THE EFFECTIVENESS OF MARKETING CONCEPT ON BUYER’S BEHAVOIUR OF CONSU…
In today’s business world, it in recognized that business organization in based on generating profit both in the short run and long run. The aim of such business organization can be best achieved by adopting marketing concept orientation.
Since business organization, the business activities; identifying the idea of principle being of marketing in their business activities by identifying, anticipating and satisfying the needs and wants of their target consumer at profit.
More is a focus on the marketing at profit.
More so, as business people being the needs to realize the idea of principle of marketing in their business activities. The marketing concept cannot be over looked. Thus W. J. Stanton (2002) defined “marketing as a philosophy of business that state that the consumer’s want satisfaction is economic and social justification for a firm’s existence”
Also, E. Jerome, Mc Carthy and Stanley J. Shapere, that “the marketing concept states that firm should focus all its efforts on satisfying its consumers at a profit” There three basic element that are implied in the definition of marketing concept.
– A customer orientation
– An integrated company effort
– Profit rather than sales, as a goal of the firm.
Implementing the marketing concept, therefore mighty require three changes.
– Changes in management attitude
– Changes in the firm organization structure
– Changes in its management method and procedure change in all three area would probably be require. If the firm really wanted to adopt the marketing concept, otherwise its would only be paying up service to the idea.
In modern days Nigeria, there are lots of consumer goods produced by deferent companies, Cadbury Nigeria Plc is among these companies and the range of their consumer goods includes Bournvita, Tom Tom, Goodygoody, Malta etc.
The aim of this project work is to export the ways in which Cadbury Nigeria Plc utilize the idea of marketing concept in presenting its product to the market. What are the effort of the company in identifying, anticipating and satisfying the needs and wants of the consumer and how it satisfied its own goals?
In addition, the project also intend to analysis how the marketing mix, element of product, price, place and promotion are also manipulated and employed by company on buyers behavior of consumer product.
In conclusion the aim of this project is to have successful highlighted the effectiveness of marketing concept on buyer’s behaviour of a consumer product.
1.1 BACKGROUND OF THE STUDY
Cadbury Nigeria Plc was incorporated as a public limited company on January 1965 for the purpose of manufacturing and marketing a wide range of beverages food and confectionaries. The Cadbury Schweppes Group which provides the company with technical services under services agreement hold 40% of the issue capital while the Nigeria public holds the balance of 60%.
When the company was established, the position of the chairman and board of directors are monopolized by the Britons. But in May 1985, G. O. Onosede joined the board, as he became the first Nigeria to be appointed as the chairman. In May 1988, in the same development, Dr. C. O. Kolawole who joined the board in January 1978 as another Nigerian that was appointed on 15th April, 1989 as the Managing Director and Chief Executive of the company.
Bournvita was the product that the company first introduced into the market. As a result of efficiency of the staff through varies research and development, many product include: Pronto, Chocolate, Edain Fudge Pounded yam, Dadawa cheff, Tomatoes, etc. As a result of company hardworking and innovation, the company won the national productivity merit award that was presented to the company by the president of the Federal Republic of Nigeria in December 1991.
1.2 STATEMENT OF THE PROBLEM
In any research work to be of value, problem definition is a tentative and inductive thought of what could be the cause of the problem at hand. This is usually in question form, is a systematic identification of factors, which have prevented management from reaching a decision.
In consonance with the research at hand, decision and consumer goods manufacture will normally revolve round the product size, quality and quantity, colour, brand, package, price etc. which are intended to suit the consumer desire, decision regarding the appropriate channel of distribution and others must be considered after buying the product.
Moreso, competitor action, attitude of buyers and other economic variable are external variable, which will affect the decision making the later variable is internal variable.
The purpose of this work is intended, therefore to do justice to some silent problem which are given necessary solution to the following question,.
How has marketing concept helped in aiding and satisfying buyers status need?
How has it help aiding and segmentation by the company?
1.3 OBJECTIVE OF THE STUDY
The objective of this project will only be limited to the effectiveness of marketing concept on buyer’s behavior of consumer product that it is to enlighten the public on the importance of a good marketing concept on buyer behaviour of consumer product, as a case of Cadbury Nigeria Plc and the objective are:
– To examine the company policy and goals in relation to marketing concept in the organization
– To examine how the company has implemented concept put in place by the company.
– To examine to what extent the employees of the company are aware of the marketing concept of the company’s product.
– To examine to what extent the people outside the company’s environment are aware of the company’s marketing concept.
– To know the type of action on buyer behavoiur of company product.
– To find out how the marketing concept affected the buyer’s behavoiur of company’s product.
1.4 RESEARCH QUESTION
– Does marketing concept enhance buyer’s behavoiur of consumer product?
– How does the marketing concept have effect on the organizational productivity?
– Does marketing concept have effect on the organization profitability?
1.5 RESEARCH HYPOTHESIS
The research hypothesis to be tested include:
(i) H: There is no increase in sales turnover
Hi: There is increase in sales turnover
(ii) Ho: Effectiveness of marketing concept does not course production stoppage
Hi: Effectiveness of marketing concept course production stoppage
(iii) Ho: There is no effective marketing concept in Cadbury Nigeria Plc.
Hi: There is effective marketing concept in Cadbury Nigeria Plc.
(iv) Ho: A proper marketing concepts does not minimize errors wastage pilferage and stock out.
Hi: A proper marketing concepts minimize errors wastage pilferage and stock out.
