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THE EFFECT OF ADVERTISING ON CONSUMER PREFERENCE PATTERNS FOR MALT DRINKS
ABSTRACT
The research work titled “The effect of advertising on consumer preference patterns for malt drinks (a comparative study of Amstel malt and Guinness Malta) in Enugu metropolis, was carried out with objectives. To determine how advertising has affected the decision to buy, Guinness Malta or Amstel malta. To determine the brand of malt that is more available than the other and the consumer demand for it. To suggest ways the companies should follow to make better progress in bottling their brands and for them to satisfy their customers effectively and to maximize profit. To achieve the above objectives, related literature was reviewed on consumer preference patterns for malt drinks. In addition, primary and secondary data were collected to solve the research problem, and questionnaire were used as research instruments. The population of study comprised the consumers Distributors and the management and relevant staff of both Guinness and Amstel Malta companies in Enugu metropolis. The researcher used census survey on management and relevant staff because the population under study was small, while Topman’s formula was used to determine the sample size for consumers and the distributors. In organizing and presenting the data collected, tables, frequencies, and percentage were used, while hypothesis were tested with Z score. Based on the analyzed data the following findings were made. The consumers in Enugu indicates that the price of Amstel is higher than that of Guinness. They also observed that advertising helps to create awareness of both products. Consumers are more satisfied with the advertising that leads to purchase of Amstel than Guinness. Based on the findings, recommendations were made. Both companies should engage in advertising strategies that are effective and other promotional activities that appeal to consumers for efficient and effective goal achievement. The two companies should maintain continuous availability of their products. Nigeria breweries Plc should reduce the price of their product order to attract more customers. Guinness should look into the advertising that leads to more purchase of their product. If the above suggestions and recommendations are effectively and efficiently implemented, both companies will experience a profound change in their advertising performance and consumers will be better served.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
It is a common belief that advertising is as old as human history, yet as a promotional tool, it started with the development of commerce. “In the early days, advertising was practiced in different forms at different parts of the world”, according to Samson (1981 : 180). He maintained that “there were small stone printing stamps which were used by the “Quacks of Roman times’ to impress on surface of their solves. During these period, there are different Era of advertising which include “pre-marketing Era, this started as a product exchange in prehistoric times to the middle of eighteenth century, buyers and sellers communicated in very primitive ways for most of this period, “Media” such as clay tables, town criers, and favarn signs were the best way to advertise a product or a service towards the end of this era was printing used. In other words, people have for centuries communicated their ideas and their needs to one another through advertising, as one can see, advertising takes many forms and has considerable influence on contemporary society and commerce. (Connor and Hart 1999).
During the last 50 years, (Research Era) advertisers have methodically improved the techniques of identifying and reaching narrowly targeted audience with messages prepared specifically for each groups or individual, modern communication technology has aided in this quest for the perfect advertising campaign.
Awake 22nd August (1998). Many years ago people uses primitive hand tools to produce goods, they live in small Isolated communities were artisans and farmers battered goods and services among themselves, distribution was limited, due to development, Greek and Roman Merchants expanded contact with other society and with the development of more sophisticated tools, people achieved a higher level of production. But ancient civilizations had only unsophisticated hand tools for producing goods, so quantity and variety of available goods was negligible.
There was an increase demand for goods created a greater need to advertise the availability of these goods. (Marshal 1995) thus signs carried in clay, wood, or stone were hung in front of shops so passersby could see what the merchants has to offer, because most people at this time could not read, as a result of this, signs are used to symbolic the good for sale. “The symbolic and pictorial nature of advertising which gave vent to out door advert has proved to be one of the enduring form of aid” (Connor and Hart: 1999).
The introduction of printing marked a dramatic tuning point in1450’s which was the major event in the history of civilization and probably the most important development in the history of advertising Jonones Gutenberg) the investor of printing press and it’s system changed the way people lived and worked.
