MARKET SEMENTATION AS AN EFFICIENT TOOL OF ACHIEVING INCREASED MARKET SHARE
ABSTRACT
The primary goal of any business is to find, entice, and keep customers who will use the various goods offered by the company to satisfy their requirements or address their issues. So, a successful service organization must comprehend how customers perceive services and how they differ from the company’s offering. Consequently, the primary goal of this research is to ascertain the effectiveness of market segmentation in boosting a company’s market share. Objectives were established, difficulties were recognized, and research questions were posed. A pattern was followed to collect and analyze the data while also reviewing some of the current literature on the topic. Eight research questions were formulated which guided the study. The analysis is presented by the sue of table, sample percentage to enable one to have an overview. Some of their findings principles were based on the increased in sales of the organization product and determining the efficiency of market segmentation which depends on the managers getting what they want from planning. To change the minds of non-user of market segmentation, organizations and management should know that the planning as rewards. Also management should try to identify each managers needs and expectations so as to increase their moral and planning performances. Based on this study some conclusions were drawn from the findings and they include, organizations should maintain an effective plan, provide a good planning and working environment, pay fair and adequate salaries and also encourage the management. Other researchers must do theoretical study to determine the effectiveness of market segmentation in boosting the company’s market share. In conclusion, the aforementioned criteria can make management more gratifying to the manager and society, as well as more content with planning.
CHAPTER ONE
1.0 INTRODUCTION
Mr. Mohammed Elkhail, a Lebanese businessman who immigrated to Nigeria in 1926 and traded in household and kitchen utensils, introduced 7up plc. He later operated one of West Africa’s largest trucking companies. In 1959, he entered the soft drink industry as a form of expansion and later introduced the 7upbottling company now plc.
The location of the 7up initial facility was at Ijora in Lagos now the head quarter where the first bottle of 7up was created in 1960. A total of fourteen containers were created on that day.
Between 1980 and 1989, the Ibadan, Ikeja, Kano, Kaduna, and Aba plants were inaugurated. Also, numerous depots and additional plants have been opened across the nation to date country with numerous depots.
Owing to the fact that their depots were spread out across the nation, it was extremely simple for them to expand distribution across the nation and reach the regions where their products were unavailable with the aid of effective marketing methods. Last but not least, the company’s soft drink brands include 7up, Pepsi Cola, Mirinda Orange, Mirinda Soda, Mirinda Fruity, and maintain Dew, which was just launched.
1.1 BACKGROUND OF THE STUDY
No other factor has had a greater impact on company practices than the rising demand for diversity among consumers. The following is a list of some of the most common questions we get from our customers. Markets, on the other hand, became more diverse and demanded more assistance as purchasing power increased.
Market segmentation became widely accepted as a result of awareness of this trend. 1995 edition of the Encyclopedia of Professional Management in Awa (2003: 291).
The work of Rebonson and Chamberline led to a revival of economic theory during the decade of the 1930s. Although the classical and neoclassical schools of thought offered a valuable framework for economic study
the theories of perfect competition and pure monopoly had become inadequate as explanations of the contemporary business scene. The theory of perfect competition assumes homogeneity among the component of both the demand diversity and hetero genetic had come to be rule rather than the exception. The reasons for the presence of market segmentation in specific market are many and includes the following:
1. The specialized or superior resources enjoyed by favourably situated manufacturers.
2. Variations in producer’s estimates of the nature of market demand with reference to such maters as price sensitivity, colour, materials or package size.
3. Variations in production equipment and methods or process used by different manufactures of products designed for the same or similar uses.
Because of these and other factors, both planned and uncontrollable difference exist in the product of an industry. As a result, sellers make different appeals in support of their marketing efforts.
As amongst the manufacturers, goals are to satisfy the needs of the consumer, having in mind that no two consumers behave alike although they may have similar be avoid characteristics like:
1. Buying status; potential;, first time regular
2. Usage rate
3. Purchase procedure: seated bids negotiation etc.
Also industrial market might be segmented on the location of the company types. The fact that not every consumer patroness the same retail outlet during each purchase occasions and do not consume a particular product with the same consumption rate; does not entirely limit the income but will help a producer earn an increase in market share. By segmenting of market into more targeted buyers or groups of buyers, it will be able to grow the existing sales and build news sales, and grow them without cutting price, thereby increasing market share.
Therefore, in other to stay in business, firms ought to recognize the marketing philosophy which says “consumers are the economic and social justification of business existence” (Anozie 2003:28).
Conclusively, segmentation of market into different units is regards the need of the consumer would attract more sales and thereby increase market share which means the proportion or percentage of sales of a particular product or services in given region that are controlled by a company. Market share determines the competitive strength of business in a sector to another.
As in the case of 7-up bottling computer, the strategy of market segmentation is employed.
