ABSTRACT
The research study was aimed at appraising the promotional strategies of 7up Bottling Company with special emphasis in Aba plant. It also tried to find the significant elements, which consumers hold seriously to and those which discourage consumers in their choice of 7up product. The study moves ahead to evaluate those promotional strategies that were helpful to marketing manager and those ones that was grossly inefficient and run counter to the appeals and objectives of the company. In carrying out the study, one hundred and fifty (150) copies of the questionnaire were administered to consumers of 7up products in Aba and 125 were returned and 10 copies to management of Nigerian Bottling Company. Oral interview was conducted with the management of the company to accommodate some questions that could not be conveniently included in the questionnaires. After the data analysis, it was found that consumers receive the company’s promotional messages in this order, advertising, sales promotion, personal selling, publicity and exhibition and also the consumer’s receives the media message this way; radio, television and rest of others. In other words, there was no synchronization between what the company claims it does and what the consumers receive. It was found that the company’s advertising recall level was not the scarcity and relative high prices of its products while its major strengths were quality and popularity of its products. Aba plant has public relations department but it is not effective. Finally, we recommend what we considered appropriate measures that would enhance the company’s sales methods such as advertising, personal selling, publicity, public relations, sales promotion and exhibitions. Since beautifully designed promotional strategies are not substitutes for bad products, we also proffered some recommendations that bother on the company’s products and target markets.
TABLE OF CONTENTS
Dedication i
Acknowledgements ii
Approval iii
Table of Contents iv
Abstract vi
CHAPTER ONE
1.1 Background of the Study 1
1.2 Statement of Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Research Hypothesis 4
1.6 Significance of the Study 4
1.7 Scope and Limitations of the Study 4
1.8 Definition of Terms 6
CHAPTER TWO
2.1 Review to Related Literature 8
2.2 Theoretical Background 8
2.2.1 Promotion 8
2.2.2 Strategies 9
2.3 The Promotional/Communication Mix 10
2.3.1 Advertising 11
2.3.2 Personal Selling 14
2.3.3 Sales Promotion 16
2.3.4 Product Promotion 17
2.3.5 Propaganda 17
2.3.6 Publicity 18
2.3.7 Public Relations 18
2.4 Review of Related Project Works 19
CHAPTER THREE
3.1 Research Methodology 23
3.2 Research Design 23
3.3 Sources of Data 23
3.4 Population of the Study 23
3.5 Determination of Sample Size 24
3.6 Sampling Procedure 25
3.7 Selection
and Construction of Research Instrument 26
3.8 Administration of Research Instrument. 27
3.9 Method of Data Analysis 27
CHAPTER FOUR
4.0 Data Presentation Analysis 29
Hypothesis 39
CHAPTER FIVE
5.1 Summary of Findings 45
5.2 Recommendation 45
5.3 Conclusion 47
References 49
Questionnaires 50
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study
The
soft drinks manufacturing industries in Nigeria has enhanced consumers’
preference in consumption from various brands available, companies have been
forced to employ marketing tools to attract, retain customers to have large
portion of the market base.
Influx
of other soft drink industries into the market has made management to formulate
effective and efficient promotional strategies to outwit their competitors,
some of these promotional tools are advertisement, personal selling, sales
promotion, publicity and public relation, handling these tools efficiently can
make or break a company positioning in the market. Consumers of soft drink
desires are insatiable and to remain a pace seller in the market, marketing
managers must research the entire market or segment market to drink resources
to adequately meet their functions to retain active customers and convince
potential consumers to become active customers of the product. Falling oil
price and economic conditions adversely affects the disposal income of people,
these have reduced their consumption and spending power, therefore, soft drinks
is longer a priority of the average, so, company management need to strategize
on how to persuade the average consumer using one or more of the promotional
tools to entice them to keep patronizing their product offer.
The
world as a global market is competition motivated in the strive for survival
based on acceptable profit margin. The target market is obsessed with desire
for new and distinctive promotion offer to command brand loyalty. To satisfy
the market as means to profitable operation, companies are continually
challenged to turn out strategies for their product. While pointing out some
strategies adopted by some of these soft drinks companies, it may discover they
are wholesome, while others run contrarily to communication appeal, strategies
are sometimes based on appeal and as such, consumers are sentimental towards a
product. Promotional strategy could run amok, when an advert on a billboard
shows a nude lady holding a drink, such advert are unethical and run foul to
the code and conduct of marketing. The objective may be to attract attention,
but such strategy shows promoting ill- vice to the society and some religion
frown severally to these kind advert in their region. It will not only smear
the image of the company product to these people, but will lead to loss of
customer, waste of resource and time.
The
focus of study which is 7up Company, Plc, makers of Pepsi product, one of the
leading companies in soft drink manufacturing industry in Nigeria and world
over. However, being a leading company, competitors are always strengthening,
innovation and market intelligence to challenge the company product in the
market, 7UP must keep employing promotional strategies for strengthening and
awareness campaign in other to retain its position, consumer and market, and
profit margin. Therefore, management must carefully give priority to
formulating market research, communicating a well-planned and designed format
in promotional strategy, to be effective and efficient in adopting its sales of
various branded product.
1.2 Statement of Problem
The
7up company, Plc, was incorporated as a private company in November, 1991 to
establish and operate factories for the bottling and distribution of soft
drinks in Nigeria particularly the world famous products produced by the parent
company in the U.S.A. The company whose
operation is presently spread throughout the country has many factories in
major cities in Nigeria, like Lagos, Aba, Kaduna, Kano, Onitsha.
