Effects Of Marketing Segmentation On Sales Performance In Beverage Industry

Beverage Industry
Beverage Industry
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Marketing has over the years advanced from various concepts and philosophies, which include the production concept, selling concepts, and product concepts.

The marketing concept is viewed from the customers orientation philosophy which seek to identify unsatisfied consumer needs and wants, and this develops goods and services tailored towards filling up and satisfying such needs though not all organization practices this concept but successful firms embark on it. Given the intense and growing competition, the global quest for profitable  sites amongst marketers of goods and services, it has become mandatory for  firms to adopt strategies in order to excel, grow and remain  in the market in order to achieve acting organizational objectives.

Marketing strategies are developed from marketing objectives and overall organizational objectives.

Marketing strategies includes, the marketing objective of increase in sales, higher market shares and growth market penetration awareness ovation to mention a few. In order to achieve these goals and objectives, marketing evaluation and strategies are developed and implemented.

The increasing world population has resulted in consumers becoming numerous and diverse in  the buying requirements needs and characteristics since firms cannot effectively serve all of  them in a broad market.

It is inevitable to identify those parts of the market that are profitable and can be serve effectively give the  available organizational  resources and capabilities, thus this calls for the adoption of effective and segmentation of the markets.

Marketing effect and segmentation is always a customers oriented philosophy this consistent with the marketing concept. market segmentation is the process of subdividing a market into distinct and meaningful sub set of customer who require a tailored called mat during marketing program to satisfy their needs.

Many firms in the  past adopted mass marketing concept as strategies for sales turnover by embarking on mass production, mass distribution and mass promotion of single brand of  products to all buyers.

The argument for this strategy was that it crates the largest potentials markets which heads to the lowest cost, both production cost and over head cost and the marketing costs which in turn results to lower pricks or higher margin.

But in this age of intense competition, proliferation of marketing programmes/functions and greater customer advancement in education and awareness firms no longer practice the concept of “one size fit all” marketing.

Thus in bid for higher profitable sales, and greater customer satisfaction, mass marketing is relegated to the background with the  adoption of the market segmentation which now recognizes the differences in segment needs, wants and response to marketing programmes.

Market segmentation goes beyond product design consideration, as it extend to price, promotion ,distribution  variable and having an overall knowledge of each segment needs in order to develop matching marketing mix. Firm do not go into segmentation in marketing until  a through study of customer’s behavior with in the market is conducted through study of customer effective of marketing research for better understanding  of their distinct and homogeneous characteristics is required.

This ensures grouping together customers of similar requirement and characteristics. Essentially, it consists of large identifiable group  with similar wants, purchasing habits, geographical location and buying requirement thus market segmentation is an approach that should be executed by firms for success enhancement.

To a large extent, it is a process of dividing total heterogonous market for goods and services into  several segments each of which  tends to be homogeneous in all significant aspect.

Management thus select one or more of these market segment as the organization target  market(s) and based on the understanding of their needs and wants, a matching marketing mix is envisaged, developed and directed towards satisfying them at  a profit most importantly, segmentation enables the form to  its marketing efforts and resources on the most profitable target market, in order to complete efficient by in one or two segments.

To be precise it involves a lot of dimension or approaches in terms of segmenting the market.

Such as the geographic, demographic, behaviouristic and psychographic variables in dividing the  total market into different groups with similarities between the.

Increasing sales cannot be achieved without effective evolution of segmentation of marketing as a strategy. Because of the prospect involved in adopting market segmentation, firm desiring to achieve success embark on dividing total market into segments that can be reached and satisfied efficiently and at a profit in consideration of the role market segmentation plays in increasing sales volume, the researcher has decided to conduct a study to identify its importance bases/approaches limitations and its influence on a customer oriented organization particular reference to Cadbury Nigeria Plc.


For any organization to break through in  its marketing activities. It is important for the marketed to identify with market segmentation strategy.

It enable  the marketer to divide the market into various segment which could include income, age, locations etc and modify product offering that will suit into the particular target market.

It has been expressed in several form by marketing experts that a firm can not market its product to the entire market, it has to identify   from the total market a part that I can successfully source with its product because of this factors, the concept of market segmentation is applied as the means by which organization break the total market into sub markets where a form can aim and reach with it distinct marketing mix.

Market segmentation requires that the company identify different basis for segmenting by the market develop profiles of the resulting market segment and develop measure of each segment attractiveness market segmentation remain on inedible mark for markets to enter a particular market.

Market segmentation have been defined by Philip Kotler as “the act of dividing a market into distinct meaningful group of buyers into might merit separate product and  or marketer mix.


The quest for increasing profitable state volume is every organization problem is every organization problem.

Both markets of services and tangible seek to enhance profit and sales turnover and the objectives of profitability can  only be achieved  when firms properly understands and apply effective and markets segmentation strategy.

Firms are also faced with difficulty of identifying  and selecting particular market target and satisfying them by blending the marketing mix elements thus market segmentation recognizes that every market is made up of distinguishable segments consisting of buyers with different needs.

The task of clearly understanding consumer needs and wants, identifying various homogenous customers characteristics according to an outlined dimension in order to group them together adequately and to effectively develop marketing mix to match these characteristics and buying requirement.Beverage Industry

All poses fundamental marketing problems to firms.

Marketing segmentation is one among the various strategies used in evaluating of marketing programmes. There by segmenting markets into subsets with aim of satisfying customers groups and equally increase sale volume and profitability for  the total organization and the stakeholders is an objective and goal of every business that practices the marketing concept. Most organization the appropriate encounter the problem of determining the appropriate pricing, promotional and distribution strategy to adopt in satisfying their numerous customers.Beverage Industry

Though some firms finds it excruciating to marketing segmentation strategy, due to their inclination of the strategy as an expensive and time consuming exercise, this is because of inadequate information on its importance to customer satisfaction.Beverage Industry

The importance or not of market segmentation as a strategy for increasing sales volume has become  on research  problems.


