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Title:

The Growing Demand of Fast Moving Consumer Goods and How Major Player

Influences Consumer Behavior.

(A case study of Nigerian beverage industry).

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Acknowledgement

I would like to take this opportunity to give my most humble gratitude and

appreciation to all parties who contributed and influenced this work in even the

slightest way.

First of all I would like to give thanks to GOD all mighty for seeing me through

up until this point, and then my supervisor Mr. Tom Owens for his help,

patience, understanding and guidance and most importantly knowledge he

shared with me during the preparation of this project. The completion of this

thesis work would not be successful without his guidance and contribution.

I would like to thank to all my close friends in Budapest, Hungary and Nigeria

for standing by me and supporting me all these years, it was no easy journey.

Without their trust and encouragement I would not been able to finish my

studies.

Finally, the most important , I would like to say a big thank You to my Father

Igwe Kevin E Ukaegbu, Mother Lolo Patience Ukaegbu, brothers and the entire

Ukaegbu family as well as The Unogu family and all my relatives for their

various support, encouragement , trust and believe that they rendered and had

in me over the years .

Thank you for all, and GOD Bless.

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Abstract:

It is an arguable fact that Africa is a fast emerging market considering its huge

human and natural recourses. It is hard to think of any reason why any big

global brands would resist a bite of the big apple.

Nigeria, been the most populous African country, the second largest economy

and the world sixth largest oil producers (OPEC 2010) with a very vibrant

business environment. I am proud to say Nigeria is a destination of major host

to big brands of Beverage companies.

My dissertation focuses on analyzing marketing mix used by leading beverage

producers in Nigerian beverage market, to influence consumer decision and

buying behavior. Cadbury Nigeria plc, Nestle Nigerian plc, Nigerian breweries

just to mention a few are leaders in the Nigerian beverage market.

I intend to gather data‘s using questioners randomly distributed to different age

group, social class, and geo-cultural difference and also from interviews; I

organize with marketing managers from at least four of these companies. Using

the statistical data gathered I will be able to evaluate the impact and

effectiveness of marketing strategies directed towards consumer to influence

their buying habits, increase sales and subsequently revenue.

My studies lead me to conclude that, an effective analyses, implementation and

execution of the 4ps in marketing has lead to increasing sales and revenue for

these companies. This could be attributed as the reason why these companies

allocate substantial amount of their revenue towards creating awareness for their

product using different advertising and promotional tools.

Keywords: Marketing, Consumer behavior, sales promotion, Advertisement,

Branding

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Declaration

I, the undersigned Cephas N Ukaegbu, a B (Hons). Student of International

business school Budapest (Department of Business studies), hereby declare and

take full responsibility that the present B Hons. Dissertation titled The Growing

Demand of Fast Moving Consumer Goods and How major Players

Influence Consumer Behavior. (A Case Study of Nigerian Beverage

Industry). I have made myself. The origin of orally received significant facts or

details are referred, the particular pieces literally cited or rewritten from printed

or electronic media are marked and their source information – title, publisher,

known author(s) – are included in the reference list.

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Table of Contents

Chapter One: .............................................................................................................................. 6

1.1 Introduction ................................................................................................................. 6

1.2 Aim of study ................................................................................................................ 7

2 Chapter Two: ..................................................................................................................... 9

2.1 Literature review: ........................................................................................................ 9

2.2 Definition of key worlds: ............................................................................................ 9

2.2.1 Definition of consumer behavior ......................................................................... 9

2.3 Consumer decision making process .......................................................................... 11

2.4 Definition of advertising ........................................................................................... 14

2.4.1 Advertising as marketing tools: ......................................................................... 15

2.5 Sales promotion: ........................................................................................................ 18

2.5.1 Aim of sales promotion:..................................................................................... 19

2.5.2 Type of sales promotion..................................................................................... 19

2.6 Matching the tools/techniques with their objectives. ................................................ 20

2.7 Marketing: ................................................................................................................. 21

2.7.1 Marketing as a strategy: ..................................................................................... 21

2.7.2 The Marketing Four Ps ...................................................................................... 22

2.8 Sponsorship: .............................................................................................................. 24

2.8.1 Many would wonder ‘Why‘ sponsorship? ......................................................... 25

3 Chapter Three: ................................................................................................................. 27

3.1 The Nigerian life style ............................................................................................... 27

3.2 An overview of the Nigerian food and Beverage industry: ...................................... 28

3.3 Cadbury Nigeria plc analysis: ................................................................................... 30

3.4 Nestle Nigerian ltd: ................................................................................................... 32

3.5 Nigerian breweries analysis: ..................................................................................... 34

3.5.1 Guinness Nigeria Plc.......................................................................................... 35

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3.5.2 Nigerian Bottling Company Plc. ........................................................................ 36

4 Chapter Four: ................................................................................................................... 38

4.1 Research methodology .............................................................................................. 38

4.1.1 Introduction ........................................................................................................ 38

4.2 Method of data collection:......................................................................................... 38

4.3 Data presentation and analysis: ................................................................................. 39

4.4 Data Interpretation and data analysis. ....................................................................... 40

4.4.1 Results ................................................................................................................ 41

5 Chapter Five: .................................................................................................................... 47

5.1 Preliminary Conclusions ........................................................................................... 47

6 References: ....................................................................................................................... 49

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Chapter One:

1.1 Introduction

The business world today is a world of competition. As a result, the challenges

demanded by rapid globalization, increased competition, technological

developments, and acceleration of changes calls on organizations to frequently

reviews their sales and promotional strategy to keep up with the changing

society. Therefore sustenance of existing customers and attracting new ones in

recent times has become a critical factor in today‘s world of business.

In fact the rate at which many advertising industries are springing up is

instructive of the fact that, complex and uncertain business environment has

lead many organizations to device multifaceted approaches to market their

products and services through various techniques of marketing mix

(advertisements, sales promotion, Relationship marketing etc). It is also

important to analyze the role of branding as one of the many factors that

influences consumer behavior.

Moreover the essence of business today is to build up a brand, develop a

product or service, create awareness, ensure sales, satisfy consumers and

generate profit. Therefore, the hallmarks of remaining in business as a profit

oriented organization is to generate enough sales from its product or services

not only to cover operating cost but also to sustain the future of the organization

and pay dividends to shareholders .

In Nigeria today, taking decision on sales is one of the most difficult and

challenging tasks business executive has to deal with. This is because of the

multi diverse ethnic, religious and cultural differences that exist within the

nation and the devastating effect of declining economic fortune of people and

the nation at large as a result of corrupt leadership. Therefore Predicting,

estimating, determining and executing strategies with reasonable accuracy to

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satisfy customers‘ demands now requires more than `just going by the book` but

rather a complete understanding of the people and the nation at large.

Today organizations have developed innovative approaches to branding, image

development and management, Sales promotion, Relationship marketing,

advertising (Marketing and sales mix) etc to influence consumer behavior and

increase sales, revenue and market share; As proof Tuan Pham, Colombian

university (2011) puts it ‗we are dealing with rational human being, Decision

makers have consumer‘s personal and psychological factors to contend with.

