THE IMPACT OF PRODUCTION QUALITY ON CONSUMER BRAND LOYALTY (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC ABA)
This topic of this project is the impact of product quality on consumer brand loyalty its objective was to determine how product quality command the loyalty of the various consumers of a particular brand in the market also to find out if product influence individuals consumption of coca -cola drink.
Questionnaire and personal interview were used to collect information from staffs and customers of the company another is that the quality of the product alone cannot make consumers behind loyalty if there are not combine with other marketing communication.
Based on the findings and some recommendation was stated out which include that the company should put more efforts in her promotional tools in other to sustain loyalty also that the company should employ other agents of advertising such as the radio, newspaper, television and magazines which reach the customers.
TABLE OF CONTENT
Title page – – – – – – – – i
Approval page – – – – – – – ii
Dedication – – – – – – – iii
Acknowledgement – – – – – – iv
Abstract – – – – – – – – v
Table of content – – – – – – vi
1.0 Introduction – – – – – – 1
1.1 Background of the study – – – – 1-5
1.2 Statement of the problem – – – 6
1.3 Objective of the study – – – – 6
1.4 Research question – – – – – 7
1.5 Significance of the study – – – – 7-8
1.6 Scope of the study – – – – – 8-10
1.7 Definition of terms – – – – – 10-13
2.0 Literature review – – – – – 14-15
2.1 Introduction – – – – – 15
2.2 Models of theories relevant to the state – 16-17
2.3 Classification of sales promotion – – 17-18
2.4 Current literature of the study – – 19-26
2.5 The media – – – – – – 27
2.6 The characteristics of advertising that affect consumption – – – – – – – 28-29
3.0 Research methodology – – – – 30
3.1 Introduction – – – – – – 30
3.2 Research design – – – – – 31
3.3 Sources/methods of data collection – – 31
3.4 Population and sample size – – – 32
3.5 Sample technique – – – – – 32
3.6 Validity and reliability of measuring instrument 37
3.7 Method of data analysis – – – – 34
4.0 Presentation and analysis of data – – 35
4.1 Presentation of data – – – – – 35
4.2 Analysis of data – – – – – 36-54
5.0 Summary, conclusion and recommendation- 55
5.1 Introduction – – – – – – 55
5.2 Summary of findings – – – – 55-56
5.3 Conclusion – – – – – – 57
5.4 Recommendations – – – – – 58-59
Reference – – – – – – – 60-61
Appendix – – – – – – – 62
Questionnaire – – – – – – 63-65
Human being has different wants needs, as there are different needs and wants, so their preference and adherences to a particular brand differ.
Individual’s differences to a particular brand of goods many occurs as a result of taste, equality, quantity or price. These contribute may occurs be different firm the objective of the firm producing these goods the aims of all going concerned normally, are to break even and make some project the consumer of a particular brand of goods is normally always hints on quality rather on quantity as different from the firms objective of profit maximization.
BACKGROUND OF THE STUDY
The success of every business is adherence to the marketing concept, with implies the skilful satisfaction of what buyers believers to their self interest and not what the organization thinks and like to produce buyers self interest are viewed socially as a acceptable relationship between the buyer and the firm. The buyer normally seeks his perceived best combination of time, place and possession and from utility attainable from business organization. In fact application of the marketing concept should at least eventually produce the best perceived utility combination available to a firm target group.
According to Engineer M. Johnson et al (1997: 333) creativity occurs in identifying buyer and determine how to react to him. “Societal marketing concept” is a concept centred on buyers needs and a satisfactory business reaction to these needs. The statement such as; it is a list easier to make profit by producing and selling something which the consumers want, rather than something they do not want or need.
The force, which drives human behaviour is the system of needs within the individual. How he sees fulfilment of needs as function of major of factors but a silent factor in relating to social behaviour the products we but satisfy certain needs we gave and are usually attach specific value to preference of one product to the alternative is worth deciphering. The nexus between needs values attitudes and the marketing concept should be so reconciled as a subtly abstract from a member of alternative characteristics that account for a buyer loyalty for a brand ever alternative similar products possesses a number of appearing feature what when sustains a buyer loyalty? Most of all the features what are likely to direct his attention and interest to alternative product given subsequent development? Reason provided for such behavioural enigma will extensively have change of entrench in the product process to attract affirmative responses from the target market.
The understanding of product quality and the role it plays in attracting consumer loyalty will effectively severe as a paddle to enable as duel more on the subject matter of this work. Notably our discussion so far has been the impact of product quality on consumer brand loyalty “a study of which will expose the underlying reasons why consumers remain loyal to the purchase and consumption of coco-cola” among alternative brands of coke drinks in the market to day.
The various findings of this work will give us an in sight into why we regularly prefer certain product and not others in a variety of circumstance manufactures at the end of this work will be able to spot from marketing activities, the specific activity and the features of a product that lie the loyalty of a target market to a product among other alternatives.
PROFILE OF THE COMPANY OF STUDY
Nigeria bottling company Plc is one of the prominent and out standing bottling company in Nigeria.
It bottles coca-cola products (drinks) which has it lines as fanta, coke, sprite and ginger ale. Coca-cola was first product globally in the year (1886) by a known pharmacist Dr. John Promberton in Citlanta Eaogai USA, as time proceeds, the product coca-cola were produced outside limited states of ameria combines like cuba, panarna, Canada bottled coca-cola in (1906) others include phipines (1912), snam (1917) and France (1920).
