APPRAISAL OF PRODUCT PERFORMANCE OF BREWERY INDUSTRY (A STUDY OF NIGERIA BREWERY PLC, ENUGU STATE)

ABSTRACT

This research work was carried out on “ Appraisal of Product Performance in the Brewery Industry”. The scope of the study is within Enugu State Metropolis. This project will be carried out bearing in mind some of the following objectives; to determine the factors that influence the product performance in the market, to determine the effect of the product appraisal in the market, etc. The researcher made use of primary data supplied by consumers, distributors, personnel of Nigeria Breweries PLC extracted through questionnaire and secondary data from the company. The sample size for consumer i.e 100, 96, for personnel and 65 for distributors. The data collected was arranged in tables by putting them in frequencies and percentages. In testing the various hypotheses, Chi-square (X2) test was used at 5% level of significance. The researcher found out that the performance of Nigeria Brewery product is satisfactory, i.e, performance is as a result of taste and quality, brand name, sales effort and promotional activities, packaging and price etc, that star is profitable and commands 20% of the Beer market within Abakaliki, that consumers are ready to continue the consumption of Star Beer. Lastly, the researcher recommended that the price will be reduced to N80, that the management should go into production of smaller bottles that will contain about 33cl and that the company should consider packaging their Beer in cans or other non-returnable so that consumers can take Nigeria Brewery along with them.

TABLE OF CONTENT

Title Page - - - - - - - - - - -i

Declaration- - - - - - - - - - -ii

Certification- - - - - - - - - - -iii

Dedication - - - - - - - - - - -iv

Acknowledgement- - - - - - - - - -v

Table of Content- - - - - - - - - - -vi

List of Tables - - - - - - - - - - -viii

Abstract- - - - - - - - - - - -ix

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study- - - - - - - -1

1.2 Statement of the Problem- - - - - - - -2

1.3 Research Questions- - - - - - - - -3

1.4 Objectives of the Study- - - - - - - - -3

1.5 Research Hypotheses- - - - - - - - -3

1.6 Significance of the Study - - - - - - - -4

1.7 Scope and Limitation of the Study- - - - - - -5

1.8 Definition of Terms- - - - - - - - -5

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Brief History of Nigerian Breweries PLC- - - - - -8

2.2 What is Product?- - - - - - - - - -10

2.3 Product Classification - - - - - - - - -11

2.3.1  Industrial Product- - - - - - - -12

2.3.2 Consumer Product- - - - - - - -12

2.4 The Importance of Product Planning and Development - -13

2.5 Product Development Process - - - - - - -14

2.5.1 Idea Generation - - - - - - -15

2.5.2 Idea Screening - - - - - - - -16

2.5.3 Concept Developing Testing         - - - - -16

2.5.4 Developing a marketing Strategy - - - - -17

2.5.5 Business Analysis - - - - - - -17

2.5.6 product Development - - - - - - -18

2.5.7 Test Marketing - - - - - - - -19

2.5.8 Commercialization - - - - - - -19

2.6 Product Management - - - - - - - -20

2.7 product Life Cycle - - - - - - - - -21

2.8 Product Quality and Consumers Satisfaction - - - -23

2.9 Performance Appraisal - - - - - - - -24

2.10 Criteria for product Performance - - - - -25

2.10.1 Profitability - - - - - - -26

2.10.2 Return on Capital Employed - - - - -27

2.10.3 Market Standing - - - - - - -27

2.10.4 Innovativeness   - - - - - - -28

2.10.5 Quality of Service - - - - - - -28

2.10.6 Social Responsibility - - - - - -29

2.11 Product Design and Style - - - - - -29

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design - - - - - - - - -31

3.2 Area of the Study - - - - - - - - -31

3.3 Population of the Study - - - - - - - -32

3.4 Determination of Sample Size - - - - - - -33

3.4.1 Samples Size for Consumers - - - - - - -33

3.4.2 Sample Size for Company Personnel - - - - -34

   3.4.3 Sample Size for Distribution - - - - - -34

3.5 Method of Data Collection - - - - - - -34

3.6 Sampling Techniques - - - - - - -35

3.7 Data Analysis   - - - - - - - - -36

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

 4.1 Administration of Research Instrument - -- - - - -38

4.2 Product Performance Appraisal - - - - - - -41

CHAPTER FIVE

SUMMARY OF FINDING, RECOMMENDATION & CONCLUSION

5.1 Summary of Finding - - - - - - - -54

5.2 Recommendation - - - - - - - - -55

5.3 Conclusions - - - - - - - - - -56

REFERENCES

QUESTIONNAIRE

LIST OF TABLES

Table 4.1.1 Respond Rate of Consumers - - - - - -39

Table 4.1.2 Respond  Rate of Distributor - - - - - -40

Table 4.1.3 Respond Rate of Company Personnel- - - - - -41

Table 4.2.1 Consumer Appraisal of the Product test and Quality - -42

Table 4.2.2 Consumer Rating of Sales and Promotional Activities - -42

Table 4.2.3 Consumer Rating of Brand Name of Nigeria Breweries Products -43

Table 4.2.4 Consumer Response to Price In Relation To Value Deprived From          Consumption - - - - - - - - -44

