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ADVERTISING AS COMPLIMENTARY TOOL IN MARKETING OF ALUMINUM KITCHEN WARE

(A CASE STUDY OF TOWER ALUMINUM)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The marketing activities of an organization is guided by six marketing mix that comprises of controllable variables that marketers use in the achievement of their marketing objectives. It includes the combination of product, price, physical distribution and promotion; generally referred to as the four Ps which serves as the pivot of marketing management.

Promotion can be seen as the use of communication to persuade or convince prospective customers.  In other words, it is the coordinated efforts initiated by the seller to establish channels of information and persuasion to foster the sales of goods, services or ideas.  It includes Advertising, Personal Selling, Sales Promotions, Publicity, Public relations.  But the general nature and scope of this project is limited to Advertising.

Advertising is a forceful tool in molding consumer’s attitudes and behaviors towards goods, ideas and services by the manufacturer.  Hence, it has become an integral part of our society.  It gets the attentions of the people through canvassing to make them know what the manufacturers have to sell or what the consumer need and actually want to buy via various channel of information.

In recognition of the importance’s of Advertising as complementary tool in marketing activities that the project is all about, to investigate those variables that enhances the necessity for the attainment of desired sales growth in a highly competitive environment.

1.2    BRIEF HISTORY OF THE COMPANY

Tower Aluminum (Nigeria) plc; is the leading aluminum manufacturing company in Nigeria. The company commences operation on 18thSeptember 1959. It started manufacturing aluminum cooking utensils (Ports and Pans) at the Oba Akran Avenue Ikeja, Lagos after securing franchise ship from the Tower Brazil and U.K. to reserve the right of a multinational company.  In 1977, the company embarked on a progressive diversification programmed by setting up facilities to manufacture, extrude profiles at Dopemuin Lagos state.

The next significant step in its backward integration programmed was in 1982, when Tower opened its most modem plant at Otta, in Ogun state. It employs the most modem and continuous casting technology whereby molten aluminum (Bauxite-ore)is converted into sheets and bullets in their operation.  Ithas various divisions namely;       

TOWER HOLLLOWARE: tagged, the mother of Tower Aluminum was the first division that engaged in manufacturing of domestic and industrial kitchenware's ranging from the quality ware casseroles, Food steamer, Gas range, light weighted and polished casseroles, water-filters etc situated at the Head Office in Oba Akra Avenue Ikeja, Lagos. In 1994, the division took to a Horizontal integration Progress, towards the acquisition of household aluminum products, and re-named. Tower Housewives to produce kitchenware that are relatively lighter than that of Hollowware to compete with similar aluminum products in the market.

TOWER BUILDING PRODUCTS: Manufacturer of corrugated and fabricated sheets and accessories made of aluminum and steel. They includes roofing sheets with cladding and colour coated.  Other division includes Alufoil, Tower tools and engineering.

Presently, the company is having eleven recognized shareholders with authorized share capital of N500m. as at 31st Dec., 1998. The share capital held are 81% and 19% of foreigner and Nigerian respectively, comprising of issued share capital of N175, 444, 515. The company sales turnover increases from N1.8b in 1996 to N2.55,in 1997 and N2.8b in 1998.While the company paid the sum of 50% V.A.T on the net sales, income tax of 30% and withholding tax to the government.  In 1998they had a dividend of 20k per share and presently having the highest market share in the aluminum industry with about 60% of the total market share.

The company high level of profit and success operation can be traced to:

Effective promotional activities.

Efficient Management of Operations

Strategic market penetrations into the environment

The company embarked on continuous search for improved technology and sale techniques.  Presently embarking on over a million naira research and development programmes with effect from April 1999.  It aimed at producing and importing ceramic flanks and lanterns to theneighboring West African Countries. .

1.3    PURPOSE OF STUDY

It is toidentifyand analyze how advertising has contributed to the realization of marketing objectives of the Company, particularly in the competitive environment.

In Nigeria, there are variousbrands of kitchen ware in the markets, both imported and locallymanufactured and for acompanyto triumph, there is need for promotional programmes designed to reach the consumers through advertising and sales promotion. Moreover, the rate at which competitors are increasing necessitate the need for effective advertising, thereby requiring a tactical planning of advertisement.

