THE EFFECT OF ADVERTISING ON CONSUMER REFERENCE PATTERNS FOR MALT DRINKS IN ENUGU METROPOLIS (A COMPARATIVE STUDY OF GUINNESS MALTA
AND AMSTEL MALTA)
The research work titled “The Effect of Advertising on Consumer Preference Patterns for Malt Drinks (A Comparative Study of Amstel Malta 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 boldling their brands and for them to satisfy their customers effectively and to maximize profit.
To achieve the above objectives, related literature were reviewed on consumer preference patterns for malt drinks. In addition primary and secondary data were collected to solve the research problem, and questionnaires were used as research instruments.
The population of study comprised the consumer’s 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 analysed data, the following findings were made.
Ø The consumers in Enugu indicate that the price of Amstel is higher than that of Guinness.
Ø They also observed that advertising helps to create awareness of both products.
Ø 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 strategy 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.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problems
1.3 Research Objectives of the Study
1.4 Research Hypotheses
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Definition of Terms.
CHAPTER TWO: RELATED LITERATURE
2.1 Advertising an Overview
2.2 Forms of Advertising
2.3 Role of Advertising in the Marketing of Consumer Goods.
2.4 The Effect of Advertising on Product Brands
2.5 Impact of Advertising in Consumer Decision Making Process.
2.6 An Overview of Consumer Preference patterns
2.7 Impact of Advertising on the Preference for Malt Drinks
2.8 Impact of Advertising on the Preference for Amstel to Guinness Malta.
CHAPTER THREE: RESEARCH METHODIOLOGY
3.1 Sources of Data
3.2 Population of Study
3.3 Sample Size Determination.
3.4 Distribution of Questionnaires
3.5 Research Instruments.
3.6 Method of Data organization.
3.7 Limitation of Study
CHAPTER FOUR: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA.
4.1 Presentation and Analysis of Data
4.2 Test of Hypotheses.
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings
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 : 5).
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 :5). 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 : 81) 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 :10).
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 :28), 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 PROBLEMS
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 STUDYU
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.
· To identify what special feature are contained in the advertising messages carried out for either Guinness malt or Amstel malt and how they affect consumers.
1.4 RESEARCH HYPOTHESES
In view of the problem that prompted the research on this topic also in line with the objective mentioned above, the following hypotheses were formulated.
Ho: Price does not influence the consumer decision to buy more of Guinness than Amstel Malta.
Hi: Price influences the consumer decision to buy more of Guinness than Amstel Malta.
Ho: The taste of malt do not helps the consumer to prefer either Amstel Malta or Guinness.
H2: The taste of malt drinks helps the consumer to prefer Guinness or Amstel Malta.
Ho: Advertising does not help the consumer to be better aware of Amstel Malta than Guinness Malta.
H3: Advertising of Malt helps the consumers to be better aware of Amstel Malta than Guinness Malta.
Ho: The advertising strategies used by companies do not lead to consumer repeat purchase of Guinness Malta or Amstel Malta.
H4: The advertising strategies that is used by companies lead to consumer repeat purchase of Amstel Malta to Guinness Malta.
1.5 SIGNIFICANCE OF THE STUDY
The study is expected to furnish additional information to help manufacturers of Amstel malt and that of Guinness malt in achieving high sales volume add adjusting production properly to sales within the context of marketing concept. The core issue of marketing concept lies basically on, understanding the consumers and making every thing possible to satisfy the consumer efficiently and effectively.
However this study will help to show how advertising can stimulate demand for either of the two products in the market, as well as helping the marketing manager to assign a particular advertising message to a particular brand of malt. Thus this study is supposedly expected to help firms and other producers of malt drinks to understand the relative influence exerted by other marketing attributes:- via price, distribution, promotion, in other words the 4p’s on the consumer preference of one brand to another. Furthermore this study would help both firms (Nigeria breweries Plc and Guinness Nigeria Plc) the marketers of Amstel malta and Guinness malt to identify the proper marketing strategies that will be suitable in carrying out their marketing activities or programmes to be adopted and made a culture by the producers such as product modification, pricing strategy, incentives promotional campaign and incentive distribution strategy.
It will go a long way tohelp the firm determine it’s lope holes and try to improve on them also know the best advertising campaign that needed to be adopted. Finally, the study will serve as a stepping stone for more research on the effectiveness of advertising especially in the product preference of the consumer, it will also stimulate the interest of Nigerian firms on consumer research and enable them to understand the importance and role of advertising on the performance of a product in the market.
1.6 RESEARCHER SCOPE OF STUDY
In Nigeria and the world at large, different malt drinks brands are consumed by various kinds of consumers but this study concentrated on the consumers located in Enugu metropolis and the study is on advertising.
It is the conviction of the researcher that the consumers of Guinness malt and Amstel malt leaving in Enugu metropolis will make a very good representation of the consumers.
The metropolis are group into five zones
Zone A – Uwani, Acharalayout, Agbani
Zone B – Coal Camp, Ogbete main Market
Zone C – G.R.A/Trans Ekulu/New haven,
Zone D – Independence Layout/Ogui
Zone E – Abakpanike/Emene.
Source: (Enugu North town and regional planning department). This study is expected to cover these zones because of time and cost constraints.
1.7 DEFINITION OF TERMS
A. Advertising: Non-personal presentation and promotion of this goods and services by an identified sponsor and must be paid for through a medium. Promotional tool sales promotion, personal selling, public relation etc. source: Ebue, Adirika B. C. & principle and Practice of Marketing).
B. Communication: Process by which people exchange information, views, ideas, through or feelings. Source: (Oxford Dictionary).
C. Contemporary Society: Group of people living in an area of a time with a common law shared together (Oxford Dictionary) source.
D. Marketing Concept: Is the marketing perspective on how marketing activities/programmes should be performed best. Source (Adirika & Ebue Text Principles & Practice of Marketing).
E. Preference: Is showing why you like a product brand to another product brand. Source (Oxford Dictionary/Understanding from Principle/Practice of Marketing and Kotlers Text 11th Edition).
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