SUMMARY OF 7UP BOTTLING COMPANY’S HISTORY IS AS FOLLOWS:
Mr. Mchammed Elkhahit, a Lebanese businessman who immigrated to Nigeria in 1926 and traded in household and cooking goods, introduced 7up plc. He later operated one of West Africa’s largest trucking companies. In 1959, he expanded into the soft drink industry and later founded 7up First Bottling Company Now Plc.
The first 7Up plant, which is currently the company’s headquarters, was in Ijora in Lagos, where the first bottle was made in 1960.
Between 1980 and 1989, the Ibadan, Ikeja, Kano, Kaduna, and Aba plants were inaugurated. also as of today more plants have been opened across the country including many depots.
Due to the location of their depots act many places in the country, it was very easy for them with the help of their good marketing strategies to enhance distribution across the country penetrating the areas where their products were not available.
Finally, the company’s brands of soft drinks include 7up, Pepsi cola, Miranda Orange. Miranda Soda, Miranda fruity, teen lemon, and maintain dew which was just introduced.
1.2 STATEMENT OF PROBLEM
Most organizes, firms, industries or companies find it difficult to increase their market share in a competitive economy and as such the researcher wants to empirically investigate the efficiency of market segmentation as a tool for achieving increased market share
1.3 OBJECTIVE OF STUDY
The study’s background and primary objectives are market share.
1. To ascertain whether market segmentation is effective in boosting market share.
2. To assess a company’s benefit from market segmentation.
3. To assess the importance of market share
4. To distinguish between the various degrees of market segmentation
5. To determine the market segmentation requirements.
6. To determine how much a business uses market segmentation.
7. To provide the appropriate advice and recommendations for potential market segmentation problem solutions.
1.4 RESEARCH QUESTION
This study aims at giving answer to some of te questions below:
1. Can segmentation help to achieve an organization goal?
2. Is market segmentation an efficiency toll of achieving an increased market share?
3. In competitive economy, can market share determine the supremacy of organization?
4. Could the research on segmentation of the market increase the standard of the organization?
5. Do you think that market segmentation has an effect on organization revenue?
1.5 THE SIGNIFICANCE OF THE STUDY
This work exports thee efficiency, effectiveness and usefulness of market segmentation in the increasing of the market share of a company and as such will be of immense benefit to this group.
A. THE RESEARCHER: It will assist him in pointing out the importance of market segmentation which is derived from the desire to satisfy the interest of the consumer with a profit.
B. 7UP BOTTLING COMPANY PLC: It will assist them to know that the effect of marketing segmentation in the market share increment is the first phase of strategic planning.
C. SOCIETY: The study of market segmentation will help the larger society in a competitive economy, since market share in very important to economy.
This study aims at giving answer to some of te questions below:
1. Can segmentation help to achieve an organization goal?
2. Is market segmentation an efficiency toll of achieving an increased market share?
3. In competitive economy, can market share determine the supremacy of organization?
4. Could the research on segmentation of the market increase the standard of the organization?
5. Do you think that market segmentation has an effect on organization revenue?
1.5THE SIGNIFICANCE OF THE STUDY
This work exports thee efficiency, effectiveness and usefulness of market segmentation in the increasing of the market share of a company and as such will be of immense benefit to this group.
A. THE RESEARCHER: It will assist him in pointing out the importance of market segmentation which is derived from the desire to satisfy the interest of the consumer with a profit.
B. 7UP BOTTLING COMPANY PLC: It will assist them to know that the effect of marketing segmentation in the market share increment is the first phase of strategic planning.
C. SOCIETY: The study of market segmentation will help the larger society in a competitive economy, since market share in very important to economy.
1.6 THE SCOPE OF STUDY
The range of his is directed towards the efficiency of market segmentation to increasing market share in 7up bottling company plc. Although, the researcher tends to narrow the research to 7upo bottling in Aba.
1.7 LIMITATION OF THE STUDY
The researcher was confronted with the following constant in the cause of this enquires.
1. Time factor due to the time frame under which the study must be completed, there was no much time to visit most of the department of Nigeria breweries plc for interview as a result of this the coverage is the limited.
2. Finance for the lack of finance the research was unable to carry out the research to its satisfaction.
3. Human factors the manager in marketing department of Nigeria breweries plc who was suppose to give me the necessary information needed was always out for one assignment or the other.
1.8 DEFINITION OF TERMS:
a. MARKMET:- The current and prospective customers of a good or service. It is a collection of individuals who have requirements for goods or services, as well as the aptitude, wit, and purchasing power of such goods or services.
A market’s heterogeneity is broken down into homogeneous pieces through the process of segmentation. It also involves identifying market segments that are unique from one another.
b. HETEROGENOUS: When anything is made of various types, such as the various markets, this is referred to as heterogeneous.
c. HOMOGENOUS: This is a market group made up of people who share the same needs for a particular product class.
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