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ADVERTISING AND SALES OF BEVERAGES IN ENUGU URBAN (A CASE STUDY OF BOURNVITA PRODUCT MADE BY CADBURY NIG. PLC)

ABSTRACT

This study is designed to evaluate impact of advertising strategies of beverages industry with special reference to Cadbury Nig. Plc. From the research, we want to find out whether advertisement is an important tool in marketing activities of beverages. The general objective of the study is to determine whether advertising have some significant effect on the sale of Bournvita in Enugu metropolis. The research question will help us to find out how adverting activities create awareness on Cadbury product.  The significant of this study will show us to what extent advertising has contributed towards the sales of their products.  The project work will only investigate the effect of advertising on sales of beverages with particular reference to Cadbury Nig. Plc within Enugu Urban.  In chapter 2, related literature, previous studies and the necessary tools are reviewed.  In chapter 3 and 4 methods used in collecting data and presentation are discussed.  Chapter 5, deals with summary of findings, recommendations and conclusions.

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Advertising is a powerful marketing communication tool used by companies to fulfill the promotional task.  It is an important form of communication or presentation of goods, ideas, or services conducted through paid media under open or identified sponsorship.  All about advertising is a sponsor sending a message called advertisement, through one or more mass media (radio, television, newspapers, and magazines) to reach large numbers of potential users or buyer of a product.  By itself, advertising is a vital marketing tool that helps to sell goods, services, images and ideas through information and persuasion. Many companies consider advertising a superior promotional tool to personal selling, sales promotion or publicity.  This is because advertising provides multiple presentations to masses of people with one message, compared with personal selling that involves individual contract with each prospect.  Sales promotion frequently require individual contract also.  Publicity may provide multiple simultaneous presentations like advertising, but the firm has limited control on the message content and placement.  While advertising is given such a credit, it is crucial to our understanding therefore, that we appreciate from the state the real place of advertising in marketing.  The “best advertisement” cannot sell a product that is not available, nor will it convince people to buy products that they feel are of poor quality too expensive or below expectations.  As a matter off act, the best way to kill a bad product is to advertise it.  Advertising on its own rarely sell products.  Advertising must interact with both the other promotion mix variables, and the other marketing concerns including product development and research.

Advertising is a word that attracts great attention all through the universe.  The significant role it play sin the marketing of product not only in Nigeria but in the world cannot be ignored.  Advertising has been given different definitions, by various authors.  Thee different definitions though different from one another, it contains some basic elements that pin point the meaning of advertising.

The question now is, what is advertising?  It is simply any form of presentation and promotion of goods, ideas or services that is non-personal and paid for by an identified sponsor.  It could be manufacturers, dealers, distributors, retailers, wholesales etc.  Such representation of ideas, good, or services are made in mass media like print media, electronic, bill boards, etc.

According to Stanton (1981 :40) advertising consists of all the activities  involved in presenting to a group is a non-personal oral or open message which is sponsored and regards to a product, idea or services.

Kotler (2003: 590) sees advertising as any paid form of non personal presentation and promotion of ideas, goods on services by an identified sponsor.  Advertisers include not only business firms, but also museums, charitable organization and government agencies that direct messages to target audience.  Advertising becomes publicity when it does not have a sponsor.

Nwokoye (1981:190) sees adverting as any form of non-personal communication through mass media that is paid for by an identified sponsor.  From all indications, it will be seen that whichever way, advertising is viewed; there are certain elements that come to mind.

Adirika, Ebue, Nnolin (1996:106) maintain that advertising is an impersonal form of communication or presentation of goods, ideas or services conducted through paid media under open or identified sponsorship.  Essentially, advertising is a means of spreading information.

This research views advertising to be really important in business because it aids in getting the target audience informed of the existence of goods and services.

Many manufacturers see advertising as significant means to get their new product or services to their potential consumers.  The information role of advertising is at the early stages of a new product declining stage and saturation stages.

Advertising is very important at all these stages because, it keeps the potential consumers informed of the existence of a product or services.  In other words, advertising is to educate, inform and to remind the target audience of the product or services.  Manufactures or dealers lay emphasis on the need for the product, where it can be found, how to use it and how it is priced.  Advertising also informs the public on any change or modification of a product or services as regards to new designs. Special offers, price changes promotion etc.  it aids in building new demand for a product, that is increasing market shares.

Advertising is useful also, for the sustenance of existing product in the market.  It helps the salesmen to secure sale leads that are, it facilitates the job of the salesmen.  However, advertising in spite of its promotional effect is also useful in remarketing a product that has negative effect on consumers.  Cigarette companies seeing the negative impact of nicotine in their product, always tell the general public that “smokers are liable to die young”.

Advertising also is a cost effective method of disseminating messages, whether it is to build brand preference for a particular product all over the universe or to motivate a developing nations consumers to consume a product more.  This study will look at the effectiveness of advertising in selling beverages in Enugu urban with particular reference to Bournvita product made by Cadbury Plc.

