THE IMPACT OF TELEVISION ADVERTISING ON CONSUMER BRAND PREFERENCE FOR SOFT DRINK IN A COMPETITIVE MARKET. (A CASE STUDY OF 7UP BOTTLING COMPANY NIG. PLC, 9TH MILE CORNER ENUGU)
THE IMPACT OF TELEVISION ADVERTISING ON CONSUMER BRAND
PREFERENCE FOR SOFT
DRINK IN A COMPETITIVE MARKET. (A CASE
STUDY OF 7UP BOTTLING COMPANY
NIG. PLC, 9TH MILE CORNER ENUGU)
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TABLE OF CONTENTS
Title
page i
Approval ii
Certification
iii
Dedication iv
Acknowledgements v
Table of
contents vi
List of table x
Abstract xi
CHAPTER ONE
INTRODUCTION 1
1.1 Background of the study 5
1.2 Statement of problem 8
1.3 Purpose of the study 9
1.4 Significance of the study 10
1.5 Research questions 11
1.6 Hypotheses 12
1.7 Scope of the study 13
1.8 Definition of terms 13
CHAPTER TWO
2.0 Review of related literature 15
2.1 A Brief introduction 15
2.2 Review of current literature 16
2.3 Summary of literature review 29
CHAPTER THREE
Methodology
3.0 Brief
introduction 31
3.1 Design of the study 31
3.2 Area of the study 32
3.3 Population of the study 32
3.4 Sample of the study 33
3.5 Instrument for data collection 35
3.6 Validation of the instrument 37
3.7 Distribution and retrieval of the
instrument 38
3.8 Method of data analysis 38
CHAPTER FOUR
DATA
PRESENTATION AND ANALYSIS 40
BRIEF INTRODUCTION
OF THE CHAPTER 40
4.1 Presentation and interpretation of
data according
to
research questions and hypothesis 40
4.2 Findings 60
4.3 Discussion of findings 62
CHAPTER FIVE
5.0 Summary,
Conclusion and Recommendation 64
5.1 Summary of findings 64
5.2 Conclusion 67
5.3 Recommendations 69
5.4 Limitations of the study 71
5.5 Suggestion for further research 72
References
73
Appendix A 75
Appendix B 76
LIST OF TABLES
Table One: Age of the respondents
Table Two: Sex of respondents
Table Three: Educational qualification/level of respondents
Table Four: Occupation of respondents
Table Five: Contingency table
Table Six: Chi-square
ABSTRACT
THIS RESEARCH WORK IS DESIGNED TO
EXAMINE THE IMPACT OF TELEVISION ADVERTISING ON CONSUMER BRAND PREFERENCE FOR
SOFT DRINK IN A COMPETITIVE MARKET, WITH PARTICULAR REFERENCE TO 7UP BOTTLING
COMPANY NIG. PLC, 9TH MILE CORNER, ENUGU. FOR THE PURPOSE OF
CLARITY, THIS PROJECT HAS BEEN DIVIDED INTO FIVE CHAPTERS AND THE INFORMATION
WAS GATHERED THROUGH BOTH PRIMARY AND SECONDARY SOURCES. THE INTRODUCTION WAS
DONE IN CHAPTER ONE WHERE OBJECTIVE OF THE STUDY, THE STATEMENT OF THE PROBLEM,
THE HYPOTHESIS, SCOPE AND THE SIGNIFICANT OF THE STUDY WAS DONE. IN CHAPTER
TWO, REVIEWED SOME RELATED LITERATURE ABOUT THE TOPIC. IN CHAPTER THREE, THE
POPULATION OF THE STUDY, THE SAMPLE SIZE, METHOD OF DATA COLLECTION AND THE
DATA ANALYSIS IS TOOL THAT WAS USED IN THE RESEARCH STUDY WERE DISCUSSED. IN
CHAPTER FOUR, THE ANALYSIS OF DATA COLLECTION BY THE USE OF QUESTIONNAIRES AND
UNSTRUCTURED PERSONAL INTERVIEW WAS USED. THE DATA WAS ANALYSED USING SIMPLE
PERCENTAGES AND TESTED HYPOTHESIS BY THE USE OF CHI-SQUARE (X2) THE
SUMMARY OF THE RESEARCH FINDING, CONCLUSION AND RECOMMENDATION BASED ON THE
FINDINGS WERE THEREFORE EFFECTIVE TOOL IN APPEALING THE TARGET MARKET.
