ABSTRACT
This research work is to examine market segmentation as a tool for organization’s survival and growth in Nigeria using (Nigerian Brewery PLC as a case study). The objective of this study is to analyze market segmentation as a tool by organizations in Nigeria. Businesses are set up with funds to achieve certain objective. The fundamental objective is not just to survive, but also to provide adequate return on investment to shareholders. To achieve this obligation, the product or service of the organization must be successful in the market and this could be possible only through effective market segmentation. The data used in this research was collected from primary and secondary and the method used in analyzing the data was simple percentage in a tabular form. Chi-square was used in testing the hypothesis. The researcher find out that focusing on segment of the market enhance profitability and customer’s satisfaction. It was recommended that, when distinct brand of products are produced, effort should be made to position a brand well and also make sure that the brand reach the targeted customers.
TABLE OF CONTENTS
Title page – – – – – – – – – – i
Certification page – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgment – – – – – – – iv
Abstract – – – – – – – – – – v
Table of Contents – – – – – – – – vi
List of tables – – – – – – – – vii
CHAPTER ONE: INTRODUCTION
Background to the study – – – – – – 1
Statement of problems – – – – – – 3
Objectives of the study – – – – – – 4
Statement of hypothesis – – – – – – 4
Significance of the study – – – – – – 5
Scope and limitations of the study – – – – 5
Definition of key terms – – – – – – 6
Organization of work – – – – – – – 8
End of chapter references – – – – – 8
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction – – – – – – – – 9
2.2 An overview of Nigerian Brewery PLCPlcObjana 9
2.3 The Concept of Market Segmentation – – – 10
2.4 Steps in Market segmentation – – – – 12
2.5 Bases for Market Segmentation – – – – – 13
2.6 Bases for Segmentation Consumer Market – – 14
2.7 Bases for Segmentation Industrial Market – – – 19
2.8 Conditions for effective Segmentation – – – 21
2.9 More Sophisticated Techniques that may help in
Segmenting Market – – – – – – – 23
2.10 Alternative segmentation Strategies – – – – 25
2.11 Product Management/Strategy – – – – – 27
2.12 Merits of Market Segmentation – – – – – 37
2.13 Demerits of Market Segmentation – – – – 38
2.14 End of Chapter reference – – – – – – 39
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction – – – – – – – – 40
3.2 Research Design – – – – – – – 40
3.3 Area of the study – – – – – – – 40
3.4 Sources and Method of Data Collection – – – 41
3.5 Population of the study – – – – – – 42
3.6 Sample Size and Sampling Techniques – – – 42
3.7 Validation of the instrument – – – – – 44
3.8 Method of Data Analysis – – – – – – 45
CHAPTER FOUR: DATA PRESNETATION AND ANALYSIS
4.1 Introduction – – – – – – – – 46
4.2 Data Presentation and Analysis – – – – – 46
4.3 Test of Hypotheses – – – – – – – 49
CHAPTER FIVE: SUMMARY, CONCLUSION
AND RECOMMENDATION
5.1 Summary of Findings – – – – – 54
5.2 Summary of the Study – – – – – – 55
5.3 Conclusion – – – – – – – – 56
5.4 Suggestion for Further Research – – – – 56
5.5 Recommendations – – – – – – – 57
Bibliography
Appendixes
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Marketing is increasingly being recognized as an organization belt in public or private and it Marketing is the cornerstone of most successful companies not only in developing countries but also in both developing and underdeveloped countries such as ours.
To survive, grow and flourish, business must design market segmentation to deal with environmental forces such as changes in population, income level, tastes and fashion, sophistication in technological competition, etc. Hence, one of these tools in market segmentation is a customer oriented tool or philosophy that identifies the customer’s needs within a sub-market (segment) and satisfied them in an efficient and profitable manner.
The very fact that buyers differ in their tastes and preferences are too numerous and widely spread or scattered makes market segmentation and almost inevitable tools that must be employed as rightly observed by an advertisement agency, there will be no market for products that everybody likes little, but only for product that everybody likes a lot of mostly, most of these customers will be unevenly spread in several locations and this is the logic behind market segmentation.
The statement above clearly indicates then needs to identify the various needs and preference of the customers, classifying them into groups and then tailor the product to suit each group. This is what market segmentation does. Market segmentation is also in conformity with the philosophy of market concept which is employed by most firms today as their guiding philosophy. It is a philosophy which holds that the key to achieving organizational goals consist of the organization in determining the needs and wants of its target market and delivering the desired needs and wants more effectively and efficiently than the competitors (Philip Kotler, 1980).
The heterogeneity of the market place makes it infeasible to implement the marketing concepts using a single market impact aimed at all buyers instead, market segmentation occurs. That is, distinctive marketing strategies aimed at one or more targets are developed.
1.2 STATEMENT OF THE PROBLEMS
Firms are faced with difficulty of identifying and selecting particular market target and satisfying them by blending the market mix elements. Thus, market segmentation recognizes that every market is made up of distinguishable segment consisting of buyers with different needs.
The tasks of clearly understanding consumer needs and wants, identifying various homogenous customers characteristic according to an outlined dimension in order to group them together adequately and to effectively develop market mix to match this characteristic and buying requirement are problems. Constitute a problem to the companies.
Market firms find it difficult to apply market segmentation strategies used in evolution of marketing programs, there by segmenting markets into sub-set with the satisfying customer groups and equally increase organization growth in Nigeria.
Some firms find it difficult to apply market segmentation strategies due to their inclination of the strategy as an expensive and time consuming exercise because of inadequate information on its importance to customer satisfaction. Therefore it becomes highly imperative to evaluate the impact of market segmentation in order to enhance organization growth in Nigeria.
1.3 OBJECTIVES OF THE STUDY
This study aimed at evaluating and exploring the impact of market segmentation on organization growth in Nigeria; the following are the other objectives of this study.
To determine the extent at which the application of market segmentation as a tool by organizations assist them in achieving their objectives.
To analyze marketing segmentation and to identify its tools for organization’s survival and growth in Nigeria.
To determine the degree to which Nigeria Brewery plc. 9th mile corner Enugu state practice market segmentation.
To examine the dimensions and basic of segmentation market and their relationship to sale increase in order to enhances organization growth in Nigeria.
To provide recommendations to firms on how to adopt market segmentation.
