THE IMPACT OF MARKETING STRATEGY ON PROFITABILITY OF CONFECTIONERY PRODUCT IN NIGERIA (A CASE STUDY OF O.K FOODS NIGERIA LIMITED)

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ABSTRACT

In recent times, priority has been to marketing strategies in any business organization, in order for the firm to have or acquire the market share targeted and eventually having success. The need for this study arose of confectionery products in Nigeria on in any business organization.

 

This work is aimed at knowing the impact of confectionery products on consumers and to know how profitability can help to achieve the organizational goals.

 

Consequently, data collected and analyzed formed the basis for arriving at the conclusion.




 


TABLE OF CONTENT

Title

Certification

Dedication

Acknowledgement

Abstract

Table of Contents

 

Chapter One

Introduction

1.1       Background of the Study                                                              1

1.2       Statement of the Problem                                                              2

1.3       Purpose / Objectives of Study                                                      2

1.4       Research Questions                                                                                    3

1.5       Research Hypotheses                                                                     3

1.6       Definition of Terms                                                                                    4

1.7       Scope and Limitations of Study                                                   4

1.8       Significance of Study and Justification for Investigation     5

1.9       Historical Background of O.K Foods Ltd.                                5

References                                                                                        6

 

Chapter Two

2.1       Introduction                                                                                                 7

2.2       Current Literature Based on Such of the Relevant Variable of the

Model                                                                                                8

2.3       Summary of the Chapter                                                             17

References                                                                                        18

 

Chapter Three

3.1       Introduction                                                                                                 19

3.2       Restatement of Research Questions and Hypotheses                         19

3.3       Research Method and Design                                                      19

3.4       Data Collection Methods                                                              19

3.5       Characteristics of the Study Population                                               20

3.6       Sampling Design and Procedures                                                            20

3.7       Description of Data Collection Instrument                              21

3.8       Administration of Data Collection Instrument                                   21

3.9       Limitations of Methodology                                                        21

 

Chapter Four

4.1       Introduction                                                                                                 23

4.2       Respondents Characteristics and Classification                                 23

4.3       Presentation and Analysis of Data, According to Research Questions                                                                                          29

4.4       Presentation and Analysis of Data, According to Research

Hypotheses                                                                                      30

 

Chapter Five

5.1       Summary or Synopsis of the Study Including Chapter by

Chapter and Comprehensive Summary of Findings               35

5.2       Conclusions Drawn from the Findings                                       35

5.3       Recommendation Based on the Conclusions                            36

5.4       Limitations and Suggestions for Further Studies                    37

Bibliography                                                                                       38

Questionnaire                                                                          40

 

 

 

 

 

CHAPTER ONE

INTRODUCTION

 

1.1    BACKGROUND OF THE STUDY

Marketing remains a relevance discipline, an indispensable role in any organization can be said to have products and customers for company to survive the intense of competition; it must map out marketing strategies that will ensure the achievements of the company objectives and set of goals.

 

Marketing concept is important tools in the achievements of company goals, which will invariably yield positive results. The essence of marketing is to make consumer behaviour into consideration in order to sell successfully a product must give real satisfaction.

 

Before now, confectionary products are seen as sweets, chew gum and biscuits but recently there has been a lot of changes in the taste and expectation of consumers.

 

Nowadays, a sweet varies for different occasions likewise chew gum, biscuit change in the most pronounced among the confectionaries. The change in the confectionary products is not limited to physical attributes but also changes in government administrative techniques in all sectors of Nigeria economy.

There has been great change in the outlook of international business as it relates to all Nigeria business sectors, the impact of this development require new contemporary technique to be device not only for maintenance of standard and profitability but also for survival.

The research project is an empirical study on the marketing of contemporary products in Nigeria with OK Foods Limited as the case study.

 

Conclusively, it is hope that the findings that will emanate from this study help introducing the marketing introducing the marketing mobility of many forms within the industry and elsewhere due to the fact that successful marketing action are the result of management information and applied commonness.

 

1.2    STATEMENT OF PROBLEM

Marketing of confectionary products in Nigeria is aimed at finding out the following challenges:

1.       To what extent has confectionary company been affected by dilapidating economy of the country?

2.       How will the company sustain and increase their market share to ensure maximization of profit to meet company's objectives?

3.       How has the company (OK Foods Ltd) been able to cope with competition?

4.       Liability to cope with the high cost of promotional company and effective distribution channel?

 

1.3    PURPOSE/ OBJECTIVES OF STUDY

The main objective of this project is to examine how the use of marketing concept can be used to enhance the profitability of OK Foods product in Nigeria market.

