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THE ROLE OF ADVERTISING IN ACHIEVING CONSUMER BRAND LOYALTY FOR BEER PRODUCT

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

The business or beer production is an imported technology in Nigeria it is on record that beer bewaring was one of the earliest modern industries to be established in Nigeria, it is well known that while the earlier breweries were established, either by foreign interest of by state government, the new breweries are mostly established by privately owned Nigeria business organization. Before the Nigerian civil ward, there existed only a few breweries. However, as a result of the oil boom that came with the en of the civil war, brought some changes in the economic structure of the country, the income pattern of most Nigerian were thus reshaped, which having and appreciable level of disposal income, these led to a massive entry of private individuals into the industry which eventually resulted in accelerated growth in beer production. This increase in the number of brewers firms has naturally led to strong competition among the firms involve also for a firm in brewing industry to survive, grow or improve its market share, it must endeavor to do the following: -

i.            Concentrate on high quality products development

ii.           Fair pricing

iii.         Effective promotional activities

In other words, it must be effectively integrate its marketing mix to ensure its survival. Beside competition, the proliferation of brewery firm creates other problems of choice to the consumers, and number of economic, psychological and socio-political problem started to develop. This being the case, the management of these brewing firm is faced with problem of trying to identify which among these variable exert the greatest influence on consumer preferences of brand of each beer product over others.

       This has led to policy of most breweries marketing department investing heavily on advertising as the surest means of reacting to increase their market share and make up they over look other important promotional tools, therefore advertising can be seen as a means of marketing known in order to sell something. In this work advertising refers to the general meaning, a group of activities aimed at end including dissemination of information through the media about a company or its product. Advertising, which is defined as any paid form of non personal presentation and promotion of ideas, goods and services by an identified sponsor, involves the use of mass media. By Bona Chuks E. (marketing communication) 2007.

       The main test of advertising is to communicate effectively so as to enable establish awareness of creating a favourable attitude to stimulate demand for a product or series among potential. Advertising can be used to create new demand, to calculate new tests and requirement to promote the sale so new kinds of goods and to explain their uses to the consumers.

Nigeria breweries was incorporated on the 16th November 1046, it was incorporated as a private company for the purpose of manufacturing and selling beer and mineral, water, with a share capital of $300,000 (three hundred thousand dollars) all shareholders were foreigners.

       On the 30th November, 1946 Mr. Donglas Jones, Mr. John Stanley, Hug Her and Mr. George Lot grave, were appointed the first directors of Nigeria breweries limited (but later change Plc).

       The company having been incorporated board of directors inaugurated, and it pioneers staff approved and appointed it was time to build both breweries and office. A site was acquired and actual building begins in 1947, all the machinery and technical personnel’s  came from abroad, it took years for the work to be completed.

On 2nd June 1949, Nigeria breweries produced her first Nigeria made larger beer as the year goes by, Nigeria breweries continued to improve and increase in production of many other drinks such as star, Gulde,r schnapps, Heineken.

In 1955 construction work began at Aba breweries in 1957, beer was produced for the time at Aba brewery and was produced in full capacity.

       In 1959, Nigeria brewery took an important decision, it decided to sell 10% of its shares in the company Nigeria breweries were the first European company voluntary offer shares to Nigerian.

       From 1960 – 1971, Nigeria breweries involved in the production of soft drinks to enable it diversify.  In 1977 Nigeria breweries adopted brand name Maltina, the test marketing was done with the name Maltina, in 1978 Maltina was inched at Aba Breweries also in 1980 Nigeria breweries Plc locally produced Maltina 1982, it produced vitamalt, 1984 Malt and other raw materials, need for beer production were under specific license.

       In 1986, Nigeria embarked on structural adjustment programme (SAP) this programme most affected the consumption of Nigeria breweries (NB) beer and non alcoholic malt drinks, which shoed adverse effect on the progress of Nigeria breweries Plc. 1986 – 1995 was difficult years for Nigeria breweries because of market decline especially on beer, but later across again to it full state in 1906 till date.

1.2  STATEMENT OF PROBLEMS

       In any competitive market, a marketing manger is often faced with the problem of how to determine the nature of demand for his product in a given market segment. A further problem arising from the fact that he has to determine and isolate factors responsible for the variations in the demand pattern this is the situation in a typical Nigerian competitive market. Like that exist in eastern market,  examples Imo state, Anambra state, Abia state etc.

       With the proliferation of beer factories in Nigeria, various components of the promotional mix for the purpose of stimulating demand of individuals brands, in using the Nigeria breweries products pose a trait. It is a common knowledge that quite a large proportion of beer drinkers live in the rural areas. These consumers life styles in many occasions hardly made for adequate exposure to the mass advertising information about the various brands of Nigeria breweries product. Also the nature and limited availability of communication facilities to those market segments militates against the effectiveness of advertising as a tool to win the acceptance and sustain the loyalty of its market segments to the various brands of beer product. Unfortunately, some circumstance hardly make room for effective understanding. This further makes it difficult to develop product strategies that would be consistent with their (target audience) beliefs values, attitude, knowledge and perception. This being the case, the problem of this study reads.