1.6 SIGNIFICANCE OF THE STUDY
After the completion, this will study will be geared towards:
i. Focusing on how to increase frequency of purchase for existing product, how to stimulate additional use of brand, how to achieve retrial of previously rejected product and how to deepen brand loyalty of regular users and how to depend the product from the attracts of its current or future competitors
ii. Achieving quality objective in order to achieve trial of the optimum quality in such a way as to encourage the consumer to repeat purchase and develop loyalty within a prescribed period.
1.7 SCOPE OF THE STUDY
The scope of this study is to examine critically the effectiveness of marketing concept on buyer’s behavior of consumer product with reference to Cadbury Nigeria Plc, Ikeja, Lagos. The study will look at the various ways by which the company has used marketing concept to identifying and anticipating consumer needs, translation of needs into buying decision, buying as a problem solving process, attainment of organization objective and goals. The study will be carried out in the company premises at Ikeja, Lagos.
The employees of company would be interviewed. The distributor and the consumer that are found around the premises would also interviewed to get their views about the subject matter of the study.
1.8 LIMITATION OF THE STUDY
There are various consumer product companies in the country however, we restrict out project work on Cadbury Nigeria plc. The various marketing concept will be confirmed on the company’s activities. One of the factor that limit our work in this project is the time constraints, limited time is given to complete this project which make it not fully carried out to our optimum capacity.
Another factor how to do with financial constraint that is it require a lot of money to carryout the research work from our school to the company.
Another factor has to do with financial constraint that is require a lot of money to carryout the research work from our school to the company
Another likely problem was lack of useful response on the company’s executive and consumer because they are part of the people in which questionnaire may be administrated to.
Moreover, all these process involve spending money, for example, on transport fare, date collection, materials, that is, questionnaire, printing and typing and many other relevant activities necessary to ensure the research study.
1.9 DEFINITION OF TERM
All the terms or new words that are peculiar of this study and write up are explained below:
1. Marketing Concept: This is management orientation that holds the key task of organization is to determine the needs and wants of target market and to adopt the organization to delivery desire satisfaction more effective and efficiently than its competitors.
2. Marketing Tactics: It is the act or arranging the marketing variable for effective marketing programme. It means the act of using existing marketing means get desire result
3. Marketing Strategy: It is the skillful planning general that covers all the marketing.
4. Marketing: It is the human activity directed at satisfying needs and wants through exchange process.
5. Marketing Research: It is the action activity which studies what people buy, who buy and why they buy
6. Marketing Plan: This is the company strategy plan establish the kind of business that company will consist and its objective for each other.
7. Buyer: Is anyone who might conveniently buy a given product
8. Marketing mix: This is term used to describe these combination of four inputs that constitute the core company’s marketing system.
9. Buying Behavior: This is the behavoiur that buyer show when buying a particular .product
10. Buying Centre: These are the people who participate in or influenced a purchase.
11. Gender Segmentation: this is the process of dividing the total market based on their sex
12. Integrated marketing: The effort that aimed at generating customer satisfaction as a key to satisfying the organization
13. Concentrated Marketing: This is a strategy that involves a marketer to direct all his effort towards a single market segment by cicating and maintaining on mix.
1.10 HISTORICAL BACKGROUND
The origin of the business stretch back to the 1950s first as an activity to source cocoa beans while simultaneously prospecting for opportunities to serve the local consumer markets with the famous Cadbury products. An initial packing operation established in the early 1960’s pack imported bulk product grew rapidly into a full fledged manufacturing outfit..
The company was incorporated in January 1965 when the current 42 hectare factory site was opened, and went public in 1976. The initial staff strength of less than 200 has grown to more than 2000 colleagues who have chosen to make a career in Cadbury. They are the embodiment of the talent, skills, knowledge and other intercllectual property behind the success of the business. In turn the beginning of Cadbury Schweppes go bac.k to the founding of Schweppes, a mineral water business, by Jacob Schweppes in 1983 and the opining of a shop that so9ld cocoa product by John Cadbury in 1824.
The two businesses were merged in 1969 to create Cadbury Schweppes Plc, forging a powerful alliance that has become a global player in confectionary and beverage categories. With the acquisition of Adams confectionary in 2003, Cadbury Schweppes is today the world’s number one in confectionary and number three in beverages. Cadbury Nigeria has grown to become the leader in confectionary and food drinks, whit a portfolio of branded offers that meet real needs of consumers, our quality brand are enjoyed throughout the entire nation as well in our export market around the world
The company has consistently maintain a highly focused portfolio of well established brands within its core business areas each of them providing functional benefit to our customer and hand reward for our customers.
Many of the keyboards are established, and reflect the consistent philosophy of functionality, affordability and nourishment. The premium brands cutting across West African are 5 key categories:
i. Chocolate and Toffee
ii. Sugar Bubble Cum
iv. Food drinks and chewing cum
Clarity and single minded pursuit of strategy has been the underpinning strength of the business and the board has revalidated their long term growth target with milestones in the context of opportunities in the growing Nigeria market and the West African sub-region.
The company’s strategy which is the primary drivers of growth over the years includes:
1. Building a highly integrated business models to main a tight control of the value chain and considerable residence to the swings in the external environment over the year.
2. To create robust and sustainable positions in its core segments through focused organic growth of it advantages brands.
3. To create new consumer offers with distinct winning competitive edge as well as establishing footholds in adjacent market and segment.
4. To use local raw materials as much as possible and source packaging material, and other inputs from local companies even if we have to provide technical support to ensure the quality standard that meet our stringent specification
5. To expand our brand offering new and profitable market and serve new customers across the West African sub region.
6. To achieve strong profit performance in all investment decision taken with 15% growth in net asset per share and 14% growth in shareholder’s funds