Table 4.2.5 Consumer Rating of the Products Availability - - - -44

Table 4.2.6 Overall Rating Of The Performance Of Nigeria Breweries

        Products- - - - - - - - - -45

Table 4.2.7 Distributors Reasons for The Performance - - - -46

Table 4.2.8.1Personnel Score Of The Indices - - - - - -47

Table 4.2.8. 2Personnel Score Of The Indices (Innovativeness) - - -48

Table 4.2.9 Consumers Responds on Extent of Consumption Per Week -49

Table 4.2.10 Consumer Readiness To Continue Consumption- - - -49

Table 4.2.11 Consumers appraisal of the organizational product and

          Profitability - - - - - - - - -50

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Nigeria as a nation practices dual economy system and such allows both the public and private sector to participate in the ownership and control of the means of production. Consequently, many firms have spring up, some of which have folded up for one reason or the other. Some have also continued to flourish despite harsh economic conditions. Simply put  these firms either performed credibly well or did not.

Firms at inception desire to remain above each other by securing and commanding a large share of the market and to increase the life span of its product.  Hence, plans are made to ensure that these desires are accomplished. In the same vein, this plan made must be appraised (ie comparing the perceived performance (plan) and actual performance) to make it realizable. According to Pride and Terrell, the essence of product appraisal is to determine the present stand of the product. It it falls short of plans, correction measures can then be taken. For Kotler and Armstrong (2001), product appraisal is part of marketing control which deals with finding out what is happening, how it is happening and what is done about it. It is also the extent to which the product perceived performance matches the buyers and consumers expectations. If the performance falls short of their expectations, they are dissatisfied and if nothing is done, the firm may die off vis-à-vis.

It therefore becomes imperative and very essential to appraise the performance of a product.  

1.2 Statement of the Problem

Nigeria brewery limited is the leader in the brewery industry or market in Nigeria. The company has eight (8) operational breweries from which it products are distributed to all parts of the Nigeria. The company has a portfolio of high quality brands including Star, Gulder, Legend, Heineken, Goldberg, Malt gold etc. Most of the product s are packaged in returnable bottles and all products are now available in can. Most consumers in the market share prefers Nigerian Breweries product to other competing products. However, the researcher will be specifically concentrated to find out the actual performance of Nigeria Breweries product in the market. To determine the factors behind its performance, to find out why consumers prefer its products to other competing brands/products.

1.3 Research Questions

1. Have you tasted Nigeria breweries product?

2. How did you come to know about it?

3. How frequent have you consumed the product?

4. How did you see the taste and quality?

5. How would you rate the sales effort and promotional activities for the product?

1.4 Objectives of the Study

The general objective of this study is to appraise the performance of the company product in the market. However, the specific objectives are:

1. To determine the performance of Nigeria Breweries products in the market

2. To determine certain factors that is responsible for the products performance

3. To determine the importance of the product appraisal.

1.5 Research Hypotheses

The following hypotheses listed forms the framework on which this project/research work will be carried out. It consists of alternative hypotheses represented with H₁ and H₂ respectively. And Null hypothesis represented with H₀ and H₁ respectively.

H₀: The actual performance of Nigerian breweries products in the market is not satisfactory

  H₁: The actual performance of Nigerian breweries products in the market is satisfactory

H₀₂: The actual performance of Nigerian Breweries products in the market is not satisfactory as a result of its packaging, quality and taste etc

H₂: The performances are as a result of its packaging, quality and taste etc

1.6 Significance of the Study 

This stands for justification for carrying out this research. this study will be bound to benefits the researcher, the company under study and the reader of the work in the following ways:

1. This study will be carried out in the partial fulfillment for the award of bachelor of science degree in Marketing.

2. It will also enable the reader especially the alcoholic beverage producer (Nigerian Breweries PLC) enhance better knowledge of product appraisal and hence better management of their product etc.

1.7 Scope and Limitation of the Study

This study addresses the issue of product appraisal of the performance of the Nigeria Brewery PLC Enugu metropolis. The study examine the following aspects of the product taste, packaging, quality, features, profitability, market share, customer’s satisfaction.

The study will not cover the aspect of comparing the company Nigerian Breweries with other competing companies (Breweries). The researcher finds it difficult to obtain relevant information from the company as they complained that it entails revealing the company secret. Example information on the market share and profitability.

1.8 Definition of Terms

For proper understanding of this project work, is necessary to know the definitions of certain words that are used almost throughout the study.

1. Product: A product is anything that can be offered to a market for attention, acquisition used or consumption that might satisfy a want or a need. This could be tangible or intangible (services or ideas etc)

2. Total quality management: This simply means  a set of programs designed to improve the quality of product service and the entire market process of such product or service.

3. Product line: This refers to a group that are closely related because they function in a similar manner, sold to this same customer group; market through the same outlet and equally fall in the same price level.

4. Brand: This is a term, sign, symbol or design or a combination of any or the whole of those that identifies the product or service and the producer or seller.

5. Performance review: Refers to a stage in the business buying process in which the buyer rates its performance with the supplier deciding whether to continue or not modifying or drop them.

6. Customer Value: Customer value refers to the different between what the customer gains from owing, using or consuming a product and actual cost of obtaining such product.

7. Market: A market refers to a set of actual and potential buyer of a product or service.

8. Target Market: Target market is a set of buyers having common needs or characteristics that the company or market decides to satisfy.

9. Market Share: According to Kotler et al(2001) this is the percentage of the market whom the firms has captured their leisure and entertainment budget.

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