Cadbury Nigeria Limited became a public liability in 1976.  The decision to go public actually was made ahead of the enterprises promotion decree of 1977.

The factory production level has increased from an average of 100 tons weekly to a very laudable value figure of 500 tones weekly.  The company’s staff strength now stands at over 3000 of which nearly 500 are management staff out of the 10 directors of the company, 6 are Nigerian.  The company has branches all over the country.  It is doing well as well as experiencing full demand in sales.  In this study the researcher wants to examine the effectiveness of beverages in Enugu urban with particular reference to Bournvita made by Cadbury Nig. Plc.

1.2            STATEMENT OF PROBLEM

Advertising is an important tool in marketing activities.  The ultimate purpose underlying, advertising is to create awareness.  Many firms find it difficult to win new customers due to improper application of effective advertising.  Some customers find it difficult making a repeat purchase of a product whose advertising is not captivating.  Firms turnover are some time low, which could be caused by inadequate use of efficient advertising slogans.

Many customers do not patronize a company’s product when they are ignorant about its existence.  Exaggeration in advertising cerates false impression in the minds of customers.

Cadbury are engaging seriously on the advertisement of their products.

Thus, this work examines the activities of the Cadbury Nig. Plc in increasing the sales of Bournvita product in Enugu urban through advertising.

1.3            RESEARCH OBJECTIVES

The general objective of the study is to determine whether advertising has some significant impact on the sales of Bournvita in Enugu urban.  The specific objectives include:

i.                   Whether customer’s preference for a particular food drink has been as a result of advertising.

ii.                 To ascertain whether customers’ ignorance of a particular product contributes to their non-consumption of such product.

iii.              To find out if the use of advertising by the Cadbury Plc for Bournvita has relationship with its turnover.

iv.              To fashion out strategies for capturing new target audience for the beverage industry.

v.                 To make some recommendations that can be of help to different bodies concerned with advertising and marketing of Bournvita in Enugu in particular and Nigeria in general.

vi.              To determine if advertising of Bournvita can create consumer awareness of the product.

1.4            RESEARCH QUESTIONS

1.                 Does advertisement activity of Cadbury Nig Plc for Bournvita creates customer’s awareness and increased patronages of the product?

2.                 How do advertising activities create awareness on Bournvita?

3.                 Do advertising activities of Cadbury Nig. Plc led to the increase in profit of the company.

4.                 What has advertising contributed mostly on sales?

(a)              Awareness creation

(b)             Including customers

(c)              Enhancing sales

(d)             Educate consumers

5.                 It is behaved that where advertising of a product is impossible, that will declare?

(a)              Yes

(b)             No

6.                 What effect does advertising have in beverages

(a)              Increases sales

(b)             Lower sales

(c)              Moderate sales

(d)             No effect

1.5            SIGNIFICANCES OF THE STUDY

The significance of this study cannot be over emphasized thus, the outcome will be of immense help to both the producers of beverages, researchers, fellow students as well as customers.  To the producers and marketers of beverages, the study will show to what extent advertising has contributed towards the sales of their products.  It will also reveal the areas that need improvement to the students, it will widen their academic knowledge and aid them in development modern strategies towards the achievement of the significance of the study.  Researchers will also use this study as reference for further research in the areas covered by the study.

1.6            SCOPE OF THE STUDY

This project work will only investigate the impact of advertising on selling beverages with particular interest on Cadbury Nig. Plc operations within Enugu urban.

1.7            DEFINITION OF TERMS

MARKETERS:  They are both buyers and sellers of a particular product or services.

COMMUNICATION:  This is transmission of message from sender to receiver.  Marketing communication therefore, is the effort by a company to design and disseminate information about its product existence.

ADVERTISING:  This is a paid form of communication or presentation of goods, ideas or service conducted through paid media under open or identified sponsorship.

NON-PERSONAL SELLING:  This is the selling done through different medium like the radio, television, newspaper, telephone and many others.

CUSTOMERS:  They are either buyer who is willing to buy from a particular seller or a seller who is willing to sell to a particular customer.

MARKETING MIX:  This has to do with the 4ps of marketing product, price, place and promotion.

1.8            LIMITATIONS OF THE STUDY

The task of carrying out this study was an arduous one.  Many efforts were employed to make the work a success.  The problems encountered during the study include:

-                     Time factor

-                     Bureaucracy

-                     Financial constraints

-                     Secrecy and illiteracy

Time:          Inadequate time to carry out research on the study.

Bureaucracy:  As a big organization their hierarchical structure tends to be lengthy such that the respondents as regards the study was hardly met on and like wise seeing him.

Financial Constraint:  Being a student, finance was a major set back to the study.  As regards this, the study was limited only to Enugu Urban despite the vast nature of the organization.

Illiteracy:  Ignorance associated with illiteracy was a barrier.

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