Title:

The Growing Demand of Fast Moving Consumer Goods and How Major Player
Influences Consumer Behavior.

(A case study of Nigerian beverage industry).

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 Acknowledgement

I would like to take this opportunity to give my most humble gratitude and
appreciation to all parties who contributed and influenced this work in even the
slightest way.

First of all I would like to give thanks to GOD all mighty for seeing me through
up until this point, and then my supervisor Mr. Tom Owens for his help,
patience, understanding and guidance and most importantly knowledge he
shared with me during the preparation of this project. The completion of this
thesis work would not be successful without his guidance and contribution.

I would like to thank to all my close friends in Budapest, Hungary and Nigeria
for standing by me and supporting me all these years, it was no easy journey.
Without their trust and encouragement I would not been able to finish my
studies.

Finally, the most important , I would like to say a big thank You to my Father
Igwe Kevin E Ukaegbu, Mother Lolo Patience Ukaegbu, brothers and the entire
Ukaegbu family as well as The Unogu family and all my relatives for their
various support, encouragement , trust and believe that they rendered and had
in me over the years .

Thank you for all, and GOD Bless.

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Abstract:

It is an arguable fact that Africa is a fast emerging market considering its huge
human and natural recourses. It is hard to think of any reason why any big
global brands would resist a bite of the big apple.

Nigeria, been the most populous African country, the second largest economy
and the world sixth largest oil producers (OPEC 2010) with a very vibrant
business environment. I am proud to say Nigeria is a destination of major host
to big brands of Beverage companies.

My dissertation focuses on analyzing marketing mix used by leading beverage

producers in Nigerian beverage market, to influence consumer decision and
buying behavior. Cadbury Nigeria plc, Nestle Nigerian plc, Nigerian breweries
just to mention a few are leaders in the Nigerian beverage market.

I intend to gather data‘s using questioners randomly distributed to different age

group, social class, and geo-cultural difference and also from interviews; I
organize with marketing managers from at least four of these companies. Using
the statistical data gathered I will be able to evaluate the impact and
effectiveness of marketing strategies directed towards consumer to influence
their buying habits, increase sales and subsequently revenue.

My studies lead me to conclude that, an effective analyses, implementation and

execution of the 4ps in marketing has lead to increasing sales and revenue for
these companies. This could be attributed as the reason why these companies
allocate substantial amount of their revenue towards creating awareness for their
product using different advertising and promotional tools.

Keywords: Marketing, Consumer behavior, sales promotion, Advertisement,

Branding

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 Declaration

I, the undersigned Cephas N Ukaegbu, a B (Hons). Student of International

business school Budapest (Department of Business studies), hereby declare and
take full responsibility that the present B Hons. Dissertation titled The Growing
Demand of Fast Moving Consumer Goods and How major Players
Influence Consumer Behavior. (A Case Study of Nigerian Beverage
Industry). I have made myself. The origin of orally received significant facts or
details are referred, the particular pieces literally cited or rewritten from printed
or electronic media are marked and their source information – title, publisher,
known author(s) – are included in the reference list.

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Table of Contents
Chapter One: .............................................................................................................................. 6

1.1 Introduction ................................................................................................................. 6

1.2 Aim of study ................................................................................................................ 7

2 Chapter Two: ..................................................................................................................... 9

2.1 Literature review: ........................................................................................................ 9

2.2 Definition of key worlds: ............................................................................................ 9

2.2.1 Definition of consumer behavior ......................................................................... 9

2.3 Consumer decision making process .......................................................................... 11

2.4 Definition of advertising ........................................................................................... 14

2.4.1 Advertising as marketing tools: ......................................................................... 15

2.5 Sales promotion:........................................................................................................ 18

2.5.1 Aim of sales promotion:..................................................................................... 19

2.5.2 Type of sales promotion..................................................................................... 19

2.6 Matching the tools/techniques with their objectives. ................................................ 20

2.7 Marketing: ................................................................................................................. 21

2.7.1 Marketing as a strategy: ..................................................................................... 21

2.7.2 The Marketing Four Ps ...................................................................................... 22

2.8 Sponsorship: .............................................................................................................. 24

2.8.1 Many would wonder ‘Why‘ sponsorship? ......................................................... 25

3 Chapter Three: ................................................................................................................. 27

3.1 The Nigerian life style ............................................................................................... 27

3.2 An overview of the Nigerian food and Beverage industry: ...................................... 28

3.3 Cadbury Nigeria plc analysis: ................................................................................... 30

3.4 Nestle Nigerian ltd: ................................................................................................... 32

3.5 Nigerian breweries analysis: ..................................................................................... 34

3.5.1 Guinness Nigeria Plc.......................................................................................... 35

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 3.5.2 Nigerian Bottling Company Plc. ........................................................................ 36

4 Chapter Four: ................................................................................................................... 38

4.1 Research methodology .............................................................................................. 38

4.1.1 Introduction ........................................................................................................ 38

4.2 Method of data collection:......................................................................................... 38

4.3 Data presentation and analysis: ................................................................................. 39

4.4 Data Interpretation and data analysis. ....................................................................... 40

4.4.1 Results ................................................................................................................ 41

5 Chapter Five: .................................................................................................................... 47

5.1 Preliminary Conclusions ........................................................................................... 47

6 References: ....................................................................................................................... 49

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 Chapter One:

1.1 Introduction
The business world today is a world of competition. As a result, the challenges
demanded by rapid globalization, increased competition, technological
developments, and acceleration of changes calls on organizations to frequently
reviews their sales and promotional strategy to keep up with the changing
society. Therefore sustenance of existing customers and attracting new ones in
recent times has become a critical factor in today‘s world of business.

In fact the rate at which many advertising industries are springing up is

instructive of the fact that, complex and uncertain business environment has
lead many organizations to device multifaceted approaches to market their
products and services through various techniques of marketing mix
(advertisements, sales promotion, Relationship marketing etc). It is also
important to analyze the role of branding as one of the many factors that
influences consumer behavior.

Moreover the essence of business today is to build up a brand, develop a

product or service, create awareness, ensure sales, satisfy consumers and
generate profit. Therefore, the hallmarks of remaining in business as a profit
oriented organization is to generate enough sales from its product or services
not only to cover operating cost but also to sustain the future of the organization
and pay dividends to shareholders .

In Nigeria today, taking decision on sales is one of the most difficult and
challenging tasks business executive has to deal with. This is because of the
multi diverse ethnic, religious and cultural differences that exist within the
nation and the devastating effect of declining economic fortune of people and
the nation at large as a result of corrupt leadership. Therefore Predicting,
estimating, determining and executing strategies with reasonable accuracy to
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satisfy customers‘ demands now requires more than `just going by the book` but
rather a complete understanding of the people and the nation at large.

Today organizations have developed innovative approaches to branding, image

development and management, Sales promotion, Relationship marketing,
advertising (Marketing and sales mix) etc to influence consumer behavior and
increase sales, revenue and market share; As proof Tuan Pham, Colombian
university (2011) puts it ‗we are dealing with rational human being, Decision
makers have consumer‘s personal and psychological factors to contend with.
This is because personal factors and psychological factors may create different
perception towards different channel of communication and market promotion‘.

