THE ROLE OF ADVERTISING IN MOTIVATING CONSUMER BRAND PREFERENCE FOR BEVERAGES
ABSTRACT
The purpose of this study experiment was to determine the extent to which advertising influences consumers’ purchase decisions on the Bournvita brand. To solve the study problem, both primary and secondary data were gathered. The data was gathered using a questionnaire and an oral interview. The respondents were Bournvita employees and customers.
Tables and percentages were utilized to organize and illustrate data collected. The Chi-square test was used to assess the various hypotheses.
The following conclusions were reached after data analysis and interpretation.
1. Advertising influences consumers’ beverage brand selection.
2. The quality of a product influences consumers’ beverage brand selection.
3. Pricing is a crucial factor that affects beverage product consumers to prefer one brand of beverage over another.
Based on his findings, the researcher suggests:
1. Beverage companies should conduct raw material research and develop effective distribution channels in order to always give consumers products of reasonable quality and pricing.
2. Employing extensive and proper use of the promotional mix, particularly advertising, to improve the efficiency and effectiveness of their marketing efforts.
3. Beverage product manufacturers should analyze the variables that influence their brand selection and implement complete product
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The management process known as marketing aims to efficiently and effectively identify, anticipate, analyze, and satisfy human needs and wants through exchanges (Adirika, 1990:3)
Its idea is based on a business philosophy that claims that customers desire to feel satisfied with the social and economic factors that support a company’s survival. However, even if a product entirely satisfies consumer needs, customers still need to be made aware of its existence. This necessitates the use of advertising to heighten consumer awareness.
Equally, the proliferation of beverage (Bournvita) manufacturing companies suggests that in order for a company in the industry to thrive, increase, or better its market share, it must direct its energies toward some form of product high quality development, fair pricing, successful promotional activities, and a broad distribution network. Along with rivals, the expansion of this market brings along additional issues, such as the management of the company’s challenge in determining which of these types has the most impact on consumer preference for one brand of beverage product over another.
This has led to the policy of most companies marketing department investing so heavily on advertizing as the surest means of reaching their target markets. Nigerian businessmen always depreciate the role of advertising in business because of their pursuit for quick money and profits, they often erroneously regard advertising expenditure as money wasted. This is unfortunate indeed, adverting it perhaps the most effectively way of communicating with customers and the general public. Through advertizing, a company communicates the information a consumer needs to evaluate a product or the ability of the company to offer a product or service.
Advertizing can be inform of newspaper and magazine, direct mail trade exhibitions, television, radio, catalogue, product demonstration etc.
Following the increase in the competitive nature of the market environment in Nigerian today, marry companies are found in the line of beverage product production. One of such companies who also lover a leading name in beverage market is Cadbury Nigeria Plc who builds its fame on vitality and delicious goodness of its food beverages. The extra flavour of its confectionery and the appetizing taste of its products.
The company’s operations in Nigeria were initially continued tot he selling of imported chocolate products in the major urban areas. This was before 1965 when Cadbury Nigeria Plc operated as the registered Nigerian sale office for Cadbury fry expert limited. However, the introduction of the Coco beverage, Pronto, and later the well know malt beverage BOURNVITA between 1956 and 1969 enable the company penetrate the indigenous market. The increase in turnover instified first, the local packaging of these products and subsequently the full manufacture of BOURNVITA in the company manufacture and market their products through network of wholesale distributors located in various parts of the commit.
They equally make a to of expenses as a result of carrying out promotional strategies for their product. One of such promotional mix which they make use of is advertizing which demands from the management a huge amount of money yearly. Advertizing is a group of activities involved in presenting to people message regarding a product, service or idea in a non-personal form by a identified sponsor. Its main takes is to communicate effectively so as to establish awareness if create a favourite attitude to and stimulate demand for a product or service among potential consumers. It should therefore be informative, instructive, persuasive and relevant to consumer’s needs. It should appeal to the emotional instincts in some discerning ways from similar products of the same or other companies. In the marketing of beverages, branding enhancing product identification, which in turn facilitates marketing action and demand stimulation.
