THE ROLE OF PRODUCT ADVERTISING ON SALES VOLUME OF COMPANIES
(A CASE STUDY OF NBL)
The researcher conducted this study to look into and determine how much of an impact product advertising has on business sales.
The study looks at the twin issues of inconsistency and rigidity in business advertising practices.
To carry out this study, the researcher employed a survey research design.
All of the employees of Nigerian Breweries Plc were the population used in the study or for the research. Ngwo in Enugu State, at the intersection of 9th Mile.
To choose the sample for the study, the researcher employed systematic basic random sampling approaches.
To estimate the sample size for the study, the researcher employed Yaro Yainene’s formula for sample size determination. The questionnaire was the primary data collection technique utilized by the researcher for this investigation.
112 of the 119 questionnaires that the researcher distributed were returned, and they used the test for questionnaire content to present and evaluate the data they produced for this study.
TABLE OF CONTENTS
BACKGROUND OF THE STUDY
STATEMENT OF PROBLEM
OBJECTIVE OF STUDY
SIGNIFICANCE OF THE STUDY
SCOPE OF T HE STUDY
LIMITATION OF STUDY
DEFINITION OF TERMS
DESIGN OF THE STUDY
POPULATION OF THE STUDY
SELECTION AND CONSTRUCTION OF RESEARCH INSTRUMENT
ADMINISTRATION OF RESEARCH INSTRUMENT
METHOD OF DATA ANALYSIS
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
TEST OF HYPOTHESES
SUMMARY OF FINDINGS
1.1 BACKGROUND OF THE STUDY
One of the four promotional strategies used by businesses to target customers and the general public with persuasive messages is advertising. Advertising strategy plays such a crucial role in businesses’ marketing plans that organizations risk failing if it is neglected.
In general, businesses exist to create and sell items. If the general public is not made aware of the created goods, these objectives cannot be achieved. Certain products may satisfy requirements and wants if consumers and the general public are not aware and educated about them; yet, they will almost certainly steer clear of the products.
In light of this, product advertising places a strong emphasis on presenting the image and marketability of items in a way that will win over clients and purchasers. When he emphasized that the expansion being seen in the advertising industry is tied to its potential to increase the acceptance and marketability of companies’ products, Odunsi (1998:19) recognized the significance of product advertising. Many businesses have been able to resurrect and reposition some of their products that are practically at the decline stage of their life cycles thanks to product advertising.
Furthermore, the continuous existence, survival and growth of companies to some extent depend on the performance of their products and the level of their sales volume. The fact still remains that for a company to declare profit and possibly grow, its sales volume must be high. For its sales volume to be high, its product must be acceptable to the consumers hence giving rise to their high demand. These can only be achieved when these products are made known to the buyers through advertising.
Product advertising as stressed by Udeagha (1995:219) is an effective promotional tools that will not only inform and educate buyer or consumers about a company’s products, but highly significant in achieving the targeted sales volume of the company.
The Nigerian Breweries Plc. Is one of the leading breweries for over 50 years of existence, operating in Nigeria today. The company has a wide range of products that include alcohol, malt and soft drinks. The notable products in the companies product mix include, Gulder, Star, Amstel malt, Maltina and Schweppes.
The business operates a sizable factory in Agbana, Lagos, and a brewing facility in Enugu at 9th Mile Corner, Ngwo. Between Eke and Ngwo in Enugu State, the business has already begun building what appears to be the largest factory and brewery in Africa.
The Nigeria Breweries Plc. has a facility at the federal federation’s outermost state capital to help with product delivery. Every nook and cranny of the southern region of this country, as well as in some northern regions, has seen and heard of the company’s products.
1.2 STATEMENT OF THE PROBLEM
Every company’s goal is to meet its sales volume target because, if done so, other performance indicators, such as growth and total commitment to the Niger curse, such as entertainment, will be met.
Nigeria Breweries Plc, a corporation that has been in the leisure, enjoyment, and fun business for more than 50 years, has been a key player in the entertainment sector through active music sponsorship programs.
The overarching goal is to promote our companies by bringing top-notch entertainment to Nigeria. Nigerians have recently been entertained live by international stars including Naught Nature, Usher, Shaggy, and Awilo.
Legendary legend Rampage and super star mega join Via the Star Quest and Star Trek television series, Nigeria Breweries is also involved in promoting and identifying local and emerging artists (star sponsored music programmes). This would increase the visibility of Nigerian performers in international science, and Nigerian breweries are fully devoted to the Nigerian curse.
– Social responsibility and taxes
– Foreign investors: Heineken invested over 50 million Euros (N706 million) in Nigeria.
– The creation of jobs
– To support educational in Nigeria: help in dunding of educational and research facilities in institution of high learning e.g. School, TCR Fund
– Health: The sickle cell foundation uses them as one of its main tools for creating anti-sickle cell antibodies. Once more, they assist numerous medical facilities by donating equipment for blood banks, incubators for children, and boreholes.
– Sports: They sponsor sports like football, chess cycling, athletics, Golf, Table tennis, Law tennis.
Increase in profitability index would be assured. This could be possible or achieved if the company’s product are acceptable to the target market.
