CHAPTER ONE
BACKGROUND TO THE STUDY
1.1 INTRODUCTION
AGGRESSIVE PROMOTION AS THE INSTRUMENT OF
COMPETITIVE IN THE MARKET
The need for promotion is based on the fact that in a marketing
environment, strong competition is becoming the order of the day for marketers
to attain corporate objectives of consumer satisfaction at a profit. According
to Kotle (1997), Marketing can be defined as managerial or corporate activities
that identity the needs and wants of consumer at organization goals. An
adequate promotional objective must be set and rigorously pursued for sound
performance.
Any firm existence depends majorly on the ability to manage its
environment, in the face of strong competition and one of the major instruments
being used which is the outstanding strategy which cannot be undermined.
The promotion can come as a result of situational analysis of the
competitive environment, competitive advantages of firms targets and advance
and communication medium.
The promotional method used and extend of promotion is essential to this
study, therefore it intends to examine the different promotions and promotional
strategies that can be used to attain this objectives.
The function of Unilever Nigeria Plc as the case study of the proposed
study would be examined with a view to identifying the latest development and
the present competitions that is going on among them and its problems and
recommending ways of solving these problems.
1.2 STATEMENT
OF PROBLEM
The problems this study intends to solve are the problems of
irregularity and inconsistence in promotional activities such as over pricing
in promotional activities, environment issues in competitive market.
This study will pin-point uncontrollable and controllable factors that
affect the promotional tool in marketing environment.
Finally
the improper counter-attack of the language used in promotion by other
competitors in carryout their promotional activity will be analysis by this
study.
1.3 AIMS AND
OBJECTIVE OF THE STUDY
A company may have the best designed product, the most system of
distribution and the fairest price, but the company’s product will not sell If
the customers are not aware of its existence.
Hence, promotion is a critical element in any marketing strategy, since
proper promotion sustains the other controllable variable:
The impact of promotion in a firm is what the study seeks to portray in
the use of Unilever Nig Plc respectively in the face of strong competition in
line of markets.
This study intends to identify the problems and limitations of effective
promotions in the face of competitions in the market.
This
study also seeks to know the different competition that is going on in the
market and ways of application of promotion and the right time to adopt a
particular promotions and the target audience at the market.
This study hopes to cover the various promotional approaches that the
firm can adopt in a competitive marketing environment.
So as to achieve a significant result in al the promotional activities.
Additionally, this study also focused in promotional activities like
communication. The major promotional objectives are to inform, persuade and to
effect the potential consumer knowledge and attitudes about a product in the
face of aggressive promotions.
The study finally will make recommendation which if implemented will go
a long way in providing the functions of promotions in a competitive marketing
environment.
1.4 THE
SIGNIFICANCE OF MARKETING
Marketing is very important to the success of business since it
contributes greatly to the growth of organization. Production and distribution
depends largely in market.
Marketing covers advertising, promotion, publications, personal-selling
and sales. It is the process of introducing and promoting the products of Unilever
and facilitates intention purchase of the product by consumer.
The goals of marketing is to make the product or services widely known
and recognized to the market, marketers must be creative in the marketing
activities in the competitive market of nature business getting the products
noticed and accepted by the potential buyers.
There are various types of marketing approach this are personal selling,
face to face contacts, radio broadcast e.t.c.
Marketing helps to boost product sales apart from public awareness about
company products and services it helps to boost sales and revenue growth.
The following are the importance of marketing to an organization:
* Marketing builds company reputation
* Marketers aims to create brand name
recognition and products recalls.
* Marketing facilitate buying intention of
the consumer purchase
* Marketing builds an understanding
relation between customer and organization
TO THE SOCIETY
The society comprises both controllable and uncontrollable factors.
Controllable factors are internal elements and uncontrollable factors are
competitors, customers, government, weather and forces, all these factors are
determinant to the success of an organization.
Society is always very sensitive in response to certain products because
they believe in purchase power.
Promotion
drive facilitates purchase intention of society to patronize the product.
Vulnerability of environment needs constant promotion to facilitate the
customer purchase.
The
following are importance of society.
a. It will help the society to know newly
introduced product
b. It will increase their knowledge about uses
of product.
c. It will allow the society to differentiate
the competitors product.
d. It will educates the buyers about new
product.
e. It will also be an incentives opportunity
of getting free and at discount rate.
THE SIGNIFICANCE TO RESEARCHER
The writer will benefit from the project because it will be an exposure
and the writer will know promotion programmes.
It will also improved students skills and knowledge about promotional
activities.
It will improve student practically aside class room work.
THE SIGNIFICANCE TO CASE STUDY
This research will be importance to the company Unilever Nig Plc in the
following ways.
a. It will increase the profit margin of the
company
b. It will increase the growth and stability
of market share
c. It will allow the company to demonstrates
its new products to the customers and potential buyers
d. It will improve the production and sales
volumes of the company products
e. It helps the company to keep relationship
with existing customers and new customers.
f. It helps the company to know the
grievances about already used product and improve on the complains
g. It will helps the company to modify a
products and introduce new ones.
1.5 SCOPE OF
THE STUDY
The scope of this study is promotion: A useful marketing tool in a
competitive market environment in Nigeria, Unilever Nigeria Plc, RC 113, 1,
billings way. Oregun, Lagos state Nigerian was used as a case study which would
give more information about the usefulness of promotion in a competitive
market.
The case study Unilever Nig Plc situated in Lagos in industrial area of
Oregun Lagos and the information would be needed in this research work would be
gathered within the area of Oregun Lagos state from the period of February to
July 2011.
1.6 LIMITATIONS
AND CONSTRAINTS
This study is focused on the promotion: a useful marketing tool in a
competitive market environment in Nigeria Unilever Nig Plc as a case study.
However, the limitations of the study is as follows:
Firstly, financial hardship was seriously experienced during the
execution of the project. In fact, the research was fully responsible for the
sponsorship of the project.
Also, the attitude of the executive of Unilever Nigeria Plc was not
encouraging. In fact, the manager deliberately withheld the necessary
information relating to the fact and figure needed and such information mighty
be used during the research work.
Perhaps, the managers failed to released the full details of promotional
budget allocated for promotion program due to what he called confidential
document to the company and restriction he order in getting to meet some staff.
Finally, with these limitations, the researcher has been able to
judiciously use the information at it’s disposal for the production of his
final project work.