CHAPTER ONE
1.0 INTRODUCTION
The aims of
every organization is to minimize cost and maximize profit. An effective
marketing mix strategy plays an important role towards enhancing the objective
to be achieve by the organization.
Those days when product was matched with
the market gone. The modern marketing concept enhances the importance of
consumer’s preference and consumer’s satisfaction. Therefore, the management is
concerned with various policies on four elements of the marketing mix (4p) i.e.
the product, the price, the promotional
activities and the place.
The marketing mix strategy occupies a
paramount position in the function of marketing management. It must also be
cleared, that management is decision on one of the element has effects on
others because they are inter-related and has weight on the performance and
growth of any business form.
1.1 STATEMENT OF THE PROBLEM
Today,
business world has become a servant of the society by trying to provide adequately
the needs and waste of the society yet some business organization find it
difficult to make accurate decision on each element of the marketing mix in
order to achieve the organization objectives.
Therefore, the researcher
has been able to analyze some of the following problems.
i.
Uncertainty of which of the several product designs are
mostly likely to be accepted in the market?
ii.
What price should company charge for its product?
iii.
How will profit change under various pricing strategy?
iv.
Where and to whom the company product be sold?
v.
How much company spend on promotion in terms of each product
and geographical segmentation?
vi.
Does the benefit justify the cost of a planned marketing mix
strategy?
vii.
Then how well can this marketing mix strategy consumer?
1.2
OBJECTIVES OF THE STUDY
This project
work is embarked to achieve the following objectives
i.
Whether the product of lubcon satisfy the consumer in term of
quality.
ii.
To find out the distribution method used by the company is
adequate to ensure the availability of products to consumers at the right time
and of the right place.
iii.
To determine whether the pricing strategy of the company is
in line with what consumers and channel members satisfaction compares with its
competitors.
iv.
To determine whether a promoted activities of the company
have an impact on the sales volume.
v.
And finally to detect and resolve likely problem which
management encounter in implementation of marketing mix strategy.
1.3 RESEARCH QUESTION
In order to
achieve the objectives of the research certain questions have to be posed to
enable the researcher attempts a detailed study. Such questions are:
i.
How important is the marketing mix strategy to the
organization?
ii.
Does quality product promote sales?
iii.
How does the company maintain its position in a place of
competitive market?
iv.
What techniques does the company choose as the best to
improve their promotional activities?
v.
Is profit adequate in relation to capital employed?
vi.
What type of distribution does the firm choose to distribute
its products?
vii.
What type of distribution channels does the firm use to
distribute its product?
viii.
What pricing strategy does the company use in fixing price
for a new product?
1.4 STATEMENT OF HYPOTHESIS
i.
Ho: Quality product leads to
consumers satisfaction
Hi: quality product does not lead to consumers’ satisfaction.
ii.
Promotion activities have no effects on the sales volumes
iii.
Ho: marketing strategy
normally pursued by organization without consumers consideration would normally
succeed.
iv.
Hi: marketing strategy
pursued by organization without consumers consideration normally failed.
1.5 SIGNIFICANCE OF THE STUDY
This study will have a prominent place in the operation of virtually of
all business organization, most importantly to new investors seeking to
establish a new business as it would serve as guide to them in their plan and
decision making. It will also give the researcher an experience and exposure to
various particular marketing activities.
Not only that, it will similarly serve as
secondary date for students embarking on related researches for further reading.
1.6 SCOPE OF THE STUDY
The research topic focus on the impact of
marketing strategy on the growth of a firm, and the scope of this research is
limited to Lubcon Nigeria limited, particularly it’s Ilorin depot, headhunter,
and customers in Ilorin.
1.7 LIMITATION OF THE STUDY
The
study was limited by finance particularly, because the researcher has to
combine classes with the other academic engagements to the task of writing this
project.
Also
sort time frame from the completions of the project work did not permit wide
latitude of data collection. Not only that the cost of transportation gathering
materials for the project and other unanticipated cost were also borne by the
researcher.
1.8
HISTORICAL BACKGROUND OF
THE STUDY
LUBCON LTD and Gas Company was incorporated
in August 1991 as a limited liability company to engage in business of blending
lubricants together with distribution and sales of petroleum and allied
products.
The company’s head quarters and A’s
plant are located at lubcon Avenue, Adeqale Industry Layout,
.
The initial stage of operation in Lubcon
Company Started with staff including the Chairman himself (ALH. JANI IBRAHIM).
During these times, they managed to
produce 25 cartoons per day and distributed their product with only one pick up
van.
Over the years, the company has grown to
be the biggest and fastest growing independent lubricant blending company in
Nigeria with an ultra modern blending plant of 10,000,000 liters capacity per
annum on a single shift located at Adewale Layout, ilorin, in addition the
company has a mine blending plant of 2.5 million liters capacity per annum
located along Zaria road Tranburawa, Kano.
In 1995,Lubcon became the Association (NATA). In
recognizing the quality products of the company, Lubcon was first company in Nigeria to be awarded the prestigious award (Nigeria
Industrial Standard) for lubricating oil. In 2002, Lubcon became the first
indigenous oil and gas company to be certified in .
In 2005, it became the oil company to blend a Lubricant For
National Union Of Petroleum And Natural Gas Workers (NUPENG).
Also in 2006, (NURTW) Nigeria Union Of Road Transport
Workers made Lubcon its official blender.
Lubcon is product that are of different types and in sizes.
It manufactures product like super TV 50, Lubcon Adrenalin 2000/50, Lubcon
motor lube, Lubcon Grease, Lubcon 2T, Lubcon perform XV 50, Lubcon super outboard.
These product are packaged in different size ranging 0.s liters, 1 liter, 2
liters, 4 liters, 5 liters, 185 liters and 200 liters.
In an attempt to distribute its wide range of products, the
company maintain a network of active retain outlets in more than 63 location
all over .
In addition, Lubcon is in joint partnership with .
1.9
DEFINITION OF TERMS
MARKETING MIX STRATEGY
It is the combination of four elements of marketing mix
in right proportion to achieve a firm objectives.
i.
STRATEGY: it is the plan of cost
of action that is limited to achieve a particular purpose.
ii.
CHANNEL OF DISTRIBUTION: this is the route of the
pipeline through which goods and services pass from the producer to its
ultimate consumers.
iii.
CUSTOMERS: it is an individual or
group of individual who buy, use or sell a product.
iv.
FIRM: this is the producer of
goods and services consumers of used by consumer or business users.
v.
PRICE: this is an agreement
between buyers and seller concerning what amount.
vi.
MARKET: it is the actual and
potential buyer of company’s products.
vii.
MARKET AND HARE: this is the percentage
of consumer that a company has out of the total market.
viii.
PROFIT: it is a financial reward
to a business firm after the cost and other expenses involved in production of
goods and services.
ix.
MARKET POSITION: this is the rank of a given product in the market relation to
competing product.