ABSTRACT
This research work examined The Effect of Branding on Consumer Patronage of Toilet Soaps. The problem addressed in this research is sales decline which is encountered by manufacturing firms, production of low quality goods and inadequate material handling system. Simple random sampling was adopted in selecting samples. The population although infinite ie unknown, 105 sample size was used and the Chi (X2) statistics estimated using a probit model. The major findings were that education and gender had significant effect on patronage of toilet soaps. And also branding has effect on consumer patronage. It was recommended that policies to enhance educational status be encouraged while males be encouraged to patronize toilet soaps to keep clean since cleanliness is next to Godliness.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Abstract vi
Table of Contents vii
List of Tables viii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 6
1.4 Research Questions 6
1.5 Research Hypotheses 7
1.6 Significance of the Study 7
1.7 Scope and Limitation of the Study 8
1.8 Definition of Terms 9
CHAPTER TWO
2.0 Review of Related Literature 11
2.1 Profile of Pz Industry Nigeria 11
2.2 Brand-brand Decision 13
2.4 Choosing a Brand Name 16
2.5 The Role of Branding on Customer 17
2.6 Decision on Branding 18
2.7 Manufacturer Brand 19
2.7 Distributors brand 21
2.8 deciding corporate branding strategy 23
2.9 Brand Loyalty 26
2.11 Brand manager’s relationship in the company 28
2.12 Brand management and market share attainment 31
CHAPTER THREE
3.0 Research Methodology 33
3.1 The Design of the Study 33
3.2 Area of the Study 33
3.3 Population of the Study 34
3.4 Determination of Sample Size 34
3.5 Method of Data Collection 35
3.5.1 Primary Data Source 35
3.6 Method of Data Analysis 36
CHAPTER FOUR
4.0 Results and Discussions 38
4.1 Socio-economic Characteristics of the Respondents 38
4.2 The Relationship Between Price of Products and
Quality Used 39
4.3 Effect of Socio-economic Characteristics of the
Respondents patronage of Pz toilet soaps in Aba 40
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation 43
5.1 Summary 43
5.2 Conclusion and Recommendation 45
5.3 Suggestions for Further Studies 46
References
Appendix
LIST OF TABLES
Table 4.1: The distribution of the socio-economic profile of the respondents
Table 4.1: The relationship between price and quantities purchase
Table 4.3: The maximum likelihood estimate of the effect of socio-economic profile on the respondents patronage of Pz toilet soaps.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
An important factor in marketing success of any industry is the product identification by their customers. The product and branding are the important component in marketing. They determine the success or failure of the producing firm.
According to Lamb Hair and Mc Daniel (2000.) product is anything both favourable and unfavourble that a person receive in exchange. A product can be tangible or intangible. It is anything that could be offered to a market for their attention, acquisition and consumption that might satisfy their wants and needs (Kotler 1981).
Nwokeye (1981:) define the product as a bundle of physical and psychological satisfaction that a buyer receives from a purchase which may include physical objectives, services, personality, place or organizations and ideas that is quantitative and qualitative. Bush and Huston (1985:) defined a brand as a name, a term, sign, symbol, design or combination of them which identifies a product, goods or services of one seller, group of sellers and differentiate them from those of competitors.
Mandell and Rosenberg (1985) defined a brand as a name, sign or design that identifies a product and differentiates it from that of the competitors. It is a distinctive name or mark on a product which can be used to identify and differentiate it from others in the market.
Product industries in Nigeria like Pz cussons Nigeria Plc, Lever Brothers Nigeria Plc (which is now known as Unliver Nigeria Plc), Avon Cosmetic Nigeria Ltd. have their product and product brands. Branding which constitute vital engine to the growth and development of Pz industry Plc. The problem still remain on what roles branding plays and its effects on consumer patronage of toilet soaps of Pz industry.
Product branding is considered to be self discipline that is applied in building a name for the organization. In today’s fast-paced world, Pz industry is more important than ever to promote recognition of a product. If they are remembered as a quality producer, then they would be encouraging repeated business or purchase from the consumers.
Branding is a great way to promote this recognition because customers are busy and tend to adhere to familiarity. A satisfied customer will increase the sales volume of the industry. It has been demonstrated that patronage by regular customers tends to lessen the enterprises cost in terms of advertising and promotion.
1.2 STATEMENT OF THE PROBLEM
Over time pz industry has been experiencing reduced The problem of sales decline in industries is most encountered by production companies and they should take corrective measures so as to increase the company’s sales volume which will enable them to remain in business. The inability of the production company to increase its sales and profit margin will lead to it extinction which will detrimental to both staffs, customers and the entire economy.
Pz industry is faced with problems like all other companies. A critical study on the effect of branding on consumer patronage of its products (soaps) reveals the following problems:
Poor funding
Employment of unskilled staff
Production of low quality goods
Inadequate material branding system
Improper use of distribution channels.
