The research work titled
“The Effect of Advertising on Consumer Preference Patterns for Malt Drinks (A
Comparative Study of Amstel Malta and Guinness Malta) in Enugu Metropolis, was
carried out with objectives.
To determine how advertising has affected the decision to
buy, Guinness Malta or Amstel Malta.
To determine the brand of malt that is more available than
the other and the consumer demand for it.
To suggest ways the companies should follow to make better
progress in boldling their brands and for them to satisfy their customers
effectively and to maximize profit.
To achieve the above objectives, related literature
were reviewed on consumer preference patterns for malt drinks. In addition
primary and secondary data were collected to solve the research problem, and
questionnaires were used as research instruments.
The population of study comprised the consumer’s
distributors and the management and relevant staff of both Guinness and Amstel
Malta Companies in Enugu Metropolis.
The researcher used census survey on management and
relevant staff because the population under study was small, while Topman’s
formula was used to determine the sample size for consumers and the
In organizing and presenting the data collected,
tables, frequencies and percentage were used, while hypothesis were tested with
Based on the analysed data, the following findings
Ø The consumers in Enugu indicate that the
price of Amstel is higher than that of Guinness.
Ø They also observed that
advertising helps to create awareness of both products.
Ø Consumers are more satisfied
with the advertising that leads to purchase of Amstel than Guinness.
Based on the findings, recommendations were made.
- Both companies should engage in advertising strategy that are effective and other
promotional activities that appeal to consumers for efficient and effective
The two companies should maintain continuous availability of
Nigeria breweries Plc should reduce the price of their
product order to attract more customers.
Guinness should look into the advertising that leads to more
purchase of their product.
If the above suggestions and recommendations are effectively
and efficiently implemented, both companies will experience a profound change
in their advertising performance and consumers will be better served.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problems
1.3 Research Objectives of the
1.4 Research Hypotheses
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Definition of Terms.
CHAPTER TWO: RELATED
2.1 Advertising an Overview
2.2 Forms of Advertising
2.3 Role of Advertising in the
Marketing of Consumer Goods.
2.4 The Effect of Advertising on
2.5 Impact of Advertising in
Consumer Decision Making Process.
2.6 An Overview of Consumer
2.7 Impact of Advertising on the
Preference for Malt Drinks
2.8 Impact of Advertising on the
Preference for Amstel to Guinness Malta.
CHAPTER THREE: RESEARCH
3.1 Sources of Data
3.2 Population of Study
3.3 Sample Size Determination.
3.4 Distribution of
3.5 Research Instruments.
3.6 Method of Data organization.
3.7 Limitation of Study
CHAPTER FOUR: PRESENTATION,
ANALYSIS AND INTERPRETATION OF DATA.
4.1 Presentation and Analysis of
4.2 Test of Hypotheses.
CHAPTER FIVE: SUMMARY OF
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings
1.1 BACKGROUND TO THE STUDY
It is a common belief that advertising is as old as
human history, yet as a promotional tool, it started with the development of
commerce. “In the early days,
advertising was practiced in different forms at different parts of the world”,
according to Samson (1981 : 180). He
maintained that “there were small stone printing stamps which were used by the
“Quacks of Roman times’ to impress on surface of their solves. During these period, there are different Era
of advertising which include “pre-marketing Era, this started as a product
exchange in prehistoric times to the middle of eighteenth century, buyers and
sellers communicated in very primitive ways for most of this period, “Media”
such as clay tables, town criers, and favarn signs were the best way to
advertise a product or a service towards the end of this era was printing
used. In other words, people have for
centuries communicated their ideas and their needs to one another through
advertising, as one can see, advertising takes many forms and has considerable
influence on contemporary society and commerce.
(Connor and Hart 1999 : 5).
During the last 50 years, (Research Era) advertisers
have methodically improved the techniques of identifying and reaching narrowly
targeted audience with messages prepared specifically for each groups or
individual, modern communication technology has aided in this quest for the
perfect advertising campaign.
