ABSTRACT
This research work focuses on effect of market segmentation in enhancing the market performance of an organization – A study of Cadbury Plc Nigeria. It address the problem of market segmentation strategies inability to increase sales in an organization, market segmentations importance in the achievement of organizational market segmentation activities as a threat to beverage producing companies, cost of market segmentation activity as a threat to beverage producing companies and the low rate at which the market segmentation boost companies shares and their performance. Data were collected using questionnaire and interviews. Data presentation and analysis was done using tables and regression analysis was used to test the truthfulness of the formulated null hypotheses (Ho). The major findings are that the cost of segmenting the market increases the sales volume of the organization, it increases the market share of an organization and increases the profitability of the organization. Recommendations were given that companies should understand all that it involves in segmenting the market, understanding that it is a step-by-step process and should be followed accordingly.
TABLE OF CONTENTS
Title - - - - - - - - - - - i
Declaration - - - - - - - - - - ii
Certification - - - - - - - - - iii
Dedication - - - - - - - - - - iv
Acknowledgement - - - - - - - - v
Table of contents - - - - - - - - - vi-vii
List of tables - - - - - - - - - ix
Abstract - - - - - - - - - - - x
CHAPTER ONE
1.0 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 Research Hypotheses
1.6 Limitation of the Study
1.7 Significance of the Study
1.8 Definition of Terms
CHAPTER TWO
2.0 Review of Related Literature
2.1 Historic Background of Cadbury Nigeria PLC
2.1.1 Consumers
2.2 Definition of Market Segmentation
2.3 Levels of Market Segmentation
2.4 Market Segment
2.5 Steps in Segmenting a Market
2.6 Criteria for Market Segmenting
2.7 Bases for Segmentation
2.8 Benefits of Market Segmentation
2.9 Target Marketing
2.10 Types of Market Segments
2.11 Limitation of Market Segmentation
2.12 Market Segmentation Process
2.13 Steps in Entering a Market
2.14 Evaluating and Selecting of Market Segment
2.15 Organizational Effectiveness
2.16 Importance of Market Segmentation to an Organization
2.16 Key practices in Supply Chain Segmentation
2.17 Effective Market Segmentation and Profit Viability of Cabury Nigeria PLC in Nigeria
CHAPTER THREE
3.0 Research Methodology
3.1 The Design of the Study
3.2 The Area of the Study
3.3 Population of the Study
3.4 Sample and Sampling Technique
3.5 Determination of Sample Size
3.6 Method of Data Collection
3.7 Method of the Data Analysis
CHAPTER FOUR
4.0 Data Presentation, Analysis and Hypotheses testing
4.1 Distribution of Questionnaire
4.2 Socio economic Data
4.3 Hypotheses Testing
4.4 Discussion of Findings
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendations
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
References
Appendix I: Questionnaire
LISTS OF TABLE
Table 4.2.1: Sex of respondents
Table 4.2.2: Age of the respondents
Table 4.2.3: Marital status of the Respondents
Table 4.2.4: What is your education level?
Table 4.2.5: How long have you been on his job?
Table 4.2.6: What is your current position/level?
Table 4.2.8: Do you know about the beverages?
Table 4.2.9: Do you take the beverages produced by Cadbury PLC?
Table 4.2.10: How often do you take them?
Table 4.2.11: 
Does your company adopt market segmentation strategy?
Table 4.2.12: 
What are the bases they use in segmenting the market?
Table 4.2.13: 
Market segmentation ensure that the organization achieve desired market share
Table 4.2.14: The application of market segmentation increases the sales volume of the organization.
Table 4.2.15: 
Estimate the profit generated as a result of the application of market segmentation
Table 4.2.16: 
Estimate the increase in sales volume of the organization as a result of segmenting the market
Table 4.2.16: 
Which of the segmentation strategy or market coverage alternative do your company adopt?
Table 4.2.17:
Is market segmentation beneficial to the company?
Table 4.2.18: To what extent do consumers benefit from market segmentation?
Table 4.3.1 Simple regression using ordinary least square method
Table 4.3.2 Simple regression using ordinary least square method
Table 4.3.3 Simple regression using ordinary least square method
CHAPTER ONE
INTRODUCTION
1.2 Background to the Study
The consumer’s needs and wants vary from one geographical location to the other. These difference or diversities in consumer’s needs are attributed to differences in culture, religion, age, income occupation, etc. this diverse needs of the market can’t be optimally satisfied by a particular business organization, hence the need for market segmentation. Market segmentation is the process of defining and sub-diving a large homogenous market into clearly identifiable segment having similar needs wants, or demand characteristics (Adeobi 2004). Its objective is to design a marketing mix that precisely matches the expectations of the consumers in the target segment.