This is because personal factors and psychological factors may create different

perception towards different channel of communication and market promotion‘.

However, in Nigeria tele-adverts, bill board, radio, sales promotions etc has

remained the most widely used medium to initiate psychological process of

moving potential buyers from a state of ignorance to a brand of awareness,

reinforcing attention, ensuring reliability of memory and influencing purchase

decision, probably because virtually everybody has access to one of this

mediums except in some exceptional cases.

1.2 Aim of study

To give an overview of the Nigerian beverage market

Explore major participant in the industry

Analyze marketing strategies and medium used to influence consumer

behavior

Analyze the impact of these marketing strategies on the market in general

(Competitors and consumers).

Recommendations and Conclusion.

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Limitation to the study:

There are some inevitable limitations to my study; I will start by stressing the

unwillingness on the part of the management to fully cooperate and give

adequate and clear information‘s regarding the company core marketing

strategy, marketing efforts and counter efforts this is because the company is

trying to limit information giving out to guard against espionage from rival

competitor. This is quite reasonable considering the nature of competition and

market structure, companies tends to be very protective of information that are

of strategic importance

Another problem I like to point out is the busy schedules of workers and major

participant need for interviews about the insight of daily operations (logistics,

factory operations and likewise management) were often unreachable. This

makes it difficult to obtain detailed information.

The final and very important problem I encountered was in gathering up to date

information‘s on companies and their competitors. This is because Nigerian

business circle is still lacking behind in taking full advantage of the internet to

upload company result, report and researches, making it difficult for me to get

hold of updated information‘s. I had to rely on word of mouth from the

employees of this companies and secondary source for most of my researches

which is not always reliable.

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2 Chapter Two:

2.1 Literature review:

2.2 Definition of key worlds:

2.2.1 Definition of consumer behavior

Consumer behavior can simple be seen as the psychology of how consumers

think, feel reason, and select between different alternatives e.g. brands and

products and even services; or simply refers to how consumers make purchasing

decisions. This can be influence by many factors e.g. environment, culture,

family, signs, media etc. subsequently, limitation in consumer knowledge in

processing information influence decisions and marketing outcome according to

(L. perner, the University of Southern California).

The application of consumer behavior is so broad; this depends on

environmental condition, market condition, restrictions, competition and

organization‘s marketing strategy and most importantly with regards to Nigeria

culture and religion. For example, what is considered as normal (dress style,

code of conduct, mingling between male and female, words of expression) in

the eastern or western Nigeria could be considered as immoral in the northern

part of the country as a result of strict religious practice misunderstanding this

could lead to a complete failure of product and subsequently rejection of brands

amongst consumers.

According to (Lars Perner) he further explains, the four main applications of

consumer behavior:

The most obvious is the marketing strategy-i.e., for making better

marketing campaigns, for example by understanding that consumers are

more receptive to food advertising when they are hungry, that gives the

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advertisers an upper hand by scheduling advertising late in the afternoon.

By understanding, new product are usually adopted by a few consumers

and only spread later, and then only gradually, to the rest of the

population.

Companies that introduce new products must be well financed so that

they can stay afloat until their product becomes a commercial success.

It is important to please initial costumers, since they will in turn influence

many subsequent customers, brand and choices.

Adequate information about the product should be made available to the

consumer at all time regardless of the necessity.

Social marketing: with information a producer knows about the consumer

and effective means of connection can be established. For example,

Marty Fishbein, a marketing professor went on sabbatical to work for the

center for disease control to try and reduce the incidence of transmission

of disease through illegal drug use. With the information know to her that

―practice of sharing needles was too ingrained in the drug culture to be

stopped‖ as a result, using the knowledge of consumer attitudes, Dr

fishbein created a campaign that encourage the cleaning of needles in

bleach before sharing them a goal that is believed to be more realistic. So

therefore flow of information and ideas across the business and the

consumer is highly crucial to understanding effective strategy.

Organizing events and shows helps in getting relevant information and

ideas to the consumers and potential consumers too. This help to create a

lasting relationship and eventually creating brand loyalty.

Finally knowledge of consumer behavior should make us better

consumer. As the saying goes ‗Cheaper by the dozen‘. In some cases of

sales promotion, we may be offered a condition for and extra bar of soap

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if we buy more than two. Now we use soap daily, regardless of the

quantity we have there is always a need for more therefore if we use the

opportunity offered to us in the shop, we can by more and pay less.

2.3 Consumer decision making process

Consumer decision making process is a chat that tries to explain the reasons and

thoughts that go on in minds of consumers which makes them exhibits certain

behaviors. (Likening or repulsive).

The model is designed to link together many of the ideas relating to consumer

decision making that leads to certain behavior and habit. This model does not

presume to provide an accurate or precise picture of the complexities of

consumer decision making. Rather it tries to synthesize and coordinate concepts

into a significant whole. The model comprises of three major components:

input, process and output.

Input: (external influences).

Input of Consumer behavior influence by external activities that serves as a

source of information about a particular product or services, related values,

attributes and behavior. The input factor could be marketing mix activities and

number of marketing socio-cultural influences.

Firms marketing effort

Promotion

Price

Product

Channel of distribution

Socio-cultural environment

Family

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Information source

Social class.

Process :( consumer Decision making)

The process component of the model is concerned with how consumer makes

and arrives at a decision to buy or not to buy. To understand this, we must

consider the influence of the psychological concept which represents the

internal influences that affect consumer decision making process. Decision

process consists of three stages which are:

The need recognition.

Pre-purchase searches.

Evaluation of alternatives

Output (post decision behavior)

The final stage of consumer decision making consist of two final processes

before a decision is reached which are:

Purchase behavior. Reaction prior the purchasing decision

Post purchase evaluation. Reaction after purchase.

Brand Loyalty and Consumer Behavior.

As you like party with some of your friends than others, so also you like certain

brands preferred to others. As quoted by Robert Blanchard (2010) is

synonymous with today‘s highly competitive business environment, improving

consumer loyalty to brand permits marketer to maintain comfortable and lasting

control of the marketing place.

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Brand loyalty is the consumer conscious or unconscious decision, expressed

through intention or behavior to repurchase a brand continually. This is because

the consumer perceives that the brand offers the right product features, image or

level of quality at the right price. This attributes builds trust and confidence in

consumers.

In order to create brand loyalty, advertisers must break consumer habit and help

them acquire new habits about their brand and reinforce those habits by

reminding consumers of the value of their purchase and encourage them to

continue purchasing those products in the future.

The image surrounding a company brand is its principal source of competitive

advantage and is therefore a valuable strategic asset. A clear example is the

Boss of Apple Steve Jobs; He considered the image behind the Brand ‗Apple‘

and therefore a strategic asset to Apple. In fact a company should view its brand

as not just a service or product, but an overall definition of the company‘s

philosophy. A brand needs more than identity, it needs a personality, a strong

symbol or company logo can also help generate brand loyalty by making it

quick identifiable.

