MARKETING SEGMENT AS A TOOL FOR ACHIEVING ORGANIZATION SALES OBJECTIVES (A STUDY OF NIGERIA BOTTLING COMPANY PLC OWERRI IMO STATE)
ABSTRACT
It has been stated that production is not complete until the product reached to the final consumers. Consumption is the sole purpose of production, therefore it will only be beneficial for a company not to produce but to sell to profit margins. One of the ways of ensuring sales of manufactured goods is through market segmentation. This research project was therefore undertaken to study market segmentation as tool of achieving organizational sales objectives in Nigeria bottling company Plc Owerri Imo state. It was motivated by ways a company can segment its market with the aim of discovering the cause of downward shift in the market share of the company base on the analysis carried out.
The market segmentation is positively, related to sales turnover. Although the company has the problem of importing some of its materials, this does not reduce their sales turnover rather what reduces the firms sales turnover was the break down of their production machine.
TABLE OF CONTENT
Title page – – – – —— – – i
Approval page – – – – – – – ii
Dedication – – – – – – – iii
Acknowledgement – – – —— – iv
Abstract – – – – – – – – v
Table of content – – – – – – vi
CHAPTER ONE
1.0 Introduction – – — – — – 1-2
- Background of the study – – – – 2-6
- Statement of problems – – – – 6
- Objective of the study – – — – 7
- Research questions – – – – – 7
- Significance of the study – – – – 8
- Scope of the study – – – – – 9
- Limitation of the study – – – – 9
- Definition of terms – – – – – 10-11
CHAPTER TWO
2.0 Literature review – – – – – 12
- Introduction – – – – – – 12
2.1 The concept of market segmentation — 12-18
2.2 Rational for segmentation market – – 18-22
2.3. Criteria for segmentation – – – – 23-26
- Requisite for market segmentation – – 27-29
CHAPTER THREE
3.0 Research methodology – – – – 30
- Introduction – – – – —– – 30
- Research design – – – – – 31
- Sources of data – – – – – 31
- Population and sample size – – – 32
- Sampling techniques – – – – 32-35
- Validity and reliability of measuring instrument 35
- Method of data analysis- – – – – 36
CHAPTER FOUR
4.0 Presentation and analysis of data – – 37
- Introduction – – – – — – 37
- Interpretation of data — — — – 37
- Analysis of data – – – — — 38-39
- Interpretation of results – – – – 39-46
CHAPTER FIVE
5.0 Summary of findings, conclusion and recommendations 47
- Introduction – – – – – – 47
- Summary of findings – – – — 47-49
- Conclusion – – – – – – 50
- Recommendations – — — – – 50-52
Bibliography – – – – – – 53
Appendix – – – – – – – 54
Questionnaire – – – — – – 55-57
CHAPTER ONE
1.0 INTRODUCTION
According to Stanton (1981:65) opined that market is defined as people with needs to satisfy, money to spend and willingness to spend it. In marketing demand have three factors to consider people with their needs, purchasing power and their buying behavior.
Segmentation is defined as the subdivision of a heterogeneous market into homogenous subset of customers, where any subset may conceived to be selected as a market to be researched with distinction marketing mix.
The above definition will lead to the definition of marketing segmentation according to Inyanga (1998:339), he stated that market segmentation is the process of dividing the heterogeneous (mass or divergent) market into homogenous sub-units so that each sub market could be satisfactory and profitably be saved by the business enterprise through the application of its marketing resources that could reach those separate segments as desire by the both parties.
The market segmentation induces a company to introduce product differentiation strategies to serve the needs and wants of each segment and sub segment.
Nigeria Bottling Company Plc uses this strategy to serve its customers, it use the product pictures and advertising. To convince the prospect buyers that its product are not different in outlook but better satisfying than the existing ones in the market. The product differentiation can be physical attributes like packaging, colour, size, weight, etc.
It can also be non physical attributed like product image, price, quality, durability and dependability.
