IMPACT OF PROMOTIONAL ACTIVITIES ON THE PURCHASING OF GOLDEN MORN PRODUCTS (A CASE STUDY OF NESTLE NIGERIA PLC ENUGU)
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To know how effective each of the promotion has been increasing the beverages market share in the market.
Based on these three hypothesis were formulated each focusing on the impact of specific promotion data. Extensive literature review on textbooks, journals and material on the area of the study was carried out while primary data were sourced from respondents, which form the sample of study. The sample include the manage staff of the super market.
Open-ended questions in a structured questionnaire were used to collect data from respondents. These data were presented on statistical tables after analysis and interpretation.
Based on analysis, the following findings were made.
1. Firslty, Golden morn has become a good beverage product that nourishes the body.
2. The Nestle Nigeria Plc is yet to make advertisement effective enough to create general awareness.
3. It was discovered that not much sales promotion has been carried out by this company.
4. It is strongly suggested that beverage industry should game plans that must be timely applied.
5. The study revealed that the promotional activities of Golden morn not only lead to increase in sales of the product but also impact, positively on the profit of the Nestle Nigeria Plc.
6. That the personal selling strategy used in beverage industry has much impact on customer\’s disposition and patronage.
7. Many consumers indicated that the quality of Golden morn is high but many equally complained that the price is high compared to the other beverage in the market.
Based on the above findings the following recommendations were made. Define its promotional objectives in order to device suitable strategies to follow. This can only be very much possible where experts are used.
Serious effort should be made by beverage industries in using promotional activities, in using advertising apart from billboards, advertising on radio and local news papers in English and local language should be used in creating customers awareness.
The high quality product of Golden morn should be maintained and not relaxed and a good product with good promotion is easier to sell than bad product with intensive promotion as consumers look for the best quality.
If all these recommendations were carried out the company will not improve on their profit position.
Table Of Content
Table of contentsCHAPTER ONE
1.1 Background of the study
1.2 Statement of the problems
1.3 Objectives of the study
1.4 Formulation of hypotheses
1.5 Significant of the study
1.6 Scope of the study
1.7 Definition of terms
2.0 LITERATURE REVIEW
2.1 Nature and importance of promotional activities
2.2 Promotion objectives
2.3 Component of purchasing promotion
2.4 Analysis of the various promotional tools
2.5 Promotional budget
2.6 Developing the sales promotion programme
2.7 Evaluation of promotional programme
3.0 RESEARCH METHODOLOGY
3.1 Method of data collection
3.2 Sources of data
3.3 Research instruments used
3.4 Population of the study
3.5 Determination of sample size
3.6 Sampling techniques
3.7 Method of data analysis and treatment
3.8 Limitations of the study
4.0 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Presentation and analysis of data
4.2 Test of hypotheses
5.1 SUMMARY OF FINDINGS RECOMMENDATIONS AND CONCLUSION
BACKGROUND OF THE STUDY
The deregulation of the Nigerian economy came into being in 1986. By that time, the banking industry was one of the most vibrant and most sought after by investor in Nigeria. According to Nwankwo (1991:2), the number of commercial and merchant banks rose from 33 (thirty three) commercial banks and 15 merchant banks in 1987 to 65 (sixty five) and 47 (forty seven) respectively in 1991.
The bank industry entered this decade with less caution but aware of global economic changes. According to Clausen (1990:12) the industry entered the new decade well aware that the world was about to change but in retrospect not fully realizing the far- reaching extent of that change nor its velocity and impact. In the ensuring six years the industry was unable to respond rapidly enough to the wrenching dislocation brought by deregulation, fierce new competition and unstable world economy. Crisis erupted within the first quarter of this decade and the condition deteriorated in the following area:
1. The industry was losing money, with not losses in billions since mid nineties.
2. Some of the banks suspended payment of dividends on their common stocks:
3. Some of the banks were facing hostile takeover attempts by the regulatory bodies (NDIC and CBN)
4. Regulatory bodies had directed several banks boards of Directors to redress the worsening capital base and
5. Questions were raised about some of the banks ability to survive independently.
Purchasing in the banking industry in Nigeria as we know today, owes much to the survival strategies of some new generation commercial and merchant banks after the banking distress of 1992 through 1996. This development attends the tastes and demands of the society stimulated competition and created selling opportunities and rewards. The banking habits now spread throughout the social classes.
New services have been introduced as the bank met competition, fill gaps in their services range, or try to steal a march on the competition by endeavouring to discover and satisfy the needs of new niche markets. Business customers have also witnessed the wind of change as the banks gained a greater appreciation in its highly profitable corporate markets. Thus, the banks own purchasing expertise has been pushed along by competition and a desire to gain market share. It has also been pulled along it\’s customers demanding more flexible advantageously priced and comprehensive facilities.
