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THE EFFECT OF ADVERTISING ON THE SALES VOLUME OF BEVERAGES

 

ABSTRACT

This research work was undertaken to determine the effect of advertising on the sales volume of beverages in Awka Metropolis. The case study of this project was picked from different manufacturing companies of Nestle Food PLC; Cadbury PLC and Cocoa Industry Ltd with their specific products Milo, Bournvita and Vitalo. In the first chapter, the researcher was able to high-light the statement of problem as to know if the use of advertisement increases the sales of the product. Still under the same chapter, the researcher also high-lighted the research question as well as the Research Hypothesis which includes that Advertising increase sale of Beverages. Also, that consumer are aware of the product (both old and new). On that note the researcher concluded that external stimuli affects consumer reception of the advertisement message. In chapter three, the researcher used both primary and secondary data. The respondents were producer. Questionnaire were also used. For better understanding of the study, attention was draw on how the data were collected from five different zones  (zik Avenue, Amawbia, Eke Awka, Aroma and Arthurs Eze Street). Apart from this, the data was tabulated in frequencies and percentages in which Chi-sqaure (X2) and correlation analysis were used to analysis   and test the various hypothesis in the study. The data interpretation and analysis gave the following findings. The researcher came to find out that most producers prefer Television Advertisement to another reason demonstration. Base on further findings, the researcher discovered that some respondent, would want to make  a purchase of the new products accepting that the new product could have a better quality and relatively low price. Finally, the researcher found out that with advertisement it would have a chain effect or it will convince many new customers on hearing the advertisement some consumer will be eager to taste the product to know if the advertised product attributes are actually existing.

CHAPTER ONE

INTRODUCTION

Background of the Study

Many companies still rely primarily on one or two communication tool to achieve their communication aims. This is in spite of the great changes taking place in the market economy especially the des integration of mass market into a multitude of mini market each requiring its own communication approach.

The wide range of communication tools, message and audience makes it imperative that companies’ gives thought to a prospect and user and orchestration of communication tools.

Based on this, advertising is one of the communication tools is a paid form of non-personal presentation and promotion of idea, goods or services by an identified sponsor which is measured in media. The measured media include print and electronic media and outdoor displays as the case may be.

Sales promotion covers the wide range  of activities not encompassed in personal selling or advertising, rebates, premiums, couponing, price off packs, bonus pack, sampling, point of purchase  material, trade allowance, sales and dealer incentives, trade shows and exhibition, consumer education and demonstration.

The role of communication in the marketing mix of an individual company depends on the product, the nature of its market, the competitive situation of the beverage industry and numerous other factors. Wide variation of the effectiveness in the use of marketing variables lead to difference among industries and companies in the magnitude of the communication expenditure, we should all note that some form of advertising has probably existed since the development of the exchange process. Most of the early advertising was vocal. Today the increase in its dimension has modernized its means, carriers and vendors sold various product, made public announcement and created man y advertising slogans. Songs were also used to identify products or services like wise symbols that also represented something.

The printing press was also used in a fashion which leads to the gradual growth and development of advertising, thereby providing a practical readily available medium to deliver advertising message to the literate in the public.

Advertising in ancient and medieval times was crude when compared to present day standard. Nevertheless, the basic reason for employing the techniques was the same as now, to communicate information educate and ideas to groups of people in other to change or rein-force an attribute.

Our knowledge of advertising in ancient times naturally was fragmented. The discoveries of archeologist in the countries boarding the meditarian sea(s) have turned up that the Romans and some predecessors had learned that it pays to advertise.

Thus even from the start of civilization man has felt the start of civilization man has felt the need to advertise. It has been part of firm’s relationship with the society. They have, of course, been development of techniques but the basic principles have remained primarily constant. Perhaps most of the significance shift of emphasis over the centuries has the transaction in organized advertising from the artistic to the commercial.

In this study, the researcher will explore how advertising seem to be wonderful institution in our society influencing a lot of buyers behavior with reference to the beverage.

1.2                 Statement of the Problem

The problems that triggered up this study are partly stated as they quicken and ease out the work of the researcher. The following  are the problems:

The need to ascertain if the use of advertisement increase the sales volume of the product [Bournvita, Milo, Vitalo].

The need to ascertain  if the influence of the external stimuli affects consumer reception of the  advertisement message

Objective of the Study

The main objective of the study is to find out the effect of advertising on the sale volume of Beverages in Awka metropolis

The specific objectives are as follows:

To find out whether the consumers lack of product knowledge contributes. Find out, if the consumer past purchase action is stimulated by the influence of advertising. Find out if the use of advertising on the sales of Beverages firm increase its sales turnover. Fashion out strategies for winning new audience [prospect] for the Beverages firm.

Research Question

To achieve the objectives of the study, the following research questions are necessary:

Does the use of advertisement increase the manufacturers sales? Does influence of the external stimuli affect consumers reception of the advertisement message?

Research Hypothesis

The following hypothecal  statement are designed to help in our analysis. They are represented in alternative hypothesis.

HAi           The use of advertisement increase the

manufacturer   sales of Bournvita, Milo, Vitalo.

Hoi            The use of advertisement does not increase

the       manufacturer sales of Bournvita,              Milo,          Vitalo.

HAii          The influence of the external stimuli affect

consumers reception of the advertisement message.

HOii          The influence of the external stimuli does

not affect consumers reception of the advertis

ement message.

Significance Of The Study

The study of this project will be very beneficianary or useful to the consumers of Bournvita, Milo and Vitalo. Consumers who take beverages are less to some certain health problems like strokes, tooth decay, reduce cardio vascular risk and also prevent cancer.

This work, on completion will be made available to the

Polytechnic library so that researchers who may embark on the effect of advertising on consumer beverages in future programmers will make use of it.

Furthermore, the public may find this work valuable in cases where they wish to widen their knowledge of the effect of advertising on the sales volume of beverages.

Finally the study will help firms understand the importance of advertising. It will also enable them to structure adverts and brand to make more appealing in other to improve sales and leads to better performance. As the study gives a clear insight into how advertisement can influence consumer’s behavior, many firms will be encouraged into using adverts to make their product. When firms start making more sales and profit as the result of advertising, the economy of Nigeria will be boosted as income from tax will be accrued to the government of Nigeria.

Scope of the Study

The research work covered the area of Awka metropolis. The researcher divided Awka into five zones, namely Zik Avenue, Amowbia, Eke Awka, Aroma and Arthur Eze Street respectively.

It was consumer and manufacturers representative with this zones that received the questionnaire.

Definition of the Terms

ADVERTISING- Is any form of non-personal presentation of ideas, goods and services by an identified sponsor.

PROMOTION-Promotion stands for the various activities the companies undertake to communicate its product merits and to persuade target customers to buy them.

PERCEPTION-Perception is the process by which an individual, select, organize and interpret information outputs to create a meaningful picture of the world.

CONSUMER- An individual or household that purchase a particular product for personal or household or industrial  use.

PRODUCT- Anything capable of satisfying a consumer need or want. It comes sometimes in physical object or service, an idea or place.

PATRONISE- The favoring of a particular product or brand of one’s choice.

PERSONAL SELLING- Is oral presentation in a conversation with one or more prospective purchases for the purpose of making sales.

PRODUCT POSTING- Is the act of designing the companies and marketing mix to fit a given place in the consumers mind.

MARKETING STRATEGY- This is the marketing logic which the business unit expects to achieve its marketing objectives.

Marketing strategy consist of marketing decisions on the business marketing expenditures; marketing and marketing allocation.

MARKETING MIX- Is the mixture of controllable marketing variables that the firm uses to pursue the source value of sales in the target market.

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