advertising messages carried out for either Guinness malt or
Amstel malt and how they affect consumers.
1.4 RESEARCH HYPOTHESES
In view of the problem that prompted the research on this topic also
in line with the objective mentioned above, the following hypotheses
Ho: Price does not influence the consumer decision to buy more of Guinness than Amstel Malta.
Hi: Price influences the consumer decision to buy more of Guinness than Amstel Malta.
Ho: The taste of malt do not helps the consumer to prefer either Amstel Malta or Guinness.
H2: The taste of malt drinks helps the consumer to prefer Guinness or Amstel Malta.
Ho: Advertising does not help the consumer to be better aware of Amstel Malta than Guinness Malta.
H3: Advertising of Malt helps the consumers to be better aware of Amstel Malta than Guinness Malta.
Ho: The advertising strategies used by companies do not lead to consumer repeat purchase of Guinness Malta or Amstel Malta.
H4: The advertising strategies that is used by companies lead to consumer repeat purchase of Amstel Malta to Guinness Malta.
1.5 SIGNIFICANCE OF THE STUDY
The study is expected to furnish additional information to help
manufacturers of Amstel malt and that of Guinness malt in achieving high
sales volume add adjusting production properly to sales within the
context of marketing concept. The core issue of marketing concept lies
basically on, understanding the consumers and making every thing
possible to satisfy the consumer efficiently and effectively.
However this study will help to show how advertising can
stimulate demand for either of the two products in the market, as well
as helping the marketing manager to assign a particular advertising
message to a particular brand of malt. Thus this study is supposedly
expected to help firms and other producers of malt drinks to understand
the relative influence exerted by other marketing attributes:- via
price, distribution, promotion, in other words the 4p’s on the consumer
preference of one brand to another. Furthermore this study would help
both firms (Nigeria breweries Plc and Guinness Nigeria Plc) the
marketers of Amstel malta and Guinness malt to identify the proper
marketing strategies that will be suitable in carrying out their
marketing activities or programmes to be adopted and made a culture by
the producers such as product modification, pricing strategy, incentives
promotional campaign and incentive distribution strategy.
It will go a long way tohelp the firm determine it’s lope
holes and try to improve on them also know the best advertising campaign
that needed to be adopted. Finally, the study will serve as a
stepping stone for more research on the effectiveness of advertising
especially in the product preference of the consumer, it will also
stimulate the interest of Nigerian firms on consumer research and enable
them to understand the importance and role of advertising on the
performance of a product in the market.
1.6 RESEARCHER SCOPE OF STUDY
In Nigeria and the world at large, different malt drinks brands are
consumed by various kinds of consumers but this study concentrated on
the consumers located in Enugu metropolis and the study is on
It is the conviction of the researcher that the consumers
of Guinness malt and Amstel malt leaving in Enugu metropolis will make a
very good representation of the consumers.
The metropolis are group into five zones
Zone A – Uwani, Acharalayout, Agbani
Zone B – Coal Camp, Ogbete main Market
Zone C – G.R.A/Trans Ekulu/New haven,
Zone D – Independence Layout/Ogui
Zone E – Abakpanike/Emene.
Source: (Enugu North town and regional planning
department). This study is expected to cover these zones because of
time and cost constraints.
1.7 DEFINITION OF TERMS
A. Advertising: Non-personal presentation and promotion
of this goods and services by an identified sponsor and must be paid for
through a medium. Promotional tool sales promotion, personal selling,
public relation etc. source: Ebue, Adirika B. C. & principle and
Practice of Marketing).
B. Communication: Process by which people exchange
information, views, ideas, through or feelings. Source: (Oxford
C. Contemporary Society: Group of people living in an area of a
time with a common law shared together (Oxford Dictionary) source.
D. Marketing Concept: Is the marketing perspective on
how marketing activities/programmes should be performed best. Source
(Adirika & Ebue Text Principles & Practice of Marketing).
E. Preference: Is showing why you like a product brand to
another product brand. Source (Oxford Dictionary/Understanding from
Principle/Practice of Marketing and Kotlers Text 11th Edition).