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EFFECTIVE BRANDING DECISION AND CUSTOMERS CHOICE OF BEVERAGE

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Branding is a major issue in product strategy, on the other hand, developing a branded product requires great deal of long term investment, especially for advertising. Promotion and packaging, may brand oriented companies sub contract manufacturing to the companies. On the other hand, manufacturers eventually learn market power and it lies with building their own brands. Japanese and south Korean companies spend liberally to build up brand name such as sonny, Toyota, golderton and Samsung. Even when these companies can no longer affords to manufacture their product in their home lands, the brand names continue to command customers loyalty.

In the past year, Nigerian has experienced a boom in her economy and had enough foreign exchange reserves the citizens depends much on imported goods especially household products. Then came economic recession. They affected the citizens adversely as many had no regard for made in Nigeria products. There arise an increase in expenses and then importation is discouraged. At this point Nigeria stated thinking seriously about their industrial development with attainment of independence in 1960 came the clamor for another kind of economic independence most of business and economic enterprises in 1962 were under the control of foreign investors. The Nigerian enterprise promotion decree came into effect in February 1972. The main objective of this decree is creating opportunities for Nigerian business to maximize local retention of profit to increase the proportion of indigenous ownership of industrial investments.

The third and fourth national development plan is for self sufficiency, the country has to minimize importation so as to become economically self sufficient. Marketing program such as trade fair are often organized to encourage and give exposure to local manufacturers. It creates more awareness to the products, it is being organization by the chamber of commercial and industry and product industries include Guinness Nigerian Plc Aba United African company (UAC), Paterson and zodinanise Plc and international equitable association  to mention but a few. They produce close substitute but they differentiate their product and secure stronger market position by use of brand names.

Branding started during the middle ages when craft guides and merchant guides formed to control the quantity and quality of production. Each producer had to make his goods out put could be cut back when necessary. This also meant that poor quality which might reflect variable on other guide products and discouraged future trade could be traced back to the guide produce. Early trademarks were also a protection to the buyers who could then know the sources of the product. More recently, branding has been used mainly for identification, the earliest and most aggressive brand promoters in American were the patent medicine companies. They were joined by good manufacturers that grew in size after the civil war. Some of the brands started in 1860, and 1870s and still going strong) are boarder’s quarters, Pilsburgs, and best flour and wary soap. Today, familiar brands exist for most product categories: a well recognized brand makes shopping easier. Even on infrequent purchase consumers often rely on well known brands as an indication of quality.

Brand promotion has advantages for branders as well as customers. A good brand speeds up sopping for the consumers and this reduces the marketers selling time and effort. And when customers repeatedly purchase by brand, the brand is protected against competition from other forms. This can increase sales volume and reduce promotion costs. Good brands can improve the company image speeding acceptance of new product marketed under the same name. Guinness Nigerian Plc is a manufacturing/marketing organization that markets over twenty different brands in various pack size ranging from home care, personal care and food categories. In order to ensure excellence in marketing, the company has a clear policy of maintaining a high quality of her products, which is respected, nation wide. The company is committed to meeting the needs to consumer in respect of product performance and her quality standard to meet the needs better than competition. It ensures that the quality standard brand advertising claims and in general are supportive of overall brand positioning and maintains regular contact with the market, the distribution, chain, the trade and the consumers for close monitoring of product performance and quality against other competitors.

Guinness Nigeria Plc stands competitively, against other soap industries hence, products are develop, produced and sold specifically to meet the identified needs of consumers. It is referred to as a must in every home.

IN the course of carrying out this research, Guinness Nigerian Plc, (RC 113) In one of the longest surviving manufacturing outlet in Nigeria.  The company was incorporated as a private company in 1923, to manufacture soaps, based on local palm oil. Over the years, the company diversifies and expanded its operation to the production and marketing of personal product, mainly Guinness products detergent, body care products. In particular and through selective acquisition, the company has strengthened its personal product through its merger chase brought products industries limited in 1988 and lately in 1995 through a merge with Lever Brothers  Nigeria Limited that effectively transferred to Guinness Nigerian Plc.