1.1 BACKGROUND OF THE STUDY
The final basic for segmentation taken into account benefits the buyers may be seeking from a particular product. The company can therefore choose the benefits it wants to emphasize create a product that delivers it and direct a message to the group seeking that benefit. This stud enables us to find out the impact of segmentation to NBC towards the achievement of its sales objective. And also know whether they have competitors in the industry and know how they cope with their marketing programmes. We will also consider whether NBC uses product features and advertising to convince their prospect buyers.
FACTORS THAT INFLUENCE MARKET SEGMENTATION POLICY.
- GEOGRAPHICAL FACTORS: This recognize that market environments differ from country t country in terms of government, regulations, economic conditions etc. therefore it deals with dividing the buyers into region states, nations, climate.
- DEMOGRAPHIC FACTORS: The demographical factors, different groups are distinguished on the base of sex, age, family, life cycle e.t.c.
- PSYCHOGRAPHIC FACTORS: the psychological from of or personalities times.
- SUB-MARKET SEGMENATION: it consists of metropolitan or urban, semi-urban and rural areas. Meanwhile organizations undertaker that process of sub dividing large market into subset to achieve the following benefits.
- It allows small firm with limited resources to compete effectively in one or few segments of the large market with it limited resources.
- It enable firms develop specific product that really match the, market demand.
- It must have be emphasized have that market can only be segmented if sufficient information of customer needs and more focuses decision making.
- It helps organization develop specific marketing programme for each segment.
5.It must have to be emphasized here that market can only be segmented if sufficient information of customers needs and more focuses decision making, Imagination achieves their sales objectives by application of market segment concept.
The Nigeria bottling company is the largest bottling company in Nigeria today. It is an off shoot of coca—cola which states in 1886 in Atlanta Georgia in the unite of America coal first came to Nigerian in (1953). when the Nigerian bottling company set up its first plant in Lagos. And at the inception of the production the company started with only one flavour and that was coca-cola but now there are more than ten flavour namely, coke, sprit, krest, bitter lemon, krest tonic water, fanta orange, fanta club soda, fanta tonic, fanta lemon, Schweppes, Eva water, five alive and Limca product which they recently brought the over.
Nigerian bottling company today as one of Nigerian number one bottler of soft drinks selling more than six million bottles per day. At figure which is still growing with the continuing expansion of market share. As previously mentioned, coca-cola with one flavour at the inception of productions makes use of undifferentiated marketing strategy, offering the same product and promotional image and methods to the whole world in general.
The Nigeria bottling company Owerri was established in 1982. the plant was to be beginning of an existing story of growth and development, particularly during the past 22 years in Imo state. Nigerian bottling company have reached each level of income earner and got their actual and potential customer’s world wide.
1.2 STATEMENT OF THE PROBLEM
The essence of establishing most business is to deliver value to the customers at a profit. This can only be realized when customers are made sequel to this. Company has the major problems of proper definition of their segment which opens the profitable sales. It is therefore, the intentions of the researcher to proper look into this problem of market segmentation which will enable firms to avoid wasting their effort in the wrong market.
1.3 OBJECTIVES OF THE STUDY
The study objectives among others are:-
- Evaluation market segmentation activities of Nigerian bottling company plc Owerri Imo State.
- This has a view to finding out how segmentation can help to achieve the company sales objectives.
- Define how market segmentation will be carried out to attain higher level of sales turnover.
- Determine the cause of decline in sales turnover and market share.
1.4 RESEARCH QUESTIONS
For the researcher to really concentrate on its are of research work there are some research questions he will develop so as to effectively carry out the research successfully. The questions are as follows: –
- Due to the problem emanate from the quality of drinks they produce or its wrong identification of target market?
- Has there been actually a reduction in the firms market share and sales turnover?
- Does the company use proper marketing programmes to get to their customers?
- How do we consumers react towards the company’s product and hat of the competitors in the industry?
- How do the consumes react towards the feature style and price of the company product?
- What is the variable NBC considered in segmenting its products?
