ANALYSIS OF EFFECT OF BRANDING ON CONSUMER PATRONAGE IN THE BEER MARKET; A STUDY OF NIGERIA BREWERIES, ENUGU, ENUGU STATE.

ABSTRACT

The study examined the effect of branding on consumer patronage in the beer market: a study of Nigeria breweries, Enugu State The objectives of the study to determine the impact of socio-economic characteristics, the respondents in designing marketing strategy; to identify the effect of branding in enhancing customer patronage;  to evaluate the significance of branding in influencing consumer buying behavior of beer. to analyze the effect of product branding in enhancing sales volume in beer products, the study used a sample size of 134 from a population of 200 using Taro Yamene’s method. A well structured questionnaire was designed and used for the collection of primary data for the study. The simple percentage, Chi-square and  multiple regression were used to analyze the primary data for the study. After the analysis, the study,  that product branding has positive effect in the sales and profitability of beer manufacturing industry, that branding has positive influence on the buyer behaviour of customers in the beer market, that product differentiation helps in achieving brand loyalty which reflects in customer loyalty and sales turnover (rate) in the beer market, that market segmentation complements product branding and differentiation in achieving better customer satisfaction in the beer manufacturing industries, that there are some problems encountered in the adoption of these three marketing strategies namely poor product design, high competition, high cost of marketing and distribution especially, poor or inadequate patronage, In respect to the conclusions drawn based on the statistical study and empirical evidence, the researcher made the following recommendations,  that product branding, product differentiation and marketing segmentation should be taken seriously in the beer manufacturing industries. This is because there is influx of numerous products in the beer market. Product differentiation will help not only attract customer preference, but will also enhance effective and efficient marketing with strategic market segmentation which enhance better customer satisfaction and efficient marketing, that strategic plan should be put in place to achieve effective product positioning. This implies that the product attributes namely shape, colour, quality etc that are used to differentiate (branding) the promotional efforts of advertising, personal selling etc should stress more on these attributes so as to attract preference to the product against that of the competitor, a good strategic market and marketing research as well as buyer behavior studies should be carried out by the marketers. Such marketing efforts will help to identify which product attributes will the buyers prefer, their quantity of purchases, their locations, their socio-economic and psychographic variables etc. All these are related profiles that will help to design strategic product branding and relative marketing programs not only to influence the buyer behavior, but also to achieve competitive advantage at the long run. the researcher also recommends for further research on this study area to enhance strategic innovations in the complementarily of product branding, product differentiation, market segmentation and product positioning; all will be geared towards efficient and effective marketing, not only in the beer markets, but in the general consumer market.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Mandell and Rosenbery (1981) defined 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 has consumed franchise that is, it commands strong consumer loyalty. This means that a sufficient number of customers 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 order to create strong global recognition and preference for its brand name.

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 Breweries, Enugu, Enugu  State as the case study, the following problems are identified.

Firstly, Nigerian Breweries is facing the problem of many competitors. The marketers of beer product are facing the problem of funding due to limited resources.

Secondly, Nigerian Breweries is facing the problem of infrequent promotion or advertising about the product. The product requires frequent advertising to register it permanently in the mind of the customers. 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 compensation plans and its impact on employee productivity and market performance are 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 respondents that affect product branding?

ii. How does branding influence  customers patronage?

iii. What is the significant rotation between branding and customer patronage?

iv. How does branding affect the sales volume of the company?

1.4 Objectives of Study

The major objective of this study is to analyze the impact of branding on customer patronage. However, the study seeks to achieve the following specific objectives;

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

ii. To identify the effect of branding on customer patronage;  

iii. To evaluate the significance relationship of branding and customer patronage of beer in the study area.

iv. To analyze the effect of product branding on enhancing sales volume in beer products.

v. To make recommendations based on findings.

1.5 Research Hypothesis

Hypothesis One:

H₀1: Branding has no positive effect on sales volume of beer product.

Hypothesis Two:

H₀2: Branding has no significant relationship on the customer patronage of beer.

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 services 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 the Study

For this particular study, Nigeria Breweries Enugu State 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 in the marketing of beer products.

1.8 Definition Of Terms

Brand:  Is defined a name, term, symbol, sign or a combination of these intended to identify the goods or services of one seller or group of seller and to differentiate them from those of competitors.

Brand loyalty:  Is a result of a consumer behaviour and is affected by a person’s preferences.  Loyal customers will constantly purchase products from their preferred brand regardless of conveniences or price.

Promotional mix:  Is the combination of personal selling, public relation advertising, sales promotion, sponsorship, direct mail and trade shows that are utilized in promoting a good or service.

Sales volume:  Is the quantity or number of goods sold or service sold in the normal operations of a company in a specified period.

Franchise:  Is a contractual association between a manufacturer, wholesaler or service who buys the right to own and operate one or more units in the franchise system.

Promotional strategy:  Is the method used to spread the world about your product or service to customers, stakeholders and the broader public.

Marketing communications consists of the messages and related media used to communicate with a market.

Media:  Is defined as non-personal communication channels including prints media (newspaper, magazines, direct mail), broadcast media (radio, television) and display media (billboard, sign, posters).

1.9 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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