MARKET SEGMENTATION: AS A TOOL OF ACHIEVING ORGANZIATIONAL SALES OBJECTIVE. NIGERIA
(A CASE STUDY OF NIGERIA BOTTLING COMPANY, OWERRI IMO STATE)
It has been stated that production is not complete until the product reaches the hands of the final consumer. Consumption is the sole purpose of production. Therefore, it will only be beneficial for a company not only to produce but to do so at a profit margin. One of the ways of ensuring sales of manufactured goods is through market segmentation. This research work was therefore undertaken to study market segmentation as a tool of achieving organizational sales objectives as Nigerian Bottling Company (NBC) Plc. Owerri, Imo State. It was motivated by the desire t6o study the basic different ways a company can its market with the aim of discovering the causes of downward shift on the market share of the company. Two sources of data were used. They primary and secondary data. Questionnaire was used as a research instrument to make up for the available data from other two sources. Respondents also indicated that they employ segmentation variable in its market. Based on the findings, the following recommendation was made. The research recommended that the firm NBC Pc. In particular and Nigeria organizations in general should adopt market segmentation and use its strategies effectively to ensure increase sales turnover and satisfy any chosen segment well. The research also recommends that the company should appeal to the different market segments with different promotional strategies in order to fully tap the potentials of each segments with different promotional strategies in order to fully tap the potentials of each segment very well and sa6tisfy the customer in the chosen segments.
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In this introduction, most of marketers agree that a business should be customized focused in order to achieve the organizational objectives at all levels. Thus, most strategist try to design strategies that can better serve the target market. But before designing the prospective market, customers. Needs characteristics preferences and different buying patterns. The they should combine the like mined customers with the each other in group to represented segment of the market. This process called market segmentation.
Market segmentation is process by which a strategist can divide the market into like- minded groups and put specific variables for segmentation which are based on the differences between customer (Hooley pi.crcy and Nicoulavd 2008:206): thus it is a crtical tool for accurate recognitio9n of prospective customers needs and responding accordingly.
However all business are satisfied with market segmentation as a concept although they really know their individual needs; in this topic will be discussed in a simple way that defines each as a tools for achieving organizational objective for achievement and purpose of ever single requirement. In addition to the information used in and explanation are very valuable because it is obtain from different resources to review the topic from diverse. Prospective what about issue used explain the underlying requirements for market segmentation customer needs should be put at the heart of market segmentation process.
Staton (1981:65) defined market as people with needs to satisfy, money to spend and willingness to spend it. From the above definition here things are to been considered; people purchasing power (willingness) and their buying behavior.
Market segmentation deals with act of dividing a total market into a smaller portion, in order to accommodate or take into cognizant that there are different needs. In the case of Luck and Ferrel (1979) described market segmentation as a practical smart marketing strategy, in which a firm develops some product offerings, designed to appeal to a specific part of the aggregate market. In this regard, market segmentation strategies recognize that nearly every man market can be divided into several distinctive and viable sub-markets. It also has to do with the process of dividing the heterogeneous or total market into several segments each of which tends to be homogenous in all aspects.
Market segmentation helps a company to introduce product differentiation strategies to serve the needs and wants of each segment and sub-segment. It uses the product features and advertising to convince the prospective buyers that it’s product are not different in outlook but better satisfying than the existing ones in the market. The product differentiation can be physical attributes like product image, price, quality, durability and dependability.
FACTORS THAT INFLUENCE MARKET SEGMENTATION POLICY.
Imagination achieve their sales objectives by application of market segment concpet.
The Nigerian Bottling Company Plc is the largest bottling company in Nigeria today. It bottles and markets the following range of coca-cola product; Coca -cola, Fanta, Sprite, Crest Shweppes and the Five alive. This firm operates under the franchise of Coca-cola international. Coca-cola international has it’s home office in Nigeria since the year 1953, (Source coca-cola yearly preview vol. 17, 1989 pg. 24) and at this inception of production, the company started with only one flavour and that was coca-cola but now there are altogether seven flavours namely, Coca- cola, Fanta, Sprite, Crest Schweppes and five alive.
The previously mentioned, coca-cola international having one flavor at the inception of production makes use of undifferentiated marketing strategy (Mass marketing) offering the same product and promotion image and method to the whole world in general. But because of entrance of competitors in the soft drink industry, they now segment their market by having different kinds of flavors and bottling sizes. They have reached level income earners and got their actual and potential customers world wide.
