ANALYSIS OF MARKETING EFFICIENCY ON MARKET PERFORMANCE OF SELECTED TABLE WATER FIRMS IN OWERRI IMO STATE

ABSTRACT

This study delves into the impact of marketing efficiency on the market performance of selected table water firms in Owerri, Imo State, Nigeria. Focusing on APPEX Table Water and HOLY FAMILY Table Water, the research aims to understand how marketing efficiency influences sales volume, market share, profitability, and the effects of poor marketing infrastructure on overall market performance.

Using a survey research design, data was collected from a population of key staff and functional heads from both table water firms, totaling 100 individuals. A sample size of 80 was determined using Taro Yamane's formula, and data analysis involved the use of tables, frequency, simple percentage methods, and Pearson product moment correlation coefficient.

The findings reveal several significant insights: There exists a significant relationship between marketing efficiency and market performance of table water firms. Efficient marketing practices contribute positively to sales volume, market share, and overall profitability. The cost of production significantly influences the profitability of table water firms. Reducing production costs while maintaining quality is essential for maximizing profits. Poor market infrastructure adversely affects the market performance of table water firms. Investments in marketing infrastructure and distribution networks are crucial for enhancing market performance.

In conclusion, marketing efficiency plays a vital role in the performance of table water firms, directly impacting sales volume, market share, and profitability. Improving marketing efficiency through training programs and investment in infrastructure is essential for enhancing overall market performance.

Based on these findings, the following recommendations are proposed: Table water firms should prioritize marketing efficiency programs and staff training to improve performance. Efforts should be made to reduce production costs while maintaining product quality to maximize profitability. Investments in marketing infrastructure and distribution networks are necessary to overcome the challenges posed by poor market infrastructure. Firms should focus on effective distribution strategies to ensure efficient product delivery and maximize market penetration. Perception management and strategic marketing efforts should be employed to enhance brand visibility and attract customers in a competitive market environment.

By implementing these recommendations, table water firms in Owerri, Imo State, can enhance their market performance and competitiveness in the industry, ultimately leading to sustained growth and profitability.

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1   Background of the study

1.2   Statement of the Problem

1.3   Objectives of the Study

1.4      Research Questions

1.5   Research Hypotheses

1.6   Significance of the Study

1.7   Scope of the Study

1.8   Limitations of the Study

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1   Conceptual Framework

2.2   Theoretical Framework

2.3   The impact of strategic purchasing on supply chain performance of the Table water industry

2.4   Marketing Efficiency and Market Performance of Table Water Firms

CHAPTER THREE

RESEARCH METHODOLOGY

3.1   Research Design

3.2   Area of the Study

3.3   Population of the study

3.4   Sample Size Determination

3.5   Method of Data Collection

3.6   Sources of data collection

3.7   Data Analysis Techniques

3.7.1 Model Specification

3.8   Validity of instrument used

3.9   Reliability of the instrument used

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1   Data presentation

4.2      Test of hypothesis

4.3       Discussion of findings

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1   Summary of Findings

5.2   Conclusion

5.3   Recommendations

REFERENCES

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Today, access to improved water supply is a major challenge in the world. Although significant progress has been recorded in terms of number but practically more than 780 million people globally lack access to improved drinking water sources (UNWDWP, 2012). In Nigeria, the current water supply service coverage is 58 per cent, which covers only about 87 million people and implies that more than 73 million Nigerians lack access to potable water (Beamon, 1999). This a development which has encouraged alternative sources of improved water supply and distribution; and has opened up huge market opportunities for many businesses to package water in readily available sachets and bottles, competing side by side (Beamon, 1999). Today, drinking of packaged water has become essentially part of our culture. According to NAFDAC (2014), the daily consumption expenditure on water in Nigeria has hit 10 billion from 8 billion Naria in 2013. 

