THE EFFECT OF BRANDING AND TRADEMARK ON SALES VOLUME OF COCA-COLA DRINKS (A STUDY OF NIGERIA BOTTLING COMPANY, OWERRI)

ABSTRACT

Product branding and trademark has become one of the major tools for enhancing efficient marketing in the present competitive market.  This study, therefore delved into the investigation of the effects of branding and trademark on sales volume of coca-cola products in Owerri, Imo State.  The major objective of the study was designed to evaluate the effect of socio-economic variables of the respondents, and how these and promotional strategies can influence the buying decisions of the target market.  In the research process, a sample size of 133 was adopted from the population of 200, using Yaro Yamen’s method.  Data were collected with questionnaire, analyzed with simple percentages and presented in tables.  The study hypotheses, were that socio-economic characteristics, pricing, promoting strategies and sales volume were not affected by branding and trademark.  However, these hypotheses were tested using multiple regression and chi-square.  It was concluded, after the analysis, that product branding and trademark affects the company sales volume and profitability.  Thus, the study recommends that contemporary firms should adopt product branding and trade mark.  This is because it does not only have positive effect on sales volume and profitability, but also in gaining competitive advantage.

TABLE OF CONTENTS

Title page - - - - - - - - i

Declaration - - - - - - - ii

Certification - - - - - - - iii

Dedication - - - - - - - - iv

Acknowledgement - - - - - - v

Table of Contents - - - - - - vi

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

Abstract   - - - - - - - - x

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study - - - - 1

1.2 Statement of Problems - - - - - 2

1.3 Research questions - - - - - 3

1.4 Objectives of Study - - - - - 3

1.5 Research Hypothesis - - - - - 4

1.6 Significance of Study - - - - - 4

1.7 Scope of Study - - - - - - 5

1.8 Limitation of the Study - - - - - 6

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Theories Relevant to the Study - - - - 7

2.2 Brand Management - - - - - 9

2.3 Brand Name Decisions - - - - - 14

2.4 Fundamental Requirements in Selecting a Brand

name and Trademark - - - - - 16

2.5 Benefits of Application of Product Branding Trademark 17

2.6 Environmental and Social Challenges of Branding

on the Consumer Behavior - - - - 19

2.7 The Role of a Product as an Effect of Branding 19

2.8 Promotional Advantages of Branding through

Utilitarian Appeal - - - - - -   20

2.9 The Role of Price in Brand Evaluation and Management   21

CHAPTER THREE

RESEARCH METHODOLOGY

3.1  Research Design - - - - -  23

3.2 Area of Study - - - - - -  23

3.3 Data Sources - - - - - -  26

3.3  Population of the Study - - - -  26

3.4 Sampling Plan - - - - - -  27

3.5 Sample Size - - - - - -  27

3.6 Administration of Instrument - - - -  28

3.6.1 Questionnaires - - - - - -  28

3.7 Validity and Reliability - - - - -  29

3.8 Data Presentation and Analysis Percentages -  29

3.9 Description of Data Analysis Instrument - -  29

3.10 Data Analysis and Hypotheses Testing - -    30

CHAPTER FOUR

DATA ANALYSIS AND HYPOTHESIS TESTING

4.1 Questionnaire Administration - - - -  32

4.2 Socio-economic Characteristics of Respondents -  33

4.3 General Data Gender - - - - - -  35

4.3 Hypothesis Testing - - - - -  44

4.3.1 Hypothesis One - - - - - -  44

4.3.2 Hypothesis Two - - - - - -  46

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary - - - - - - -  50

5.2 Conclusion - - - - - -  51

5.3 Recommendations - - - - -  52

References

Glossary

Questionnaire

LIST OF TABLES

Table 4.1: Questionnaire Administration - - - - 32

Table 4.2: Qn.1: Sex of respondents - - - - 33

Table 4.3:Qn. 2: Age of respondents - - - - 33

Table 4.4: Qn. 5: Educational Qualification - - - 34

Table 4.5: Qn.6: Household size - - - - - 34

Table 4.6: Qn.1: The products of your company - - - 35

Table 4.7: Qn 2: Whether your products have Trade Marks - 35

Table 4.8: Qn. 3: Whether your company applies branding - 36

Table 4.9: Qn. 4. The brand names of your products   - - 36

Table 4.10: Qn. 5:Whether your company encounters

any problem as a result of product branding - 37

Table  4.11:Qn:6: Whether your company apply market segmentation  

in the marketing of your products - - - 37

Table 4.12: Qn 7: Identify the bases used - - - 38

Table 4.13: Qns 8 and 9: Problems encountered as a result of

market segmentation - - - - - 38

Table 4.14: Qns 11 and 12: The adoption of product differentiation

and product feature used - - - 39

Table 4.15: Qn 13: Whether product differentiation is a competitive

tool in the marketing of coca-cola products - 39

Table 4.16: Qn 14: The strongest influence in choosing the

(product) brand of your choice - - - 40

Table 4.17: Qn 15: Any positive relationship between product

branding and customer loyalty - - 41

Table 4.18: Qn 16: Does it increase sales - - - 41

Table 4.19: Qn 17: Monthly turnover - - - - - 42

Table 4.20: Qn 18: Initial capital invested - - - 42

Table 4.21: Qn 19: Whether product branding increases                 profitability and the rate - - - - 43

