ROLE OF ADVERTISING IN MOTIVATING
CONSUMER BRAND PREFERENCE FOR BEVERAGES IN NIGERIA
ABSTRACT
This research project was designed to
investigate the extent to which advertising influence consumers purchase
decision on the Bournvita brand. To
solve the research problem both primary and secondary data were collected the
research instrument used in collecting the data were questionnaire and oral
interview. The respondent comprised of
the staff and consumers of Bournvita product.
In organizing and presenting data
collected table and percentages were used.
The various hypothesis were tested using the Chi-square.
Data analysis and
interpretation gave the following findings.
1. Consumers choice of beverage brand can be
attributed to advertising
2. The quality of a product affects consumers in the choice if their beverage brands.
3. Price is a major factor that influences
consumers of beverage products to prefer one brand of beverage to another.
Based on finding the
researcher recommends that:
1. The beverage producers should under
taker research of raw materials and efficient channel of distribution so as
to always offer their products of
reasonable qualify and price to consumers.
2. Making intensive and adequate use of
promotional mix especially advertising, to make their marketing activities more
efficient and effective.
3. Producers of beverage product
should identify the factors that are
responsible as their brand choice and adopt total products concepts in
marketing of their products, father than engaging in costly advertising.
The conclusion is
that advertising is an important promotional tool for effective marketing of
any mass produced consumer produces in a competitive market environment.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing is the
management process aimed at identifying, anticipating, analysis and satisfying
human needs and wants through exchanges as efficiently and effectively as
possible (Adirika, 1990:3)
Its concept is a
philosophy of business which state that the customer want satisfaction of the
economic and social justification for a firm
is existence. However, no matter
how a produced completely meets the requirements of the consumers, its
existence has to be made know t the consumers, Hence, the need for advertising
which serves as an awareness Greaten.
Equally, the multiplication
of beverage (Bournvita) producing company implies that for a firm in the
industry to survive, grow or improve its markets share, its must year its
market share, it must year its energies towards some form of product high
quality development, fair pricing, effective promotional, activities, and wide distribution network.
Besides competitors, the growth of this industry creates other problems which
include that by presenting a variety of choice tot he customers, the management
of the company face the problem of identifying which of these varieties that
exert greatest influence on consumer preference on one brand of beverage
product over the other. This has led to
the policy of most companies marketing department investing so heavily on
advertizing as the surest means of reaching their target markets. Nigerian businessmen always depreciate the
role of advertising in business because of their pursuit for quick money and
profits, they often erroneously regard advertising expenditure as money wasted. This is unfortunate indeed, adverting it
perhaps the most effectively way of communicating with customers and the
general public. Through advertizing, a
company communicates the information a consumer needs to evaluate a product or
the ability of the company to offer a product or service.
Advertizing can be
inform of newspaper and magazine, direct mail trade exhibitions, television,
radio, catalogue, product demonstration etc.
Following the
increase in the competitive nature of the market environment in Nigerian today,
marry companies are found in the line of beverage product production. One of such companies who also lover a
leading name in beverage market is Cadbury Nigeria Plc who builds its fame on
vitality and delicious goodness of its food beverages. The extra flavour of its confectionery and
the appetizing taste of its products.
The company’s
operations in Nigeria were initially continued tot he selling of imported
chocolate products in the major urban areas.
This was before 1965 when Cadbury Nigeria Plc operated as the registered
Nigerian sale office for Cadbury fry expert limited. However, the introduction
of the Coco beverage, Pronto, and later the well know malt beverage
BOURNVITA between 1956 and 1969 enable
the company penetrate the indigenous market. The increase in turnover instified
first, the local packaging of these products and subsequently the full
manufacture of BOURNVITA in the company manufacture and market their products
through network of wholesale distributors located in various parts of the
commit.
They equally make a
to of expenses as a result of carrying out promotional strategies for their
product. One of such promotional mix
which they make use of is advertizing which demands from the management a huge
amount of money yearly. Advertizing is a
group of activities involved in presenting to people message regarding a
product, service or idea in a non-personal form by a identified sponsor. Its main takes is to communicate effectively
so as to establish awareness if create a favourite attitude to and stimulate
demand for a product or service among potential consumers. It should therefore be informative,
instructive, persuasive and relevant to consumer’s needs. It should appeal to the emotional instincts
in some discerning ways from similar products of the same or other companies. In the marketing of beverages, branding
enhancing product identification, which in turn facilitates marketing action
and demand stimulation. It helps for
effective advertizing and market control.