From the design and launch of a new product to the extension of a mature

existing brand, effective marketing strategies depend on a thorough

understanding of the motivation, learning, memory, and decision processes that

influence what consumers think and buy. The theories of consumer behavior

have been reportedly linked to managerial decisions involving development and

lunching of new product (Segmentation, target group and timing of market

entry, and brand management). Subsequently the issue of brand loyalty has been

examined at great length.

Branding is by far one of the most important factor influencing an items failure

or success in the marketing place, and can have a dramatic impact on how the

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company is ―company behind the brand‖ perceived by the buying public. In

other words the brand is not just a representation of a company product, it is a

symbol of the company itself, and that is where the core of brand loyalty lies.

Brand loyalty can be developed through various measures such as quick service,

ensuring quality product, continuous improvement, and wide distribution

network etc. when consumers are brand loyal, their behavior is predictable for

they love ―you‖ for been ―you‖ and they will not consider any other alternative

brand as a replacement.

In Nigerian today developing, maintaining and sustaining effective

communication network with consumers is crucial for the success of an

organization. Nigerian`s are curious by nature and they like to be carried along

getting involved and be informed on issues concerning them as well as the

company itself. Therefore establishing a good public relation to inform the

consumer of certain product, innovation and improvement sometime short

coming could help organization improve brand loyalist.

2.4 Definition of advertising

Advertising is one of the most effective promotional tools used by both

producers and distributors of goods and services to encourage, persuade,

stimulate or manipulate the potential buyers, as well as existing consumers to

make purchase decisions. Its helps in creating brand image and product

awareness. Companies have invested heavily trying to create awareness of their

product to attract consumer via advertising campaigns.

Advertising is one of the most popular tools that are used by the companies to

convince and communicate with the target buyers and potential customers. It

involves a group of planned activities carefully strategized and purposely aimed

at consumers as a form of information in any paid or unpaid form, concerning

an idea products or services and to compel action in accordance with the intent

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to make them buy. Consumers are the target here and they have their money

eager to spend on products or services ranging from needs to luxury. It is now

left for the advertising agency to device a means through a medium to

effectively communicate to the consumers; Not only must the advertisement

effectively communicate the desired message, but the individual audience must

be willing to "buy into" the desired message.

2.4.1 Advertising as marketing tools:

Advertising is an important part promotional marketing mix. It is therefore an

important part of the 4ps in marketing mix, i.e. product, price, place and

promotion. As a promotional strategy, advertising serve as a major tool in

creating brand image and product awareness, as well as conditioning the mind

by suggesting, informing and persuading potential consumers to engage

themselves in purchase.

An average Nigerian consumer‘s mentality of a product or service is sensitive

to religio-cultural differences hence; physical requirement, psychological needs

and correct manipulation of symbols and logo‘s of products such as the brand

label, and packaging can help persuade consumers to make purchase decision.

As a result uncovering “why” people buy is an extremely difficult task, because

purchase decision is almost entirely psycho-social and differs according to

culture and ethnicity.

In making purchase the consumer considers past experiences with the product

and previous encounter with the product in stores. Therefore, it becomes

expedient for marketing practitioners to communicate openly, honestly and

straight with consumers. The law in most developed countries of the world

equivocally forbids false or deceptive advertising. For this reason marketers

justify advertising by arguing that advertising is intrinsic to markets and

fundamentally beneficial to consumer. Advertising do not only moves markets

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and minds, it also generates employment either directly or indirectly and

influences a large section of the people it creates lifestyles, improves culture,

enhances knowledge and generates income; therefore it aims at building

relationships between customers and brands. The consumer is influenced by

prior advertising exposure, sales promotion activities, competitors‘ marketing

efforts, internalized drives, and social class etc.

There has been a controversy in determining whether advertising primary role

is informative or persuasive. Monica (2010) Persuasive technique in advertising

techniques) consumers could be synthesized by advertising, catalyzed by

salesmanship and shaped by discrete manipulations of advertiser, shows that the

wants are not very urgent. Nevertheless, there are some advertising that are very

persuasive and have the power to manipulate and force consumer towards brand

loyalty.

All consumers‘ have their own favorite advertising medium, speaking about

Nigeria, in the urban part of the country people prefer television commercials

(especially children) since they have ample of time to watch television program

and the rural parts where the luxury of constant electricity is limited to the rich

and very few members of the community, they constantly rely of the radio for

information and a traditional form called ‗Town crier‘, A process whereby

messengers are sent around market square and social gathering with a bell

ringing and making announcements. Others consumers could prefer to read

magazines/bill board commercials and some prefer new types of advertising

(on-line commercials).

However, television advertising is more pervasive in people‘s lives, increasing

the likelihood that consumers outside a target market will be exposed to

messages that are not intended for their viewing and will subsequently be

attracted. Television commercial is generally considered as the most effective

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mass-media and market advertising medium, as it is reflected by the huge

amount of money TV networks charge for commercial airtime during popular

TV events (Sports, TV series documentaries just to mention a few). In practical

terms, advertisement has strong psychological effects on consumers and people

in general.

For Nigerian marketing managers in particular, there is need to avoid

misleading advertising messages in the first place. Revelations of deceptive

advertising have the power to adversely affect advertising as a whole, not just

the specific firm involved in the deception by also loyal consumers and public

impression. For regulators, I suggest that careful consideration must be given to

the punitive effects that such practices can have by reinforcing negative

attitudes toward advertising as a whole An appeal connects with some emotion

that makes the product particularly attractive, interesting and appealing to

viewers, such as security, esteem, fears, sex and sensory pleasure. Although

emotion is at the base of most appeals, in some situations appeals can also be

logical, such as saving money for retirement.

Appeals generally pinpoint the anticipated response of the audience to the

product and the message. For example, if the price is emphasized in an

advertorial, then the appeal is value, economy or savings. If the product saves

time or effort, then the appeal is convenience. Advertisers use a status appeal to

establish something as a high quality, expensive product. In view of this the

effects of attitudes toward the media and subsequent influence on the attitudes

toward advertising in the media cannot be underestimated because of its

psychological effects on the consumers.

However, the roles of advertising are to stimulate and create awareness for a

product and hence increase in sales. Its role is also to retain brand loyalty in the

customers. It also serves as a help-hand and gives support to the employees

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(sales force), wholesalers and retailers in convincing the consumer and finally

lures them to action in the form of making a purchase. Thus, for advertising to

be efficient and effective it must attract the consumer‘s attention, interest and

confidence by bringing them to the level of awareness of the product or services

being advertised. It must also create a desire for and action toward the product

in other to purchase it.

The purchase act is the feedback expected by the advertiser for the information

he supplies to the consumer. Recent experience in Nigeria revealed that the

information contents of an advertorial in Nigeria are most of the time

wheedling, exaggerating and flattering and often not carrying the desired

message needed for a product. Although some consumer may be willing to be

flattered, cajoled or entertained, they do not really wish to be deceived nor

manipulated, which of course has been the occupation of most Nigerian

advertiser. Advertisers are obsessed to sell their products to the consumer so as

to retain competitive edge and also make the customers like their products.