However, in Nigeria tele-adverts, bill board, radio, sales promotions etc has
remained the most widely used medium to initiate psychological process of
moving potential buyers from a state of ignorance to a brand of awareness,
reinforcing attention, ensuring reliability of memory and influencing purchase
decision, probably because virtually everybody has access to one of this
mediums except in some exceptional cases.

1.2 Aim of study

To give an overview of the Nigerian beverage market
Explore major participant in the industry
Analyze marketing strategies and medium used to influence consumer
behavior
Analyze the impact of these marketing strategies on the market in general
(Competitors and consumers).
Recommendations and Conclusion.

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Limitation to the study:

There are some inevitable limitations to my study; I will start by stressing the
unwillingness on the part of the management to fully cooperate and give
adequate and clear information‘s regarding the company core marketing
strategy, marketing efforts and counter efforts this is because the company is
trying to limit information giving out to guard against espionage from rival
competitor. This is quite reasonable considering the nature of competition and
market structure, companies tends to be very protective of information that are
of strategic importance

Another problem I like to point out is the busy schedules of workers and major
participant need for interviews about the insight of daily operations (logistics,
factory operations and likewise management) were often unreachable. This
makes it difficult to obtain detailed information.

The final and very important problem I encountered was in gathering up to date
information‘s on companies and their competitors. This is because Nigerian
business circle is still lacking behind in taking full advantage of the internet to
upload company result, report and researches, making it difficult for me to get
hold of updated information‘s. I had to rely on word of mouth from the
employees of this companies and secondary source for most of my researches
which is not always reliable.

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 2 Chapter Two:

2.1 Literature review:

2.2 Definition of key worlds:

2.2.1 Definition of consumer behavior

Consumer behavior can simple be seen as the psychology of how consumers
think, feel reason, and select between different alternatives e.g. brands and
products and even services; or simply refers to how consumers make purchasing
decisions. This can be influence by many factors e.g. environment, culture,
family, signs, media etc. subsequently, limitation in consumer knowledge in
processing information influence decisions and marketing outcome according to
(L. perner, the University of Southern California).

The application of consumer behavior is so broad; this depends on

environmental condition, market condition, restrictions, competition and
organization‘s marketing strategy and most importantly with regards to Nigeria
culture and religion. For example, what is considered as normal (dress style,
code of conduct, mingling between male and female, words of expression) in
the eastern or western Nigeria could be considered as immoral in the northern
part of the country as a result of strict religious practice misunderstanding this
could lead to a complete failure of product and subsequently rejection of brands
amongst consumers.

According to (Lars Perner) he further explains, the four main applications of

consumer behavior:

The most obvious is the marketing strategy-i.e., for making better

marketing campaigns, for example by understanding that consumers are
more receptive to food advertising when they are hungry, that gives the
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advertisers an upper hand by scheduling advertising late in the afternoon.
By understanding, new product are usually adopted by a few consumers
and only spread later, and then only gradually, to the rest of the
population.

Companies that introduce new products must be well financed so that

they can stay afloat until their product becomes a commercial success.

It is important to please initial costumers, since they will in turn influence

many subsequent customers, brand and choices.

Adequate information about the product should be made available to the

consumer at all time regardless of the necessity.
Social marketing: with information a producer knows about the consumer
and effective means of connection can be established. For example,
Marty Fishbein, a marketing professor went on sabbatical to work for the
center for disease control to try and reduce the incidence of transmission
of disease through illegal drug use. With the information know to her that
―practice of sharing needles was too ingrained in the drug culture to be
stopped‖ as a result, using the knowledge of consumer attitudes, Dr
fishbein created a campaign that encourage the cleaning of needles in
bleach before sharing them a goal that is believed to be more realistic. So
therefore flow of information and ideas across the business and the
consumer is highly crucial to understanding effective strategy.
Organizing events and shows helps in getting relevant information and
ideas to the consumers and potential consumers too. This help to create a
lasting relationship and eventually creating brand loyalty.
Finally knowledge of consumer behavior should make us better
consumer. As the saying goes ‗Cheaper by the dozen‘. In some cases of
sales promotion, we may be offered a condition for and extra bar of soap

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 if we buy more than two. Now we use soap daily, regardless of the
quantity we have there is always a need for more therefore if we use the
opportunity offered to us in the shop, we can by more and pay less.

2.3 Consumer decision making process

Consumer decision making process is a chat that tries to explain the reasons and
thoughts that go on in minds of consumers which makes them exhibits certain
behaviors. (Likening or repulsive).

The model is designed to link together many of the ideas relating to consumer
decision making that leads to certain behavior and habit. This model does not
presume to provide an accurate or precise picture of the complexities of
consumer decision making. Rather it tries to synthesize and coordinate concepts
into a significant whole. The model comprises of three major components:
input, process and output.

Input: (external influences).

Input of Consumer behavior influence by external activities that serves as a

source of information about a particular product or services, related values,
attributes and behavior. The input factor could be marketing mix activities and
number of marketing socio-cultural influences.

Firms marketing effort

Promotion
Price
Product
Channel of distribution
Socio-cultural environment
Family
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 Information source
Social class.
Process :( consumer Decision making)

The process component of the model is concerned with how consumer makes
and arrives at a decision to buy or not to buy. To understand this, we must
consider the influence of the psychological concept which represents the
internal influences that affect consumer decision making process. Decision
process consists of three stages which are:

The need recognition.

Pre-purchase searches.
Evaluation of alternatives

Output (post decision behavior)

The final stage of consumer decision making consist of two final processes
before a decision is reached which are:

Purchase behavior. Reaction prior the purchasing decision

Post purchase evaluation. Reaction after purchase.

Brand Loyalty and Consumer Behavior.

As you like party with some of your friends than others, so also you like certain
brands preferred to others. As quoted by Robert Blanchard (2010) is
synonymous with today‘s highly competitive business environment, improving
consumer loyalty to brand permits marketer to maintain comfortable and lasting
control of the marketing place.

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Brand loyalty is the consumer conscious or unconscious decision, expressed
through intention or behavior to repurchase a brand continually. This is because
the consumer perceives that the brand offers the right product features, image or
level of quality at the right price. This attributes builds trust and confidence in
consumers.

In order to create brand loyalty, advertisers must break consumer habit and help
them acquire new habits about their brand and reinforce those habits by
reminding consumers of the value of their purchase and encourage them to
continue purchasing those products in the future.

The image surrounding a company brand is its principal source of competitive

advantage and is therefore a valuable strategic asset. A clear example is the
Boss of Apple Steve Jobs; He considered the image behind the Brand ‗Apple‘
and therefore a strategic asset to Apple. In fact a company should view its brand
as not just a service or product, but an overall definition of the company‘s
philosophy. A brand needs more than identity, it needs a personality, a strong
symbol or company logo can also help generate brand loyalty by making it
quick identifiable.