Poor Funding
The industry is not properly funded with adequate resources which will improve the products like poor motivation of works in making sure that all works are put in place.
Employment of Unskilled Staff
Most industries instead of hiring qualified and skilled staff, they hire unskilled staff to do the work of professionals thereby achieving a low return of income. To achieve the maximum satisfaction of the job, the staff should be trained properly for efficient results.
Production of Low Quality Goods:
These occur as a result of inexperience staff being refer to wing departments to the work that they are not properly trained and as a result of producing inferior goods that does not have value in the market.
Inadequate Material Branding System
In selecting the materials that would be used for the branding of the product, some factors need to be taken into consideration so as to create an excellent picture in the eyes of customers about the branding system of the product.
Improper Use of Distribution Channel
Problem of good delivery is mainly dependent on the poor distribution channel like when poor machines are not put in place for easy transportation of the products/goods.
Labour dispute between companies and their employees or reductions in force due to the shift of labour off-shore: The reputation of the industry has been marred by low wages and less than desirable working conditions. The above mentioned problems are not without solution. The industries need to recreate a positive image of manufacturing.
1.3 OBJECTIVES OF THE STUDY
The broad objective of the study is to examine the effect of branding on consumer patronage of pz cussons toilet soaps .The specific objectives are:
1. Examine the socio -economic characteristics of the respondents.
2. Determine the relationship between price and the quantity of soaps purchased.
3. Estimate the effect of socio-economic characteristics on the patronage of pz toilet soaps.
4. Examine the effect of brand features like fragrance, size, colour, packaging and shape on the purchase of the different brands of pz soaps.
5. Make recommendation based on the findings.
1.4 RESEARCH QUESTIONS
What roles does branding play in sales of toilet soaps in the company.
What are the benefits of branding of toilet enjoyed by the company.
In what way does branding of a product create awareness to the public.
What is consumer behaviour towards branding of a product.
1.5 RESEARCH HYPOTHESES
The following hypotheses were formulated and tested in the study:
H01: branding has no significant effect on customer patronage of Pz products.
H2: Branding has significant effect on customer patronage of Pz product.
H3: socio-economic variables have significant effect on consumer patronage on Pz product.
H4: socio-economic has no significant effect on customer patronage of Pz product.
1.6 SIGNIFICANCE OF THE STUDY
This research work is of significant to the researcher because it is to the fulfillment of her Bachelor Degree in Marketing. It will also help her in gathering more ideals and information through consulting and going through the research work of different authors.
The result of this research work will give the researcher, industries and the general public at large the insight into the problem of branding in the manufacturing industries and the various methods which has been adopted to overcome the problem of branding.
The research would be useful to PZ industry Plc on:
Assessing it’s achievement in implementing branding concept or brand management concept.
Knowing the level of brand that customers will be willing to patronize from time to time.
Being on a better position to meet and face the challenges ahead.
The work will also be significant to other researcher especially students because it will serve as a reference materials or secondary source of data in the course of their study.
1.7 SCOPE AND LIMITATION OF THE STUDY
This research work hopes to cover PZ industry. We would limit our research at Aba one of their quarters since we cannot be able to cover every branch in Nigeria.
Perfection eludes every man and no man’s activity or exercise is error free. Virtually all researcher face constraining factors which may likely constitute a limitation and this particular research of mine is no exception.
As such, those limitations could be as follows:
Time Factors: Not enough or sufficient time to go about gathering data for the study.
Information Gathering and Human Factors: It was not possible to gather all the data needed in the research. For instance information or data from respondents.
Finance: A research of this magnitude take a reasonable amount of money. Inadequate funding may result to difficulty in sourcing quality data or information. The cost of transportation and communication.
Lack of co-operation: Most of the people interviewed showed little or no co-operation when given the questionnaire.
1.8 DEFINITION OF TERMS
The following terms were used in the course of the research. They are defined as below:
Brand: Is a name, term, symbol or special design or some combination of these elements that is intended to identify the goods and services of one or a group of other sellers.
Brand Design: This is the unique shape of the design that makes it easy for customers to identify products in the midst of other connecting features.
Brand Name: This is the segment of the brand that can be pronounced.
Management: This means job of planning, organizing and controlling any enterprise particularly a business.
Strategy: The process of determining how business will make ,the best possible use of its resources.
Product: A product can be defined as any thing of value (tangible or intangible) that could be offered to customers for their attention, acquisition and consumption for the purpose of satisfying their needs.
Generic Brand Name: This is a descriptive name of a particular product ie it is the outstanding brand name for the original product and has been promoted so well that many people ask them generally whereby people associated their name with the product and with the producers, owners of the products.
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