The critical evaluation of post performanceofadvertisement portrays the importance of advertising in company's marketing activities despite it attracts a more conscious and product Spending on advertisement, but consumers are able to make a buying decision that gives a desired satisfactionin the presence of competitors like Mulmaco, Green-turtle, first aluminum, Rafolat, Jimexto mention few.

1.4    OBJECTIVE OF THE SUBJECT

Lack of proper and adequate promotional planning result to failure to achieve the set objectives therefore, Promotional as a complementary tool used in marketing needs proper planning to guarantee successful execution. Although, advertising effectiveness may be a necessary condition but not sufficient for the continuous existences of growth and survival of any firm in competitive industrial setting.

My aim is to find out how Tower Aluminum (Nig) Plc. is coping with the, various uncontrollable factorsthat isexistingin the business environments, and the recognition ofmultitude needs of that consumer and the dynamic nature of the society which may result from government legislationetc and most importantly, how the company is able to adopt strategy to combat various marketing problem as result of prospect consumer development and sustainment through innovation and modification of new and existing products, devising a means of creating awareness about the products.

1.5    SIGNIFICANCE OF STUDY

A systematic planning of advertising is required for the continuous existences of varieties of product that resulted to competition. These will make the company to monopolize the market for the good to certain extent, since marketing strategies and tactics cannotbe operated in a vacuum.

The aim and objectivesof this project of study is to examine and highlight the importanceof advertisement and it commensurate effects on in the achievement of marketing objectives. It intended to evaluate the major problem in the media selection, advertising message, target audience, pre-text and post-text of advert effects and possiblesolution totheunforeseeable circumstances that may hindered its function.

The completion of this study will provide adequate knowledge about the importance of advertising as a means or weapon in a highly competitive market, as well as assisting the Company's Management to the secondary data to tackle most promotional problem and other related marketing problem and for future research work

1.6    STATEMENT OF PROBLEM

Tower Aluminum was rightlypositioned and enjoyed an impressivemarket share based on quality product and good communication strategy.  However, the recent activities of competitors indicate visible encroachment into the market share with competitors seems to be increasing in their efforts therefore, there is need for the search for a clear cut information on operational process, consumer usage attitude and right communications towards the company with a view of regaining its position and extending the presences of Tower Aluminum kitchenware market. To find a possible solution to the stipulated above problems of how advertisement can be usedas a complimentary to on the marketing of their product and how the company planned their advertising. There is need for the development of research questions for a vibrant marketing strategy for the company - viz.

1.      Whether the advertising message will affects the consumer brands maintenance?

2.       Whether advertisement affects consumer buying decisions?

3.       What is the consumer belief and attitudes towards the company?

4.       Does the Tower Aluminum (Nig) Plc effectively employed the promotional mix (advertising)?

5.       Are the products of Tower frequently advertised?

1.7    WORKING HYPOTHES

Hypothesis are tentative statement about the universe, it may be true or not. The null-hypothesis Hois set for the study as I proceeds; it used in sampling evidence to determine whether statements about the population are likely to be true or false.

The following hypothesis have been draw to be tested to enable a valid statement regardsthe issue.

Hypothesis

1.      Ho:   That advertising message has no effect on the consumer brand maintenance.

Hi:    Advertising message have effect on the consumer brand maintenance.

Hypothesis

2.       Ho:   That advertisement has no effects on consumer buying delusion

H1:    Advertisement has significant effect on consumer buying decision.

Hypothesis

3.      Ho:    Consumer belief and attitude towards the company is not favourable.

H1: Consumer belief and attitude towards the company is favourable.

1.8    LIMITATION OF STUDY

Due to the scope and nature of this research; the need for certain limitation of study was tensed on; that are associated problem experienced during the research study which includes;

-         SAMPLING METHOD:  The sample size chosen may not be the true representation of the population of the targeted market.

-    MANAGEMENT LAPSES: The· manager inability to divulge confidential data used in executing the company's objective.

-    QUESTIIONAIRE ADMINISTRATION, respondent poor responses in returning the questionnaire is emigrated.

-    RESPONDENT BIASNESS: Inability to give correct information in the questionnaire by respondent due to lack of sport assessing.

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