In 1740, the first printed outdoor poster known as “Loarding” appeared in London which become the forerunner of modern out door advertising. In Nigeria, advertising can be traced to one of the earliest mass communication which is known as “Town crying”, according to Nwabueze (1980), modern advertising in Nigeria commenced with the establishment of the first news paper called IWE IOHIN which carries information. Advertising is a powerful marketing communication tools used by companies to fulfil the promotional task, it is impersonal form of communication or presentation on goods, ideas, or services conducted through paid media under open or identified sponsorship. It is a marketing tool that helps to sell goods, services, images, and ideas through information and persuasion. Its objectives could be to create awareness, achieve conviction, build preference, influence choice of purchase and encourage action.
Advertising have a purposeful influence on the choice of purchase towards a product brand of a consumer when an advert is placed showing the benefits and advantages the brand has over another, it will be a motivating factor to entice the buyer, making the advert to suit once personality there he starts to initiate conviction, the next thing he takes action (purchase) therefore advertisement has much influence on the choice of purchase. Advertising is an agent of choice; one of the most important benefits is that it facilitates the consumers becoming active rather than passive agents in the economic cycle. For a consumer to make a purchase, he needs to be informed, he receives information from variety of sources and make his decision one.
In Nigeria, there are many manufacturers on different malt drink they include Nigeria breweries Plc. This is the pioneer and largest brewing company in Nigeria, it was incorporated in 1946 and recorded a landmark when the first bottle of STAR Lager bear rolled off the bottling lines in it’s Lagos brewery in June 1949. This was followed by Aba brewery in which was commissioned in 1957, Kaduna brewery in 1963 and Ibadan brewery in 1982. In September 1993, the company acquired the fifth brewery in Enugu, on Apul, 2001, it recently christened the Ama Greenfield brewery in Enugu; the Largest in Africa, the brewery was commissioned in October 2003. Thus from its humble beginning in 1946, the company now has file operational breweries from which its high quality products are distributed to all parts of this great country. They have rich portfolio of high brands star lager beer (1949) Gulder lager beer, (1970) maltina (1973) with four varieties now, legend extra stout (1992) Amstel malta (1994)a nd the sehweppes range of carbonated soft drinks lunched in December 1996. It was followed by the launch of crush in November 1997 and Schweppes pineapple in October 1999, and they have earlier launched Heinelten in 1998 June. In August 2001 they decided to exit the carbonated soft drinks market because of the need to concentrate on its areas of core competence, the Schweppes franchise was sold off.
While Guinness Nigeria Plc was incorporated in 1967 at Lagos but this is a company from Britain which started its production since 1750, Guinness brewery was the first Guinness brewery outside the United Kingdom and only the third in the world. They have recorded a well tremendous growth in production over the years. Today it has three breweries in the country via one in Benin, Aba and Lagos and apart from its flagship stout product, they also produces a popular lager brand called Harp beer, Malta Guinness, and gordons spark which they started in 2001 and is one of the best alcoholic drink in Nigerian market today. Guinness Nigeria Plc is also well known and have one of the largest capitalized companies in the Nigerian stock exchange, in other words they often boast their significant contribution to the economy through taxes paid into government coffers.
Guinness Nigeria Plc were the manufacturers of Sazzembram which the target market appreciated but was faced off when other alcoholic company stated to adulterate it, Guinness Malt is one of their alcoholic drink which is selling very well in the country due to its content, it is been produced in their 3 zones in Nigeria but it is the only product manufactured in their Aba brewery. Furthermore, these manufacturers of malt drinks try to improve their sales volume by making the product fit the consumers need than the competitive products. The links between manufacturers and consumers of malt drinks was made possible through advertising and has important economic effect on the consumers.
Advertising jingles are intended to have effect on the consumers or the recipients and the wide spread on different malt drinks coupled with the growth of firms that manufacture different brand of malt drinks, occurred simultaneously with the rapid expansion of malt drink market (Connor and Hart 1999). Consumers who could not afford to taste beer turned to non-alcoholic drinks like malt with the aim that course from advertising messages. It becomes imperative for, there are many brands of malt drinks, left for the marketing managers to determine those factors which necessitate the consumer preference of one brand of malt in the face of many competing brands, which include Vitamalt, Maltina, Maltex, Hi-malt, Guinness Malt and Amstel Malta. However our main aim here is to determine how much influence does advertising exert on the consumers of Amstel Malt and Guinness Malt also how it affects the choice of the consumers.