The search for this study involves investigating consumer brand
recantation, brand preference, brand acceptance, and brand insistence of the
brand of selected beverage, Bournvita.
Finally, the role
of advertising in motivating consumers, play a major role in beverage
industries. Some consumers are being
moved by the nature of advertisement of a particular product irrespective of
the price attached to it.
1.2 STATEMENT OF THE
PROBLEM
In any competitive
marking environment such as ours, a marketing manager is often faced with the problems of how to
determine the nature of demand for his products in a given market segment, how
to determine the factors responsible for the variations in the demand pattern.
Management of
Bournvita producing company in Nigeria is faced with the problem of not only
identifying suitable strategies to bet their competitors but also how to
determine the strength of the contributions of various components of the
promotional mix variables of the purpose of stimulating demand of their product
brand. This has equally led to different company’s budgetary allocation to and
policy emphasis on different components of promotional mix. The pertinent question that come to mind
include.
Why doe s food
proportion of Bournvita consumers benefit adequately from advertising message
Bournvita brand ?
Why is the large
sum of money invested in advertising Bournvita product justified ?
Why does
advertizing of Bournvita aroze a behaviour that would otherwise not be
displayed by the consumers, thus disposing him towards advertised produced.
Specifically, it
has become necessary to determine:
1. Why the consumption of Bournvita is
being seriously influenced by its advertizing as against other factors
(availability of the products its quality, price and positioning strategy of
the product).
2. The strength of advertizing relative
to these other factors in influencing the consumer to one brand of beverage
over the other.
Answer to these and
some other related questions constitute the central task of this research work.
1.3 OBJECTIVE OF THE
STUDY
Advertizing as a
promotional; mix among other things at influencing, consumer of selecting a
particular product or service instead of competing brand of similar product during
their purchase decisions.
This study
therefore, seeks to examine the market acceptance of Bournvita in Enugu
metropolis with a view to establishing the extent to which consumer’s
preference of Bournvita over other brand of beverage can be attributed to
advertising. Therefore, the objectives
of this study are:
1. To determine whether advertisement appeal
or theme is the reason why consumers prefer Bournvita to other brand of
beverages.
2. To identify the cause and kind of
differences in consumer preference the Bournvita product under study.
3. To determine the extend to which consumption of the Bournvita product is
being influenced by the advertizing.
4. To determine the strength of advertizing
relative to the other factors in motivating consumer awareness of Bournvita
under study.
5. To suggest ways of improving advertizing
campaign strategy for beverage product marketing to be more effective.
1.4 HYPOTHESIS
FORMULATION
The following
hypotheses will be tested.
1. Ho:
Most consumers are not aware of Bournvita product through advertizing.
Hi: Most consumers are aware o Bournvita product
through advertizing.
2. Ho:
Consumer brand preference for Bournvita product is not influenced by exposure
to advertizing message.
Hi: Consumer brand preference for Bournvita
product is influenced by exposure to advertising message.
3. Ho:
There is no signification relationship between the advertizing of
Bournvita and sales volume of the organisation.
Hi: There is signification relationship between
the advertizing of Bournvita and sales volume of the organisation.
1.5 SIGNIFICANCE OF
THE STUDY
It is intended that
the result of this study will help the Cadbury Nigeria Plc in the following
ways:
1. To be in a position to make their
product to meet the needs of their customers.
2. To help the consumers ascertain the
quality of then product and the benefits derive in consuming the product.
3. It will facilitate the work of other
people mostly researchers who many in one way or the other engage in a similar
research in future.
4. The reader with also benefit form this
work became it will help them in building their own study when carrying out the
academic research.
5. It will expose the opportunities and
threats facing the competitors and the need to affect changes so that the
company can grow positively.
1.6 SCOPE OF THE
STUDY
The study is a
case study of Cadbury Nigeria Plc. Due to
the size and spread of the company, the study is limited only to
consumers of Bournvita in Enugu metropolis.
1.7 DEFINITION OF
TERMS
ADVERTISING:
It is a non-personal form of communication or presentation of goods,
ideas or se4rvuces conducted through paid media under clear sponsorship (Kotler
P. 2nd Edition, 1987)
CONSUMER PRODUCTS: They are those products used by the final
consumers that are not industrial products (Ozo 2002, P.120)
BRAND PREFERENCE: Is a situation where the consumer selects a
particular product that will satisfy his needs and wants. (Journal o Consumer Research. 1982, P. 185).
CONSUMER BEHAVIOUR: Is whatever the consumer does in the process
of satisfying his/her needs. (Ozo 2002, P. 10)