This research work is designed to investigate market segmentation as a tool of achieving organizational sales objective. The economic crunch or meltdown has led to slump in sales with increasing cost of production. It is leading to decline in sales volume. The intention of the researcher to evaluate the market segmentation of Nigeria Bottling Company Plc Owerri in order to determine how it can be used to attain sales objectives. To achieve this, the survey research design was used because it involves fieldwork. Owing to this, questionnaires, personal interview and observations were applied in collecting primary data while review of related literature provided the room for the usage of secondary data. A sample size of 77 was obtained through Yaro Yamen’s formula. However, out of the 77 questionnaire distributed, only 70 were returned and this formed bases for analyses. From the findings, it was discovered that the company does not make proper use of their marketing programmes to get customers, strong relationship exist between market segmentation and sales objective and positive relationship exist between product quality and sales turnover of the company. Sequel to this, the researcher recommends that sound marketing programme should be designed to attract sales especially by developing quality product that meets the requirement of the market segment targeted by the company.


Title page – – – – – – – – i
Certification page – – – – – – ii
Dedication – – – – – – – iii
Acknowledgement – – – – – – iv
Abstract – – – – – – – – v
Table of content – – – – – – vi
1.0 Introduction – – – – – – 1
1.1 Background of the study – – – – 2-6
1.2 Statement of the problem – – – 7
1.3 Objective of the study – — – – 8
1.4 Research questions – – – – – 9
1.5 Significance of the study – – – – 10
1.6 Scope of the study – – – – – 11
1.7 Limitation of the study – – – – 11
1.8 Definition of term – – – – – 12-13

2.0 Literature Review – – – – – 14
2.1 Introduction – – – – – – 15
2.2 The concept of market segmentation – 16-29
2.3 Rationale for segmentation – – – 20-22
2.4 Criteria for segmentation – – – – 23-26
2.5 Requisite for market segmentation – – 27
2.6 The process of segmentation – – – 28-31
References – – – – – – 32
3.0 Research methodology – – – – 33
3.1 Introduction – – – – – – 33
3.2 Research design – – – – – 34
3.3 Sources/Methods of data collection – – 34
3.4 Population and sample size- – – – 35
3.5 Sample technique – – – – – 36
3.6 Validity and reliability of measuring
Instrument – – – – – – 37-38
3.7 Method of data analysis – – – – 39
4.0 Presentation and analysis of Data – – 40
4.1 Introduction – – – – – – 40
4.2 Presentation of data – – – – – 40
4.3 Data Analysis and interpretation of result 41-47
5.0 Summary, Conclusion and Recommendation 48
5.1 Introduction – – – – – – 48
5.2 Summary of findings – – – – 49-50
5.3 Conclusions – – – – – – 51
5.4 Recommendations – – – – – 52-53
Bibliography – – – – – – 54
Appendix – – – – – – – 55
Guideline – – – – – – – 56-61



The concept of market segmentation is a broad study in the sense that it is a consumer oriented phenomena which tries to give a clear district of consumer market. Since not all consumers of goods goes for a product, marketers tries to minimize the wastage of available limited resources and at the same time maximize profit.

Taking a case study of Nigeria Bottling Company Owerri (NBC), market segmentation serves as a vital means of the company getting to know what kind and market segment they can serve well.

Market segmentation tries to explain that act carried out by marketing organization in dividing a heterogeneous market into a homogenous segment for a common purpose and to serve them profitably.

The impact of market segmentation as a tool for achieving organizational sales objectives in Nigeria has gone through smartest developments which have being of favourable effects to organization. Today’s modem society depends on availability of suitable goods from marketers and for marketing organization to render this service efficiently and effectively, there is every need to dictate a market segment substantial enough to be meet with the available marketing mix.

Market segmentation when perfectly used will go a long way in aiding organizations achieve their sales objectives.


Stanton (1981:65) opined that market is defined or referred to as people who have needs to satisfy, money (purchasing power to back up the need) to spend and willingness to spend it for the purpose of satisfying the needs. In market demand, we have three factors in consideration; people with needs, their purchasing power and their buying behaviour. These factors are likely to differ in one or more respects. They may differed in resources, geographical location, product requirements, etc.

Market segmentation can be defined as the subdividing of a heterogeneous market into homogenous subsets of customers, where any subset may conceivably be selected as a target market to be reached with district marketing mix. In the case of Luck and Ferrel (1979), market segmentation is seen 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.

The market segmentation includes that nearly every main market can be divided into several distinctive and viable sub-markets and development of different strategies to serve the needs and wants of each sub-segment by company. NBC plc uses this strategy to serve its customers. It uses the product features and advertising to convince the prospective 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 attributes like product image, price, quality, durability and dependability.

In getting the functional part of this, it will be vital to discuss the sectors that influence market segmentation policy they are;

  1. GEOGRAPHICAL FACTORS: Precisely, this deals with the division of buyers (market) into nations, economic conditions, regions, government regulations, climates, social cultural issues, etc.
  2. PSYCHOGRAPHIC FACTORS: The psychographics form of market segmentation takes into account, the differences in life styles or personalities.
  3. DEMOGRAPHICAL FACTORS: In demographical factors, different groups are distinguished on the basis of age, sex, family life cycle, religion, social class, etc.
  4. SUB-MARKET SEGMENTATION: It consists of metropolitan of urban, semi-urban and rural areas.
  5. PRODUCT APPLICATION: This factor consists of differences in the manufacture’s product being used by customer.