CHAPTER ONE
INTRODUCTION
The beginning of the
twentieth Century witnessed an outburst of advertising efforts the bottling
companies. This outburst was necessitated by the desire to outsell the other in
the consumer market, since soft drinks are competitive products. In order to
maintain a stronghold of their various market segments, or even to widen an
existing market, different advertising strategies erupted prominent among them are
sales promotions, sales campaign, point of purchase displays, media advertising
e.t.c.
This rampant use of various advertising
strategies in eliciting consumers’ response has credited a stiff competition
between the manufacturers of soft drinks of which 7up is one. Constant
inundation of consumers with multifarious advertising slogans has even created
confusion in the minds of helpless consumers on which products to buy or leave.
Pride and fewel in their book “marketing”
explained that an advertisement may a times be informative, or entertaining yet
it may fail to get the audience to purchase the product they were of the
opinion that the ultimate effectiveness of advertisement is determined by its
ability to cause product adoption and high purchases among the potential
buyers.
The extent of patronage of any advertised
product does not entirely depend on the effectiveness of the advertising
strategies. It might sometimes, depend on extraneous factors like economic
status of the prospects, belief system, culture, climate, level of education
e.t.c. For instance, it will be an exercise in facility to advertise liquor in
a predominantly Moslem state of Kaduna and Zamfara. This is because the
consumption of liquor is against their Islamic belief system.
Similarly, advertising of such luxury
goods like vacuum, cleaner, TV set, electric cooker to a predominantly nomadic
population will be a wasteful venture. In the above cases, values and economic
status respectively play vital roles in changing the people’s behaviour towards
accepting advertised product(s).
Advertising is a communication between sellers and buyers with the sole
aim of changing the attitude of buyers. From the above definition, it could be
deduced that advertising is communication especially from the producers to the
target market about a product or organization with the hope of creating
awareness, interest, desire and a patronage of the product.
Erickson (1962) defined advertising as
“Truth well told”. The American Marketing (AMA) said that advertising is “any
paid non personal presentation and promotion of ideas goods and services by an
identified sponsor”.
This means that advertising messages are
beamed at a group of people that are not personal in nature. Note worthy is the
fact that an advertising channel is selected according to its suitability in
researching the prospects. E.g. Newspapers and Magazines advertisement may not
be helpful in researching an illiterate segment. According to this research,
the Nigeria Mineral water industries Limited Markets of 7up have used almost
all the advertising channels mentioned above to reach their audience. However,
in order to arrive at a satisfactory result, only Television may be analyzed
here as it affected 7up consumption.
1.1
BACKGROUND OF THE STUDY
Nigeria Mineral Industry Limited
established in 1959 by the ENDC (Eastern Nigeria Development Cooperation) the
company commenced production in 1960 with Pepsi range of products. The
productions operation of the company halted for three years due to Nigeria /
Biafran War – (1967 – 1970). The company started operating in 1971 after
restructuring with product of Tango brand of soft drinks. In 1976, the company
stopped the production of Tango and changed over to sun sweats range of
products. In 1987, Nigeria Bottling Company (NBC) launched an aggressive sales
promotion campaign on one of their product called SPRITE with their Animal
Kingdom Game. The 7up Bottling Company in 1989 came up, with “it is Raining
Again” slogan, which came after the 1988 “Naira Ram” and the 7-up Bottling
Company with the intention of maintaining its stronghold, increasing sales, penetrating
into new markets and increasing shares of the entire market among the competing
firms. In the Animal Kingdom Game, the slogan my choice is clear – Sprite! Rent
the air and some incentives were provided to the buyers or consumers of Sprite,
this advertisement strategy seemed to have had an adverse effect on the 7-up
brand of soft drink hence a greater segment of the market was thought to have
been won by the Nigeria Bottling Company. Consequently, the 7-up Bottling
Company launched a counter attack in 1989 with the slogan. “The difference is
clear” 7 – up.