Awake 22nd August (1998 :5). Many years ago people uses primitive hand
tools to produce goods, they live in small Isolated communities were artisans
and farmers battered goods and services among themselves, distribution was limited,
due to development, Greek and Roman Merchants expanded contact with other
society and with the development of more sophisticated tools, people achieved a
higher level of production.
But ancient civilizations had only unsophisticated
hand tools for producing goods, so quantity and variety of available goods was
There was an increase demand for goods created a
greater need to advertise the availability of these goods. (Marshal 1995 : 81) thus signs carried in
clay, wood, or stone were hung in front of shops so passersby could see what
the merchants has to offer, because most people at this time could not read, as
a result of this, signs are used to symbolic the good for sale.
“The symbolic and pictorial nature of advertising
which gave vent to out door advert has proved to be one of the enduring form of
aid” (Connor and Hart: 1999 :10).
The introduction of printing marked a dramatic tuning
point in1450’s which was the major event in the history of civilization and
probably the most important development in the history of advertising Jonones
Gutenberg) the investor of printing press and it’s system changed the way
people lived and worked.
In 1740, the first printed outdoor poster known as
“Loarding” appeared in London which become the forerunner of modern out door
In Nigeria, advertising can be traced to one of the
earliest mass communication which is known as “Town crying”, according to
Nwabueze (1980 :28), modern advertising in Nigeria commenced with the
establishment of the first news paper called IWE IOHIN which carries
Advertising is a powerful marketing communication
tools used by companies to fulfil the promotional task, it is impersonal form
of communication or presentation on goods, ideas, or services conducted through
paid media under open or identified sponsorship. It is a marketing tool that helps to sell
goods, services, images, and ideas through information and persuasion.
Its objectives could be to create awareness, achieve
conviction, build preference, influence choice of purchase and encourage
Advertising have a purposeful influence on the choice
of purchase towards a product brand of a consumer when an advert is placed
showing the benefits and advantages the brand has over another, it will be a
motivating factor to entice the buyer, making the advert to suit once
personality there he starts to initiate conviction, the next thing he takes
action (purchase) therefore advertisement has much influence on the choice of
Advertising is an agent of choice; one of the most
important benefits is that it facilitates the consumers becoming active rather
than passive agents in the economic cycle.
For a consumer to make a purchase, he needs to be informed, he receives
information from variety of sources and make his decision one.
In Nigeria, there are many manufacturers on different
malt drink they include Nigeria breweries Plc.
This is the pioneer and largest brewing company in Nigeria, it was
incorporated in 1946 and recorded a landmark when the first bottle of STAR Lager
bear rolled off the bottling lines in it’s Lagos brewery in June 1949. This was followed by Aba brewery in which
was commissioned in 1957, Kaduna brewery in 1963 and Ibadan brewery in 1982. In September 1993, the company acquired the
fifth brewery in Enugu, on Apul, 2001, it recently christened the Ama
Greenfield brewery in Enugu; the Largest in Africa, the brewery was
commissioned in October 2003. Thus from
its humble beginning in 1946, the company now has file operational breweries
from which its high quality products are distributed to all parts of this great
country. They have rich portfolio of
high brands star lager beer (1949) Gulder lager beer, (1970) maltina (1973)
with four varieties now, legend extra stout (1992) Amstel malta (1994)a nd the
sehweppes range of carbonated soft drinks lunched in December 1996. It was followed by the launch of crush in
November 1997 and Schweppes pineapple in October 1999, and they have earlier
launched Heinelten in 1998 June. In
August 2001 they decided to exit the carbonated soft drinks market because of
the need to concentrate on its areas of core competence, the Schweppes
franchise was sold off.
While Guinness Nigeria Plc was incorporated in 1967 at
Lagos but this is a company from Britain which started its production since
1750, Guinness brewery was the first Guinness brewery outside the United
Kingdom and only the third in the world.