1.2 STATEMENT OF THE PROBLEM
It has been difficult to pin point exactly the factors that have motivated a particular consumer to prefer a particular brand of product to another. Oftenly marketers have fallaciously been myopic, they exert their attention only on those factors which are salient as the determinant of consumer preference for their brand while there are other major factors that play vibrant roles that are completely ignored, and consequently the effect is the failure of the products to make much impact in the marketing environment.
Advertising for many years has been working for the manufacturers of malt drinks, which showcases their product offers to the market and determines their consumers with some promises, incentives benefits that will be derived by patronizing their product brands. Advertising to manufacturers of malt drink is like a river that will never dry, it has many versions of it, that could be used to project the image, production offer, showing benefits and advantages of a particular brand to another. Since the inception of malt drink, there has been a rapid expansion in the malt drink market through the help of advertising. A reliable source indicated that a significant proportion of Nigeria population had been consumers of alcoholic drinks have turned non-alcoholic also existed strong competition between the consumers of Amstel malt and Guinness malt, because of these competitions, the need arise to check on the consumers satisfaction and benefit with the brand they consume. Thus, the firm cannot depend on the consumers to voluntarily bring complains to the dissatisfaction they got by consuming a particular brand of malt, rather they strive to check other major or minor factors that may influence the consumer choice of one malt to another.
1.3 OBJECTIVES OF THE STUDY
The researcher has the following objectives in carrying out thus research.
· To determine how advertising has affected the decision, selection and choice made by consumers between Guinness malt and Amstel malt.
· To determine if convenience and availability influence the consumer choice of either Guinness malt or Amstel malt.
· To know if advertising affects the consumer preference and choice of either Guinness malt or Amstel malt.
· In other to know if selling price for each determine it’s preference.
· To determine if taste alone affects the consumer choice of either of the two.
· To find out if taste variable also affects the choice made by the consumers of both products.
ABSTRACT
The research work titled “The effect of advertising on consumer preference patterns for malt drinks (a comparative study of Amstel malt and Guinness Malta) in Enugu metropolis, was carried out with objectives. To determine how advertising has affected the decision to buy, Guinness Malta or Amstel malta. To determine the brand of malt that is more available than the other and the consumer demand for it. To suggest ways the companies should follow to make better progress in bottling their brands and for them to satisfy their customers effectively and to maximize profit. To achieve the above objectives, related literature was reviewed on consumer preference patterns for malt drinks. In addition, primary and secondary data were collected to solve the research problem, and questionnaire were used as research instruments. The population of study comprised the consumers Distributors and the management and relevant staff of both Guinness and Amstel Malta companies in Enugu metropolis. The researcher used census survey on management and relevant staff because the population under study was small, while Topman’s formula was used to determine the sample size for consumers and the distributors. In organizing and presenting the data collected, tables, frequencies, and percentage were used, while hypothesis were tested with Z score. Based on the analyzed data the following findings were made. The consumers in Enugu indicates that the price of Amstel is higher than that of Guinness. They also observed that advertising helps to create awareness of both products. Consumers are more satisfied with the advertising that leads to purchase of Amstel than Guinness. Based on the findings, recommendations were made. Both companies should engage in advertising strategies that are effective and other promotional activities that appeal to consumers for efficient and effective goal achievement. The two companies should maintain continuous availability of their products. Nigeria breweries Plc should reduce the price of their product order to attract more customers. Guinness should look into the advertising that leads to more purchase of their product. If the above suggestions and recommendations are effectively and efficiently implemented, both companies will experience a profound change in their advertising performance and consumers will be better served.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
It is a common belief that advertising is as old as human history, yet as a promotional tool, it started with the development of commerce. “In the early days, advertising was practiced in different forms at different parts of the world”, according to Samson (1981 : 180). He maintained that “there were small stone printing stamps which were used by the “Quacks of Roman times’ to impress on surface of their solves. During these period, there are different Era of advertising which include “pre-marketing Era, this started as a product exchange in prehistoric times to the middle of eighteenth century, buyers and sellers communicated in very primitive ways for most of this period, “Media” such as clay tables, town criers, and favarn signs were the best way to advertise a product or a service towards the end of this era was printing used. In other words, people have for centuries communicated their ideas and their needs to one another through advertising, as one can see, advertising takes many forms and has considerable influence on contemporary society and commerce. (Connor and Hart 1999).