 

The research comes in a way so as to offer recommendation on the means of achieving profitability sales of the company's products particularly in Nigeria market.

 

However, the research work is an activity set to the following:

Ø To determine the extent of the application of marketing concept to the sales confectionary sales.

Ø To examine the effect of distribution deficiency in the marketing of confectionery product.

Ø To determine the effect on demand for confectionary product.

Ø To determine the pricing policy for the marketing of confectionary product

Ø To examine the role of promotion in the marketing of confectionary products with emphasis on advertisement.

 

1.4.   RESEARCH QUESTIONS

Research questions to be used are as follows:

1.       Do channels of distribution affect sales?

2.       Does product affect demand?

3.       Does promotion affect demand?

4.       Does product attributes affect sales?

 

1.5    RESEARCH HYPOTHESIS

Ho:     Good pricing strategies do riot attract more customers towards buying homemade confectionary product

H1:   Good pricing strategies attract more customers towards buying homemade confectionary product.

Ho:     Competitive activities particularly by foreign confectioner do not affect the sales of homemade confectionary products

H1:   Competitive activities particularly by foreign confectioner affect the sales of homemade confectionary products.

Ho:     Inadequate promotions effort does not affect consumer preference towards the company's products

H1:   Inadequate promotions efforts affect consumer preference towards the company's products.

Ho:     Ineffective distribution channel does not affect sales of homemade confectionaries products

H1:   Ineffective distribution channel affect sales of home confectionaries products.

Ho:   Products quality or attributes does not affect sales of home trade confectionary goods

H1:   Products quality or attributes affect sales' of home trade confectionary goods;

 

1.6    SCOPE AND LIMITATION OF STUDY

The scope of the study is the impact of marketing strategies on the profitability of confectionary products in Nigeria, in Lagos for the detail study analysis.

 

The study was conducted by the use of questionnaire and face - to - face interview, most of the staff of the organization where unwilling to disclose vital and useful information because of possible leaking of such fact.

 

There is secrecy not to reveal their secret to other rural confectionery knowing fully that they are in a competition.

The unwillingness of the respondents to return most of their questionnaire before the study also hindered the researcher from going further and completing the study.

 

Confectionery is another limitation as the researcher was not buoyant enough to frustrate its movement around Lagos for the getting of useful information towards the success of the project.


 

1.7    SIGNIFICANCE OF STUDY

The study is aimed at highlighting the importance of marketing in confectionery product. The study with afford OK Food Limited the opportunity to know whether to tap its fill potentials. The company would also know why consumers prefer its products.

 

The findings with also suggest measures aimed at raising consumers' level of satisfaction. Through the study the consumers will know how the company has taken them into consideration in marketing sure that the products are within their reach with regards to price and place. The study will be of great benefit to future confectioners.

 

1.8    HISTORICAL OF OK FOODS LIMITED

OK Group of Company started in 1989 to manufacture plastics using the name OK plast. Today OK plast is the best in the market. The sale of OK plast was encouraging and with the encouragement, the company decided to invest in confectionery products. Marketing research was done and the result was that consumers were not satisfied with what was in the market then, hence the company of OK Foods. O.K Foods started in 1994, OK Foods Limited products over metric tons of biscuit per annum in its factory which is situated along 18010 expressway. Today, the company has 'various biscuits such as O.K Stars, O.K Football, O.K Jungle, O.K Banana, O.K Wafers, O.K all butter biscuits. The products of O.K Foods Ltd can be found all over the country. The biscuits can be bought in large quantities from any of the major distribution in Lagos, Ibadan, Warrl, Calabar, Kano, Kaduna, Aba, Port Harcourt etc. The company has a staff strength of about three hundred workers who are committed to high quality for which O.K group of companies are known for corporate responsibility O.K Foods Ltd. Upholds the belief that business does operate for the betterment of all those concern with it but also for community in which generates. Hence the company sponsors children funfair.

 

1.9    DEFINITION OF TERMS

Marketing is the process of identifying, analyzing, anticipating and satisfying consumer needs and wants profitability. Marketing can be defined as human activity directed at satisfying needs and want through exchange process. Marketing can also be defines as process charged with the responsibility of making a profit which the business units hopes to achieve its marketing expenditure level.

 

Marketing Concept: Marketing concepts are the business philosophy that bases decisions on objective appreciation of consumers need and preference. Marketing concept adopts "we start with the consumer and his needs, continue with finding a product or service to satisfy these needs and arrange for this product.

 

Confectionery Product: Confectionery products are sweets, chocolates, pies and pasting.

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