The
company has challenges spanning from competitors of similar brands of soft
drinks, consumer brand loyalty, consumer motivation to purchase, market shares,
market base and profit margin has become a problem to 7UP Company Plc., in the
country, therefore, the adoption of promotional tools to effect and influence
the target market is necessary in tackling these fundamental issue in order to
keep its leadership position in the market. This above problem led the research
to examine extent of awareness and competition in soft drink market and
promotional strategies that are adopted by 7UP Company Plc.
1.3 Objective of the Study
The
major objective of this research is to determine the promotional strategies
adopted.
Specific
Objectives are;
1. determine
how the company uses each of the promotional tools available to them.
2. determine
which promotional tool and medium the company uses most frequently in reaching
the target audience.
3. determine
the effectiveness of the advertisement in terms of creation of awareness and
recall level.
4. determine
whether the company has adequate budget to meet the promotional demand of the
company.
1.4 Research
Questions
1. How
often does the company make use of promotional tools in selling of their
product?
2. Which
of the promotional tools does company make use often?
3. What
is the effectiveness of advertising in selling your product?
4. Does
the company make adequate budget to meet the promotional needs of the company?
1.5 Research Hypothesis
H01: The Company does not often use
promotional tools in selling their products.
H02: The Company does not use any specific
tool and medium in reaching their target audience.
H03: Advertising does not create awareness
in buying the company’s product.
H04: The Company has no adequate budget to
meet the promotional needs of the company.
1.6 Significance of the Study
At
this point, it may be asked why the researcher has chosen to spend valuable
time, effort and energy in working on this topic title: An Appraisal of the
Promotional Strategies Adopted by 7UP Company Plc. Promotional strategy is
essential for growth and survival of any company in production of product.
The
purpose of this study will be beneficial to 7UP Company for further research,
individuals and students can also take points in their various research
analyses on the topic. Firm and companies can find it useful for their
strategies, planning and organizing, even the general public has certain key
points to adopt in the improvement of social well-being.
1.7 Scope and Limitations of the Study
Scope
of study simply means where the research is expected to cover. 7up company, Plc
has several plants throughout Nigeria but this study is directed mainly to Aba
plant located in Abia state. The researchers were made to understand, the 7up
company, Plc, Aba plant control 65% of the market share of soft drink market in
Aba, which highlights the company as a market leader. The researcher also
gathered from the sales manager that the main customers of their product were
the younger ones of the school age, teenagers and adults. Since the company’s
sales promotional emphasis is targeted to young people, it becomes inevitable
to conduct the research within the post-primary and post-secondary school
levels. To descend below the post primary would be problematic, as the kids
could not complete the questionnaire. And to ascend above the post-university
would be faced with the problem of consumers who consume less of the product.
One may argue what of those outside Abia? Aba, the area of study has a large
number of student populations which we believe is representative of the sample.
Although, the research will be conducted adequately, it will however have some
short-comings such as:
1. Areas of coverage: 7up
Company has several plants scattered all over the country, but the study was
carried out on only one plant Aba. Aba plant, itself, covers many areas out of
which only Abia urban were covered in this research. Most of its promotion is
done at national level, therefore, researchers findings at Aba plant may fairly
serve for generalization, although not an ideal condition.
2. Excess literature –
promotional strategy is a field: many authors have
published bid and comprehensive volumes. There was the problem of extracting
from the lot, data that are relevant to the project, as the researchers do not
go into many details of accumulated data over the years.
3. Time Constraint:
To do adequate justice to a research of this nature would have required
enormous expenditure of time. A research of this magnitude would require about
seven to eight months of uninterrupted study to cover it adequately but very
few months were given coupled with final year academic work and nature of the
semester system. In other words, a major constraint to the investigation was
the short time given for conducting and reporting of this investigation. It is
believed that subsequent researchers will continue from where we stopped.
4. Financial Constraints:
As a result of economic hardship in the country, the researchers do not have
enough money with which to carry out the study.
5. Bureaucracy:
Because of office bureaucracy or red tapism and anti-research attitude of
Nigerians, difficulty will encounter in getting information needed for this
project.
6. Sample Size:
The researcher encountered the problem of reaching a reasonable sample size of
the population in order to have actual and genuine opinions. Despite the above
constraints, the researcher is confident that the final report has a good
degree of validity and reliability.
1.8 Definition of Terms
To
enhance the understanding of this project, the researcher has taken time to
explain the following terms:
1. Promotion Mix: This
includes the elements of promotion which are employed in combination to achieve
an organization goals and objective.
2. Personal Selling:
A kind of seller’s promotional activity conducted on a person-to-person basis
with the buyer.
3. Adverting: Impersonal
selling of goods and services, ideas or policies usually done through the mass
media such as radio, television etc and which are fully paid for.
4. Consumer: An
individual who is the final user of a product or services. He may buy or may
not buy but has the capacity to consume.
5. Media:
Media refers to the different types of vehicles or services by which
advertising messages reach the audience.
6. Sales Promotion:
It’s a short term incentive aimed at encouraging purchase of sale of a product
or service.
7. Public Relations;
This is the activities of 7up that helps in building and maintaining sound and
productive relation most often it is interwoven with publicity which is
non-personal stimulation of demand for a product, service or business unit by
planting commercially significant news about it in a published media or
obtaining favourable presentation of it upon radio, television or stage that it
is not paid for by the sponsor.
8. Promotional Strategy:
It is a controlled integrated programme of communication method and materials
designed to present a company and its product to prospective customers.
9. Promotion:
The marketing communication undertaken to accept ideas, concept or things.
10. Population:
The entire universe or area in which the research is to be conducted.
11. Sample:
A small group of universe which the research is taken in other to generalize.
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