Most especially in this type of growing economy whose supreme objective is

devoted not on to the creation of new products and services but also to making

the unsuspected consumers like it, the sovereignty of consumers and their rights

appears to be limited or entirely subjugated.

2.5 Sales promotion:

Sales promotion can be simply be summed up as a selling technique that is

adopted in with the range of short time, nonrecurring method to boost up sales

in different ways. There are therefore various ways and techniques to carry out

sales promotion depending on the managerial decision. Sales promotion could

come in the form of 10%, 20%, 30%, 50% to 70% off normal price, buy two get

one free, gifts like lunch box, pencil box, and shampoo pouch etc can be offered

to you for using a specific product or services. You may have also observed in

shopping streets or notice sales advert on the doors and windows of shops

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about ―winter sales‖, ―summer sale‖ etc. these offer is not available to customer

throughout the year. The main scope behind this is to motivate consumers to

buy more of these products as offered with a short space of time and increase

company sales.

2.5.1 Aim of sales promotion:

Marketers seize sales promotion as an opportunity to present their goods or

services directly or indirectly to the consumer. Usually sales promotion may be

employed to achieve one or several goals and objectives which range from:

Introducing a new product

To encourage greater use among current users and to attract potential

consumers.

To attract more customers into the store

To stabilize a fluctuating sales pattern

To increase resellers inventories.

To combat or offset rival or competitors marketing effort

To obtain better shelf space and display.

To raise the sale of a product above the plateau.

To remind customers of existing or new products.

Source (http://www.nios.ac.in/Secbuscour/24.pdf cited on 12/1/2011)

2.5.2 Type of sales promotion

The classification of sales promotion is based on the beneficiaries and the

participants.

Consumer promotion is aimed at the consumers, in fact this is most easiest and

costless form of sales promotion. Its tactics involves inducing a consumer to

buy or have a taste of the final product; therefore it is the only the final

consumer that is the participant in these exercise.

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Another form is the Trade promotion where retailers and wholesalers are highly

involved. It is aimed to encourage the so called ‗channel members‘ to increase

their product stock and eventually push them to ultimate consumer.

The next type of sales promotion is more of an in-house activity. Sales forces

promotion is directed to members of company sales team and sales

representative to encourage them to effectively dispose the company‘s product.

The final type of sales promotion I like to discuss is the Point of purchase

display. Here wholesalers and retailers are encouraged to openly and properly

display products promoted. Therefore the retailers can receive the additional

benefit by allocating more shelve space for the brand against other competing

brands or through effective demonstration of promoted products.

2.6 Matching the tools/techniques with their objectives.

Tools/ techniques Objectives

1. Free sample (a) To introduce a new product or

induce customers to buy a product more frequently

2. Exchange schemes (b)useful for drawing attention towards

product improvement and draw attention to product innovation

3. Price off offer (c) when a new product is to be introduce

or when there is a need to sell off old product

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4. Trading stamps (d) to boost up sales in off

seasons.

2.7 Marketing:

One of the numerous definitions of marketing puts it as "the activity, set of

institutions, and processes for creating, communicating, delivering, and

exchanging offerings that have value for customers, clients, partners, and

society at large. Marketing could be viewed as a product or service selling

related overall activities‖.

It creates the strategy that underlies sales techniques, business communication,

and business developments all in a single context.

Furthermore, marketing enhances to a great extend in identify who the customer

is (Target group), satisfying the customer (knowing what they want) and buying

the customers loyalty (Brand loyalty).

2.7.1 Marketing as a strategy:

The success of a product largely depends of the marketing strategy employed. It

is not enough to just introduce a product into the market without a designed for

its success.

Firstly there has to be series of research to enable companies identify and

choose the most appropriate and flexible marketing mix (The right product, best

price, most conducive market and of cause the most suitable promotional tool).

Secondly, marketers must ensure the product has the right features. For example

the packaging has to look attractive and appealing at the sometime the product

should represent what it is, as ‗said‘. In order words the product should not fall

short of expectation.

Furthermore the price should be reasonable enough to make consumer buy

more. Now this is tricky because if the product is cheap then the consumer may

begin to rate the product as sub-standard and we rick Deeping down to product

failure. So the pricing needs to be reasonable and affordable. The marketing mix

‗4ps‘ elaborate as you read along.

Businesses in recent years are market focused they try to really understand their

customers and try to make available what they need and when it is needed.

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2.7.2 The Marketing Four Ps

Marketing mix can be divided into four basic decision areas known as the "four

Ps":

Product

Place

Promotion

Price

Managers use these four elements to devise an overall marketing strategy for a

product or group of goods. These four decision groups represent all of the levels

in marketing an organization can control. But those decisions must be made in

consideration with external variables that are not entirely under the control of

the organization, such as rivalry and competition, economic and technological

changes, the political and legal environment, social, cultural and ethical factors.

Marketing decisions related to the product or service comprises, focusing on a

target group (Age, gender, social exposure) and developing the right product for

them. Focus group could be set up to conduct research, collect data‘s, analyze

the data‘s collected and finally, developing a product or service that will fully

meet the needs of the target consumer. Your job as a marketing manager does

not end there, you have to lunch this product or services at the very right time

and place, using the right people and the preferred medium. Consumers are very

sensitive, therefore using the wrong, packaging, advertising or medium etc,

could adversely affect you product performance in the market.

Lunching a new product usually cost more to promote and create consumer

awareness, in addition delivering the product to the target market at the right

time and in the proper quantity. Strategies relate to place may utilize middlemen

and facilitators with expertise in joining buyers and sellers, and they may also

encompass various distribution channels, including retail, wholesale, catalog

etc.

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Marketing managers must also devise a means of transporting the goods to the

selected sales channels, and they may need to maintain an inventory of items to

meet demand. Decisions related to place typically play an important role in

determining the degree of vertical integration in a company, or how many

activities in the distribution chain are owned and operated by the manufacturer.

For example, Nigerian breweries own their trucks, stores (wholesale) in which

their goods are sold, and they even cultivate and finance famers who are willing

to grow grains for them to use in the manufacture of beer.

The third marketing mix, promotion, relate to sales, advertising, public

relations, and other activities that communicate information directed to

influence consumer behavior. Often promotions are also necessary to influence

the behavior of retailers and others who resell or distribute the product. Three

major types of promotion typically integrated into a market strategy are

personal selling,

Personal selling,

Sales promotions.

Mass selling

Personal selling refers to face-to-face contact or telephone sales, usually

provides immediate feedback for the company about the product. This method

can be a medium for advertising, introducing and recommending products

directly to consumers. Since is a direct conversation between consumers and the

company‘s reprentatives, it will be considered reliable amongst consumers.