Following the recent acquisition of A.J. Seward and in order to ensure sustained focus in management, the company new has four manufacturing sites for its operation from the original six, viz Apapa Lagos, the second site, Aba this is devoted to the production such as Guinness detergents, here the company makes such popular brands as Guinness Nigerian Plc. The company is fully committed to backward integration and self sufficient and has made considerable progress in its effort towards local sourcing and developing of the materials. The Guinness Plateau underscores the company unrelenting drive of self sufficiency. The first crop of Guinness was harvested for test packaging at the end of 1991 and a processing factory for the Guinness leaves has been completed on site the company has also built a large Guinness drink at its Aba factory to unproved the supply of Guinness drink are essential raw materials in an edible production. It is also making investment in Guinness drink in order to improve its local sourcing.

Guinness Nigeria Plc range of quality product is distributed and sold at uniform process all over the country through an established and tested distribution network using appointed distributors, supervised by a well trained sales force. The company has about 2.250 employees in its firm manufacturing sites and various distribution points through the country of this number only three are expatriates. This is the extent to which the company has gone at training and developing management resources. The objective is to bring in expatriate who are willing and able to work in Nigerian and who will contribute in training Nigeria, they give the business an international flavor and in exchange for Guinness Nigeria Plc has.

PRIVATE BRANDING

According to Aham Anyanwu (1998) stated that one brand is imitated and owned by resellers. This type of branding is not so common in Nigeria, it is expected that with time, the environment involves the manufactured by him but labeled with the resellers own brand. These products may be the same with the one the manufacturer sells or of different specifications and quality.

MIXED BRANDING

According to Berkowetz et al (1986) in their books “marketing” firth edition, he opined that compromise between manufacturer and private branding is mixed branding, where a firm markets product under its own name and that of a reseller because the segment attract too the reseller form their own market.

GENERAL BRANDING

Berkowiz opined that an alternative branding approach is the generic brand, which is a no brand product such as food, peanut, butter or greens. There is of the contents the major appeal is up to one their less than the branded items, generic brand account for less than one percent of total grocery sales.

REASONS FOR BRAND

Aham Anyanwu in his book ”dimension of marketing” gave so many reasons for branding among which are: –

To achieve repeat purchase: A satisfied customers can always repeat his purchases or shopping to that store where his want were satisfied brand promotion has advantages to the brander as well as the customers. Good brands speeds up shopping for the customers and as such reduces the marketers selling time and effort.

To increase market share and profitability: Pete Drucker has suggested that a business needs a range of product, each of different stages of its life cycle so that a succession of profitable products will always be on stream. Drucker labels this stream of product as “today breadwinners” tomorrow bread winners and yesterday breadwinners, which will be ale to replace breadwinners.

Develop brand loyal customers: An organization that strictly differentiates its products through branding tends to develop customers loyalty to the product. The ultimate aim or differentiation is to develop unique selling proposition and this is generally done by adding value to products and been dedicated to the production of top quality brands and packages remain a must and indeed the very best in all homes” for the purpose of this study the products are to study their packaging age Guinness and detergent.

1.2  STATEMENT OF THE PROBLEM

Branding vary in the amount of power and value they have in the market place at one extreme are brands for which buyers have a fairly high degree of brand awareness. Beyond those are brands preference. Finally, there are brand that command a high degree of brand loyalty. Today competitive conditions characterized practically every market in Nigeria manufacturing industries there is a great variety in the quality between competitive products. Every human being by human nature always like to appear best of all and to have the best of products. There is a general feeling that some materials are inferior and preferences is shown on products with more superior quality. The under listed problems remain on: –

Is branding the secret behind consumers identification on buying the right products?

Why do people trust Guinness Nigeria Plc product brands?

What role does branding play in the marketing of product?

1.3  OBJECTIVES OF THE STUDY

This project work is written with several objectives in mind. The objectives of writing the research include the following: –

To explain what branding is all about with a comprehensive coverage in all form of business in Nigeria.

To give an overview of the impact of branding on marketing of consumers products.

To explain the branding strategies in the organization activities.

To find out means/how to improve the quality of product of the Guiness Nigeria Plc.

1.4  RESEARCH QUESTIONS

The following questions were pointed for the study: –

Does branding contribute to profit making?

Does branding encourage the introducing of new product?

Does branding have any influence on the choice of product?

Does branding have any advantage on competition?

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