ABSTRACT
This project work was carried out with aim of eliciting the impact of advertising, as marketing strategy on the sales of products, to be able to determine this, 7UP bottling Company Plc, one of the heir company in the bottling industry was chosen as a case study.
This research shows that the sale of a product may not entirely be made successful with good communication but also by the features of the product that is produce, like the product quality, design, packaging, taste and price at which such is being offered to the consumer. With trend in business today, advertising has been recognized as inevitable promotional tool and therefore should be used with caution because it represents a substantial part of a company’s annual budget. Therefore, its failure is a great loss to a company, there is the need for product management to recommend the appropriate marketing programme for a brand or group of products.
CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
In contemporary Nigeria, the economy is largely an urban phenomenon as reference is always make to the dominate and commercially significant activities of business houses.
Perhaps, the ultimate objective of any organization set-up is profit maximization which is the out come of it’s ability to satisfy the ultimate consumer both in short and in the long run, all things been equal, the so- earned consumer need comprehensive knowledge as regard to the product as a result of utility maximization principles, which operate in any buying decision made by the consumer.
Nevertheless, no entity is an Island of itself, events both past and present testing to the variety of this age long assertion, than society influence organization so thus organization influence the society. And so it is the ability of the organization to interact effectively with the environment in which they operates in, and this immediately determine it’s success, and these interaction is accomplish through marketing tools among which is advertising. In other words, due to the interview costumer buying habit which seems to be individually different, the need for advertising on sales of a product and sales performance is an organization cannot be therefore over emphasized. And so! Advertising from management point of view, is a strategic device for gaining or maintaining competitive advantage in the market place, more over as we are giving in our ever dynamic environment the society as a whole is ever changing technology, organizational structure, management techniques, ideology as well as government polices. That is, both external and internal business environment change day in day out.
The ultimate consumer therefore is forced to be on the move, and this. could only be counter balanced through outstanding marketing practices which need to be complemented through the use of effective and consolidated advertising practice and implementation which is one of the arms of promotion.
1.2 SHORT HISTORY OF 7UP
7UP was first produced in Nigeria in October 1960 through the activities of Late Sheik Mohammed El-Khalil. When the company opens its first plant in Lagos, by this time Coca Cola has taken a monopolistic control of the soft drink market and 7UP started struggling behind Coca-Cola to have a fair share of the market. It sold an estimate of four million of its product daily
Today, it’s strong competition with Coca-Cola has been given raise to other competitors like Limca, and has made Company to undertake the production of other brands like Miranda, Team Pepsi, and even Mountain Dew.
Nevertheless, larger sizes of bottle of its brands have also been produced in order to create a distinguished larges number of its sort drink and have kept interest of its share of the soft drink market. And so, with a large sales and yearly turnover, the companies has been able to create employment for over ten thousand skilled workers over the country and indirect complement for over four hundred thousand dealers whom the company calls in once in a week with it’s products.
7UP Bottling Company is striving in the countries industrialization process it’s multiple production plants are located in Lagos, Onitsha, Kaduna, Benin and most mini depots in small towns, over three decades the 7UP company has been earning a lot through large patronage by this she is able to fasten the up liftment of the society.
1.3 OBJECTIVE OF THE STUDY
This study is aimed at measuring the extent at which advertising had influence the sales performance of an organization or influence the sales on a product. And our attention is going to be focus particularly on 71JP Company, from our short history of 7UP we can see that advertisement had been a major source of this publishing, this goes to show that a lot of money is been gloated ‘to advertisement periodically by 7UP. Some of the objectives are as follow:
a) To determine the extend to which advertising has created product awareness.
b) To determine the benefit of advertising to 7UP.
c) To find out whether it has helped the company to provide customers with useful information as regards their products.
d) To know whether advertising has encourage brand loyalty.
e) To find the degree at which the company has gain market control with advertisement.
To determine the ability of a firm to sustain the same sales-volume in a non advertising situation.
g) To determine whether or not the effectiveness of advertising depends highly on company objective over a planned period.
1.4 STATEMENT OF RESEARCH PROBLEM
The ability of an organizations product to be acceptable to the ultimate consumer, the target market-depends on effectiveness of the advertising policy being undertaken by the organization, thus advertising determine the fate of the organization in the long run if not short run.
It has also been observed that manufactures of consumer goods like soft drinks are faced with one problem or the other when making advertising decision. They need to consider some factors. Therefore in order for them to make a good advertising decision resulting in effective advertisement, the advertising decision makers should answer the following question:
a) How far has advertising help in creating product awareness?
b) How has it help in providing consumers with needed product
information?
c) How has it encouraged report purchase?
d) How has it help the company in gaining a degree of market control?
e) How has it encouraged brand loyalty among consumers?
1.5 SIGNIFICANT OF THE STUDY
a) The study will make the company to be aware of the plans to be followed in order to have their advertisement more effective and to have impact on sales.
b) This research will be meaningful to all consumers goods manufacture in knowing in detail the advantages of advertising in the mixed of other marketing tools.
c) This research will also serve as a reference material to other researchers and library material.
d) This work will help other organization to understand the place of advertising better and also know how and when it should be applied
1.6 LIMITATION OF THE STUDY
Gathering of all data needed in most studies is usually met with number of Limitation in it’s claim for excellence. The field work of any research work or project is a major source of challenge, most especially when questionnaire are used. Some major sources of limitations are this:
a) Finance: This is one of the major limiting factors, the cost of transporting from one library to other, going to browse in the internet, and not forgetting the cost of distribution of questionnaire, these entire put together pose as limitation in carrying out this study.
b) Time: Now for this project topic to be well researched void of errors the time given cannot be enough to carry out a proper analysis of the said topic.
c) Delay: Delay in response to returning the fined questionnaire is another factor of limitation, some •people intentionally withheld questionnaire more than necessary.
1.7 DEFINITION OF TERMS
Advertising: Any paid form of non-personal presentation of ideas goods and services by an identified sponsor.
Advertisement: This is the advertising message.
AdvertisingAgency: An independent creative specialist responsible for developing, preparing and translating the ideas and objectives of the advertisers into advertisement and placed in the media.
Brand: A name, term, sign, symbol, colour and design or combination of these entire put up to identify goods and services and to differentiate a specific company’s product from its competitors.
MarketingMix: This has to do with different marketing strategic used by company in gaining consumer loyalty.
ConsumersMarket: Here, it refers to every one who requires goods and services from a specific competitor.
Media: This is the channel through which the message is transmitted to target market.
Product: A set of tangible and intangible attributes including packaging price, manufacturing prestige etc acceptable to buyers as offer wants and satisfaction.
TargetMarket: This means a well defined set of customers who needs the company to satisfy.
ProductSales: The volume of exchange performed in the selling.