Mass selling involves advertising on mass media, such as television, radio,

direct mail, and newspapers, and it‘s beneficial because of its broad scope

targeting consumers and potential consumers. A relatively new means of

promotion involves the Internet, which combines features of mass media with a

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unique opportunity for interactive communication with customers. Sales

promotions, I have discussed above.

Price determination, the fourth major activity related to target marketing, entails

the use of discounts and long-term pricing goals, as well as the consideration of

demographic and geographic influences. The price of a product or service

generally must at least cover the company's overall cost of production and

delivery. Also a firm would logically price a product at the level that would

maximize profits. The price that a company selects for its products, however,

will vary according to its long-term marketing strategy. For example, Cadbury,

with introduction of one of its brand `Bonvita` more that 20 years ago, the price

hasn‘t changed much according to the marketing manager in cadbury, Mr.

Taiwo Adeleye said Bonvita is one of the, if not the most popular brands in

Nigeria today generating record sales for the company.

In some cases a company under prices its product in the hopes of increasing

market share and ensuring its competitive presence, or simply to generate a

desired level of cash flow depending on the management intention. Other

producer may fix price extremely high in the hopes of eventually conveying to

the consumer that it is a premium product.

2.8 Sponsorship:

Sponsorship is fast becoming strong form of marketing, a company can broaden

its competitive advantage by increasing is presence to create familiarity,

increase credibility as well as prestige. A brand is as powerful as what it

associates itself with. Sponsorship doesn‘t always mean financial backing; it

could also be as a form of support for an activity, festival, celebration these

activities are primary taken advantage of to reach a specific business goal.

Hence sponsorship promotes a company in association with the spouse.

25

In many social events, presents an opportunity for promotion and sponsorship,

for example sponsoring the decoration of a press room, a team football jersey,

audio visual equipment etc

Amongst the three big players in Nigerian beverage market, Nigerian breweries

have solely focused much of their marketing effort to sponsorship. At present it

has the largest budget for sponsorship in Nigeria, from sponsoring the Nigerian

,‖ Star Quest‖, ‖Guilder Ultimate search and Amstel Box Office‖ all programs

been televised n national networks. No wonder Nigerian breweries has succeeds

in dominating the beverage market in recent years.

With sponsorship it is more easer to reach out to the target audience without any

waste, in addition it is a more powerful support to other marketing techniques

and helps to improvement of consumer relations

2.8.1 Many would wonder ’Why’ sponsorship?

Carl Christopher in one of his lecture cited ‘sponsorship, companies can

improve how they are perceived by their target audience (enhance cooperate

image and shape consumers attitude)‘. Sponsoring an event that appeals to their

market companies are likely to shape buying attitude and help generate positive

reaction and comments just as I explained with Nigerian breweries.

Boosting sales could be another reason for sponsorship as well. Depending on

the agreed contract, sponsors can be allowed to show case products and

sampling of food, beverages etc.

For most companies creating publicity and exposure is the target. Publicity

perhaps creates a high level of visibility of product/services. This sort of

exposure is priceless because it sticks to the viewers mind.

Another reason for sponsorship could be as a result of differentiaton from

competitors. Exclusive sponsorship is used by companies in similar market and

26

it is a significant way of standing way from your competitors. In an exclusive

sponsorship, your company name alone stands apart and high about other rival

some firms use it send out intimidating signs to rivals.

Sponsorship allow companies to Improve cooperate social responsibility, in this

context sponsorship could be seen as been supportive to the community and

contributing to its economic development in some cases it could be viewed as

been supportive by creating opportunities.

27

3 Chapter Three:

3.1 The Nigerian life style

Introduction

At this point of study, I intend to give you an insight of the Nigerian life style, cultural,

religious and ethnical difference. This is important to help understand how these company

operate, how strategies are implemented and repercussions that could result from abusing the

government regulations and consumers right.

It is important to note that Nigeria is a home of 150,000,000 million inhabitants, with

estimated tribes of different culture, religion and language of about 200.

For these reasons alone you will agree with me that operating a business in a diverse

environment like this take more than marketing mix but effective communication and

understanding the country as a whole.

Like any other nation, the freedom of religion and human right permit citizens to belong or

associate themselves with and religious group, this has led a division of the population into

adopting Islam mainly in the northern and western part of the country; according to CIA fact

book (2009) the Islamic community constitutes about 50% of the whole population with

Christianity taking 40% of the population from the eastern and southern part of the country.

The remaining 10% are practicing a traditional belief which is legal in the country.

Moving on to ethnic and cultural differences, the CIA fact book (2009) also estimated the

number of tribal groups to be around 250. I like to emphasize that just as the tribes differ so

do they all have different ethics, believes and ability to process information even

understanding of symbols.

The life style is just as easy going with everybody pretending all is fine and perfect but in fact

this differences has create a division amongst the general population, with everybody been

suspicious and careful about their neighbors of different tribe and religion. To make things

worse the politicians have taken this weakness to manipulate the people and use them as a

tool for political weapon to fight each other blaming it of religious fanaticism. Not to mention

the issue of illiteracy with is one of the nations short coming.

28

I am mentioning all this trends just to give you an idea how difficult it is for managers to

make and implement strategic decision. Understanding of these differences can make your

company attain a comfortable competitive position. An example of miss interpretation of

words, written with intension to draw support from the general public lead to riot, deaths and

loss of properties in these great Nation. It was the year (2001), when Agbani Darego became

the Nigerian and first black woman to win the miss world beauty pageant for 2001. It was a

great day for her. The officials decided to grant her an opportunity to host the next episode of

beauty pageant for 2002. Been a beauty pageant it is required for contestants to look sexy and

attractive. This caused a little demonstration around the northern part of the country. One

local newspaper took it as an opportunity to make a joke to appease the demonstrators when

he published a joke say ―Prophet Mohamed would have made one of the contestant his wife‖.

This statement alone lead to violent riots, deaths and loss of property in the northern part of

the country.

Furthermore in carrying out marketing mix weather in the form of advertisement, sales

promotion, sponsorship etc, this has to be done in different language using different group of

people representing different ethnic and religious background either in Igbo, Hausa or

Yoruba which are the three major languages in Nigerian. On the other have this means an

increase in budget for advertisement...

3.2 An overview of the Nigerian food and Beverage industry:

The food and beverage industry, along with the agricultural sector, bears the

handsome responsibility of feeding a populous and developing nation. The

industry has showed a strong growth over the last 10 years largely as a result of

the relatively stable economic climate. Changing demographic- greater number

of people migrating from rural to urban areas, more women working and more

children attending school, have contributed to the thriving demand for the

industry‘s products. The industries products are fast becoming an essential part

of the nation diet, particularly in the urban areas.

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The food and beverage industry in Nigeria is at the fore in the manufacturing of

dairy products, hot beverages, seasonings, convenience foods, confectioneries

and staple foods such as bread, pasta and noodles. The demand for the

industry‘s product from Nigerian consumer is estimated to now been in excess

of N 500 billion naira per annum. The low purchasing power of the average

Nigerian consumer, however, dictates that fortunes in the industry are highly

dependent on the affordability of the product. The low level of infrastructural

development and the tropical climate also accentuate the importance of the shelf

stability of products as a factor for success in the industry.