During the last 50 years, (Research Era) advertisers have methodically improved the techniques of identifying and reaching narrowly targeted audience with messages prepared specifically for each groups or individual, modern communication technology has aided in this quest for the perfect advertising campaign.
Awake 22nd August (1998). Many years ago people uses primitive hand tools to produce goods, they live in small Isolated communities were artisans and farmers battered goods and services among themselves, distribution was limited, due to development, Greek and Roman Merchants expanded contact with other society and with the development of more sophisticated tools, people achieved a higher level of production. But ancient civilizations had only unsophisticated hand tools for producing goods, so quantity and variety of available goods was negligible.
There was an increase demand for goods created a greater need to advertise the availability of these goods. (Marshal 1995) thus signs carried in clay, wood, or stone were hung in front of shops so passersby could see what the merchants has to offer, because most people at this time could not read, as a result of this, signs are used to symbolic the good for sale. “The symbolic and pictorial nature of advertising which gave vent to out door advert has proved to be one of the enduring form of aid” (Connor and Hart: 1999).
The introduction of printing marked a dramatic tuning point in1450’s which was the major event in the history of civilization and probably the most important development in the history of advertising Jonones Gutenberg) the investor of printing press and it’s system changed the way people lived and worked.
In 1740, the first printed outdoor poster known as “Loarding” appeared in London which become the forerunner of modern out door advertising. In Nigeria, advertising can be traced to one of the earliest mass communication which is known as “Town crying”, according to Nwabueze (1980), modern advertising in Nigeria commenced with the establishment of the first news paper called IWE IOHIN which carries information. Advertising is a powerful marketing communication tools used by companies to fulfil the promotional task, it is impersonal form of communication or presentation on goods, ideas, or services conducted through paid media under open or identified sponsorship. It is a marketing tool that helps to sell goods, services, images, and ideas through information and persuasion. Its objectives could be to create awareness, achieve conviction, build preference, influence choice of purchase and encourage action.
Advertising have a purposeful influence on the choice of purchase towards a product brand of a consumer when an advert is placed showing the benefits and advantages the brand has over another, it will be a motivating factor to entice the buyer, making the advert to suit once personality there he starts to initiate conviction, the next thing he takes action (purchase) therefore advertisement has much influence on the choice of purchase. Advertising is an agent of choice; one of the most important benefits is that it facilitates the consumers becoming active rather than passive agents in the economic cycle. For a consumer to make a purchase, he needs to be informed, he receives information from variety of sources and make his decision one.
In Nigeria, there are many manufacturers on different malt drink they include Nigeria breweries Plc. This is the pioneer and largest brewing company in Nigeria, it was incorporated in 1946 and recorded a landmark when the first bottle of STAR Lager bear rolled off the bottling lines in it’s Lagos brewery in June 1949. This was followed by Aba brewery in which was commissioned in 1957, Kaduna brewery in 1963 and Ibadan brewery in 1982. In September 1993, the company acquired the fifth brewery in Enugu, on Apul, 2001, it recently christened the Ama Greenfield brewery in Enugu; the Largest in Africa, the brewery was commissioned in October 2003. Thus from its humble beginning in 1946, the company now has file operational breweries from which its high quality products are distributed to all parts of this great country. They have rich portfolio of high brands star lager beer (1949) Gulder lager beer, (1970) maltina (1973) with four varieties now, legend extra stout (1992) Amstel malta (1994)a nd the sehweppes range of carbonated soft drinks lunched in December 1996. It was followed by the launch of crush in November 1997 and Schweppes pineapple in October 1999, and they have earlier launched Heinelten in 1998 June. In August 2001 they decided to exit the carbonated soft drinks market because of the need to concentrate on its areas of core competence, the Schweppes franchise was sold off.
