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NEW PRODUCT DEVELOPMENT AS A TOOL OF INCREASING MARKET SHARE IN SOFT-DRINKS INDUSTRY

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NEW PRODUCT DEVELOPMENT AS A TOOL OF INCREASING MARKET SHARE IN SOFT-DRINKS INDUSTRY

 

CHAPTER ONE

INTRODUCTION

 1.1 BACKGROUND OF THE STUDY

Marketing involves all activities in directing the flow of goods and services from producers to consumers in all economic systems. Drucker (1977) defined marketing as all those activities performed by individuals or organizations either profit or non-profit that enables, facilitate or encourage exchange to the satisfaction of both parties. According to Everard and Burrow (1984), these activities include buying selling, transporting, storing, financing, risk-taking, grading and valuing which must occur before a product can be distributed or sold. Onah and Thomas (1993) defined marketing as a linkage process by which the demands of the consumers are matched with the productive activities of the production sector. As a process, it is concerned with the determination and satisfaction of the needs and wants of the consumers. Kotler (1980) defined marketing as getting the right goods and services to the right people, at the right time, at the right price with the right communication and promotion. However, marketing is much more than that because much time and effort must be spent in marketing these goods and services. In another vein, the definition of marketing by American Marketing Association (AMA) is by far the most comprehensive. According to Bernett (1995) the association defined marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. In the above definition, marketing has been expanded to include not only goods and services but also ideas. Through marketing activities there had been rapid development and competition in man's mental and socioeconomic needs and standard of living. Businesses are competing with each other in order to sell the same product. Consumers have more choices of product to purchase as businesses are developing their own strategy to reach their target markets. Target markets are group of consumers with similar needs to whom companies can sell their products. Strategy means various devices applied in accomplishing promotional objectives of a company. It is a guideline for making directional decisions that influence an organizational long-term performance. According to Steiner and Miner (I 9771, strategy involves P setting of objectives of an organization in the light of external and internal forces, formulating policies to achieve objectives in order to assuring their proper implementation while Schewe and Smith (1980) defined strategy as a scheme, method or maneuver deployed by management in order to move the organisation from its present position to its target goal by the end of a specified period. Sudharshan (1973) defined marketing strategy as a limited set of sustainable competitive advantage, which is based on the performance of the marketing functions and relationship under which the marketing functions are controlled. He is of the view that any effective marketing strategy requires a lot of marketing planning that must establish a set of objectives polices and rules that must guide over time the company's marketing effort. McCarthy (1 981) defined marketing strategy as a target market with a related marketing mix. He explained that a typical marketing mix would include some products offered at a price with some promotion to tell potential customers about the availability of the product. Marketing of soft drink dates back to 1933 with Nigerian Mineral Water Industries Ltd. among other soft drink manufacturing companies were Nigerian Bottling Company Plc, Seven-up Bottling Co. Plc, Pepsi Cola Company and Life Breweries Ltd. The Nigerian Bottling Co. PIC major promotional activities are undertaken on an international basis by Coca Cola Export International.

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