The food and beverage industry is one of the most globally competitive

industries- dominated world wild by a handful of multinational companies.

Nigeria is no exception; the leading manufacturers of food and beverage

product in Nigeria are mostly subsidiaries of global major players. Companies

such as Cadbury Nigeria plc, Nestle Nigeria Plc, Uniliver Nigeria Plc, Nigerian

breweries dominate the hot beverage, seasoning and confectionery segment in

Nigeria. The diary segment in Nigeria is dominated by a subsidiary of another

multinational major player frieslandcampina WAMCO Nigeria Plc. The global

major players are largely underrepresented the staple and convenience segments

in Nigeria; this has left room for smaller regional and local companies to

flourish in these segments.

The Nigerian food and beverage industry is currently experiencing solid growth

and has a great deal of potential for growth in the long term as Nigeria is

demographically young. The industries reliance imports for inputs, however,

results in an undesirable exposure to the risk of foreign exchange fluctuations

and global food insecurities. The importation of inputs also limits production

flexibility in the industry as the stocking decisions must be taken weeks in

advance and cannot be altered because of long period spent in transit. The

industry also comes under significant pressure from large volume of imports

30

that are readily available in Nigerian markets. Vertical integration into the

production of inputs is a viable solution to the industry‘s problems of

importation if the inputs can produced on an efficient scale.

3.3 Cadbury Nigeria plc analysis:

Cadbury is the market leader in Nigerian market. Cadbury is the largest supplier

of beverages and other sugar confectionaries in the market with products

ranging from Bournvita, Bubba,Sitmorol, Tom Tom, Trebor, Ahomka,

Buttermint and Eclairs just to mention a few. In Nigeria it has the largest share

of the market followed closely with nestle Nigeria plc and then other local

competitors occupies the remaining market.

The following is the SWOT analysis for the company in Nigerian market:

Strength.

The company has a large established business in the Nigerian market since 1965

and it‘s based in Lagos Nigeria. The company has established itself as a world

leader in the confectionary market. In Nigeria is has about 40%of the

confectionary market. In line with its vision, the company has been striving to

be the world leader in confectionary industry. Through innovation and strategic

marketing, the company has acquired about 10% of the world confectionary

market (Laura, 2008).

The company has a good reputation, with strong brand in the market; the

company is well positioned in the market. In Nigeria Cadbury has strived to

build a good reputation. This could be attributed to the success of its product. It

is on this solid reputation that the company can embark on introducing a new

brand in the market.

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Weakness

The target population is quiet large and there are fears the demand for the

product may outdo the capacity of the company to satisfy the demands of the

market considering Nigeria‘s population of about 155,215,573 (CIA world fact

book 2011 est.). This means that the company needs to increase its production

capacity in order to match the rate of growth in market demand. Another major

problem in the distribution network is the transportation of goods to various part

of the country due to bad infrastructural development issues; roads, transport

vehicles etc (Cadbury 2008).

Opportunities

The company is operating in a market where it has a majority share; this is a

unique opportunity for the company to effectively introduce new product and

strategies without feeling threats for other rival competitors. Its position in the

market makes it easier for Cadbury overcome threats from rivals using its

opportunities.

The company can introduce products in a unique way, by sponsorship in order

to help the target market identify with the product. Cadbury can also host other

events like sports or even engage in cooperate social responsibility activities

like child education, poverty alleviation etc. this can also help target market

identify with the product more. (Laura, 2008)

The company can use a wild range of marketing strategy which can lead to

overall growth of product in the market. The Nigerian advertisement market has

been at a rapid growth rate which means there are lots of opportunities for the

growth of the market. And Cadbury can take advantage of these advertising

opportunities.

Threats

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There is threat of entry of other products or brands into the market. The threat of

new product into the market will increase the level of competition in the market.

There are other companies which are likely to introduce similar product in the

market once there is success of the initial product. One particular company Is an

indigenous company Dangote Group; one of the fastest growing business in

Nigeria and Africa in general these company is based on quality, affordability

and controls enormous brand loyalist; in 2007/08 Dangote industries, saw a

profit increase of about 400% (Dangote 2008).

Threat as a result of change in external environment may likely alter the nature

of the market. For instance change in taxation, government laws regulating the

industry and other factors which are likely to impact negatively on the industry

(Cadbury 2008).

3.4 Nestle Nigerian ltd:

Nestle Nigeria plc started manufacturing operations in 1961 and has today

grown in to a leading food and manufacturing and marketing company. In April

1979 nestle was listed on the Nigerian stock exchange. Nestle S.A of

Switzerland and nestle CWA limited, Ghana are major shareholders of the

company controlling 3.17% and 59.13& of the company respectively and will

provide technical and strategically support. Nestle focuses on food processing,

food seasoning and beverages.

Financial performance:

The company experience steady growth in turn over in the past five years till

2009. With turnover increased by 16% CAGR over the past five years while

PAT increased by 18% CAGR. Total asset also grew by 21% CAGR within the

same period.

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Source: Equity research on Nestle Nigeria plc. July 2009.

Strength and weakness:

Strong brand.

Excellent management and multinational backing which ensure strong

work force.

Large market share of seasoning and beverage market.

Product breadth and innovation.

Excellent term of trade with distributors and suppliers.

Good profitability which ensures strong equity and researches.

Strong cash flow.

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Adequate working capital.

Challenges:

Declining purchasing power.

Increased cost of production

Threat of foreign (smuggled product).

3.5 Nigerian breweries analysis:

Nigerian Breweries Company and a major rival both hold about 80% market

share in the beer beverage market. Nigerian breweries incorporated in 1946 and

began operations in 1949. The company became a public liability company in

1990 for then it known as Nigerian breweries plc, involved in brewing stout,

non alcoholic malt drink, marketing and distribution of larger beer. Amongst the

company`s brand portfolio are:

Star beer (1949)

Guilder (1970)

Guilder max (2006)

Heineken (1998)

Legend Extra stout (1992)

Amstel Malta (1994)

Maltina (1974)

Farouz (2006)

Nigerian breweries as I said, the company holds a whopping 80% market share

together with its rival. To keep up the competition by diversifying its port folio

as it has been able to attract relatively higher patronage in most segment of its

business most especially amongst larger and non alcoholic drinks.

To stay ahead of other competitors, Nigerian breweries have been involved in

several brands and rebranding of products, product development and

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diversification of portfolio and effort in the last five years. In 2006 the guilder

lager beer was launch. The color was darker, richer and very successful more

than predicted. Nigerian breweries attempted to enter the soft drink market by

launching the Farouz brand of soft drink a combination of Pinapple and pear

flavour.

Recently a previous brand Maltina brand was repackaged and a larger size was

introduced while maintaining the normal price. The star beer which is the

number one brand of the company was also rebranded and since then has

achieved huge success.