From the design and launch of a new product to the extension of a mature
existing brand, effective marketing strategies depend on a thorough
understanding of the motivation, learning, memory, and decision processes that
influence what consumers think and buy. The theories of consumer behavior
have been reportedly linked to managerial decisions involving development and
lunching of new product (Segmentation, target group and timing of market
entry, and brand management). Subsequently the issue of brand loyalty has been
examined at great length.

Branding is by far one of the most important factor influencing an items failure
or success in the marketing place, and can have a dramatic impact on how the

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company is ―company behind the brand‖ perceived by the buying public. In
other words the brand is not just a representation of a company product, it is a
symbol of the company itself, and that is where the core of brand loyalty lies.

Brand loyalty can be developed through various measures such as quick service,
ensuring quality product, continuous improvement, and wide distribution
network etc. when consumers are brand loyal, their behavior is predictable for
they love ―you‖ for been ―you‖ and they will not consider any other alternative
brand as a replacement.

In Nigerian today developing, maintaining and sustaining effective

communication network with consumers is crucial for the success of an
organization. Nigerian`s are curious by nature and they like to be carried along
getting involved and be informed on issues concerning them as well as the
company itself. Therefore establishing a good public relation to inform the
consumer of certain product, innovation and improvement sometime short
coming could help organization improve brand loyalist.

2.4 Definition of advertising

Advertising is one of the most effective promotional tools used by both
producers and distributors of goods and services to encourage, persuade,
stimulate or manipulate the potential buyers, as well as existing consumers to
make purchase decisions. Its helps in creating brand image and product
awareness. Companies have invested heavily trying to create awareness of their
product to attract consumer via advertising campaigns.

Advertising is one of the most popular tools that are used by the companies to
convince and communicate with the target buyers and potential customers. It
involves a group of planned activities carefully strategized and purposely aimed
at consumers as a form of information in any paid or unpaid form, concerning
an idea products or services and to compel action in accordance with the intent
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to make them buy. Consumers are the target here and they have their money
eager to spend on products or services ranging from needs to luxury. It is now
left for the advertising agency to device a means through a medium to
effectively communicate to the consumers; Not only must the advertisement
effectively communicate the desired message, but the individual audience must
be willing to "buy into" the desired message.

2.4.1 Advertising as marketing tools:

Advertising is an important part promotional marketing mix. It is therefore an

important part of the 4ps in marketing mix, i.e. product, price, place and
promotion. As a promotional strategy, advertising serve as a major tool in
creating brand image and product awareness, as well as conditioning the mind
by suggesting, informing and persuading potential consumers to engage
themselves in purchase.

An average Nigerian consumer‘s mentality of a product or service is sensitive

to religio-cultural differences hence; physical requirement, psychological needs
and correct manipulation of symbols and logo‘s of products such as the brand
label, and packaging can help persuade consumers to make purchase decision.
As a result uncovering “why” people buy is an extremely difficult task, because
purchase decision is almost entirely psycho-social and differs according to
culture and ethnicity.

In making purchase the consumer considers past experiences with the product
and previous encounter with the product in stores. Therefore, it becomes
expedient for marketing practitioners to communicate openly, honestly and
straight with consumers. The law in most developed countries of the world
equivocally forbids false or deceptive advertising. For this reason marketers
justify advertising by arguing that advertising is intrinsic to markets and
fundamentally beneficial to consumer. Advertising do not only moves markets

15
and minds, it also generates employment either directly or indirectly and
influences a large section of the people it creates lifestyles, improves culture,
enhances knowledge and generates income; therefore it aims at building
relationships between customers and brands. The consumer is influenced by
prior advertising exposure, sales promotion activities, competitors‘ marketing
efforts, internalized drives, and social class etc.

There has been a controversy in determining whether advertising primary role

is informative or persuasive. Monica (2010) Persuasive technique in advertising
techniques) consumers could be synthesized by advertising, catalyzed by
salesmanship and shaped by discrete manipulations of advertiser, shows that the
wants are not very urgent. Nevertheless, there are some advertising that are very
persuasive and have the power to manipulate and force consumer towards brand
loyalty.

All consumers‘ have their own favorite advertising medium, speaking about
Nigeria, in the urban part of the country people prefer television commercials
(especially children) since they have ample of time to watch television program
and the rural parts where the luxury of constant electricity is limited to the rich
and very few members of the community, they constantly rely of the radio for
information and a traditional form called ‗Town crier‘, A process whereby
messengers are sent around market square and social gathering with a bell
ringing and making announcements. Others consumers could prefer to read
magazines/bill board commercials and some prefer new types of advertising
(on-line commercials).

However, television advertising is more pervasive in people‘s lives, increasing

the likelihood that consumers outside a target market will be exposed to
messages that are not intended for their viewing and will subsequently be
attracted. Television commercial is generally considered as the most effective

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mass-media and market advertising medium, as it is reflected by the huge
amount of money TV networks charge for commercial airtime during popular
TV events (Sports, TV series documentaries just to mention a few). In practical
terms, advertisement has strong psychological effects on consumers and people
in general.

For Nigerian marketing managers in particular, there is need to avoid

misleading advertising messages in the first place. Revelations of deceptive
advertising have the power to adversely affect advertising as a whole, not just
the specific firm involved in the deception by also loyal consumers and public
impression. For regulators, I suggest that careful consideration must be given to
the punitive effects that such practices can have by reinforcing negative
attitudes toward advertising as a whole An appeal connects with some emotion
that makes the product particularly attractive, interesting and appealing to
viewers, such as security, esteem, fears, sex and sensory pleasure. Although
emotion is at the base of most appeals, in some situations appeals can also be
logical, such as saving money for retirement.

Appeals generally pinpoint the anticipated response of the audience to the

product and the message. For example, if the price is emphasized in an
advertorial, then the appeal is value, economy or savings. If the product saves
time or effort, then the appeal is convenience. Advertisers use a status appeal to
establish something as a high quality, expensive product. In view of this the
effects of attitudes toward the media and subsequent influence on the attitudes
toward advertising in the media cannot be underestimated because of its
psychological effects on the consumers.

However, the roles of advertising are to stimulate and create awareness for a
product and hence increase in sales. Its role is also to retain brand loyalty in the
customers. It also serves as a help-hand and gives support to the employees

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(sales force), wholesalers and retailers in convincing the consumer and finally
lures them to action in the form of making a purchase. Thus, for advertising to
be efficient and effective it must attract the consumer‘s attention, interest and
confidence by bringing them to the level of awareness of the product or services
being advertised. It must also create a desire for and action toward the product
in other to purchase it.

