EFFECT OF MARKET SEGMENTATION ON SALES PERFORMANCE OF BEVERAGE INDUSTRIES

EFFECT OF MARKET SEGMENTATION ON SALES PERFORMANCE OF BEVERAGE INDUSTRIES

chapter One

Foreword

1.1 Research background

Marketing has evolved from different concepts and philosophies over the years such as production concept, sales concept, product concept.

The concept of marketing is viewed from a customer-centric philosophy aimed at identifying unmet consumer needs and desires, thereby providing products and services tailored to meet and satisfy such needs. is developed. When. Develop strategies and take action to help companies grow and remain prominent in the market in the face of intense and increasing competition globally seeking a profitable location among product and service marketers. It has become imperative to achieve the goals of the organization that arrival.

A marketing strategy is created from marketing goals and general business goals.

Marketing strategies include increasing sales, increasing marketing goals, increasing market share, increasing market penetration, and applauding awareness. Marketing assessments and strategies are developed and implemented to achieve these goals.

Consumers have become numerous and diverse in terms of purchasing requirements, needs and characteristics as businesses cannot effectively serve all consumers in a wide range of markets due to the growing world population.

It is imperative to identify portions of the market that are profitable and can be effectively served with available organizational resources and skills. This therefore requires an effective and segmented market assumption.

Marketing effectiveness and segmentation have always been customer-centric philosophies and consistent with marketing concepts. Market segmentation is the process of dividing the market into specific and meaningful subgroups of customers who require customized mats to meet their needs during a marketing program.

Many firms in the past adopted mass marketing concept as strategies for sales turnover by embarking on mass production, mass distribution and mass promotion of single brand of products to all buyers.

The argument for this strategy was that it crates the largest potentials markets which heads to the lowest cost, both production cost and over head cost and the marketing costs which in turn results to lower pricks or higher margin.

But in this age of intense competition, proliferation of marketing programmes/functions and greater customer advancement in education and awareness firms no longer practice the concept of “one size fit all” marketing.

Thus in bid for higher profitable sales, and greater customer satisfaction, mass marketing is relegated to the background with the adoption of the market segmentation which now recognizes the differences in segment needs, wants and response to marketing programmes.

Market segmentation goes beyond product design consideration, as it extend to price, promotion ,distribution variable and having an overall knowledge of each segment needs in order to develop matching marketing mix. Firms do not begin marketing segmentation until they have examined the customer effectiveness of market research, exhaustively researched customer behavior in the market, and better understood the distinct and homogenous characteristics of their customers.

This groups customers with similar requirements and characteristics. It basically consists of large identifiable groups with similar desires, shopping habits, geographic locations, and purchasing needs. Market segmentation is therefore an approach that a company should take in order to achieve success.

Market segmentation goes beyond just looking at product design, as it extends to pricing, promotions, distribution variables, and a thorough knowledge of each segment’s needs to develop the right marketing mix. We do not begin marketing segmentation until we have examined effectiveness, exhaustively investigated customer behavior in the market, and better understood the distinct and homogenous characteristics of our customers.

This groups customers with similar requirements and characteristics. It basically consists of large identifiable groups with similar desires, shopping habits, geographic locations, and purchasing needs. Market segmentation is therefore an approach that a company should take in order to achieve success.

To a large extent, it is the process of dividing the entire heterogeneous market for goods and services into segments, each of which tends to be uniform in all important respects.

Management thus select one or more of these market segment as the organization target market(s) and based on the understanding of their needs and wants, a matching marketing mix is envisaged, developed and directed towards satisfying them at a profit most importantly, segmentation enables the form to its marketing efforts and resources on the most profitable target market, in order to complete efficient by in one or two segments.

To be precise it involves a lot of dimension or approaches in terms of segmenting the market.

Such as the geographic, demographic, behaviouristic and psychographic variables in dividing the total market into different groups with similarities between the.

Increasing sales cannot be achieved without effective evolution of segmentation of marketing as a strategy. Because of the prospect involved in adopting market segmentation, firm desiring to achieve success embark on dividing total market into segments that can be reached and satisfied efficiently and at a profit in consideration of the role market segmentation plays in increasing sales volume, the researcher has decided to conduct a study to identify its importance bases/approaches limitations and its influence on a customer oriented organization particular reference to Cadbury Nigeria Plc. So that every organization can break through their marketing efforts. It is important that market participants sympathize with the market segmentation strategy.

It allows marketers to segment the market into different segments including income, age, location, etc. and modify product offerings to suit each target market.

Marketing professionals have variously expressed that a company cannot sell its product to the whole market, but must identify the part of the whole market that can successfully source the product based on these factors. rice field. The concept of market is segmentation applied as a means by which an organization divides an entire market into sub-markets. A sub-market can be used to target a single form to achieve a different marketing mix.

Market segmentation requires companies to identify different bases for segmenting by market, profile the resulting market segments, and develop a measure of attractiveness for each segment. Market segmentation was defined by Philip Kotler as:

1.2 Description of the research question

Efforts to increase profitable state volume are a problem for all organizations, and for all organizations.

Both service and physical markets aim to increase profits and sales, and profitability goals can only be achieved if companies properly understand and apply effective market segmentation strategies.

1.3 Purpose of the survey

The objectives of this research are to:

a. Determine the relevance of market segmentation for sales minimization

b. Enumerate the importance of companies adopting the effects of market regulation to achieve their corporate goals of profitability and customer satisfaction.

c. Study the dimensions and foundations of market segmentation and how it relates to increased sales.

That is, determine to what extent the organization in question (Cadbury Nigeria Plc) practices market segmentation.

e. Emphasize the limitations of the study

f. At the end of the research, the company should be provided with good recommendations on how to employ market segmentation.

1.4 Importance of research

This research activity is not only an essential requirement for the partial achievement of a Higher National Diploma, but also an added value and benefit for researchers, other individuals and groups.

This particular project will benefit Cadbury Nigeria Plc as the results and recommendations will help improve their marketing efforts.

This project will also benefit my fellow students and other students from institutions of related majors.

Lecturers at Kaduna University of Applied Sciences will also benefit from the knowledge gained in their research work. With this project work information, marketing firms can reassess their efforts in segmentation strategy, marketing resource usage, and marketing efforts.

This study also expands the researcher’s knowledge base in the process of conducting this precise study.

1.5 Opinions on hypotheses

Alternative hypothesis (H1)

Market segmentation is fundamental to increasing sales volume.

null hypothesis (Ho)

Market segmentation is not the basis for increasing sales volume.

Collected data were analyzed and further discussed based on sample proportions and formulated hypotheses were proved based on chi-square. Researcher accepted alternative hypothesis (H1)

rejection of the null hypothesis (Ho)

Researchers also found other things in the study, including: B. A segmentation strategy used by the company in its marketing efforts.

Researchers conclude that Cadbury Nigeria Plc is a marketing driven company.

Researchers have suggested some recommendations, including: B. The company should conduct more promotional activities to raise awareness of the company’s products and activities.

1.6 Boundaries or Scope of Research

In this study, we limit ourselves to the areas of market segmentation and their relation to traffic to increase sales volume and profitability.

This study highlights segmentation aspects such as geographic, demographic, psychological, and behavioral segmentation approaches. It also provides instructions for identifying marketing segments.

This study enumerates management coordination strategies in selecting one or more segments as target markets.

The researchers list their recommendations to Cadbury Nigeria Plc on market segmentation at the end of the study to support their associated ability to increase sales volume.

This study highlights the methodology used to obtain all relevant information from the sample participants.