The needs of customers, and prospective ones, cannot be ignored by any bank especially in larger markets like Lagos and Aba environment. Relying merely on selling only those services which are already available is, at best, a short-term expedient, as market attitudes preference, technology and environmental factors are constantly changing.
To survive profit must be earned by banks and part of this process involves containment of cost when seeking the most profitable markets to exploit. Therefore, banks resources must be channeled towards the potentially more profitable \”Banking markets\” which in turn, necessitates making a choice among larger markets like Lagos, Aba, Kano, Onitsha, Kaduna etc. It is the identification of the right balance of resources that calls for the purchasing skills of research, planning and assessment.STATEMENT OF THE PROBLEM
Without customers, banks would have no revenues. Purchasing is directed at protecting and expanding this stream of revenue. Organization (including banks) regards customers wherever they may be as their single most important reason for existing. They operate in a rapidly changing, regulatory and economic environment. Consequent upon this, it is the job of the marketer to understudy and understand the purchase decision/patterns of these customers who have been known to be difficult and complex in nature. The task become even different in the light of increasing competition, growing customer sophistication, and innovation in an environment of trade liberalization, financial deregulation and internationalization. The problem was further compounded by the recession in the economy, which led to the introduction of S.A.P (1990: 15) pointed out, between 1986 and 1992, there were low capacity utilization in most industries, declining per capita- income and reduced disposable income. The bank sector thus become more competitive and business environment like Lagos, Aba, Onitsha, Port Harcourt, Kano, etc developed peculiar business climates/markets, and attracted a large number of bank branches to their areas. Against this background, it became necessary for us to establish the locational factors that influence banks in the purchasing of their financial services, with particular reference to Lagos and Aba markets.
OBJECTIVE OF STUDY
The objective of this study is to examine the locational factors influencing the purchasing of financial services in Lagos and Aba markets. It will seek to do the following:
i Examine if there are locational differences between factors affecting banks preference for Lagos and Aba markets.
ii Consider the factors that determine banks preferences for a particular location in both Lagos and Aba markets.
For the purpose of this research, the following
Questions will act as guide;
1. Why are banks establishing many branches in Lagos and Aba markets?
2. Do banks through various branches lend more in Lagos and Aba markets and make more profits?
3. Does accessibility to these bank branches influence the patronage of customers in these markets?
4. Is response time to customer\’s enquiries and transactions in these areas an important attraction?
5. How important is technology (system support, computer etc.) to the customers in these areas?
FORMULATION OF HYPOTHESIS
Ho: Banks are not establishing many branches in Lagos and Aba markets;
Hi: Banks are establishing many branches in Lagos
and Aba markets;
Ho: Bank do not lend more in their branches in Lagos and markets and make more profit.
Ho: Accessibilities to these bank branches does not influence their patronage in this bank market;
Hi: Accessibilities to these banks branches influences their patronage in these markets;
Ho: Response time to customers\’ enquires and
transaction is not an attraction to bank customers in Lagos and Aba markets;
Hi: Response time to customers\’ enquires and transaction is an attraction to bank customers in Lagos and Aba markets.
Ho: Technology is not an important factors affecting customers\’ preference in these areas.
SCOPE AND LIMITATION OF THE STUDY
This study shall be restricted to Lagos and Aba business/Banking environment Lagos and Aba market were chosen because:
1. The head offices of about 90% of the banks are in Lagos.
2. The banks that do not have their head offices in Lagos, have regional offices and/or head office annexes
3. Many banks have either regional office and / or area offices in Aba.
4. Lagos is the nations industrial capital with over 75% of the more bank users.
5. The under listed 10 (ten) banks (by number of branches), have at least five branches in Lagos and at least two branches in Aba (excluding their cash centers).
BANKS BRANCHES NET WORK RANKING PURCHASING SLOGANS
First bank of Nig. plc 319 1 Truly, the first
Union bank of Nig .plc 284 2 Big, strong, Reliable
United bank for Africa 219 3 The wise choice in banking
Afribank Nig. plc 137 4 The one stop bank
Savannah bank of Nig. 87 5 We treat you like a person.
Bank of the North Ltd. 86 6 We earn your confidence
Wema Bank plc 86 7 Reaching for greater heights
Standard trust bank Ltd. 77 8 Vision to become a role model for Africa B12
Habib Nig bank Ltd. 55 9 The bank with a difference
All State Trust bank plc. 47 10 The professional Bank.