With the above slogan, it appears as if
buyers’ attention was shifted to the product. As a result, the competition
between the Nigerian Bottling Company and 7-up Bottling Company became so keen
that both of them today engage in under use of various advertising strategy to
market their products and return their customers. Some critics are of the
opinion that acceptance of a product is a multi – step process and since
promotion advertising is only one part of the marketing mix, single promotional
activity can rarely cause an individual to buy a previously unfamiliar –
product. However, it is generally believed that advertising is necessary in the
product – adoption process. More especially now that there are several product
manufacturing companies, with each jostling for attention. The awareness of the
existence of such product can only be created through venous advertising
strategies. In line with the aforestated, the Nigeria Mineral Water Industries
Limited markers of 7up soft drink in 2000 launched an extensive sales campaign
titled “7up pop a top promotion”. The intention was to widen an existing 7up market
through incentives. Consequently, the objective was realized as 7up recorded
higher sales and increased preference after the advertisement and sales
campaign.
1.2
STATEMENT OF THE PROBLEM
i.
Low awareness about television advertising of 7up bottling
company’s products.
ii.
Low access of consumers to television facilities.
iii.
Wasteful advertising campaigns by bottling companies.
iv.
Unhealthy rivalry amongst companies advertising their
products.
1.3
PURPOSE OF THE STUDY
i.
To ascertain of consumers are aware of the adverts of 7up
bottling company.
ii.
To find out if consumers have easily access to television
facilities.
iii.
To ascertain if advertising campaigns by bottling companies
are wasteful.
iv.
To find out if there is unhealthy rivalry amongst bottling
firms.
1.4
SIGNIFICANCE OF THE STUDY
The presentation of vital information on
the impact of television advertising on consumer preference will be very
important in many aspects it will help to reveal some major advertising
constrains that mediate against consumers preference for soft drink in a
competitive market. When the effects are analyzed and comprehended, it will
help the industrialists involve and other their related counter-parts to find
the best way to avoid the following constraints:
1.
The information collected will tremendously enhance the
students performance who intends to carryout research on the impact of
television advertising on consumers preference for soft drink in a competitive
market.
2.
The study will expose them to these role-played by
television advertising in a completive market.
3.
The study will provide a strategic television which is
consumer oriented and which is also aimed at generating, consumer preference.
Consequently the company will be opportune to have a high profit margin.
4.
On the side of government, the study would help pin point
to the long awaited method of promotion television advertisement.
1.5
RESEARCH QUETSIONS
i.
Do consumers likely to prefer 7up brands of soft drinks?
ii.
Has the Nigerian Mineral Water Industries Limited, Makers
of 7up embarked on any of advert?
iii.
Did the advertisement increase the consumers demand for
7up?
iv.
Does 7up been able to maintain its hold on the market at
the advertisement or sale, campaign programmes?
1.6
RESEARCH HYPOTHESIS
Hypothesis one
Ho: Consumers do not prefer 7up to other brands of
soft drinks.
Hi: Consumers prefer 7up to other brands of soft
drinks
Ho: 7up has been able to maintain its hold on the
market at the end of the advertisement or sales campaign programmes.
Hi: 7up has been able to maintain it holds on the
market at the end of advertisement or sales campaign programmes.
1.7
SCOPE OF THE STUDY
A good research
needs to be delimitated to a manageable scope. This research covers the impact
of television advertisement on consumer preference for soft drink in a
competitive market using 7up-bottling company, Enugu.
1.8
DEFINITION OF TERMS
Advertising: Any impersonal form of
communication about ideas, goods or services that paid for by an identified
sponsor.
Brand: A name, term, symbol, design or
combination of these elements that feature as differentiating measure of goods
or services from one seller to another seller offerings.
Campaign: An organized trend of
promotional efforts built around a theme and designed to reach some goal.
Market segmentation: The process of
dividing the total market into one or more parts (sub-markets or segments) each
of which tends to be homogeneous in all significant aspects.
Consumer market: Consists of buyers who
use the product to satisfy personal or household need.
Product: A good, service or idea that
offers a bundle of tangible and intangible attributes to satisfy consumers.
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