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.
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
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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