They have recorded a well tremendous growth in production over the
years. Today it has three breweries in
the country via one in Benin, Aba and Lagos and apart from its flagship stout
product, they also produces a popular lager brand called Harp beer, Malta
Guinness, and gordons spark which they started in 2001 and is one of the best
alcoholic drink in Nigerian market today.
Guinness Nigeria Plc is also well known and have one of the largest
capitalized companies in the Nigerian stock exchange, in other words they often
boast their significant contribution to the economy through taxes paid into
Guinness Nigeria Plc were the manufacturers of
Sazzembram which the target market appreciated but was faced off when other
alcoholic company stated to adulterate it, Guinness Malt is one of their
alcoholic drink which is selling very well in the country due to its content,
it is been produced in their 3 zones in Nigeria but it is the only product
manufactured in their Aba brewery.
Furthermore, these manufacturers of malt drinks try to
improve their sales volume by making the product fit the consumers need than
the competitive products. The links between manufacturers and consumers of malt
drinks was made possible through advertising and has important economic effect
on the consumers.
Advertising jingles are intended to have effect on the
consumers or the recipients and the wide spread on different malt drinks
coupled with the growth of firms that manufacture different brand of malt
drinks, occurred simultaneously with the rapid expansion of malt drink market
(Connor and Hart 1999).
Consumers who could not afford to taste beer turned to
non-alcoholic drinks like malt with the aim that course from advertising
messages. It becomes imperative for,
there are many brands of malt drinks, left for the marketing managers to
determine those factors which necessitate the consumer preference of one brand
of malt in the face of many competing brands, which include Vitamalt, Maltina,
Maltex, Hi-malt, Guinness Malt and Amstel Malta.
However our main aim here is to determine how much
influence does advertising exert on the consumers of Amstel Malt and Guinness
Malt also how it affects the choice of the consumers.
1.2 STATEMENT OF THE PROBLEMS
It has been difficult to pin
point exactly the factors that have motivated a particular consumer to prefer a
particular brand of product to another.
Oftenly marketers have fallaciously been myopic, they exert their
attention only on those factors which are salient as the determinant of
consumer preference for their brand while there are other major factors that
play vibrant roles that are completely ignored, and consequently the effect is
the failure of the products to make much impact in the marketing
Advertising for many years has been working for the
manufacturers of malt drinks, which showcases their product offers to the
market and determines their consumers with some promises, incentives benefits
that will be derived by patronizing their product brands. Advertising to manufacturers of malt drink
is like a river that will never dry, it has many versions of it, that could be
used to project the image, production offer, showing benefits and advantages of
a particular brand to another. Since
the inception of malt drink, there has been a rapid expansion in the malt drink
market through the help of advertising.
A reliable source indicated that a significant proportion of Nigeria
population had been consumers of alcoholic drinks have turned non-alcoholic
also existed strong competition between the consumers of Amstel malt and
Guinness malt, because of these competitions, the need arise to check on the
consumers satisfaction and benefit with the brand they consume.
firm cannot depend on the consumers to voluntarily bring complains to the
dissatisfaction they got by consuming a particular brand of malt, rather they
strive to check other major or minor factors that may influence the consumer
choice of one malt to another.
1.3 OBJECTIVES OF THE STUDYU
The researcher has the following objectives in
carrying out thus research.
To determine how advertising has affected the decision,
selection and choice made by consumers between Guinness malt and Amstel malt.
To determine if convenience and availability influence the
consumer choice of either Guinness malt or Amstel malt.
To know if advertising affects the consumer preference and
choice of either Guinness malt or Amstel malt.
In other to know if selling price for each determine it’s
To determine if taste alone affects the consumer choice of
either of the two.
To find out if taste variable also affects the choice made by
the consumers of both products.
To identify what special feature are contained in the
advertising messages carried out for either Guinness malt or Amstel malt and
how they affect consumers.