Most companies in Nigeria are not big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. A market consists of the potential customers shearing a particular needs and wants, who might also be willingly to engage in exchange backed by the purchasing power thereby forming the actual market.
Market segmentation could also be seen as the subdivision of the heterogeneous subsets of buyers, where any subset may be selected as a target market to be accessed with distinct marketing programmers. It’s strategic approach consider this mass market with heterogeneous sets of need using creative market research effort.
Most business organizations in Nigeria do not have all the resources needed to produce and satisfy the needs and wants of the large market, as such they resort to serving those segments where they have comparative advantage. Market segmentation also involves identify customers segment, group or portion which are fairly in themselves but which are different from other segments.
1.2 Statement of the Problem
It is pertinent that the needs of a target market have to be identified before such market is segmented. Identifying this need requires conducting a good market research. Most business organizations do not have the relevant personnel and capital needed to effectively conduct marketing research, which is a basis for good segmentation.
Most business organization (Cadbury Plc) view market segmentation as limiting them from maximizing the numerous opportunities the large market offers. As such, they view market segmentation as a waste of time and organizational resources. Companies in Nigeria are yet to discover the rate at which market segmentation increases company’s market share and probability. As such, most business organizations, Cadbury Nigeria Plc inclusive, display a Luke warm attitude toward market segmentation.
To this end, the researcher is concerned with uncovering the effects of market segmentation on the profitability of Cadbury Nigeria Plc.
1.3 Objectives of the Study
The general objective of the study is to examine the effect of market segmentation in enhancing the performance of an organization.
The research intends the following objectives. Which are to;
1. Determine the effect of market segmentation on sales volume of the organization;
2. Ascertain the effect of market segmentation in the achievement of organization’s market share;
3. Ascertain the effect of market segmentation on the profitability of the firm.
1.5 Research Questions
The vital research questions in this stage are:
1. What effect does market segmentation have on the sales volume of the organization?
2. What effect does market segmentation have in the achievement of organization’s market share?
3. What effect does market segmentation have on the profitability of the firm?
1.5 Research Hypotheses
The hypotheses posited and tested in the study were:
H01: There is no significant relationship between market segmentation and sales volume of the organization;
H02: There is no significant relationship between market segmentation and the achievement of organization’s market share;
H03: There is no significant relationship between market segmentation and the profitability of the firm.
1.6 Limitation of the Study
a) Financial Constraints: Judging from the economic crises all over the world and the poor economic state of Nigeria, we see the researcher did encounter financial stress while conducting this research and the collection of the data.
b) Time Factor: The time allocated for this research work was so short; it did not permit the researcher to visit enough beverages companies. This was because the researcher had to combine work with lectures and other school works (activities).
c) Attitude of some Employees: During the conducting of the research, some employees of the Lagos plant Cadbury Nigeria Company, Plc did not cooperate fully in supplying the researcher with some vital information. This is based on the reasons best known to them and as a result, the researcher could not obtain all the relevant data necessary to complete this research work.
1.7 Significance of the Study
The significance of the study is discussed from the perspective. Namely:
a) The Company: This research work will expose Cadbury Nigeria PLC and other producers and marketers of beverages in the country on the essence to segment the market prior, during and after production. It brings to limelight the enormous benefits that come from effective market segmentation and how to utilize such marketing strategy to increase market share, increase the profitability of the firm and sales volume.
b) Consumer: The study exposes consumers of beverages to the marketing strategies adopted by Cadbury PLC and other Beverage Companies aimed at satisfying their needs and wants. The study provides consumers with indepth knowledge on market segmentation variables considered by the firm in segmenting the large market. Thus making it easier for the consumers to understand the segment they belong and how to about their purchase decision.
c) Academicians: The study provides added knowledge to the existing one on market segmentation and how companies use this marketing variable to achieve their corporate goals and objectives. It provides a fertile ground or foundation for further research to be embarked on by potential researchers in the field of marketing or other related discipline.
1.9 Definition of Terms
a) Marketing: This is the process by which companies create customer interest in product or services through the establishment of satisfying exchange relationship between the customers with diverse needs and the companies that seek to satisfy these need.
b) Market Segment: This is a group of potential and current customers with similar needs, who are willing to exchange something of value with the seller’s offering a various vices; by doing so, they satisfy those needs.
c) Market Segmentation: This is the division of a heterogeneous set of market into a similar group of homogeneous markets, using creative market research efforts.
d) Heterogeneous Market: This is a market which distinctive and different customer need can be identified and which can be used as a basis for segmentation.
e) Homogeneous Market: This is a market in which its members is of similar interest, and or desire. It is a fragment of a heterogeneous market.
Customer: This is a person or organization who buys goods, services or ideas (products) regularly from a shop, business units, companies etc. He or she buys to either satisfy his or her needs or other customers.
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