Effective advertising and market management are aided by it. The Bournvita brand of the chosen beverage is the subject of this study’s investigation of customer brand rejection, brand preference, brand acceptance, and brand persistence.
Finally, the beverage industries heavily rely on advertising to influence customer behavior. Regardless of the cost associated with a product, some people are moved by the way it is advertised.
1.2 STATEMENT OF THE PROBLEM
A marketing manager is frequently faced with the challenges of figuring out the nature of demand for his products in a certain market segment and the variables that affect the variations in the demand pattern in a competitive market environment like ours.
The management of the Nigerian Bournvita manufacturing firm must figure out not only how to outsmart their rivals, but also how to assess the relative contributions of several promotional mix elements in order to increase demand for their brand’s products. This has also caused various companies to allocate different amounts of money to and place different priorities on various elements of the promotional mix. The relevant question that comes to mind is the following.
Why do Bournvita brand consumers receive a sufficient amount of food benefit from advertising messages?
Why is the significant sum of money spent on Bournvita product advertising justified?
Why does Bournvita advertising cause consumers to act in ways they might not have otherwise, making him more likely to buy the products being advertised?
In particular, it is now crucial to ascertain:
1. Why, in contrast to other considerations, Bournvita advertising has a significant impact on consumer behavior (availability of the products its quality, price and positioning strategy of the product).
2. How well advertising influences consumers to choose one brand of beverage over another in comparison to these other criteria.
The primary goal of this research project is to provide answers to these and some other relevant topics.
1.3 OBJECTIVE OF THE STUDY
Advertising is used as a promotional tool to persuade customers to choose a particular good or service over a rival brand of a comparable good while making purchases.
In order to determine the extent to which consumers’ preference for Bournvita over other beverage brands can be linked to advertising, this study aims to assess the market acceptance of Bournvita in the Enugu city. Thus, the following are the study’s goals:
1. To determine whether advertisement appeal or theme is the reason why consumers prefer Bournvita to other brand of beverages.
2. To identify the cause and kind of differences in consumer preference the Bournvita product under study.
3. To determine the extend to which consumption of the Bournvita product is being influenced by the advertizing.
4. To determine the strength of advertizing relative to the other factors in motivating consumer awareness of Bournvita under study.
5. To suggest ways of improving advertizing campaign strategy for beverage product marketing to be more effective.
1.4 HYPOTHESIS FORMULATION
The following hypotheses will be tested.
1. Ho: Most consumers are not aware of Bournvita product through advertizing.
Hi: Most consumers are aware o Bournvita product through advertizing.
2. Ho: Consumer brand preference for Bournvita product is not influenced by exposure to advertizing message.
Hi: Consumer brand preference for Bournvita product is influenced by exposure to advertising message.
3. Ho: There is no signification relationship between the advertizing of Bournvita and sales volume of the organisation.
Hi: There is signification relationship between the advertizing of Bournvita and sales volume of the organisation.
1.5 SIGNIFICANCE OF THE STUDY
The following are some ways that the findings of this study are expected to benefit Cadbury Nigeria Plc:
1. To be able to manufacture their goods to satisfy the demands of their clients.
2. To assist customers in evaluating the product’s quality and advantages over competing brands.
3. It will make it easier for other people, namely researchers, to complete their work and conduct comparable study in the future.
4. The reader will gain from this work as well because it will aid them in creating their own study when conducting academic research.
5. It will highlight the challenges and possibilities that rivals face, as well as the necessity of making changes so that the company can grow positively.
1.6 SCOPE OF THE STUDY
The study is a case study of Cadbury Nigeria Plc. Due to the size and spread of the company, the study is limited only to consumers of Bournvita in Enugu metropolis.
1.7 DEFINITION OF TERMS
Advertising is a non-personal method of presenting products, concepts, or services through paid media with explicit sponsorship (Kotler P. 2nd Edition, 1987)
Consumer products are those that are not industrial and are used by the final users (Ozo 2002, P.120)
A circumstance where the consumer chooses a certain product to meet his needs and wants is known as brand preference. 1982, p. 185, Journal of Consumer Research.
CONSUMER BEHAVIOR: This is anything the consumer does to meet his or her demands. (Ozo 2002, P. 10)
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