1.4 RESEARCH HYPOTHESES
In view of the problem that
prompted the research on this topic also in line with the objective mentioned
above, the following hypotheses were formulated.
Ho: Price does not influence the consumer decision to buy more of
Guinness than Amstel Malta.
Hi: Price influences the consumer decision to buy more of Guinness
than Amstel Malta.
Ho: The taste of malt do not helps the consumer to prefer either
Amstel Malta or Guinness.
H2: The taste of malt drinks helps the consumer
to prefer Guinness or Amstel Malta.
Ho: Advertising does not help the consumer to be better aware of
Amstel Malta than Guinness Malta.
H3: Advertising of Malt helps the consumers to be
better aware of Amstel Malta than Guinness Malta.
Ho: The advertising strategies used by companies do not lead to
consumer repeat purchase of Guinness Malta or Amstel Malta.
H4: The advertising strategies that is used by
companies lead to consumer repeat purchase of Amstel Malta to Guinness Malta.
1.5 SIGNIFICANCE OF THE STUDY
The study is expected to
furnish additional information to help manufacturers of Amstel malt and that of
Guinness malt in achieving high sales volume add adjusting production properly
to sales within the context of marketing concept. The core issue of marketing concept lies
basically on, understanding the consumers and making every thing possible to
satisfy the consumer efficiently and effectively.
However this study will help to show how
advertising can stimulate demand for either of the two products in the market,
as well as helping the marketing manager to assign a particular advertising
message to a particular brand of malt.
Thus this study is supposedly expected to help firms and other producers
of malt drinks to understand the relative influence exerted by other marketing
attributes:- via price, distribution,
promotion, in other words the 4p’s on the consumer preference of one brand to
another. Furthermore this study would
help both firms (Nigeria breweries Plc and Guinness Nigeria Plc) the marketers
of Amstel malta and Guinness malt to identify the proper marketing strategies
that will be suitable in carrying out their marketing activities or programmes
to be adopted and made a culture by the producers such as product modification,
pricing strategy, incentives promotional campaign and incentive distribution
It will go a long way tohelp the firm
determine it’s lope holes and try to improve on them also know the best
advertising campaign that needed to be adopted. Finally, the study will serve as a stepping
stone for more research on the effectiveness of advertising especially in the
product preference of the consumer, it will also stimulate the interest of
Nigerian firms on consumer research and enable them to understand the
importance and role of advertising on the performance of a product in the
1.6 RESEARCHER SCOPE OF STUDY
In Nigeria and the world at
large, different malt drinks brands are consumed by various kinds of consumers
but this study concentrated on the consumers located in Enugu metropolis and
the study is on advertising.
It is the conviction of the researcher
that the consumers of Guinness malt and Amstel malt leaving in Enugu metropolis
will make a very good representation of the consumers.
The metropolis are group into five zones
Zone A – Uwani, Acharalayout, Agbani
Coal Camp, Ogbete main Market
C – G.R.A/Trans Ekulu/New haven,
Zone D – Independence Layout/Ogui
E – Abakpanike/Emene.
Source: (Enugu North town and regional planning
department). This study is expected to
cover these zones because of time and cost constraints.
1.7 DEFINITION OF TERMS
A. Advertising: Non-personal
presentation and promotion of this goods and services by an identified sponsor
and must be paid for through a medium.
Promotional tool sales promotion, personal selling, public relation
etc. source: Ebue, Adirika B. C. &
principle and Practice of Marketing).
B. Communication: Process
by which people exchange information, views, ideas, through or feelings. Source: (Oxford
C. Contemporary Society: Group
of people living in an area of a time with a common law shared together (Oxford
D. Marketing Concept: Is the marketing perspective on how
marketing activities/programmes should be performed best. Source (Adirika & Ebue Text Principles
& Practice of Marketing).
E. Preference: Is
showing why you like a product brand to another product brand. Source (Oxford Dictionary/Understanding from
Principle/Practice of Marketing and Kotlers Text 11th Edition).