Nigerian brewries marketing strategy is perhaps one of the most persuasive and

effective. The company has been on the fore front of several events sponsorship

and show promotions, notables amongst are the ‘Star Quest‘, ‘Guilder Ultimate

search and the Amstel Malta Box office other advertising media deployed by

Nigerian breweries include print electronic and billboards. Such huge

investment has yield dividends with turnover volumes growing at high rate.

3.5.1 Guinness Nigeria Plc

Incorporated in Nigeria in 1950, and was officially listed on the Nigerian stock

exchange in 1965. Guinness is majorly involved in brewing, packaging and

marketing of Guinness foreign extra stout, Guinness extra smooth, Malta

Guinness, Harp Larger Beer and Gordon‘s Spark.

The company has grown through its two major stout brands. Built a competitive

advantage in the stout category of the breweries sector.

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3.5.2 Nigerian Bottling Company Plc.

Nigerian bottling company plc was established in 1951 to operate factories for

the bottling of soft drinks. The company has a sole franchise for the bottling of

Coca Cola soft drinks in Nigeria.

The company subsequently grew and it operates 16 factories within Nigeria and

it uses 82 distribution warehouses and 200,000 distribution outlets. Coca Cola‘s

range of production in Nigeria includes Fanta in orange, lemon, blackcurrent

and apple flavor; sprite and Schweppes in bitter lemon, pineapple, club soda,

tonic water as well as Eva brand of table water.

The company has the largest market share in the beverage industry and has

continued to consolidate on the success of its major worldwide brand Coca

Cola.

Its key success factor has always been a strong and established brand name and

its continued effort in increasing its market outreach to a wider audience. Its

recent introduced Diet Coke is a confirmation of the companies drive to satisfy

the various needs of the market.

The Eva water brand also stands as a major player in the industry with major

competitors coming from likes of ragolis water, spring water, despite the high

level of diversification and innovation in juice category the company‘s % alive

brand has been able to establish a strong presence warding off competition from

chivita and other brands.

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Technology race:

As one of the most critical growth factor behind company success, modern

technology which gives most companies, including Cadbury an upper hand

compared to other companies. Cadbury, like any other global leading company,

has been testing new technology in the established or in its main market and

then transferring the most appropriate and less expensive technology to the

emerging market. This has been one of the important growth factor in the

overall performance of the company. Nigerian breweries is also making sure it

follows suit by building one of the most sophisticate and well equipped factory

in Africa to enable them match demand with supply.

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4 Chapter Four:

4.1 Research methodology

4.1.1 Introduction

In order to for me to further shade light on my topic of study, it is important to

conduct research and gather the view of people and consumers around Nigeria

in general.

In this view it is important to collect both primary and secondary data and

carefully analysis and then compare the outcome.

4.2 Method of data collection:

For primary source

Data collection, Questioners with closed and open questions will be asked.

Questions will be focused on: advertising impact, product awareness, branding,

advertising and advertising medium etc. questioners will be distributed to

individual, interest groups (distributor, wholesaler and retailers) etc interviews

will be organized to held shade an insight on what marketing manager think or

have to cope with in taking decisions needed to be taken and why is it deemed

necessary and to who‘s interest and most interestingly at who‘s expense?

The purpose of collecting these primary data is to limit some problems resulting

from secondary source (verification of information source). And also personal

opinion will also be authentically reflected.

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Secondary data’s:

Secondary data, in most cases, research has been carried out, and data analysis

and another party or person for the purpose of future use, referencing or for the

record.

During the course of this research, references were made from books, business

journals co-operation web-site, journals and reports.

However data obtained from a secondary source of information relevant to my

topic of discussion is important; it provides me with already made information

to assist the better understanding of the research.

Population:

For my research I focused on Lagos, Abuja and Kaduna these cities have a

larger population, people were randomly selected and given questioners,

depending on the interest of participants and people. Amongst group would be

members of management from different leading beverage companies. Members

of the public‘s as well will be considered, a total number of 350 questioners

were evenly distributed and about 315 were received.

4.3 Data presentation and analysis:

As questioners‘ were distributed, so were completed one collected, studied,

compare and analyzed.

Therefore, data collected from the major industry participant (Nestle, Cadbury,

Nigerian breweries etc), will enhance in explaining the level of involvement of

management in marketing and promotional mix of the company.

It is fact that an organizational marketing and promotional strategy is the force

behind the increase of sale. Therefore an accurate implementation and execution

of marketing mix is an important criterion for a company‘s success.

40

All over the world in recent years mega companies have invested heavily to

promote their brand to expose consumers with adequate information and

knowledge about their product. Nigeria is no exception.

Jacob Van Der Linden, the marketing director of Nigerian breweries said in an

interview with me that ‗for the past five years, marketing budget has been on

the increase‘. When asked for the reason he added, advertisement via television,

bill board, sponsorship and cooperate responsibility is becoming old fashion and

that consumer are getting bored of them. He continued consumers need

something new, attractive and interesting which is why his department

(marketing department) has seek for new medium to promote their products.

As a result the company has signed contract with celebrities and popular artist,

mobile service provider etc. and this proved to be successful as increased sales

are recorded.

At Cadbury, the sales manager attending to me has a different view, saying

‗about 8% of marketing budget is allocated to sale promotion‘ given reason that

advertisement is not felt immediately on sales of product, the company mostly

focuses on sales promotion and the result are immediately reflected on the

volume sold.

4.4 Data Interpretation and data analysis.

Both descriptive and inferential statistics were used in analyzing the data

collected. The response by the consumers to some items of the questioners was

compiled in a tabular form according to the main variable examined. Percentage

analysis was used in examining variables such as media preference, brand

preference etc.

41

4.4.1 Results

Table 1: Responses according to the questioners distributed.

Questioners Respondent Percentage

Completed and

returned

315 80%

Not returned 35 20%

Total 350 100%

Source: Administered questioner (2011).

The table above indicates the response rate to the questioners distributed. 300

questioners were distributed randomly to respondents of different age and ethnic

back ground exactly 248 of those questioners were collected and are the bases

on which this report is been analyzed. While the remaining 52 of the same

questioners were not accounted for, either due to lack of interest on the side of

the respondent or misplaced.

Important socioeconomic parameters of interest were investigated to bring to

the fore salient characteristics of the respondent.

42

Table 2: Distribution of consumers by sex

Sex Frequency Percentage

Male 158 50.16

Female 157 49.84

Total 315 100

Source: Administered questioners (2011)

Table 2 above shows the consumption of product are almost evenly distributed

amongst both sex, with the number of male slightly higher than that of female.

This is an indication of gender neutrality or balanced consumption of product.

43

Table 3: consumer age distribution

Age in years Frequency Percentage

<10 21 6.67

11-15 27 8.57

16-20 29 9.21

21-25 42 113.33

26-30 35 11.11

31-35 49 15.56

36-40 46 14.6

41-45 24 7.62

46-50 10 6.03

51-55 12 3.81

56-60 11 3.49

Total 315 100

Source: Administered questioner (20011)

As show in table 3 above, age range between 10 and 60 years represented in this

study, I can be observed that age group between 31-35 represents 15% of the

total sample. Over 30 % of the respondents are within the age range between

44

30-40 years old. This figure reflects the dominance of youths in the market for

the product of the company.