Cadbury Nigeria Plc is a public liability company involved in manufacturing with specific emphasis on cocoa based products. Its products rages to cover areas such as food, beverages and sugar.Beverage Industry

The company began in 1956 as Cadbury fry export setting up office at A9 orange road, Apapa with the sales of pronto a cocoa based chocolate and drinks using a rented warehouse.Beverage Industry

In 1960 Bournvita Leading food was introduced, initially both products were bulk imported and packed at Apapa ware-housed factory but it. Soon became clear that a lot needed to be done based on its success history.

The business of the organization is centered on serving the customers with high quality  food and other items, which are important for the welfare and sustenance of all members of the family.Beverage Industry

Items produced by the company include Bournita, Goody-goody, éclair, batternut, tomapep, Maggi and knorr cubes.

The combined strength of its brand backed by a few reacting distribution network which touches all part of the country. This makes the company a clear competitive edge in Nigeria market environment or place.

Cadbury has about 2000 staffers made up of some of the nations best trained technocrats  and a manager with adopt of  more than 20 nation wide.Beverage Industry

Its distributions strategy involves the use of direct customer depot, distributors, trading companies, and its sales team.Beverage Industry

The company is committed to its workers and customers and such created and allows rooms for the following.

1.     Creating atmospheric condition where by all employees interacts and concern and express opinions with  the assurance that these will be fairly considered.Beverage Industry

2.      Fostering open way communication between management and employees.Beverage Industry

3.     Company uses sales promotion as a remedy to poor or low sales, by stimulating the demand of their products and increasingly market share of their products.


1.     The company monitors the changes in wants and needs of the consumers.

2.     Developing and maintaining high standard quality.

3.     Researching new technological for products which favours an improve environment.

4.      The company use periodical sales promotional methods to stimulate  demand and get new consumer trials and encourage  brand loyalty.


The purpose of this very research work is described below.

a.     To establish the relevance of market segmentation to sales minimization

b.     To  enumerate the importance of firms adopting the effect of market regimentation in order to achieve organizations objective of profitability and customers satisfaction.

c.      To examine the dimensions and bases of segmenting market and their relationship to sale increase.

d.     To determine the degree to which the organization in question Cadbury Nigeria Plc) practices market segmentation.

e.      To highlight the limitation of the study

f.       At the end of the study it is intended to give relevant recommendation  to the firm on how to adopt  market segmentation.


This research work apart from being an essential requirement for the partial fulfillment of Higher National  Diploma, it will be an added value and benefits to the researcher, other individuals, and groups.Beverage Industry

This particular project will be beneficial to Cadbury Nigeria Plc as the findings and recommendation will help improve their marketing activities.Beverage Industry

The project will benefit also  my fellow student and other student from their institutions in related course to mine.

Lecturer of Kaduna polytechnic will also benefit from the accumulated knowledge in the research work.

The information in this project work will enable marketing firms reappraise the segmentation strategy use of marketing resources and effort in their marketing activities.Beverage Industry

The study will also widen the knowledge base of the researcher  in the course of conducting  this very research.


Alternate hypothesis (H1)

Market segmentation is fundamental is increasing sales volume.

Null Hypothesis (Ho)

Market segmentation is not fundamental in increasing sale volume.

The data collected were analysed using the  sample percentage and were further discussed and the formulated hypothesis was proved using the chi-square.

The researcher accepted the alternate hypothesis (H1)

Rejecting null hypothesis (Ho)

The researchers also finds some others things in the studies such as strategies of segmentation is applied by the firm in its marketing activities.Beverage Industry

The researcher concludes on the fact that Cadbury Nigeria Plc is a marketing oriented firm.Beverage Industry

The researcher suggest several recommendations  such as the firm  should engage in more promotional activities in order to create awareness about the company’s product and activities.


In this research investigation, it is going to be confined to the field  of market segmentation and its attendance relationship to sales volume increase and profitability.

The research work will highlight segmentation dimensions such as the geographic, demographic, pscyhograhics, and behavioural segmentation approach. And the procedures identifying marketing segment will be explained.

The study will enumerate strategies for management adaptation in selecting one or more segment as its target marketed.

The researcher will at the end of the study enumerate recommendation to Cadbury Nigeria Plc as to market segmentation aid its attendant ability to increase sales volume.

The study will highlight the methodology used in obtaining all the relevant information from the sample respondents.

The research work further interpreters, analyze and present all the collected data into meaningful  information.


a.       Market: is a set of individuals or organization that  desire a product and willing and able to buy it.

b.       Target market: A selected market to focus on and develop marketing programs.Beverage Industry

c.       Product: Anything offered to the market for acquisition, sales, attention use or consumption that satisfies a need or want.Beverage Industry

d.       Marketing mix: they are element of marketing usually referred to as the 4ps i.e. product, price, place, promotion.

e.       Marketsegmentation: it is the dividing of a large market into smaller subsets of consumers or  organization that are similar in characteristic behavior, wants or needs.Beverage Industry

f.       Consumer market: it is a set of individual buyers who purchase or use product or service for their own personal or household use.

g.       Heterogeneous market: A market consisting of consumers with diverse characteristics needs and wants.

h.       Homogeneous market: A market consisting of consumer or organization with similar needs, wants and behavioural tendencies.

i.        Industrial market: it is a market consisting of business, industrial or institutional organizations that buy goods or services to make other goods or other products.

j.        Marketing strategy: A marketing logic used by firms to achieve set objectives.

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