Product advertising therefore plays the invaluable role of informing and educating buyer or consumers about some products, what the products do and how they can satisfy their needs and wants.
In addition, product adverting enhances the response of potential buyers to an organization and its offerings. This it does by providing information, channelizing desires and by supplying reasons for preferring the product being projected.
In spite of the invaluable role of product advertising in achieving the sales volume target of companies, it still grapples with some problems that need to be addressed.
It is sad to observe that most companies operating in Nigeria are still inflexible and reluctant to be doing or courageous in their advertising policy. They are so scared of contracting advertising agency acting advertising agency to handle their adverts that at the end of the day they fail to achieve their sales volume target. Now with the commissioning of its new ultra-modern brewery in Ama Enugu State, unique for its size design and they are still set to impact eve3n more positively in the lives of Nigerian. Besides, most companies are inconsistent with their advertising policy.
They contract more than one advertising agency at any given point in time. This makes it difficult to spend same reasonable money on advertising.
This is becoming a typical characteristic in the brewery sector. For instance, advertisements for venerable products like maltex and vita malt are rare. This ought to have an impact on their intended sales volume.
Last but not least, some businesses’ policies on product advertising are not sufficiently effective to have an effect on their number of sales. Some businesses implement their advertising strategy using the incorrect and ineffective medium, which ultimately results in nothing being accomplished.
Because effective information on a problem is only offered when it is provided, all of the aforementioned problems deserve to be solved through the supply of suitable information.
1.3 OBJECTIVE OF THE STUDY
Examining the significant impact and function of product advertising on sales volume is the study’s main goal. The following are some of the study’s additional operational goals:
i. To determine the most typical type of advertising utilized by the brewery sector;
ii. To list the typical advertising mediums employed by the advertising sector.
iii. To determine how dedicated brewers are to marketing their goods;
iv. To investigate how product promotion affects consumers’ purchasing behavior.
v. To investigate the impact of product advertising on the expansion and success of brewing enterprises;
Examining the impact of product advertising on a product’s performance and survival
vii. To pinpoint specific issues impeding the successful deployment of product promotion in brewing companies; and
viii. To make some recommendations based on the findings of the study.
1.4 RESEARCH HYPOTHESIS
In this investigation, the researcher will test the following hypothesis.
I. Ho: There is no discernible role for product advertising in determining sales volume;
Hello: Determining sales volume depends in large part on product advertising.
Ho: A company’s profitability level cannot be significantly raised by effective product advertising.
Hi: A company’s profitability level might grow significantly as a result of effective product advertising.
1.5 SIGNIFICANCE OF THE STUDY
Product promotion is one of the crucial techniques used by businesses to promote the sale of their products, as was previously noted in this study. Its significance in influencing consumers’ purchasing behavior right away and in driving demand cannot be overstated.
Again, given this context, this study will have a huge impact on businesses, particularly breweries, advertising agencies, consumers, and academics.
This study’s information will make clear to businesses some significant roles that advertising plays. The unique characteristics of advertising, its forms, and its goals for businesses will be further revealed. These crucial advertising-related difficulties can aid businesses in creating or articulating a product advertising strategy that may assist them reach their desired sales volume.
The facts in this study will assist businesses with dubious advertising strategies in restructuring and reformulating their strategies in order to increase demand for their goods and hit their sales volume targets. Brewing companies will particularly value the informational quality of this study since it will aid them in selecting the right media and forms of advertising to utilize when putting their advertising policy into practice.
The information in this study will also be beneficial to advertising agents because, if for no other reason, it will enable them to devise more efficient ways of communicating with businesses in order to develop and implement effective product advertising strategies.
Also, since customers are the primary target of businesses’ advertising strategies, they will find the information in this study to be adequate for them to obtain some understanding of the notion of product advertising. Also, they will understand the importance of constantly listening to or paying attention to media advertisements because they may change and redefine their purchasing attitude and decision.
Furthermore, the informational substance of this work will be useful to other academics and scholars. This will assist them in conducting additional research on the topic of this study.
1.6 SCOPE OF THE STUDY
This focuses on how product promotion affects breweries’ sales volume. The Nigerian Breweries Plc is used as the instance brewing company. In other words, the study is concerned with how the company’s advertising strategy influences its amount of sales.
Other topics covered in the study include the forms of advertising and media used by Nigerian Breweries Plc to carry out its product advertising policy, the company’s level of commitment to marketing its goods, the effect of the advertising strategy on the company’s growth and profitability, and the challenges that the company faces in putting its advertising strategy into practice. The study also makes the researcher’s suggestions public.
1.7 LIMITATIONS OF THE STUDY
In general, restrictions do exist for scholars when they do their academic job or studies. Given this evident reality, it comes as no surprise that the researcher’s efforts to carry out this study were occasionally hampered. The following are the main obstacles the researcher faced while doing this study:
i. The hostile demeanor of the Nigerian Breweries Ltd. personnel.
ii. Insufficient funding or resources
iii. Stress on the body and mind.
It was challenging for the researcher to remove some
essential data from the respondents used in this study, the majority of them were employees of Nigerian Breweries Plc.
Initially unfriendly to the researcher, these respondents
refusing to answer her query.