The purchase act is the feedback expected by the advertiser for the information
he supplies to the consumer. Recent experience in Nigeria revealed that the
information contents of an advertorial in Nigeria are most of the time
wheedling, exaggerating and flattering and often not carrying the desired
message needed for a product. Although some consumer may be willing to be
flattered, cajoled or entertained, they do not really wish to be deceived nor
manipulated, which of course has been the occupation of most Nigerian
advertiser. Advertisers are obsessed to sell their products to the consumer so as
to retain competitive edge and also make the customers like their products.
Most especially in this type of growing economy whose supreme objective is
devoted not on to the creation of new products and services but also to making
the unsuspected consumers like it, the sovereignty of consumers and their rights
appears to be limited or entirely subjugated.

2.5 Sales promotion:

Sales promotion can be simply be summed up as a selling technique that is
adopted in with the range of short time, nonrecurring method to boost up sales
in different ways. There are therefore various ways and techniques to carry out
sales promotion depending on the managerial decision. Sales promotion could
come in the form of 10%, 20%, 30%, 50% to 70% off normal price, buy two get
one free, gifts like lunch box, pencil box, and shampoo pouch etc can be offered
to you for using a specific product or services. You may have also observed in
shopping streets or notice sales advert on the doors and windows of shops
18
about ―winter sales‖, ―summer sale‖ etc. these offer is not available to customer
throughout the year. The main scope behind this is to motivate consumers to
buy more of these products as offered with a short space of time and increase
company sales.

2.5.1 Aim of sales promotion:

Marketers seize sales promotion as an opportunity to present their goods or

services directly or indirectly to the consumer. Usually sales promotion may be
employed to achieve one or several goals and objectives which range from:

Introducing a new product

To encourage greater use among current users and to attract potential
consumers.
To attract more customers into the store
To stabilize a fluctuating sales pattern
To increase resellers inventories.
To combat or offset rival or competitors marketing effort
To obtain better shelf space and display.
To raise the sale of a product above the plateau.
To remind customers of existing or new products.
Source (http://www.nios.ac.in/Secbuscour/24.pdf cited on 12/1/2011)

2.5.2 Type of sales promotion

The classification of sales promotion is based on the beneficiaries and the

participants.

Consumer promotion is aimed at the consumers, in fact this is most easiest and
costless form of sales promotion. Its tactics involves inducing a consumer to
buy or have a taste of the final product; therefore it is the only the final
consumer that is the participant in these exercise.

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Another form is the Trade promotion where retailers and wholesalers are highly
involved. It is aimed to encourage the so called ‗channel members‘ to increase
their product stock and eventually push them to ultimate consumer.

The next type of sales promotion is more of an in-house activity. Sales forces
promotion is directed to members of company sales team and sales
representative to encourage them to effectively dispose the company‘s product.

The final type of sales promotion I like to discuss is the Point of purchase
display. Here wholesalers and retailers are encouraged to openly and properly
display products promoted. Therefore the retailers can receive the additional
benefit by allocating more shelve space for the brand against other competing
brands or through effective demonstration of promoted products.

2.6 Matching the tools/techniques with their objectives.

Tools/ techniques Objectives

1. Free sample (a) To introduce a new product or

induce customers to buy a product more frequently

2. Exchange schemes (b)useful for drawing attention towards

product improvement and draw attention to product innovation

3. Price off offer (c) when a new product is to be introduce

or when there is a need to sell off old product

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 4. Trading stamps (d) to boost up sales in off
seasons.

2.7 Marketing:

One of the numerous definitions of marketing puts it as "the activity, set of

institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and
society at large. Marketing could be viewed as a product or service selling
related overall activities‖.

It creates the strategy that underlies sales techniques, business communication,

and business developments all in a single context.

Furthermore, marketing enhances to a great extend in identify who the customer

is (Target group), satisfying the customer (knowing what they want) and buying
the customers loyalty (Brand loyalty).

2.7.1 Marketing as a strategy:

The success of a product largely depends of the marketing strategy employed. It

is not enough to just introduce a product into the market without a designed for
its success.

Firstly there has to be series of research to enable companies identify and

choose the most appropriate and flexible marketing mix (The right product, best
price, most conducive market and of cause the most suitable promotional tool).

Secondly, marketers must ensure the product has the right features. For example
the packaging has to look attractive and appealing at the sometime the product
should represent what it is, as ‗said‘. In order words the product should not fall
short of expectation.

Furthermore the price should be reasonable enough to make consumer buy

more. Now this is tricky because if the product is cheap then the consumer may
begin to rate the product as sub-standard and we rick Deeping down to product
failure. So the pricing needs to be reasonable and affordable. The marketing mix
‗4ps‘ elaborate as you read along.

Businesses in recent years are market focused they try to really understand their
customers and try to make available what they need and when it is needed.
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2.7.2 The Marketing Four Ps

Marketing mix can be divided into four basic decision areas known as the "four
Ps":

Product
Place
Promotion
Price

Managers use these four elements to devise an overall marketing strategy for a
product or group of goods. These four decision groups represent all of the levels
in marketing an organization can control. But those decisions must be made in
consideration with external variables that are not entirely under the control of
the organization, such as rivalry and competition, economic and technological
changes, the political and legal environment, social, cultural and ethical factors.

Marketing decisions related to the product or service comprises, focusing on a

target group (Age, gender, social exposure) and developing the right product for
them. Focus group could be set up to conduct research, collect data‘s, analyze
the data‘s collected and finally, developing a product or service that will fully
meet the needs of the target consumer. Your job as a marketing manager does
not end there, you have to lunch this product or services at the very right time
and place, using the right people and the preferred medium. Consumers are very
sensitive, therefore using the wrong, packaging, advertising or medium etc,
could adversely affect you product performance in the market.

Lunching a new product usually cost more to promote and create consumer
awareness, in addition delivering the product to the target market at the right
time and in the proper quantity. Strategies relate to place may utilize middlemen
and facilitators with expertise in joining buyers and sellers, and they may also
encompass various distribution channels, including retail, wholesale, catalog
etc.

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Marketing managers must also devise a means of transporting the goods to the
selected sales channels, and they may need to maintain an inventory of items to
meet demand. Decisions related to place typically play an important role in
determining the degree of vertical integration in a company, or how many
activities in the distribution chain are owned and operated by the manufacturer.
For example, Nigerian breweries own their trucks, stores (wholesale) in which
their goods are sold, and they even cultivate and finance famers who are willing
to grow grains for them to use in the manufacture of beer.

The third marketing mix, promotion, relate to sales, advertising, public

relations, and other activities that communicate information directed to
influence consumer behavior. Often promotions are also necessary to influence
the behavior of retailers and others who resell or distribute the product. Three
major types of promotion typically integrated into a market strategy are
personal selling,

Personal selling,
Sales promotions.
Mass selling

Personal selling refers to face-to-face contact or telephone sales, usually

provides immediate feedback for the company about the product. This method
can be a medium for advertising, introducing and recommending products
directly to consumers. Since is a direct conversation between consumers and the
company‘s reprentatives, it will be considered reliable amongst consumers.

Mass selling involves advertising on mass media, such as television, radio,

direct mail, and newspapers, and it‘s beneficial because of its broad scope
targeting consumers and potential consumers. A relatively new means of
promotion involves the Internet, which combines features of mass media with a

23
unique opportunity for interactive communication with customers. Sales
promotions, I have discussed above.