The final basis for segmentation take into account benefits the buyers may be seeking from a particular product. The company can therefore choose the benefits it wants to emphasize to create a product that diverse and direct a message to the group seeking that benefit. This study enables us to find out the impact of segmentation to Nigerian Bottling Company towards the achievement of its sales objectives. And also, to 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 prospective buyers.
HISTORICAL BACKGROUND OF THE FIRM
Nigerian bottling company plc is a muit-national corporation.Dr John Smith Remnberton a pharmacist first introduced coca- cola in state of American 8th may 1886 Mr Frank M. Robinson, Dr . Robertons partner and book keeper geve coca cola, its first tiguished the famous trade market people got to know about cocacola through Dr. Reberton 2-1 advertising and market activities.
Basing out facts on cocacola information bulleting coca cola Nigeria is in 1953 when the Nigerian bottling company opened its first plant in Lagos remarkable that was the genesis of interested story of growth and development particularly during past fifteen years. As it stands now, Nigerian bottling company is today Nigerian number one bottler of soft drinks selling more then seven million bottles per day. More still this features is simultaneously growing with the opening new plants to variously parts of the federation fanta orange is by for the number of best seller in the organization segment likewise coke bottled by Nigeria bottling company. Includes fanta Ginger, fanta tonic, fanta soda, sprite , fanta lemon and krest bitter lemon.
In addition Nigeria bottling company has the largest private owned fleet of delivery truck, pick, up and cars in Nigeria that deliver soft drinks to more than sixty thousand (60,000) dealers in many part of the country. NBC is also the largest manufacturer in the country if carbonioxds (co2) and this is used to carbondate soft drinks, finally worthy menti0on is the fact that NBC employ over sixty thousand (60,000) Nigerian all field of operation this is brief history of coca-cola Nigerian Bottling company Owerri, Imo State.
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 seguel to this. Company have 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.
The study objective among others are:-
for the researcher to really concentrate on the area of research work, there are some research a questions he will develop so as to effectively carry out the research successfully. The questions were as follows:
1. Does market segmentation help to achieve the company sales objective?
2. How does market segmentation identify the problem military against effective segmentation of it markets?
3. How is market segmentation carried out attain higher level of sales turn over?.
4. Does market segmentation determine the cause of decline in sales turnover and market share?.
1.5 STATEMENT OF HYPOTHESIS
This is the tentative answer to the research question before they are tesked and validated or disapproved. Hence we shall the hypothesis.
Ho: the company does not use of proper marketing programme to get their customer.
Ho: There is no strong relationship between market segmentation and company sales objectives.
Ho: These is no significant relationship between product quality and the sales turnover of the company.
1.6 SIGNFICANT OF THE STUDY
This work will be of immenses benefits to the company particularly in proper definition of waste and losses with has also achieved to knowledge of the writer in the area of finding out the best tools for segmenting market.
The research work is restricted to Nigeria Bottling Company Plc, Owerri manufacturers of Coca-cola, Fanta, Sprite, Crest Schweppes, Five alive and Eva water. The data was provided by the staff or NBC Owerri.
1.8 LIMITATION OF THE STUDY
The problems which are envisaged in the course of the study, which includes the following:
It is the subdivision of heterogeneous market into homogenous subset of market (segment) where each subset may conceivably be selected as a target market to be reached with a distinct market mix. NBC- Nigeria Bottling company.
It represents the set of buyers of the firm’s product that commands the highest profitable sales. Internal marketing environment.
It is the set of marketing controllable variables that firms uses to achieve a competitive position in the market place. The components of this variable include product, price, promotion and distribution.
There are three targeting options or staretgies available to a company. They are aggregate marketing in this targeting option, the firm diects its acivities towards meeting those needs and wants that are common to the antire market rather than those products that reconised the different in performances. Another name for this target marketing, is disaggregated marketing, is the different need and preferences of different segments of the market are recognized and suitable product developed to cater for these differences. Thus, each segment of the market will have specific product designed to meet their needs. This options also referred to as differentiated marketing.
Inche marketing: here the firm identified a special Lucrative market segment made up of serval profitable sub segments.
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