       Does a good proportion of beer consumer benefits adequately from advert of massages in beer brand of Nigeria breweries is the large sum of money invested in advertising beer product annually justified or can be affecting profitability. The answer to these and other questions will be given late in this work. This is given important though new in the present state of Nigerian economy and in the face of added problem of local sourcing of raw materials for brewing. Therefore, it is most desirable to identify area of necessary waste to reduce cost without adversely affecting marketing effort, especially in advertising programme.

1.3  OBJECTIVE OF THE STUDY

Nigeria breweries Plc is in the beverages industry and its main objective like that of any other producing firms is continuous satisfaction of consumer requirements through product and marketing of highly quality beverage at a reasonable price.

       The company has other objective. The development of the rural areas, providing general employment to the Nigerian provision of the basis infrastructural facilities such as water, electricity, school, and network of road etc.

1.4  RESEARCH QUESTIONS

1.  How does advertising influence buying behavior towards Nigeria breweries product?

2.  How does Nigeria breweries product perform against other beer producing firm?

3.  What is Nigeria breweries participation in the area of rural development in Nigeria?

4.  What kind of advertising media does Nigeria breweries used to achieve brand loyalty for beer product?

5.  Have Nigeria breweries improve in the employment of Nigeria citizens after inception and its incorporation in 1946?

1.5  STATEMENT OF HYPOTHESIS

The research hypoesthesia is a tentative answer to research questions, it is an intelligent or educated questions or an answer to the problems of the research under investigation.

       As regards to the research problem under investigation, the research null hypothesis are as follows: -

Ho1: Advertising does not help to achieve consumer brand loyalty of beer product.

Ho2: Advertising help to achieve consumer brand loyalty of beer product.

Ho1: Brand awareness is not a pre-requisition for beer consumption?

Ho2: Brand awareness is a pre-requisition for beer consumption?

1.6  SIGNIFICANCE OF THE STUDY

In the realm of the proliferation of firms in breweries industry, firms anchor aggressive competition among themselves in their bid to create favourable consumers attitude towards their respective brands. These competition exist in the area of product quality, pricing, promotion such as advertising. On these basis, the researcher consider this study to be of benefit to management of producing firms, subsequently researcher and the economy. It will also help in the following ways:-

1.  Help to continuously achieve consumer loyalty of beer product through advertising message.

2.  Improve the sales of beer product in the rural and urban area of Nigerian economy.

3.  These study will be of help to up coming research who may research on the same line of topic.

4.  Consumer of beer product, especially does who take or drink Nigeria Breweries product and who may come across these work, will identify the development efforts of Nigeria Breweries Plc.

5.  Clearly studying this work will give the researcher or the reader on how Nigeria Breweries has help to grow the economy of Nigeria directly or indirectly through employment generation to its citizens at large.

1.7  SCOPE OF THE STUDY

       The scope of this project work or study is to know the extent to which advertising affects or the role it plays to consumer brand loyalty for beer products.

The study was confirmed to Ni Nigeria Breweries in Aba, Abia state and its marketing department. This study will equally deal won the role of advertising in achieving consumer brand loyalty for beer product specifically.

1.8  LIMITATION OF THE STUDY

       The researcher encountered a number of obstacles in the course of this study, which include: -

1.  The problem of really getting in touch to the original workers of first hand workers of the company due to there demise and also the choice behavior in the Nigerian context. These means that the researcher was left to his own devices in developing ideas on how to go about the study.

2.  Finance is one other note worthy problem encountered. The cost of running around for materials for this study was several times above what the researcher envisage being a student made financial burden of this study on the researcher quite considerable.

3.  Another limiting factor is the fact that the researcher was understanding this study simultaneously with attending his regular classroom lectures. This condition impose a several limitation on the scope of coverage of this study, otherwise, for the purpose of attending a high reliability of this research outcome, a study designed to cover more have been at least, designed to cover more areas, at least more local government areas of Abia state and its neighboring states.

1.9         DEFINITION OF TERMS

ADVERTISING: As a paid form of non-personal communication that is transmitted to consumers through mass media such as television, newspaper, radio etc. (marketing contemporary and comprehensive approach).

ADVERTISING AGENCIES: These are those specialist agencies that create advertising campaign and place them in the media on behalf of their clients who of course are the advertisers.

CONSUMERS PRODUCT: They are those goods or services which consumers buy, capable of satisfying various of emotional needs, of the consumers.

CONSUMER: These are the ultimate user of a given product.

REFERENCES

NEBO O.G (2004):  Marketing contemporary and

comprehensive approach Roik business concerns Owerri

BONA C.E. (2007): Marketing communication John Jecob’s

classic publishers Ltd Enugu

ADU B. (1992):      Advertisement: How needful  1st edition

business time publications Owerri

NJOKU P.O. (2002):       Understanding market 1st edition, sing

field publications Owerri.

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