Coca-cola was first available in Nigeria in (1953) when the first bottling plant was opened at Ojinbo, Lagos state the Inc was later moved to Apapa today. The Nigeria bottling company has bottling facilities in (19) different local non-across the nation by (1903. 1) the company was prominently and first manage by the late chief Andrew A. Dand as the general of the fact company, Nigeria bottling company Plc much hand three plants the under this Nlelage MBS Plc. Has evolve into one of the most dynamic plants, over 56 depots employment to millions of the world’s top soft drink brands coca-cola diet coke, fanta and spirte but it has a family of products that includes more than 230 different brands of drinks, including juices teas, coffees, sport, and emerge drinks and bottled water many of this individual flavour boosting the total product line up.
The name coke is an abbreviation adopted first by consumers than by the company in fact early advertising discourage calling the product coke but the name stick and eventually find its our place in advertising in coke” became the company trade mark in (1943).
Nigeria bottling company Plc has 19 locations as stated. It is also currently known as one of the most outstanding soft drinks industries in Nigeria.
STATEMENT OF PROBLEM
Brand loyalty of product decline as product quality decline with reference to Nigeria bottling company.
The following problems relative to product quality and brand loyalty exist.
- Low quality leads to poor consumer patronage.
- Ineffective advertisement brings about un awareness.
- High price of the product leads to low sales volume.
- Poor packaging of product contributes to a how brand loyalty.
OBJECTIVE OF THE STUDY
Based on the description of study the main purpose of this study are as follow.
- To determine how product quality commands the loyalty of various consumer of a particular goods or brand in the market.
- To investigate it product quality and lead to increase in profitability to find out if product quality influence individuals consumption of coca-cola drink. It examine if the type adopted can affect the decision making of the company.
The following questions were asked in the study.
- Does product quality command the loyalty of the various consumers of a particular goods or brand in the market?
- Does product quality really improved company sales volume?
- Does product quality increase profitability;
- How product quality does influence the individual consumption of soft drinks?
- Does the product quality adopted affect the decision marketing of the company?
SIGNIFICANCE OF THE STUDY
This project significant in the following ways.
- One of the importance of the study is to determine how product quality commands the loyalty of the various consumers of a particular good or brand in the market.
- The research helps the company to understand whether products quality can lead to increase in profitability.
- This research also aids the company to know if the product quality really improves company sales.
- Again this research is important in determining the influence it has on individual consumption of soft drink. Finally, this research is also relevant for the partial fulfilment of the ND certificate award in business management.
SCOPE AND LIMITATION OF THE STUDY
This research work covered the operation of the Nigeria bottling company, Plc, Aba. The materials used are materials available in the library and personal contact will the official of the organization.
Apart from interview questionnaire we also distributed to various respondents which comprises of the youths in the tertiary constitutions in Aba state add to this the segment of the market comparatively educated to understand and answer to question relevant to the study. The limitation that hindered the developments of this study includes the following.
- Financial: One of the limitations of this study is lack of significant finance. This factor made the work not to be carried effectively. Research work needs enough money which will be used to travel firm finance to trace in order to gather information needs sufficient money for typing and binding the work.
- Time factor: For the research work to be properly carried out enough time must be devoted. This work was not adequately treated due to other academic work that are to be taking case of this offers activities include fast, assignment and reading of other books.
The most time factor have is that our final exam is fact approaching and much time needs to be devoted to it in order for one to make his or her course successful and this will make it possible for the study to be given enough time and attention. Attitudes of the respondents were reluctant in answering the questionnaire in spite of the assurance given by the researcher to keep everything confidential even some youths were too busy to attend to the research most of the times. Sometimes their attitudes demoralize the zeal you had for the research work.
Furthermore, so many companies does not like expose the financial position to their company and some are afraid of giving out the information about their so that it will not be sold outside.
DEFINITION OF TERMS
Marketing is defined as the co-operate activity associated with trots the identification of current and potential nation international industrial and specific customers ata manner acceptable to the customer at a realistic price and which will produce a profit with provided through cost effective consistent and reliable methods of sales and serving advised and approved by the market function.
THE SOCIETAL MARKETING CONCEPT
The societal marketing concept holds that the organization task is to determine the needs wants and interests of target market and to deliever the desire satisfactions moved effectively and efficiently than competitors in a way that pressire or enhance the customer and the social well being.
- Marketing: Is a place, especially on open square or other area or town where merchandise sales take place.
- Marketing mix: Marketing is that controllable raiable that a company can blend to achieve the required response firm its target customer. It is identified as the four PS-product and promotion.
- Product: The combination of goods and service offered to the market the actual product and range of benefits including packaging delivery and after sales services.
- Place: The activities which makes the product available to the customer, including the distribution network solves and other agencies.
- Price: The amount of money and the values the customer must pay to obtain the product.
- Promotion: Activities that communicate the benefit of the product and persuade the target markets to buy it includes advertising activities. Promotion mix is that particular combination the benefit of the product and persuasarie communication such as personal selling, advertising used by an organization of support its business objectives.
- Advertising: Any firm of non- personal presentation and promotion of ideas, goods or services by an individual an identified sponsor.
- Sales promotion: Short term incentives to encourage purchase or sale of a product service or business units of planting commercially significant news about it in a published medium that not paid by the sponsor.
- Publicity: Non personal stimulation pf demand for a particular product services or business units of planting commercially significant news about it in a published medium that is paid for any by the sponsor.
- Personal selling: This is a process of informing customers and persuading them to purchase product through personal communication in a exchange situation.