Table 4: Consumer reason for brand preference.

Reasons Frequency Percentage

Advertisement 159 50.48

Quality 124 39.37

Availability 19 6.03

Price 6 1.9

Packaging 3 0.95

No response 4 1.27

Total 315 100

Source: Administered questioners (2011)

This table clearly shows that brand preference by consumers is highly

influenced be advertisement although this represent Nigerian view but it is not

only Nigeria but all over the world.

From the table above Advertisement (50.48%) and packaging (0.95%). It is

clearly shown that advertisement and quality difference make up about 90% of

the reason observed for brand preference.

45

Table 5: consumer source of awareness of brands and products.

Sources Frequency Percentage

Advertisement 189 59.05

Word of Mouths 97 30.79

Sales Promotion 23 7.30

Can‘t Remember 9 2.86

Total 315 100

Sources: Administered questioner (2011)

The above table 5 indicates 59.05% of most consumers came to know about

major brands and products via advertisement and as a result of post purchase

satisfaction experience the decided to share the information about the particular

product to friends and families, thereby creating brand awareness. 2.86% of

people can remember where or how they came across the product. Still yet I am

not ruling out the possibility of advertisement, maybe they came across an

advert somewhere on bill boards or possibly on a television.

46

Table 6: Consumer perception of media use in advertisement of products

Media Frequency Percentage

Television 225 71.43

Radio 45 14.29

Outdoor display 17 5.4

Newspaper 14 4.44

Magazine 14 4.44

Total 315 100

Source: Administered questioner (2011)

Table 6, reveals five different advertisement medium used in advertising and

promotion of consumer product. It‘s no surprise; most consumers about 71.43%

of response gathered were influence through television advertisement. This is an

indication that Beverage Company uses the tele-media to create product

awareness and influence consumer behavior. The radio came second with

14.29% while news paper and magazine came in last with 4.44%. The reason

could be a lack of reading culture amongst Nigerians and illiteracy.

47

5 Chapter Five:

5.1 Preliminary Conclusions

Nigerian Breweries, Guinness Nigeria, Cadbury and nestle Nigeria plc have

continued to dominate the Nigerian beverage market. Their dominance stems

from their extensive nationwide distribution and supply systems that ensure

their products are available even in remote rural areas and as well as their

aggressive marketing activities that ensure their brands are hugely popular

across Nigeria. These companies have maintained a stranglehold on the

beverage market in Nigeria.

The growth in the beverage industry in Nigeria has remained strong and steady

over this period. This is mainly as a result of the aggressive marketing activities

of leading players and the good quality of most brands available. Like the case

of Nigerian breweries, this company has invested heavily in an effort to

persuade and influence consumer behavior. In recent years, the company has

been on the fore front of several events sponsorship and show promotions,

notables amongst are the ‘Star Quest‘, ‘Guilder Ultimate search‘ and the Amstel

Malta Box office other advertising media deployed by this same companies

include print electronic and billboards. Such huge investment have yield

dividends with turnover volumes growing at high rate at the expense of the

consumers despite all this profits theses mega companies have failed to invest

significantly in areas that has direct benefits to the general public‘s.

As my research show, many of the consumers are greatly influence by this

persuasive marketing mix especially the media ‘television‘, bill board etc and

marketing manager have exploited this medium to force down their products.

48

Government should enforce code of conduct to limit the aggressive nature by

this companies to market their goods or rather establish a edit agency that will

preview this advertisement before they are relished to the general public.

Finally the beverage market is set to continue its growth over a forecast period.

The expected increase in demand is attributed to the fact that Nigerians

population of 158 million continues to grow at an annual rate of 3%, thereby

providing an ever increasing consumer base. The fact that there is also a

positive outlook for the Nigerian economy means consumer spending is likely

to increase and further increase in growth of food and beverage sales. New

brand and entry of new players will result in increased competition, aggressive

marketing and ultimately also help to fuel growth in the market but it should be

approached with ethic and respect of the consumer‘s fragile mind.

49

6 References:

Ajakaiye, D.O (1990) inter-industry linkages in the Nigerian Economy, NISER Monograph

Series No 2 NISER, Ibadan.

Dimgba Igwe and Mike Awoyinfa (1999) ―Nigerians cooperate strategies‖

Mcdee communications.

Duggan, Maria, and John Deveney. "How to Make Internet Marketing Simple."

Communication World. April 2000.

Homburg, Christian, John P. Workman, Jr., and Harley Krohmer. "Marketing's

Influence within the Firm." Journal of Marketing. April 1999.

McCarthy, E. Jerome and William D. Perreault, Jr. Basic Marketing. Irwin,

1990.

Moorman, Christine, and Roland T. Rust. "The Role of Marketing." Journal of

Marketing. December 1999.

Porter, Michael E. Competitive Strategy. Free Press, 1980.

Simkin, Lyndon. "Marketing Is Marketing—Maybe!" Marketing Intelligence

and Planning. March 2000.

Stevens, Mark. (1988)The Macmillan Small Business Handbook. Macmillan.

Wiley, (1995) the Entrepreneur Magazine Small Business Advisor.

Tracy, Joe. Web Marketing Applied: Web Marketing Strategies for the New

Millen

View point, available from:

50

http://www.agusto.com/agusto/viewreports.php?id=24 (accessed on 21/2/2011)

http://allafrica.com/stories/201012091101.html

From the design of a new product to the extension of a mature brand, effective

marketing strategies depend on a thorough understanding of the motivation,

learning, memory, and decision processes that influence what consumers buy.

Theories of consumer behavior have been repeatedly linked to managerial

decisions involving development and launching of new products,

http://www.practical-

entrepreneurship.com/resources/advertising/086_advertising_overview.pdf

Advertising with yahoo as a means to search all products, information you have

ever desired of.

It‘s a new form of advertisement that takes advertisement as a whole unto

another level.

View point available from: http://www.ehow.com/about_6122350_consumer-

preference_.html (Accessed 1/5/2011)

Consumer preference for a product can make or break a company. If consumers

generally like a product, it can stay around for years and sell millions of copies.

However, if consumers do not like the product, it could disappear very quickly

if the company cannot figure out how to fix the problem.

Viewed from:

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073903636

(Assessed on 30/4/2011)

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Branding gets right to the core of your business' values. It is about discovering

and communicating the essence of your business and what it delivers to your

customers. In effect, your brand creates your business' reputation and its

'personality'. A strong brand can make your business stand out from the crowd,

particularly in competitive markets.

Viewed from: http://www.copyblogger.com/relationship-marketing/ (Accessed

on 23/2/2011).

Relationship marketing is about getting the customer to stick around long

enough to keep shopping. And it‘s about making sure that customer comes back

next time to buy more stuff.

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