Price determination, the fourth major activity related to target marketing, entails
the use of discounts and long-term pricing goals, as well as the consideration of
demographic and geographic influences. The price of a product or service
generally must at least cover the company's overall cost of production and
delivery. Also a firm would logically price a product at the level that would
maximize profits. The price that a company selects for its products, however,
will vary according to its long-term marketing strategy. For example, Cadbury,
with introduction of one of its brand `Bonvita` more that 20 years ago, the price
hasn‘t changed much according to the marketing manager in cadbury, Mr.
Taiwo Adeleye said Bonvita is one of the, if not the most popular brands in
Nigeria today generating record sales for the company.

In some cases a company under prices its product in the hopes of increasing
market share and ensuring its competitive presence, or simply to generate a
desired level of cash flow depending on the management intention. Other
producer may fix price extremely high in the hopes of eventually conveying to
the consumer that it is a premium product.

2.8 Sponsorship:
Sponsorship is fast becoming strong form of marketing, a company can broaden
its competitive advantage by increasing is presence to create familiarity,
increase credibility as well as prestige. A brand is as powerful as what it
associates itself with. Sponsorship doesn‘t always mean financial backing; it
could also be as a form of support for an activity, festival, celebration these
activities are primary taken advantage of to reach a specific business goal.
Hence sponsorship promotes a company in association with the spouse.

24
In many social events, presents an opportunity for promotion and sponsorship,
for example sponsoring the decoration of a press room, a team football jersey,
audio visual equipment etc

Amongst the three big players in Nigerian beverage market, Nigerian breweries
have solely focused much of their marketing effort to sponsorship. At present it
has the largest budget for sponsorship in Nigeria, from sponsoring the Nigerian
,‖ Star Quest‖, ‖Guilder Ultimate search and Amstel Box Office‖ all programs
been televised n national networks. No wonder Nigerian breweries has succeeds
in dominating the beverage market in recent years.

With sponsorship it is more easer to reach out to the target audience without any
waste, in addition it is a more powerful support to other marketing techniques
and helps to improvement of consumer relations

2.8.1 Many would wonder ’Why’ sponsorship?

Carl Christopher in one of his lecture cited ‘sponsorship, companies can

improve how they are perceived by their target audience (enhance cooperate
image and shape consumers attitude)‘. Sponsoring an event that appeals to their
market companies are likely to shape buying attitude and help generate positive
reaction and comments just as I explained with Nigerian breweries.

Boosting sales could be another reason for sponsorship as well. Depending on

the agreed contract, sponsors can be allowed to show case products and
sampling of food, beverages etc.

For most companies creating publicity and exposure is the target. Publicity
perhaps creates a high level of visibility of product/services. This sort of
exposure is priceless because it sticks to the viewers mind.

Another reason for sponsorship could be as a result of differentiaton from

competitors. Exclusive sponsorship is used by companies in similar market and

25
it is a significant way of standing way from your competitors. In an exclusive
sponsorship, your company name alone stands apart and high about other rival
some firms use it send out intimidating signs to rivals.

Sponsorship allow companies to Improve cooperate social responsibility, in this

context sponsorship could be seen as been supportive to the community and
contributing to its economic development in some cases it could be viewed as
been supportive by creating opportunities.

26
 3 Chapter Three:

3.1 The Nigerian life style

Introduction

At this point of study, I intend to give you an insight of the Nigerian life style, cultural,
religious and ethnical difference. This is important to help understand how these company
operate, how strategies are implemented and repercussions that could result from abusing the
government regulations and consumers right.

It is important to note that Nigeria is a home of 150,000,000 million inhabitants, with

estimated tribes of different culture, religion and language of about 200.

For these reasons alone you will agree with me that operating a business in a diverse
environment like this take more than marketing mix but effective communication and
understanding the country as a whole.

Like any other nation, the freedom of religion and human right permit citizens to belong or
associate themselves with and religious group, this has led a division of the population into
adopting Islam mainly in the northern and western part of the country; according to CIA fact
book (2009) the Islamic community constitutes about 50% of the whole population with
Christianity taking 40% of the population from the eastern and southern part of the country.
The remaining 10% are practicing a traditional belief which is legal in the country.

Moving on to ethnic and cultural differences, the CIA fact book (2009) also estimated the
number of tribal groups to be around 250. I like to emphasize that just as the tribes differ so
do they all have different ethics, believes and ability to process information even
understanding of symbols.

The life style is just as easy going with everybody pretending all is fine and perfect but in fact
this differences has create a division amongst the general population, with everybody been
suspicious and careful about their neighbors of different tribe and religion. To make things
worse the politicians have taken this weakness to manipulate the people and use them as a
tool for political weapon to fight each other blaming it of religious fanaticism. Not to mention
the issue of illiteracy with is one of the nations short coming.

27
I am mentioning all this trends just to give you an idea how difficult it is for managers to
make and implement strategic decision. Understanding of these differences can make your
company attain a comfortable competitive position. An example of miss interpretation of
words, written with intension to draw support from the general public lead to riot, deaths and
loss of properties in these great Nation. It was the year (2001), when Agbani Darego became
the Nigerian and first black woman to win the miss world beauty pageant for 2001. It was a
great day for her. The officials decided to grant her an opportunity to host the next episode of
beauty pageant for 2002. Been a beauty pageant it is required for contestants to look sexy and
attractive. This caused a little demonstration around the northern part of the country. One
local newspaper took it as an opportunity to make a joke to appease the demonstrators when
he published a joke say ―Prophet Mohamed would have made one of the contestant his wife‖.
This statement alone lead to violent riots, deaths and loss of property in the northern part of
the country.

Furthermore in carrying out marketing mix weather in the form of advertisement, sales
promotion, sponsorship etc, this has to be done in different language using different group of
people representing different ethnic and religious background either in Igbo, Hausa or
Yoruba which are the three major languages in Nigerian. On the other have this means an
increase in budget for advertisement...

3.2 An overview of the Nigerian food and Beverage industry:

The food and beverage industry, along with the agricultural sector, bears the
handsome responsibility of feeding a populous and developing nation. The
industry has showed a strong growth over the last 10 years largely as a result of
the relatively stable economic climate. Changing demographic- greater number
of people migrating from rural to urban areas, more women working and more
children attending school, have contributed to the thriving demand for the
industry‘s products. The industries products are fast becoming an essential part
of the nation diet, particularly in the urban areas.

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The food and beverage industry in Nigeria is at the fore in the manufacturing of
dairy products, hot beverages, seasonings, convenience foods, confectioneries
and staple foods such as bread, pasta and noodles. The demand for the
industry‘s product from Nigerian consumer is estimated to now been in excess
of N 500 billion naira per annum. The low purchasing power of the average
Nigerian consumer, however, dictates that fortunes in the industry are highly
dependent on the affordability of the product. The low level of infrastructural
development and the tropical climate also accentuate the importance of the shelf
stability of products as a factor for success in the industry.

