THE EFFECT OF PRODUCT ADVERTISING ON A COMPANY'S SALES VOLUME

(A case study of 7up bottling LTD 9th miles corner, Enugu State)

By

Author

Presented To

Department of Marketing

ABSTRACT

The major aim of this project is to demonstrate the impact of advertising on the sales and profit of a business organization taking 7up bottling company Nigeria Limited as a case study. Advertising is any personal paid form of non-personal information which is directed to the consumers or target audiences through various media in order to present and promote a product, services and idea. Good advertising requires competent personnel including a number of specialists to enable it thrive in the ever dynamic and competitive business environment. It is therefore imperative that key personnel in departments that are directly involved to be carefully selected and positioned to ensure continuous success. In recognizing the role advertising can play a growing number of companies and establishments have to embark on a nationwide advertising campaign. Advertising campaigns obviously informed by depressed consumer demand, thrive by persuading the consumer on the need for consumption. At the completion of this research work, the impact of advertising at 7up bottling company was clearly defined and it should have become a continuous practice for Nigerian Breweries

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ABSTRACT

CHAPTER ONE

INTRODUCTION

11 BACKGUND OF THE STUDY

12 STATEMENT OF THE PROBLEM

13 PURPOSE OF THE STUDY

14 SIGNIFICANCE OF THE STUDY

15 ASSUMPTIONS OF THE STUDY

16 RESEARCH QUESTION

17 RESEARCH HYPOTHESIS

18 SCOPE

19 DEFINITION OF TERMS

CHAPTER TWO

INTRODUCTION

21 LITERATURE REVIEW

22 REVIEW OF CURRENT RELATED LITERATURE

23 SUMMARY OF LITERATURE REVIEW

CHAPTER THREE

METHODOLOGY

30 INTRODUCTION OF THE CHAPTER

31 DESIGN OF THE STUDY

32 AREA OF THE STUDY

33 POPULATION FOR THE STUDY

34 SAMPLE SIZE

35 SAMPLING PROCEDURE

38 METHOD OF DATA ANALYSIS

CHAPTER FOUR

PESENTATION ANALYSIS AND INTERPRETATION OF DATA

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

51 SUMMARY OF FINDINGS

52 CONCLUSION

53 RECOMMENDATION

REFERENCES

APPENDIX A

APPENDIX B

CHAPTER ONE

INTRODUCTION

11 BACKGUND OF THE STUDY

Advertising is one of the promotional tools companies use todirect persuasive communications to consumers or buyers and the general public advertising policy constitutes such an important strategy in the marketing program of companies that its negligence could spell down for companies generally speaking ,companies exist to produce and market product This objectives cannot be actualized if the manufactured product are not brought to the knowledge of he consuming public

against this background, product advertising purposes on projecting the image and marketability of the products in such manner that will make them acceptable to the customers

Odunsi (1998:19) noted the important of product advertising when he stressed that growth being recorded in the advertising field is connected with its potential

to facilitate the distribution of its products The products of the company are seen and known in every mook and Granny of the southern part of this country, as well as in some northern states

12 STATEMENT OF THE PROBLEM

The objective of every company is to achieve its sales volume target because, if achieved other performance indicates like growth and entertainment As a company that has been in the business of leisure, pleasure and fun for over 50 years, 7-up bottling company Ltd has been a major force in the entertainment industry through a vigorous music sponsorships programmes The underlying philosophy is to bring world classes entertainment to Nigeria to support the role of out brands

International star like Naught Nature, usher, Shagy and Awilo have thrilled Nigeria live in recent time courtesy Nigerian

In addition, product advertising 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 courageous in their advertising policy They are so scared of contracting advertising jobs to advertising agencies to handle 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 even more positively in the lives of Nigerians Besides, the company is contracts more man one advertising agency of any given point in time This means it difficult to spend same reasonable money on advertising This is now becoming a common feature in the soft drink industry For instance, are hardly hears of advert concerning old beautiful product like maltex and vita malt This should be affecting their sales volume target Finally, the product advertising policy of the company is not so effective as to enable it have some impact on the company's sales volume Some companies do choose some wrong and ineffective media to execute the advertising policy, hence achieving nothing at the end of the day All these afore-discussed problems deserve to be addressed through the provision of appropriate information, because, it is only when effective information, concerning a problem is provided, will its solution be sought

1 3 PURPOSE OF THE STUDY

The broad objective of this study is to examine the major effect of product advertising on sales volume Other operational objective of the study includes the following:

i To identify the common media of advertising used in the advertising industry

ii To identify the common form of advertising being used in the brewery industry,

iii To identify how committed breweries are towards advertising their products

iv To examine the impact of product advertising on the buying attitude of buyers

v To examine the effect of product advertising companies

vi To examine the relevant of product advertising in product survival and performance

vii To identify' some problems militating against the effective implementation of product advertising in brewing

companies; and

viii To make some recommendations based on the finding of the study

14 SIGNIFICANCE OF THE STUDY

As earlier pointed out in this study, product advertising is one of the vital tools used by companies to promote the sale of their products Its importance in creating immediate impact on the buying attitude of the consumers as well as in generating demand cannot be over-emphasized

