ABSTRACT
The
study examined the effect of Marketing Strategies on Sales Growth in the Food
Drink Industry: A Study of Chi-Exotic Drink, aims to analyze the impact of
various marketing strategies on achieving sales growth in the food drinks
sector in Umuahia, Abia State. The primary objectives include examining the
relationship between product strategy and sales growth, assessing the effect of
pricing policy on sales volume, evaluating the impact of distribution strategy
on market share, and determining the effect of promotional strategy on
profitability. Employing a descriptive survey design, data were collected using
questionnaires from a sample size of 400 respondents, determined through Taro
Yamane’s method. The data analysis involved percentages, Pearson Product Moment
Correlation, and multiple regression models. The findings revealed that while
the price of the product significantly and negatively affects sales growth,
quantity sold and advertising positively influence sales growth. Sales
promotion, product branding, and product availability were found to be
significant factors at a 1% probability level. The study concludes that
although pricing must be managed carefully to avoid reducing sales volume,
increasing advertising and sales promotion efforts can enhance purchase
frequency and sales quantity. Additionally, strategic product branding can
foster customer loyalty, and constant product availability is crucial for
meeting buyer demand. Based on these conclusions, the study recommends careful
price management to prevent potential declines in sales volume, increased
advertising and sales promotion campaigns to boost long-term sales, strategic
product branding for differentiation and positioning, and ensuring consistent
product availability to satisfy consumer demand.
TABLE OF CONTENTS
CHAPTER
ONE
INTRODUCTION
1.1 Background
to the Study
1.2 Statement
of the Problem
1.3 Objectives
of the Study
1.4 Research
Questions
1.5 Hypothesis
of the Study
1.6 Significance
of the Study
1.7 Scope
of the Study
1.8 Definition
of Relevant Terms
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual
Background
2.1.1 Marketing
Objectives, Marketing Strategies and Marketing Programs
2.1.2 Selecting
a Marketing Strategy l
2.1.2.1 Product
2.1.2.2 Pricing
2.1.2.3 Place
(Distribution)
2.1.2.4 Promotion
Mix
2.1.3 Relationship
between Marketing Strategies and Consumer Purchasing
Behavior
2.1.4 The
Concept of Expanded Marketing Mix (EMM) - 7Ps
2.1.4.1 Physical Aspects
2.1.4.2 People
2.1.4.3 Process
information
2.1.5 Reasons for Planning a Marketing Strategy
2.1.6 Determinants of Consumer Patronage
2.1.7 Consumers' Attitude Towards The Product"
2.1.8 Extrinsic Factors of the Product:
2.1.9 Intrinsic Qualities of the Product:
2.1.10 Benefits Accruable to a Firm from the
Sustainability of Consumer
Patronage
2.1.11 Problem of Customer Relationship Management
2.2 Theoretical Framework
2.2.1 Gap Theory
2.2.2 The Hidden Message Theory
2.2 Empirical Framework
CHAPTER
THREE
RESEARCH METHODOLOGY
3.1 Research
Design
3.2 Study
Area
3.3 Population of the Study
3.4 Sampling
Plan
3.5 Sample Size Determination
3.6 Data
Collection Procedure
3.6.1 Instrument
3.6.2 Source of Data
3.6.3 Validity
3.6.4 Reliability
3.7 Data
Analysis Technique
CHAPTER
FOUR
RESULTS
AND DISCUSSION
4.1 Presentation
of Data
Chapter five
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusions
5.3 Recommendations
References
Appendix: Questionnaire
CHAPTER ONE
INTRODUCTION
1.1
Background
to the Study
Marketing
is the study of human activities directed at satisfying needs and wants through
a profitable exchange. Strategy is borrowed from military literature which
refers to a plan of action (Anyanwu, 2003). However, marketing strategy is the
broad of principles and plan of action by which the business expects to achieve
its marketing objectives in a targeted market (Kotler, 2000).
Of
all business activities or functions, none is as interested in the consumer and
his purchasing behavior as marketing. Marketing is invariably connected with
the research into consumers purchasing behavior, namely what the consumer want,
need, prefer and value, who are the prospective consumers and where they live,
their income and mode of spending, how and why the make purchase decision and
so on. In fact the influencing of the buyer behavior is the primary task of the
marketing department in any organization (Inyanga, 2004).
Equally,
marketing tries to define the right type of products in terms of the company’s
objectives and attempts to make it available at the right place and at the
right price, with the right promotions. This performance of marketing functions
involves basically marrying consumer wants and with the appropriate products
and services. It is the duty of the firm to adopt appropriate marketing
strategy to attract customers to its products (Inyanga, 2004).
This
is important because in a free market economy, the ultimate judge of the firm
performance is the consumer. Consumer purchasing behavior will determine the
fate of the enterprise; this behavior can best be described by a marketing
manager who can also tell how he will be influence by market variables such as
price, promotion, product (variation and distribution and place. Marketing
strategy depicts the overall company program for selecting a particular market
segment and then satisfying it’s consumer through careful use of elements of
the marketing mix-product, price, place (distribution) and promotion(Berger, 2006).
Effective
marketing requires decisions that successfully integrate a form marketing
program towards satisfying the consumer whose act in obtaining and using goods
and services, including his decision process that precede and determine those
acts are highly affected by the strategy adopted by the marketing manager in
marketing the firm’s products (Kotler and Armstrong, 2006).