The increase in demand for table water in recent times was bolstered by the rising health awareness among consumers, and the inadequate performance of public utilities providers which has led to lack of public supply of safe drinking water in the cities, and rural areas. Rising disposable incomes, new launches (particularly cheaper domestic brands), promotional activities and increase in formal education have also impacted positively on the demand for packaged water (NADFAC, 2014). Marketing efficiency is considered to be a pre-requisite for prompt delivery of goods. Prompt delivery of goods at a reasonable price is possible only when the market work in a competitive way; because absence of competition entrench inefficiency. It is expected that marketing efficiency will address the issue of efficiency and enhance overall welfare of consumers, since there is no room for a firm which is inefficient and ineffective in marketing (Roll, 2008). The degree of efficiency is often a criterion by which marketing performance are measured. The objective of being efficient and effective is to get loyal customer at low marketing cost and consequently increase profit. According to Adirika (1997), marketing efficiency is necessary because consumers derive the greatest possible satisfaction at the least possible cost. To the consumer, marketing efficiency may mean getting his commodities at the lowest price while from the producer’s perspective; it may imply selling at the highest price. For this study, marketing efficiency therefore refers to the movement of goods and services from the producers to consumers at the lowest price consistent with the provision of the service consumer’s desire/demand (Cox, 1996).  The efficiency of the marketing system has a link with customer welfare and by implication overall economic development of a country. Efficiency is an important factor of productivity growth as well as stability of production especially in developing economies (Ogbuji, 2008).

Marketing efficiency and performance are often regarded as synonymous. They are hinged on the overall economic performance of a firm based on its marketing activities that result in cost and can affect its long run profitability (Kiser, 1976).

1.2 Statement of the Problem

The growth in table industry is expected to rise surpassing its total volume Compound Annual Growth Rate (CAGR) relapse of 7% between 2011 and 2012 (Euromonitor, 2012). Although the industry has grown exponentially, it is yet to fully maximize its potential given that it is constrained by inefficient marketing system. The marketing of packaged water is characterized by poor marketing infrastructure, inadequate or low level of understanding of market requirements and supply chain related challenges that hinder prompt delivery of products (Ogbuji, 2008). High cost of production is also another challenge which needs to be handled so as to reduce the number of people without access to safe and portable drinking water. These may have contributed to the reduction in the total volume Compound Annual Growth Rate (CAGR) of 7% in 2011 (Euromonitor, 2012).

1.3 Objectives of the Study

The broad objective of the study is to examine the effect of marketing efficiency on market performance of selected table water firms in Owerri, Imo State. However, the specific objectives are, to:

(i)            examine the effect of marketing efficiency on sales volume of table water firms.

(ii)          examine the effect of marketing efficiency on market share of table water firms.

(iii)        ascertain the effect of cost of production on the profitability of table water firms.

(iv)         determine the effect of poor marketing infrastructure on market performance of table water firms.

1.5 Research Questions

(I)            what are the effects of marketing efficiency on sales volume of table water firms?

(ii)          what are the effects of marketing efficiency on market share of table water firms?

(iii)        what are the effects of cost of production on the profitability of table water firms?

(iv)         what are the effects of poor marketing infrastructure on market performance of table water firms?

1.5 Research Hypotheses

For the purpose of the study, the following hypotheses will be tested in null form

H₀₁: There is no significant relationship between marketing efficiency and market performance of table water firms.

H₀₂: Cost of production has no significance influence on the profitability of table water firms.

H₀₃: Poor market infrastructure has no significant effect on market performance of table water firms.

1.6 Significance of the Study

The study will be of a great importance to the following group of people.

management of table water firms; the study will enable them to ascertain the marketing system to be adopted in order to increase their market performance. The study will enable them to know the importance of table water to individuals and society at large. This study will as well guide management on the way to minimize cost in order to maximize profit. A clear understanding of this work will assist table water firms to know the challenges facing table water and ways to overcome those challenges.

Consumers: this study will enable consumers to know the importance of table water to their health.

Researchers: the study will serve as a reference tool to researchers who would like to research on the topic or related topic in future.

1.7 Scope of the Study

The scope of the study is to examine the effect of marketing efficiency on market performance of table water firms in Owerri, Imo state. The study will be focusing more on the effect of marketing efficiency on sales volume, effect of marketing efficiency on market share, effect of high cost of production on profitability, effect of poor infrastructure on market performance and the challenges facing table water firms.

1.8 Limitations of the Study

Perceived limitations to this study will include the following;

Financial Constraints; this has to do with the monetary cost that will be involved in this study. The researcher may not have the adequate amount of money needed for this research work but will make the best use of available fund.

Time Constraints; This the period of time needed for the researcher to source for   information. The time given for this research work may not be sufficient for the researcher to gather all the necessary information that is needed but will make the best use of the time available for him.

Respondents’ Behaviour; When trying to get information from the respondent, most of them feel reluctant of giving out the required information.

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