ABSTRACT
The
history of marketing revolves around customers or consumer. This denotes that
the major reasons why products are produced are because of the consumers who
made the production process effective and efficient. Product differentiation is
used to separate the choice, test, want needs of the consumers so it become so
important that the segmenting differentiating product for easy identification
becomes the paramount need in the cosmetic industry. Product differentiation
has being found effective in the marketing world/environment because it
increase the sale of the product and provide consumers with the required
satisfaction they needed. Therefore companies should use the rightful means of
communication to ensure that the rightful strategy in differentiating product
will be adopted so as to satisfy the yarning of the consumers. Through the
process of differentiating product consumers problem will be solved, and the
rightful target and objectives including the goal of the company will be
achieved and customer’s satisfaction will be attained.
TABLE OF CONTENT
Title
page - - - - - - - - - i
Approval
page - - - - - - - - ii
Dedication - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table
of contents - - - - - - - vi-viii
CHAPTER ONE
1.0 Introduction - - - - - - -
1.1 Background of the study - - - - -
1.2 Statement of the problems - - - -
1.3 Objectives of the study - - - - -
1.4 Research questions - - - - - -
1.5 statement of hypothesis -
1.6 Significance of the study - - - - -
1.6 Scope of the study - - - - - -
1.7 Limitations of the study - - - - -
1.8 Definition of terms - - - - - -
CHAPTER TWO
2.0 Literature review - - - - - -
2.1 Introduction - - - - - - -
CHAPTER THREE
3.0 Research design and methodology - - -
3.1 Introduction - - - - - - -
3.2 Research design - - - - - -
3.3 Source/methods of data collection - - -
3.4 Population and sample size - - - -
3.5 Sample technique - - - - - -
3.6 Validity and reliability of measuring
instruments-
3.7 Method of data analysis - - - - -
CHAPTER FOUR
4.0 Presentation and analysis of data - - -
4.1 Introduction - - - - - - -
4.2 Presentation of data - - - - - -
4.3 Analysis of data - - - - - -
4.4 Interpretation of result(s) - - - -
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation -
5.1 Introduction - - - - - - -
5.2 Summary of findings - - - - -
5.3 Conclusion - - - - - - -
5.4 Recommendations - - - - - -
References - - - - - - -
CHAPTER ONE
1.0 INTRODUCTION
Product differentiation is a strategy and a
survival tool for effective penetration in every competitive marketing
environment, considering the fact, that product is the main thing that keeps
every production company going in every
business environment, product has being viewed as the major projector of every
companies capacity and capability mostly production companies, so how the
product determines how it will survive the competitive environment.
The aim of this chapter will be summarized
into three points as thus
First, to define those marketing terms
this will be used throughout this research work.
Secondly, to look into the impact of
product differentiation as a survival strategy in starline Nigeria limited.
Thirdly, to take a deep look at market
segmentation and also to specifically state the fact that the market is
heterogeneous.
1.1 BACKGROUND
OF STUDY
The
market as some marketers used to think of it, is not a group of homogenous
buyers but a group of heterogeneous buyer whose different attitude is in one
product for example some women apply cosmetics to draw alteration to themselves
while others apply to beautify themselves so the company will tailor her
product appeal to satisfy the needs of the fact that the market is always
heterogeneous led to the concept of “market segmentation”.
Market
segmentation is an establishment and acknowledged techniques for dividing a
mass market into identifiable sub-units in order that the individual needs if
buyers and potential buyer can be easily satisfied.
It
seeks to establish particular group or cluster of buyers.
Market
may be served with two different products, which are product standardization
and product differentiation. Product standardization is the decision to sell
the same type of product to the whole market without considering the
heterogeneous nature of the whole market (consumers) of the product. In
nutshell product standardization is an efficient method to reduce cost and
increase quality by minimizing the differences in your products, you are able
to rapidly increase production, streamline distribution, decrease raw material
cost and reinforce product branding.
This
could be achieve through standardizing the basic component, standardizing the
packaging of the product quality
It
is the use of one product and four mix for all market segment no attend is made
to cultivate various segment of the market place. Product differentiation is
the decision to produce two or more types of the same product but differentiate
in terms of stage, features, quality, size, price packaging so as to offer
variety to the market and distinguish seller products from competitors product.
it also take in consideration the heterogeneous nature of the market. Product
differentiation allows the firm to promote it product as different in quality
than other competing ones and this becomes the edge, which the firm has rather
gain than pries product differentiation is seen as that which treat each
consumer uniquely as reflected by above definition, product differentiation and
standardization are tools of market segmentation.
market
segmentation itself can be explained as the identification and dividing a
marketing into meaningful groups to buyers who might need separate product an
organization that decides to produce goods like cosmetics must recognize that
they can neither serve nor appeal to the total market with one product or one
marketing mix the idea is born out of the fact that the buyers to numerous,
widely spread and different in their purchase behaviour however, this study
will research into how effective, efficient product differentiation is employed
as a survival strategy in the competitive marketing environment of cosmetic
product, how it helps the profitability of the company. Its impact on the
market share of the company.