Since
the performance of marketing functions involves basically marrying consumer
needs and wants the appropriate product and services, and since it is generally
believed that marketing begins and ends with the consumer, this project
therefore attempt to examine how the use of marketing strategies have generated
sales for food drinks, following its impact on consumer purchasing behaviors.
Efforts are therefore made to show the relationship between sales turnover and
amount spent on marketing activities and its resultant impact on consumer
purchasing behavior. We shall also concentrate on establishing how consumer
purchasing behavior is influenced by a firm’s strategy for accomplishing
marketing objectives and plans. Also, the designing of marketing mix strategy,
centering on product strategy, distribution policy, pricing and promotional
strategies will be examined.
1.2 Statement of the Problem
Here the researcher attempts to define or
describe the research problem. The primary objective of most business
enterprise is to make profit. This is because profit ensures growth, survival
and continuity in business. Many companies in the food drinks industry
recognize this fact but many enterprises still fail to realize that the
achievement of this goal depends on their ability to satisfy the needs of their
target market using some marketing strategies.
Besides the primary task of marketing which is
to influence the buyers, the proper timing of marketing strategies to achieve
sales growth and objectives has not been given adequate attention.
The
research is poised to investigate these problems and then find solutions.
1.3 Objectives of the Study
The
general objective of the study is to analyze the effect of marketing strategies
to achieve sales growth in the food drinks industry in Umuahia Abia state.
However,
the specific objectives are to:
I.
examine any
relationship between product strategy and sales growth of the firm.
II.
ascertain the
effect of pricing policy on the firm’s volume.
III.
examine the
effect of distribution strategy on the product market share.
IV.
ascertain the
effect of promotional strategy on profitability.
1.4 Research Questions
i.
What is the
relationship between product strategy and sales growth of the firm?
ii.
What is the effect
of pricing policy on the firm’s sales volume?
iii.
What is the
effect of distribution strategy on product market share?
iv.
What is the
effect of promotional strategy on profitability?
1.6
Hypothesis
of the Study
In
the course of this study, there are some hypotheses stated in null form. They
are:
HO1:
There is no significant relationship between product
strategy and sales growth of the firm.
HO2: Pricing
policy has no significant effect on the firm’s sales volume.
HO3:
Distributional strategy has no significant effect on market share.
HO4: Promotional
strategy has no effect on profitability.
1.6 Significance of the Study
The
implementation of effective marketing strategies creates satisfaction for both
the procedures and consumers. This is because in Nigeria today there is the
need to improve on market orientation among organizations. Companies should
realize the importance of strategic planning in the provision of goods and
services to ensure guaranteed profits. Good strategies mean lower cost and so
lower prices and consumers are encouraged to repeat purchase. This way, the
producers realize their aims and objectives and consumers get needed goods and
services at affordable prices. It is therefore towards this state of affairs
that this research work is oriented.
This
research work is also undertaken in the hope that, its finding will enable
marketing people to understanding, adapt and apply knowledge of consumers purchasing
behavior in tackling their marketing problem.
Again
it is hoped that, the study and the recommendation that will be made, will be
of benefit to the food drinks marketing department in particular and the entire
industry as a whole. It will contribute to determining the strategic
requirements for effective marketing and would enable firms serve their
customers more effectively and efficiently.
Specifically, the benefits of this study are
enormous but in specific term, the study will be of benefit or import to the
following groups:
To
the business organizations, the result of this study will be significant to
business organizations because they will become more aware of the factors that
affect and influence marketing strategies, and adopt those factors to get more
market share for itself which means higher profits from sales.
To
the Investors, if it is noted that a
particular food drinks company has a high level of sales resulting from the
good marketing strategies, the investors may decide to invest in the food
drinks company as its profits will be high as well as dividend.
To the academic, the result of this study will be
significant to the academic as it will form the basis for research work in
marketing strategies.
1.7 Scope of the Study
Realizing
the financial and time constraint that are involved in this type of study, it
becomes necessary to limit the scope of the study to consumers of food drinks
within Abia State, and to one company. Using one company will limit and reduce
the necessity for comparative analysis. The elements in a marketing strategy
are common to all the firms hence we shall place emphasis on the marketing mix,
that is, price, product, promotion and place. This will help us see how they
relate to each other and combine to influence the buyers of food drinks
product. However, the study will focus primarily on the Aba and Umuahia
metropolis. These cities are located in Abia south and Abia central. They are
chosen because they constitute the commercial Centre of the state.
1.8 Definition of Relevant Terms
Marketing:
Marketing can also be seen as the process in a society by which the demand
structure for economic goods and services is anticipated, or enlarged and
satisfied through the conception, promotion, exchange and physical distribution
of such goods and services.
Strategy: Strategy
is the, means, schemes and methods designed by an organization for
operationalizing policies and pursuing its objectives.
Marketing Strategy:
Marketing strategy can be defined as the general terms used to describe the
overall company program for selecting a particular market segment and then
satisfying it’s consumer through careful use of the elements of the marketing
mix.
The marketing mix: is
that combination of product features, accompanying services, price decision,
promotional tools and place for the distribution of these products in reaching,
serving and appealing to the target market.
The target market:
this is that group of consumers which the company wishes to sell its products.
Consumer Purchasing
Behavior: This is the act of individuals in
obtaining and using goods and services, including the decision process that
precede and determine these acts.
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