Table 4.4.1: Estimate of monthly Marketing Expenditure - 43

Table 4.4.2: Summary table of regression results of product branding and relative factors that influence              monthly sales (turnover) and profitability in the cosmetics manufacturing firms - - 45

Table 4.4.2 Observation frequency - - - - 47

Table 4.3.3 Expected Frequency - - - - 48

Table 4.3.4 Contingency Table - - - - 48

CHAPTER ONE

INTRODUCTION

1.2 Background of the Study

Mandell and Rosenbery (1981) defined the term brand as the name, sign or design (or combination of the three) that identifies a particular product or product line and distinguishes it from its competitors.  It is also a name, term, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand is thus a product or service that adds dimension and differentiate it in some way from other products or service designed to satisfy the same need. These differences may be functional, rational on tangible related to product performance of the brand (Anyanwu, 2000).

A powerful brand name have consumed franchise that is, they command strong consumer loyalty. This means that a sufficient number of customer demand these brand and refuse substitutes even if the substitutes are offered at lower prices. Companies that develop brands with strong consumer franchise are insulated from competitions promotional; strategies. Thus, it is necessary for a supplier to invest heavily in other to create strong global recognition and preference for its brand name and trade mark.

Also, the increased competitive nature of the market makes it obvious that the most possible means of achieving quick sales response is to embark on product branding.

The external factors consist of rate of product proliferation with associated problem of maintaining brand loyalty, poor economic condition has promoted consumers to seek for price reductions and decrease in advertising efficiency due to media-clutta and government regulations.

1.2 Statement of Problems

Product branding is one the major areas that constitute marketing efforts that are directed to enhance not only customer satisfaction, but also to achieve competitive advantage in the consumer market. However, the use of branding to achieve these in the contemporary market has been facing a lot of problems. Using Nigerian Bottling Company Owerri as the case study, the following problems are identified.

Firstly, Coca-cola is facing the problem of fund and many competitors. The marketers of coca-cola drink is facing the problem of funding due to limited resources.

Also, the influence of substitute product brand in the soft drink industry constitute headache to the marketers of coca-cola.

Secondly, Coca-cola is facing the problem of not creating awareness for people to know more about the product. Marketing communication and promotional strategy that is always directed to not only to create awareness but to influence the consumer behavior so as to gain competitive advantage is not usually easy. Therefore, media choice and designing the promotional mix constitute a problem to the marketers.

Also, Workers motivation and relative compensation plans and its relative impact on employee productivity and market performance is always difficult to measure.

This study is poised to investigate these problems and then find solutions.

1.3 Research questions

i. What are the socio-economic characteristics of the target respondents?

ii. Does pricing guide your buying decision?

iii. Do the promotional activities affect the choice of coca-cola?

iv. Does branding or trademark boost the sales volume of the company?

1.4 Objectives of Study

The major objective of this study is to investigate the impact of branding and trademark on sales volume of coca-cola drinks.

However, the study seeks to achieve the following specific objectives;

i. To determine the impact of socio-economic characteristics in designing marketing strategy;

ii. To identify the effect of pricing in enhancing customer patronage;  

iii. To evaluate the significance of promotional mix in influencing consumer buying behavior of coca-cola driks;

iv. To analyse the effect of product branding in enhancing sales volume in coca-cola drinks.

v. To make recommendations based on findings.

1.5 Research Hypothesis

Hypothesis One:

H₀1: Branding and trademark has no positive effect on sales volume and productivity of coca-cola drink.

Hypothesis Two:

H₀2: Branding and trademark has no significant relation on the buyers bahaviour of consumers of Coca-cola products.

1.6 Significance of Study

The study will make the following contributions to the understanding of the subject matter. Branding identifies and helps to differentiate the goods or service of one’s seller from those of another. It consists of a name, sign, symbol or some combination thereof. A brand name is the park that can be vocalized, such as symbol, design and the pills bury dough body.

Brand is important to customers because it simplifies shopping facilities, process information concern with purchase option, provide ,confidence that the consumer has made the right decision, help to ensure quality and often satisfies certain status needs.   

Branding also benefit sellers by enhancing the effectiveness of their marketing programs. Particularly those concerned with promotion. Brand loyalty which in turn leads to greater profitability since it costs less to retain customers than to acquire one.

1.7 Scope of Study

For this particular study, Nigeria Bottling Company Owerri is our focus as it will be used as representation of other companies, industry and much emphasis would be focused on objectives.

The findings will give the reader an idea of branding and trademark in the marketing of coca-cola drinks.

1.8 Limitation of the Study

There are many limitation been encountered by the researcher during the period of getting information and that has affected this work adversely.  The first difficult task was how to combine the writing of this work and preparation of my exams.

Secondly, lack of finance and resources also restricted this research work to an extent.  The writer inspite of the account on the difficulty encountered, returns all glory to God.

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