The food and beverage industry is one of the most globally competitive
industries- dominated world wild by a handful of multinational companies.
Nigeria is no exception; the leading manufacturers of food and beverage
product in Nigeria are mostly subsidiaries of global major players. Companies
such as Cadbury Nigeria plc, Nestle Nigeria Plc, Uniliver Nigeria Plc, Nigerian
breweries dominate the hot beverage, seasoning and confectionery segment in
Nigeria. The diary segment in Nigeria is dominated by a subsidiary of another
multinational major player frieslandcampina WAMCO Nigeria Plc. The global
major players are largely underrepresented the staple and convenience segments
in Nigeria; this has left room for smaller regional and local companies to
flourish in these segments.

The Nigerian food and beverage industry is currently experiencing solid growth
and has a great deal of potential for growth in the long term as Nigeria is
demographically young. The industries reliance imports for inputs, however,
results in an undesirable exposure to the risk of foreign exchange fluctuations
and global food insecurities. The importation of inputs also limits production
flexibility in the industry as the stocking decisions must be taken weeks in
advance and cannot be altered because of long period spent in transit. The
industry also comes under significant pressure from large volume of imports

29
that are readily available in Nigerian markets. Vertical integration into the
production of inputs is a viable solution to the industry‘s problems of
importation if the inputs can produced on an efficient scale.

3.3 Cadbury Nigeria plc analysis:

Cadbury is the market leader in Nigerian market. Cadbury is the largest supplier
of beverages and other sugar confectionaries in the market with products
ranging from Bournvita, Bubba,Sitmorol, Tom Tom, Trebor, Ahomka,
Buttermint and Eclairs just to mention a few. In Nigeria it has the largest share
of the market followed closely with nestle Nigeria plc and then other local
competitors occupies the remaining market.

The following is the SWOT analysis for the company in Nigerian market:

Strength.

The company has a large established business in the Nigerian market since 1965
and it‘s based in Lagos Nigeria. The company has established itself as a world
leader in the confectionary market. In Nigeria is has about 40%of the
confectionary market. In line with its vision, the company has been striving to
be the world leader in confectionary industry. Through innovation and strategic
marketing, the company has acquired about 10% of the world confectionary
market (Laura, 2008).

The company has a good reputation, with strong brand in the market; the
company is well positioned in the market. In Nigeria Cadbury has strived to
build a good reputation. This could be attributed to the success of its product. It
is on this solid reputation that the company can embark on introducing a new
brand in the market.

30
Weakness

The target population is quiet large and there are fears the demand for the
product may outdo the capacity of the company to satisfy the demands of the
market considering Nigeria‘s population of about 155,215,573 (CIA world fact
book 2011 est.). This means that the company needs to increase its production
capacity in order to match the rate of growth in market demand. Another major
problem in the distribution network is the transportation of goods to various part
of the country due to bad infrastructural development issues; roads, transport
vehicles etc (Cadbury 2008).

Opportunities

The company is operating in a market where it has a majority share; this is a

unique opportunity for the company to effectively introduce new product and
strategies without feeling threats for other rival competitors. Its position in the
market makes it easier for Cadbury overcome threats from rivals using its
opportunities.

The company can introduce products in a unique way, by sponsorship in order

to help the target market identify with the product. Cadbury can also host other
events like sports or even engage in cooperate social responsibility activities
like child education, poverty alleviation etc. this can also help target market
identify with the product more. (Laura, 2008)

The company can use a wild range of marketing strategy which can lead to
overall growth of product in the market. The Nigerian advertisement market has
been at a rapid growth rate which means there are lots of opportunities for the
growth of the market. And Cadbury can take advantage of these advertising
opportunities.

Threats

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There is threat of entry of other products or brands into the market. The threat of
new product into the market will increase the level of competition in the market.
There are other companies which are likely to introduce similar product in the
market once there is success of the initial product. One particular company Is an
indigenous company Dangote Group; one of the fastest growing business in
Nigeria and Africa in general these company is based on quality, affordability
and controls enormous brand loyalist; in 2007/08 Dangote industries, saw a
profit increase of about 400% (Dangote 2008).

Threat as a result of change in external environment may likely alter the nature
of the market. For instance change in taxation, government laws regulating the
industry and other factors which are likely to impact negatively on the industry
(Cadbury 2008).

3.4 Nestle Nigerian ltd:

Nestle Nigeria plc started manufacturing operations in 1961 and has today
grown in to a leading food and manufacturing and marketing company. In April
1979 nestle was listed on the Nigerian stock exchange. Nestle S.A of
Switzerland and nestle CWA limited, Ghana are major shareholders of the
company controlling 3.17% and 59.13& of the company respectively and will
provide technical and strategically support. Nestle focuses on food processing,
food seasoning and beverages.

Financial performance:

The company experience steady growth in turn over in the past five years till
2009. With turnover increased by 16% CAGR over the past five years while
PAT increased by 18% CAGR. Total asset also grew by 21% CAGR within the
same period.

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Source: Equity research on Nestle Nigeria plc. July 2009.

Strength and weakness:

 Strong brand.
 Excellent management and multinational backing which ensure strong
work force.
 Large market share of seasoning and beverage market.
 Product breadth and innovation.
 Excellent term of trade with distributors and suppliers.
 Good profitability which ensures strong equity and researches.
 Strong cash flow.

33
  Adequate working capital.

Challenges:

 Declining purchasing power.

 Increased cost of production
 Threat of foreign (smuggled product).

3.5 Nigerian breweries analysis:

Nigerian Breweries Company and a major rival both hold about 80% market
share in the beer beverage market. Nigerian breweries incorporated in 1946 and
began operations in 1949. The company became a public liability company in
1990 for then it known as Nigerian breweries plc, involved in brewing stout,
non alcoholic malt drink, marketing and distribution of larger beer. Amongst the
company`s brand portfolio are:

 Star beer (1949)

 Guilder (1970)
 Guilder max (2006)
 Heineken (1998)
 Legend Extra stout (1992)
 Amstel Malta (1994)
 Maltina (1974)
 Farouz (2006)

Nigerian breweries as I said, the company holds a whopping 80% market share
together with its rival. To keep up the competition by diversifying its port folio
as it has been able to attract relatively higher patronage in most segment of its
business most especially amongst larger and non alcoholic drinks.

To stay ahead of other competitors, Nigerian breweries have been involved in

several brands and rebranding of products, product development and

34
diversification of portfolio and effort in the last five years. In 2006 the guilder
lager beer was launch. The color was darker, richer and very successful more
than predicted. Nigerian breweries attempted to enter the soft drink market by
launching the Farouz brand of soft drink a combination of Pinapple and pear
flavour.

Recently a previous brand Maltina brand was repackaged and a larger size was
introduced while maintaining the normal price. The star beer which is the
number one brand of the company was also rebranded and since then has
achieved huge success.