     However, owing to customer differentiation, organization attempting to develop and select their market, relate their resources to these areas of customer’s differences and use them as bases to subdivide the large market into distinct subset and select that subset which it has distinct resources to satisfy.

Meanwhile, an organization undertakes this process to achieve the following benefits.

  1. To enable firms develop the required specific product that really match the market demands.
  2. To help marketers spot and compare market opportunities by accessing the needs of each segment according to current competitive situation.
  3. To enable small firms with limited resources to concentrate its efforts in one or two market segment as the case may be.
  4. It helps organizations develop specific marketing programmes for each segment.

The Nigeria Bottling Company Plc is the largest bottling company in Nigeria today, operating under the franchise of coca-cola international. They came into Nigeria in the year 1953 and with only one flavour (product) and that was coca-cola. They made use of undifferentiated market strategy, offering the same product and promotional images and methods to the while world in general. But because of the entrance of competitors in the soft drink industry, they now segment their market by having different kinds of flavours and bottling sizes (considering the potential factors).

The final basis for segmentation takes into account, benefits the buyers may be seeking from a particular product. The company can therefore choose the benefit it wants to emphasize, create a product that delivers it and direct a message to the group seeking that benefit. This study enables us to find out the impact of segmentation to NBC towards the achievement of its sales objective. Also know if 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.


Nigeria Bottling Company Plc is a profit-oriented organization based in the production of soft drinks. Currently, the company is facing serious economic constraints such as slump in the market even when they are controlling the largest market share in the soft drink industry. The cost of resources needed increases tremendously thus resulting to the increase in cost of production.

Furthermore, the problem of competition among soft drinks producing firms like seven up Bottling Company, Tandy Guaranda Company and Formosa Bottling Company Ltd have contributed to reducing NBC Plc market share and sales.


Generally, the purpose of this study is to evaluate the market segmentation activities of Nigeria Bottling Company Plc Owerri, Imo State, with a view to finding out how segmentation can help achieve the company’s sales objectives. In more specific terms, we shall seek to;

  1. Find out if NBC apply segmentation in the marketing of its product and how it is being done.
  2. Identify the problems militating against effective segmentation of its market.
  3. Determine how market segmentation should be carried out to attain higher level of sales turnover.
  4. Make recommendations on how best NBC should carry out the segmentation of its market in order to achieve increased sales volume.
  5. Determine the causes of decline in sales turnover and market share.


For the researcher to really concentrate on its area of research work, there are some research questions he will development so as to effectively achieve the required information out of the research successfully.

These questions are as follows;

  1. Does the company use proper marketing programmes to get to their customers?
  2. Do the problems emanate from the quality of drinks they produce or is it wrong identification of target market?
  3. Do the Company Witness any reduction in their market share and sales turnover?
  4. Do the consumers react favourably towards the feature, style and price of the company’s products?
  5. What are the variables NBC considered in segmenting its product?


Considering the geographical factor of the business sector in Nigeria presently, it is far from being an easy endeavour mainly because of the prevailing crisis in Nigeria in particular and the world in general. This has induced business people to be careful in running business activities by making use of official figures (information) gotten from research before investing in any venture.

The findings of this study go a long way in improving sales turnover and market share of the firm. This will invariably lead to an increase in general profit generation and expected revenue position. The findings would also help the firm in overcoming most of its constraints and problems like the firm’s poor competitive stand and high selling expenses. It is also expected that most of the finding shall help the firm to redefine its target markets to suit the current needs of the consumer satisfaction and consequently lead to increase sales turnover.


This research work is restricted to Nigerian Bottling Company Plc Owerri, Imo State-manufactures of coca-cola, Fanta, sprite, krest, Schweppes, five Alive and Eva water.


The problems that are envisaged in the course of the study are as follows:

  1. Hoarding of some relevant information by some employees due to retaliation by management.
  2. Lack of proximity and easy access to research libraries to augment the services of the federal polytechnic Owerri library.
  3. Managers indisposition to fully respond to the demands of the questionnaires and particularly no responses to some questions due to pressure of work and suspicion about ulterior motive behind the research.


MARKET SEGMENTATION: This is the subdivision of a heterogeneous market into homogeneous subsets of market (segment) where each subset may conceivably be selected as a target market to be reached with a distinct marketing mix.

NBC: Nigeria Bottling Company

TARGET MARKET: This represent that market segment selected to be served with the firm’s resources and which is expected or assumed to command the highest profitable sales.

INTERNAL MARKETING ENVIRONMENT OR MARKETING MIX: 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 place (distribution).

EXTERNAL MARKETING ENVIRONMENT: It deals with the set of all marketing uncontrollable factors in the environment that any organization faces. They include political, social, economic and technological forces that cannot be controlled but their threats can be reduced through the use of marketing internal variables otherwise known as the four P’s (4p’s) of marketing.

CONSUMERS: These are individuals who purchase or have the capacity to purchase better percentage of product offered for sales in the markets in order to satisfy personal or household needs, want or desires.