Respondents for the study will be drawn from Banks senior officials and individual bank customers and due objectives will be to find out what inform their bank (branch) Locational considerations the under listed have been identified as some of the limiting factors:
1. Bas of Respondents:- The respondents are form different backgrounds with their own prejudices since they have no direct stake in this study. The reliability of data generated from them is suspect and will be fraught with many inconsistencies.
2. Sampling error:- I have only a sample to represent the entire population. The sample was selected using convenience- sampling technique since the sample is just a small representation of the entire population, sampling error is therefore inevitable.
SIGNIFICANCE OF STUDY
This research will attempt to show the locational factors influencing the purchasing of financial services in Lagos and Aba markets. Issues to be analyzed will include people banking habits: branch network; technology application; interest rates on Loans; security of funds, response time amongst others. The customers will be classified into 2 (two) broad group for analysis viz corporate bodies, and
i. Corporate bodies, and
We shall therefore strive to establish the existence of differences in factors that influence various bank choice of location in Lagos and Aba business banking environment.
Having established the existence of a difference or lack of it. The research will then make suggestions that would help banks price their product better in the Lagos and Aba competitive banking environments, improve on their technology applications, ensure security of customers funds and other general attributes that customers consider vital.
SUMMARY OF FINDINGS
The researcher\’s findings include the following:
1. Management of Banks have special preference for Lagos and Aba markets to other large markets like Ontisha, Kano, Kaduna, port Harcourt, Abuja, etc. They regard Lagos and Aba markets as most profitable markets to exploit, as they posses large groups of existing and potential customers or users of their products/ services.
2. Purchasing activities of banks in these large markets are directed at protecting and expanding their stream of revenues in these areas, by keeping existing customers; boarding their banking relationships their banking relationships by cross selling services and attracting new customers, hence they lend mostly to traders, (marginally to manufacturing concerns and hardly lend for agricultural production) in Lagos and Aba markets and there by making more profits.
3. All the ten banks studied have focused target markets, ie. Segments of the markets to target which informed their locations at strategies places in both Lagos and Aba markets, making it accessible to their customers.
4. Most of the banks in both markets have purchasing departments (with core marketers – who are more concerned with what is going on outside their banks). The staff of the department make it easier for their customers and potential ones to reach them with enquires, questions and complaints and to hold on to the volume of transaction of customers or increase them in these markets.
5. Majority of the banks in both markets describe the nature of their banking business in terms of the products and services they offer and their information technology power (I.T) by building global capabilities, supporting superior customer services and making all their I.T decision driven.RECOMMENDATIONS
The following recommendations are hereby offered in the light of the above findings:
1. Banks should continuously strive to differentiate their products/services properly, as most customers have preference for some banking services and products.
2. Banks that will survive in the new millennium are those that have an edge on technology, so bank must deliberately and consciously invest heavily in information technology to remain relevant and profitable.
3. Banks must appoint to its board and management, people of high integrity and honesty who will not only be perceived as such by customers but must actually be seen to be above board, as the research should that customers are particularly interested in those managing their funds.
4. The regulatory bodies- (the C.B.N and N.D.I.C) should encourage uniform fees; commissions, charges etc. among banks, to avoid arbitrary increases and abuses.
5. Banks should have adequate knowledge of the various markets; target; and other variables in and around their areas of operation.
6. Banks generally should ensure continuous training and re- training of staff for culture re- orientation.
7. Banks should always determine potential value of relationships, in identified markets;
8. Banks should possess profitable and complete range of products, continuous product/ service innovation and improvements.
9. Banks should have competent, courteous, highly knowledgeable, professional and emphatic staff.
10. The regulatory bodies should encourage the formation of a league of Banks in various markets with a \”data bank\” to enable them have:-
i Easy access to information about customers
and their businesses/banking habits. And,
ii. Expanded scope of knowledge about customers in their areas.
RECOMMENDED AREAS FOR FURTHER STUDIES:
Since this study was restricted to only Lagos and Aba markets, it is recommended that similar study be carried out in other parts of the country to draw a carried out in other parts of the country to draw a correlation between the findings and establish a relationship.
Banks should further research on their bank/branch purchasing plans to keep up to data with all the rapid and potential changes in their various markets; and more potential why each bank has chosen to develop its own business in predetermined directions.
Deriving from the recommendations above, the following conclusions are made:
i That preferences do exist among banks in their choice of branch locations;
ii. That preferences equally exist amongst various
Categories of bank customers in their choice of banking services;
iii. While branch network is an \”asset\” to bank it is a critical factor for customers.
iv. Banks must continue to open branches in these
Markets:- so they should make their customers dependent on their and gain their trust and confidence.