Nigerian brewries marketing strategy is perhaps one of the most persuasive and
effective. The company has been on the fore front of several events sponsorship
and show promotions, notables amongst are the ‘Star Quest‘, ‘Guilder Ultimate
search and the Amstel Malta Box office other advertising media deployed by
Nigerian breweries include print electronic and billboards. Such huge
investment has yield dividends with turnover volumes growing at high rate.

3.5.1 Guinness Nigeria Plc

Incorporated in Nigeria in 1950, and was officially listed on the Nigerian stock
exchange in 1965. Guinness is majorly involved in brewing, packaging and
marketing of Guinness foreign extra stout, Guinness extra smooth, Malta
Guinness, Harp Larger Beer and Gordon‘s Spark.

The company has grown through its two major stout brands. Built a competitive
advantage in the stout category of the breweries sector.

35
3.5.2 Nigerian Bottling Company Plc.

Nigerian bottling company plc was established in 1951 to operate factories for
the bottling of soft drinks. The company has a sole franchise for the bottling of
Coca Cola soft drinks in Nigeria.

The company subsequently grew and it operates 16 factories within Nigeria and
it uses 82 distribution warehouses and 200,000 distribution outlets. Coca Cola‘s
range of production in Nigeria includes Fanta in orange, lemon, blackcurrent
and apple flavor; sprite and Schweppes in bitter lemon, pineapple, club soda,
tonic water as well as Eva brand of table water.

The company has the largest market share in the beverage industry and has
continued to consolidate on the success of its major worldwide brand Coca
Cola.

Its key success factor has always been a strong and established brand name and
its continued effort in increasing its market outreach to a wider audience. Its
recent introduced Diet Coke is a confirmation of the companies drive to satisfy
the various needs of the market.

The Eva water brand also stands as a major player in the industry with major
competitors coming from likes of ragolis water, spring water, despite the high
level of diversification and innovation in juice category the company‘s % alive
brand has been able to establish a strong presence warding off competition from
chivita and other brands.

36
Technology race:

As one of the most critical growth factor behind company success, modern
technology which gives most companies, including Cadbury an upper hand
compared to other companies. Cadbury, like any other global leading company,
has been testing new technology in the established or in its main market and
then transferring the most appropriate and less expensive technology to the
emerging market. This has been one of the important growth factor in the
overall performance of the company. Nigerian breweries is also making sure it
follows suit by building one of the most sophisticate and well equipped factory
in Africa to enable them match demand with supply.

37
 4 Chapter Four:

4.1 Research methodology

4.1.1 Introduction

In order to for me to further shade light on my topic of study, it is important to

conduct research and gather the view of people and consumers around Nigeria
in general.

In this view it is important to collect both primary and secondary data and
carefully analysis and then compare the outcome.

4.2 Method of data collection:

For primary source

Data collection, Questioners with closed and open questions will be asked.
Questions will be focused on: advertising impact, product awareness, branding,
advertising and advertising medium etc. questioners will be distributed to
individual, interest groups (distributor, wholesaler and retailers) etc interviews
will be organized to held shade an insight on what marketing manager think or
have to cope with in taking decisions needed to be taken and why is it deemed
necessary and to who‘s interest and most interestingly at who‘s expense?

The purpose of collecting these primary data is to limit some problems resulting
from secondary source (verification of information source). And also personal
opinion will also be authentically reflected.

38
Secondary data’s:

Secondary data, in most cases, research has been carried out, and data analysis
and another party or person for the purpose of future use, referencing or for the
record.

During the course of this research, references were made from books, business
journals co-operation web-site, journals and reports.

However data obtained from a secondary source of information relevant to my

topic of discussion is important; it provides me with already made information
to assist the better understanding of the research.

Population:

For my research I focused on Lagos, Abuja and Kaduna these cities have a
larger population, people were randomly selected and given questioners,
depending on the interest of participants and people. Amongst group would be
members of management from different leading beverage companies. Members
of the public‘s as well will be considered, a total number of 350 questioners
were evenly distributed and about 315 were received.

4.3 Data presentation and analysis:

As questioners‘ were distributed, so were completed one collected, studied,
compare and analyzed.

Therefore, data collected from the major industry participant (Nestle, Cadbury,
Nigerian breweries etc), will enhance in explaining the level of involvement of
management in marketing and promotional mix of the company.

It is fact that an organizational marketing and promotional strategy is the force

behind the increase of sale. Therefore an accurate implementation and execution
of marketing mix is an important criterion for a company‘s success.
39
All over the world in recent years mega companies have invested heavily to
promote their brand to expose consumers with adequate information and
knowledge about their product. Nigeria is no exception.

Jacob Van Der Linden, the marketing director of Nigerian breweries said in an
interview with me that ‗for the past five years, marketing budget has been on
the increase‘. When asked for the reason he added, advertisement via television,
bill board, sponsorship and cooperate responsibility is becoming old fashion and
that consumer are getting bored of them. He continued consumers need
something new, attractive and interesting which is why his department
(marketing department) has seek for new medium to promote their products.

As a result the company has signed contract with celebrities and popular artist,
mobile service provider etc. and this proved to be successful as increased sales
are recorded.

At Cadbury, the sales manager attending to me has a different view, saying

‗about 8% of marketing budget is allocated to sale promotion‘ given reason that
advertisement is not felt immediately on sales of product, the company mostly
focuses on sales promotion and the result are immediately reflected on the
volume sold.

4.4 Data Interpretation and data analysis.

Both descriptive and inferential statistics were used in analyzing the data
collected. The response by the consumers to some items of the questioners was
compiled in a tabular form according to the main variable examined. Percentage
analysis was used in examining variables such as media preference, brand
preference etc.

40
4.4.1 Results

Table 1: Responses according to the questioners distributed.

Questioners Respondent Percentage

Completed and 315 80%

returned

Not returned 35 20%

Total 350 100%

Source: Administered questioner (2011).

The table above indicates the response rate to the questioners distributed. 300
questioners were distributed randomly to respondents of different age and ethnic
back ground exactly 248 of those questioners were collected and are the bases
on which this report is been analyzed. While the remaining 52 of the same
questioners were not accounted for, either due to lack of interest on the side of
the respondent or misplaced.

Important socioeconomic parameters of interest were investigated to bring to

the fore salient characteristics of the respondent.

41
Table 2: Distribution of consumers by sex

Sex Frequency Percentage

Male 158 50.16

Female 157 49.84

Total 315 100

Source: Administered questioners (2011)

Table 2 above shows the consumption of product are almost evenly distributed
amongst both sex, with the number of male slightly higher than that of female.
This is an indication of gender neutrality or balanced consumption of product.

42
Table 3: consumer age distribution

Age in years Frequency Percentage

<10 21 6.67

11-15 27 8.57

16-20 29 9.21

21-25 42 113.33

26-30 35 11.11

31-35 49 15.56

36-40 46 14.6

41-45 24 7.62

46-50 10 6.03

51-55 12 3.81

56-60 11 3.49

Total 315 100

Source: Administered questioner (20011)

As show in table 3 above, age range between 10 and 60 years represented in this
study, I can be observed that age group between 31-35 represents 15% of the
total sample. Over 30 % of the respondents are within the age range between

43
30-40 years old. This figure reflects the dominance of youths in the market for
the product of the company.