Again this background, therefore, this study will be of some immense significance to companies, especially breweries, advertising agents, consumers and academicians, the information contained in this study will disclose some important functions of advertising to companies It will further inveil some unique qualities of advertising Its types and its objective to companies design or articulate an effective product advertising policy which can achieve their target sales volume

To companies with chequered advertising policy the information contained this study will help them

Restructuring and reformlative it with a view to achieving their objective of increasing demand for their products, actualizing their sales volume target

More so, 7 up companies will appreciate the information content to this study, because it will help them to choose appropriate forms of advertising and media to use in implementation their advertising policy

Further, advertising agents will equally benefit from the information contained in this study, if not for any other thing, it will help them to fashion out more effective ways or means of liaising with company in order to formulate and implement effective product advertising policy of them

Finally, other researchers and academicians will derive some benefits from them carry out further research on the subject of this study

15 ASSUMPTIONS OF THE STUDY

Generally speaking, researchers do encounter some constraints in the course of carrying out academic work(s) or studies In view of this obvious fact, its on an a duration to note that he researcher encountered some constraint during the execution of this study The major constraints encountered by the researcher is the course of this study include The following

i The unfriendly attitude of the staff of the Tup company

ii Limited finance or fund

iii Mental and physical stress

The researcher encountered some difficulties in extracting some vital information from the respondents used for this study, who were mainly staff of the 7up bottling company Ltd These respondents were initially tiostile to the researcher, honce declining to her question

They were too reserved for the fear of disclosing some business secrets to the researcher, who they wrongly believed could use some disclosed information against the company

More so, some of the respondents were too reluctant to respond to the researchers research instrument (that is, the questionnaire) for no obvious reasons It was with much pressure and perseverance that he researcher was able to collect the relevant data and information from the respondents for the study

In addition, the researcher encountered some financial difficulty in the course of executing this study the cost of designing limiting, given the status of the researcher who is still an undergraduate

The researcher had to spend some money beyond what she expected in transport to and from 9^th mile corner, the location of 7up bottling company Ltd Finally, the researcher suffered on unquantifiable physical and mental stress during data collection, interpretation and analysis In spite of all the afore-discussed constraints encountered by the researcher in the course of executing this study

16 RESEARCH QUESTION

In this, the following research questions could be used as a guide

1 What is the name of your department of the various company

2 Which application of products advertising should we use for product promotion programme of the company

3 What form of product advertising should be used by the company

4 Which product advertising media arte used by the company

5 Does product advertising programme of your company have impact on its sales volume

17 RESEARCH HYPOTHESIS

The following hypothesis formulated by the researcher will be tasted in this study

i Ho: product advertising has no significant role to play in sales volume determination

Hi: product advertising has a significant role to play in sales volume determination, 
ii Ho: Effective product advertising cannot lead to significant increase in profitability level of a company

Hi: Effective product advertising can lead to significant increase in profitability level of a company

18 SCOPE

This focuses on the effect of product advertising on a company sales volume It is carried in using the 7up company Ltd in other wards

The study focuses on the advertising policy of the company as it affects it sales volume Other issues discussed in the study include the types of advertisement and media used by the 7up bottling company Ltd In carrying out its product advertising policy the level of commitment of the company towards advertising its products, the impact of the company advertising policy on its growth and profitability, and the problems militating against the company efforts to implement its advertising policy

The study equally disclose the recommendations made by the-researcher

19 DEFINITION OF TERMS

Advertisement: This is nay paid form of non personal preseation of ideas, goods and services by identified sponsor, this involves the use of mass media

Products: This is defined as a boundle of benefit that tend to satisfy the individual needs and wants, it can be tangible or

intangible product

Marketing strategy: This spell out the game plan for attaining the business objectives of product market objective Marketing strategy is also the broad principles or comprehensive plan of action by which the business unit expect to achieve its marketing objective in a target market

Promo tools: This is called promotional mix variable they are the communication mix that helps to push forward to advance on idea in such a way as to gain acceptance and approved it This includes advertising, personal selling, sales promotion and public relation

Public Advertising: This refers to as either direct action or indirect action of advertising Product advertising is a direct action when the advertisement makes a strong bid for buyers immediate action and is in

direct action advertising when the advertisement designed is to push the product or service over a longer period of time

Product mix: is the set of all products items that a particular sellers offer for sale Kotler said that product mix consist of two strong product lines in information product and image product