While Guinness Nigeria Plc was incorporated in 1967 at Lagos but this is a company from Britain which started its production since 1750, Guinness brewery was the first Guinness brewery outside the United Kingdom and only the third in the world. They have recorded a well tremendous growth in production over the years. Today it has three breweries in the country via one in Benin, Aba and Lagos and apart from its flagship stout product, they also produces a popular lager brand called Harp beer, Malta Guinness, and gordons spark which they started in 2001 and is one of the best alcoholic drink in Nigerian market today. Guinness Nigeria Plc is also well known and have one of the largest capitalized companies in the Nigerian stock exchange, in other words they often boast their significant contribution to the economy through taxes paid into government coffers.
Guinness Nigeria Plc were the manufacturers of Sazzembram which the target market appreciated but was faced off when other alcoholic company stated to adulterate it, Guinness Malt is one of their alcoholic drink which is selling very well in the country due to its content, it is been produced in their 3 zones in Nigeria but it is the only product manufactured in their Aba brewery. Furthermore, these manufacturers of malt drinks try to improve their sales volume by making the product fit the consumers need than the competitive products. The links between manufacturers and consumers of malt drinks was made possible through advertising and has important economic effect on the consumers.
Advertising jingles are intended to have effect on the consumers or the recipients and the wide spread on different malt drinks coupled with the growth of firms that manufacture different brand of malt drinks, occurred simultaneously with the rapid expansion of malt drink market (Connor and Hart 1999). Consumers who could not afford to taste beer turned to non-alcoholic drinks like malt with the aim that course from advertising messages. It becomes imperative for, there are many brands of malt drinks, left for the marketing managers to determine those factors which necessitate the consumer preference of one brand of malt in the face of many competing brands, which include Vitamalt, Maltina, Maltex, Hi-malt, Guinness Malt and Amstel Malta. However our main aim here is to determine how much influence does advertising exert on the consumers of Amstel Malt and Guinness Malt also how it affects the choice of the consumers.
1.2 STATEMENT OF THE PROBLEM
It has been difficult to pin point exactly the factors that have motivated a particular consumer to prefer a particular brand of product to another. Oftenly marketers have fallaciously been myopic, they exert their attention only on those factors which are salient as the determinant of consumer preference for their brand while there are other major factors that play vibrant roles that are completely ignored, and consequently the effect is the failure of the products to make much impact in the marketing environment.
Advertising for many years has been working for the manufacturers of malt drinks, which showcases their product offers to the market and determines their consumers with some promises, incentives benefits that will be derived by patronizing their product brands. Advertising to manufacturers of malt drink is like a river that will never dry, it has many versions of it, that could be used to project the image, production offer, showing benefits and advantages of a particular brand to another. Since the inception of malt drink, there has been a rapid expansion in the malt drink market through the help of advertising. A reliable source indicated that a significant proportion of Nigeria population had been consumers of alcoholic drinks have turned non-alcoholic also existed strong competition between the consumers of Amstel malt and Guinness malt, because of these competitions, the need arise to check on the consumers satisfaction and benefit with the brand they consume. Thus, the firm cannot depend on the consumers to voluntarily bring complains to the dissatisfaction they got by consuming a particular brand of malt, rather they strive to check other major or minor factors that may influence the consumer choice of one malt to another.
1.3 OBJECTIVES OF THE STUDY
The researcher has the following objectives in carrying out thus research.
· To determine how advertising has affected the decision, selection and choice made by consumers between Guinness malt and Amstel malt.
· To determine if convenience and availability influence the consumer choice of either Guinness malt or Amstel malt.
· To know if advertising affects the consumer preference and choice of either Guinness malt or Amstel malt.
· In other to know if selling price for each determine it’s preference.
· To determine if taste alone affects the consumer choice of either of the two.
· To find out if taste variable also affects the choice made by the consumers of both products.
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