All
these with particular reference to starline Nigeria Limited Aba. The company
started as a simple proprietorship in mid metamorphosed into starline Nigeria
limited. In 1962 founded by Chief (Dr) Peter S. Owuma (Late). Starline Nigeria limited is a market leader in the
manufacturing of cosmetics in Nigeria.
Over twenty (20) products ranging from, Erato range, ultimate Elope range hair
product range, petrosa range, identical range hair product range and so many
others are currently in the market and highly differentiated to serve the whole
segment of the market and highly basically.
Example,
Erato Lotions identified as Erato skin Lintner for fair complexion in order to
cover the market segment.
1.2
STATEMENT
OF PROBLEM
Business fail these days because those
responsible for formulating strategies objectives lack the for-sight in
identifying the various psychological needs, and differences existing in those
markets the company is serving.
Once a product is doing well in the market, the
decision markets will assume that they are making 100% profit while having 100%
success market opportunity available to them.
Also, due to heavy cost involved in a distinct
product from existing once, there is always a problem of additional cost when a
firm wants to go into product differentiation.
For any business to succeed, it must have
in-depth knowledge of the market it is serving and must be able to move
strategies to satisfy the consumer of her product. Among the many strategies
that can be used are: After sales services, discount, product modification and
product differentiation.
The research work is aimed at suggesting way, a
company will lower the cost that scars firms away form product differentiation
so as to compete favourably with other products.
1.3
OBJECTIVES
OF STUDY
The main purpose of this research is to look into
the impact of product differentiation as a survival strategy in Star-line Nigeria
limited, the purpose of this study include:
a.
Examination
of the product differentiation on the competitive trend of Star-line Nigeria
ltd.
b.
To
determine the impact of product differentiation on the profitability of
Star-line Nigeria Ltd.
c.
To
determine the role of product differentiation strategies in Star-line Nigeria
Ltd.
d.
To identify
the problems of differentiation strategies in Star-line Ltd.
To recommend the best approach in applying
product differentiation.
1.4
RESEARCH
QUESTION
For the purpose of the research, the following
questions are formulated to assist the researcher identify the importance of
product differentiation as a survival strategy in the marketing of Star-line
cosmetics.
a.
Is product
differentiation being used in Star-line Nigeria Ltd.?
b.
What are
the bases of differentiating a product?
c.
Has product
differentiation any significant on the market share of Star-line Nigeria Ltd?
d.
Has product
differentiation any impact on the market share of Star-line Nigeria Ltd?
e.
What effect
does product differentiation have on the profit of Star-line Nigeria Ltd?
1.5
STATEMENT
OF HYPOTHESIS
Ho: product
differentiation has no significant effect on
the market share of cosmetic
product
Ho2
product
dedifferentiation increase the sale of cosmetics product
1.6
SIGNIFICANCE
OF STUDY
Any company producing highly competitive product
need to differentiate her product(s) from that of her competitors as well as to
be able to respond well to the challenges of the market place.
On competition, this research work would have
shed enough light to the prospects of product differentiation as a survival
strategy, this would apart from being useful to students, will also be useful
to business owners especially small business owners who will then learn that it
pays to differentiate one’s product as this policy will help increase the sales
volume, market share and profit.
The
government will also benefit from the fruit of this research since the
improvement of profit of the firm will then improve nation’s economy which will
then be a credit to the government.
1.7
SCOPE OF
THE STUDY
Because of the limited time allowed for this
research work and the need to produce a valid and relevant result, the work is
centered on just one organization-Starline Nigeria
Limited Aba,
Abia state. The researcher is faced with constrained during the source of
materials for this work, the research is expected to attend lectures, write
term papers.
1.8
LIMITATION
OF THE STUDY
This research work which deals with production
differentiation as a survival strategy in a competitive marketing
environment-Starline Nigeria
Limited was really affected by a lot of constraints.
The major problem encountered was the inability
to give adequate co-operation from the staff of the company, this made things
difficult for me to get data required in order to make my findings, this really
wasted my time during the research work.
Also finance acted as a hindrance during the
period of this study, cost of transporting for the number of day this work was
carried became a problem to me.
Time factor also contributed as there was time
given to carryout the research.
1.9
DEFINITION
OF TERMS
There are
some terms that must be defined in
project writing so as make the work complete and as well avoid the
misconception and this interpretation that may arise
·
MARKET MIX: This consist of four(4) major variables in
marketing, it serves as pillars that makes marketing stand well, they are
products, place price and promotion. Also called 4P’s and marketing elements.
·
PRODUCT
DIFFERENTIATION: It is the
decision of the management to produce mere types of the same product but
differentiated in terms of style, quality, packaging, size and colour.
·
STRATEGY: This refers to skillful plans by marketing
practitioners to take advantage of competitors in the market place.
·
PRODUCT
STANDARDIZATION: It is a tool
of market segmentation, which treats the whole market equal by producing the
same standard of product for the same (entire) market.
·
MARKETING: Is the management process for identifying,
anticipating and satisfying customer’s requirement profitably.
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