Table 4: Consumer reason for brand preference.

Reasons Frequency Percentage

Advertisement 159 50.48

Quality 124 39.37

Availability 19 6.03

Price 6 1.9

Packaging 3 0.95

No response 4 1.27

Total 315 100

Source: Administered questioners (2011)

This table clearly shows that brand preference by consumers is highly

influenced be advertisement although this represent Nigerian view but it is not
only Nigeria but all over the world.

From the table above Advertisement (50.48%) and packaging (0.95%). It is

clearly shown that advertisement and quality difference make up about 90% of
the reason observed for brand preference.

44
Table 5: consumer source of awareness of brands and products.

Sources Frequency Percentage

Advertisement 189 59.05

Word of Mouths 97 30.79

Sales Promotion 23 7.30

Can‘t Remember 9 2.86

Total 315 100

Sources: Administered questioner (2011)

The above table 5 indicates 59.05% of most consumers came to know about
major brands and products via advertisement and as a result of post purchase
satisfaction experience the decided to share the information about the particular
product to friends and families, thereby creating brand awareness. 2.86% of
people can remember where or how they came across the product. Still yet I am
not ruling out the possibility of advertisement, maybe they came across an
advert somewhere on bill boards or possibly on a television.

45
Table 6: Consumer perception of media use in advertisement of products

Media Frequency Percentage

Television 225 71.43

Radio 45 14.29

Outdoor display 17 5.4

Newspaper 14 4.44

Magazine 14 4.44

Total 315 100

Source: Administered questioner (2011)

Table 6, reveals five different advertisement medium used in advertising and

promotion of consumer product. It‘s no surprise; most consumers about 71.43%
of response gathered were influence through television advertisement. This is an
indication that Beverage Company uses the tele-media to create product
awareness and influence consumer behavior. The radio came second with
14.29% while news paper and magazine came in last with 4.44%. The reason
could be a lack of reading culture amongst Nigerians and illiteracy.

46
 5 Chapter Five:

5.1 Preliminary Conclusions

Nigerian Breweries, Guinness Nigeria, Cadbury and nestle Nigeria plc have
continued to dominate the Nigerian beverage market. Their dominance stems
from their extensive nationwide distribution and supply systems that ensure
their products are available even in remote rural areas and as well as their
aggressive marketing activities that ensure their brands are hugely popular
across Nigeria. These companies have maintained a stranglehold on the
beverage market in Nigeria.

The growth in the beverage industry in Nigeria has remained strong and steady
over this period. This is mainly as a result of the aggressive marketing activities
of leading players and the good quality of most brands available. Like the case
of Nigerian breweries, this company has invested heavily in an effort to
persuade and influence consumer behavior. In recent years, the company has
been on the fore front of several events sponsorship and show promotions,
notables amongst are the ‘Star Quest‘, ‘Guilder Ultimate search‘ and the Amstel
Malta Box office other advertising media deployed by this same companies
include print electronic and billboards. Such huge investment have yield
dividends with turnover volumes growing at high rate at the expense of the
consumers despite all this profits theses mega companies have failed to invest
significantly in areas that has direct benefits to the general public‘s.

As my research show, many of the consumers are greatly influence by this

persuasive marketing mix especially the media ‘television‘, bill board etc and
marketing manager have exploited this medium to force down their products.

47
Government should enforce code of conduct to limit the aggressive nature by
this companies to market their goods or rather establish a edit agency that will
preview this advertisement before they are relished to the general public.

Finally the beverage market is set to continue its growth over a forecast period.
The expected increase in demand is attributed to the fact that Nigerians
population of 158 million continues to grow at an annual rate of 3%, thereby
providing an ever increasing consumer base. The fact that there is also a
positive outlook for the Nigerian economy means consumer spending is likely
to increase and further increase in growth of food and beverage sales. New
brand and entry of new players will result in increased competition, aggressive
marketing and ultimately also help to fuel growth in the market but it should be
approached with ethic and respect of the consumer‘s fragile mind.

48
 6 References:
Ajakaiye, D.O (1990) inter-industry linkages in the Nigerian Economy, NISER Monograph
Series No 2 NISER, Ibadan.

Dimgba Igwe and Mike Awoyinfa (1999) ―Nigerians cooperate strategies‖

Mcdee communications.

Duggan, Maria, and John Deveney. "How to Make Internet Marketing Simple."
Communication World. April 2000.

Homburg, Christian, John P. Workman, Jr., and Harley Krohmer. "Marketing's

Influence within the Firm." Journal of Marketing. April 1999.

McCarthy, E. Jerome and William D. Perreault, Jr. Basic Marketing. Irwin,

1990.

Moorman, Christine, and Roland T. Rust. "The Role of Marketing." Journal of

Marketing. December 1999.

Porter, Michael E. Competitive Strategy. Free Press, 1980.

Simkin, Lyndon. "Marketing Is Marketing—Maybe!" Marketing Intelligence

and Planning. March 2000.

Stevens, Mark. (1988)The Macmillan Small Business Handbook. Macmillan.

Wiley, (1995) the Entrepreneur Magazine Small Business Advisor.

Tracy, Joe. Web Marketing Applied: Web Marketing Strategies for the New
Millen

View point, available from:

49
http://www.agusto.com/agusto/viewreports.php?id=24 (accessed on 21/2/2011)

http://allafrica.com/stories/201012091101.html

From the design of a new product to the extension of a mature brand, effective
marketing strategies depend on a thorough understanding of the motivation,
learning, memory, and decision processes that influence what consumers buy.
Theories of consumer behavior have been repeatedly linked to managerial
decisions involving development and launching of new products,

http://www.practical-
entrepreneurship.com/resources/advertising/086_advertising_overview.pdf

Advertising with yahoo as a means to search all products, information you have
ever desired of.

It‘s a new form of advertisement that takes advertisement as a whole unto

another level.

View point available from: http://www.ehow.com/about_6122350_consumer-

preference_.html (Accessed 1/5/2011)

Consumer preference for a product can make or break a company. If consumers

generally like a product, it can stay around for years and sell millions of copies.
However, if consumers do not like the product, it could disappear very quickly
if the company cannot figure out how to fix the problem.

Viewed from:
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073903636
(Assessed on 30/4/2011)

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Branding gets right to the core of your business' values. It is about discovering
and communicating the essence of your business and what it delivers to your
customers. In effect, your brand creates your business' reputation and its
'personality'. A strong brand can make your business stand out from the crowd,
particularly in competitive markets.

Viewed from: http://www.copyblogger.com/relationship-marketing/ (Accessed

on 23/2/2011).

Relationship marketing is about getting the customer to stick around long

enough to keep shopping. And it‘s about making sure that customer comes back
next time to buy more stuff.

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52