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EFFECTIVE MARKETING STRATEGIES FOR IMPROVED PERFORMANCE OF NON- DURABLE CONSUMER PRODUCTS (A CASE STUDY OF OMO DETERGENT)

 

ABSTRACT

This research project is very crucial study for Unilever Nigeria Plc. The study was motivated by the necessity to improve performance of Omo detergent through effective marketing strategy. This research project was aimed at the following:

1. To identify marketing strategies that can be implemented in order to increase the sales and profitability of the product.
2. To determine whether the placing method of LBN has helped to increase sales of Omo detergent
3. To determine whether the quality of Omo detergent has helped to increase it’s sales.
4. To determine whether distribution method of LBN has helped to ensure the availability of Omo detergent in the market.

Both primary and secondary data were collected to solve the research problem. The population of the study comprised of the personnel of unilever Nigeria PLC. The., the distributors and consumers of Omo detergent. The research instrument used for data collection, were questionnaire, oral interview, tables, frequencies and percentages in presenting and analyzing the data collected. The chi –square statistic was used to test the various hypotheses since this was a thing of goodness of it.

From data analysis, the researcher came up with the following findings:

About 63.4percent of consumers are satisfied with the quality of Omo detergent in the market.

• The respondents agreed that the price of Omo detergent is moderate
• About 95.1 percent of consumers are satisfied with the availability of Omo detergent in the market
• About 71.9percent of company personnel agreed that company’s promotional campaign have helped to increase the sales of Omo effectively
• About 96.6 percent of respondents agreed that indirect distribution system have ensured the availability of Omo detergent in the market.
• About 54.8 percent of those who consumed the products agreed that quality and price are good.
•   Distributors agreed that Omo detergent has been well received by consumes and it is selling or moving well in the market.
• The overall marketing strategies adopted by Unilever Nigeria PLC has helped to increase sales and profitability of the product tremendously.

Based on the findings, the researcher recommended the following;- the company should

1.    Maintain or even enhance the high quality of Omo

detergent

2.    Conduct periodic research studies to assess how the

product is performing in the market

3.    Set up consumer panels to give feedback information

in the products performance

4.    Maintain good supplies of the product with distribution

to satisfy consumer’s demand

5.    Improve more on advertising of the product for further

stimulate of enhance sales.

The conclusion of the study is the Omo detergent which is one of the leading detergent produce by Unilever Nigeria PLC has been successful and in order to keep up it’s marketing of the product, the company should use effective marketing strategies.

 

 

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY……………..1
2. STATEMENT OF PROBLEM …………………..5
3. OBJECTIVES OF THE STUDY…………………..6
4. STATEMENTOF HYPOTESIS……………………7
5. SIGNIFICANCE OF THE STUDY……………….8
6. SCOPE AND LIMITATION OF THE STUDY………..9
7. DEFINITIONS OF MAJOR TERMS…………….10

CHAPTER TWO: REVIEW OF RELATED LITERATURE

1. THEORETICAL REVIEW……………………..12
2. IMPORTANCE OF MARKETING STRATEGIES…..14
3. PROBLEMS OF MARKETING STRATEGIES………..16
4. BASIC STRATEGIES COMPANIES USE………………17

CHAPTER THREE: RESEARCH METHODOLOGY

1. SOURCES OF DATA COLLECTION…………….33
2. POPULATION FO THE STUDY…………………..33
3. SAMPLE SIZE DETERMINATION……………….34
4. SAMPLING TECHNIQUES ……………………….42
5. INSTRUMENT FOR DATA COLLECTION………..43
6. METHOD OF DATA TREATMENT AND ANALYSIS…43
7. QUESTIONNAIRE ALLOCATION AND ADMINISTRATION…………………………………..43

CHAPTER FOUR: PRESENTATION, INTERRETATION AND ANALYSIS OF DATA

1. PRESENTATION OF DATA……………………45
2. TESTING OF HYPOTHESES…………………..58

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

1. SUMMARY OF FINDINGS…………………..67
2. RECOMMENDATION……………………….68
3. CONCLUSION………………………………69

BIBLIOGRAPHY…………………………….70

APPENDIX 1…………………………………72

APPENDIX 11 ………………………………..75

APPENDIX 111………………………………..79

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

In Nigeria where the importance of marketing is yet to be fully appreciated, people talk of marketing their products as if they are referring to our problem. A successful marketing operation must rest or a carefully though and plan.

The strategy aspect of the plan should be based on what was know of the enemy’s strength and positioning, the physical characteristic of the battle ground, the friendly or hostile sentiment of those who occupied the territory, and of course, the strength and character of the resource available to the commander.

In this business organization, these is safely no activity were element of marketing and marketing strategies can not be traced. Marketers must therefore make the right decision about the four component. Of the marketing mix, price, product, place and promotion. These key components must be coordinated and move into a unified effective strategy if their product must reform well in the market. The analogy of business strategies is direct and useful in business and in marketing, the terrain is the market place in particular and economic, political, social and technological environment in general. The resource are personnel with wide – ranging skill and expertise as well as factories laboratories, transportation system, financial resource and the corporation reputation.

Moreover, the performance of the product depend largely on the post purchase satisfaction, whether they satisfied or dissatisfied with the purchase potential consumer expect to derive satisfaction from the product when compared with the ones they have previously used.

Depending on the nature by business, strategy may have other dimension as well. At heart of any business strategy is a marketing strategy, business exist to deliver product to the markets to the extent that they serve this purpose well and efficiently they grow and profit.

Expectation therefore play a major role in the reaction of the consumer towards a product, consumers base their expectation on the information or message received from sellers, friends and other source of information. All these are the marketing effort, the objective of organization has to be considered, particularly profit maximization.

The conclusion strategies must reflect all aspects of market and above all, it must anticipate the action and reaction of competitors.

 

Historical Background information of lever Brother, PLC.

There is no way to treat the history of lever Brothers Nigeria PLC (LBN) without connecting it with Unilever. Lever Brothers (Nig) PLC. Parent and Multinational Company in London Unlived history in turn limited with it’s founder William Hesketa lever.

William H. Lever started at a tender age of 19 years by 1885, he had started buying the ‘purest soap from local soap maker. Infact, he was the first number to start selling in falsest, Wrapping it in bar of specific advertising through local Newspaper. “No soap does his buyer business than advertising”. Was his usual slogan. It is Innovation evidently was to lead to modern brand a products management.

In Nigeria, Willian Hesketa Lever bought a liver pool formers trading in Nigeria mainly timber

in 1910. Palm kernel crushing mill were erected in 1910 at oposo and Apapa (Lagos). In 1920 Mr. Lever bought off the Niger company for 8.6 Million. It is this company that merged with African and Eastern trading company to form what now know as the United African company (UAC) in 1929.

Unilever extended it’s business activities into Nigeria when it was incorporated as West African soap company (INASC) until 124 at Apapa where laundry soap of key, sunlight and magret brands were first manufactured in 1952. Lux tablet was introduced, Magerine factory which was registered under the name Van Beigh (Nig) Ltd, was opened at Apapa.

In 1955, both WASC and Van Beigh (Nig) limited formed till today exist as lever Brothers Nigeria PLC. Under the same management in 1957, Aba branch was opened with a soap factory for the production of laundry soap to start.

Today, lever Brothers, Nigeria PLC. Produce a large variety of product, some of the products like

a)         Cream and lotion product

b)         Oral care product

c)         Baby care product

d)         Hair care product

e)         Fabrics washing/ home cleaning

f)         Diversify lever /industrial floor care product

g)         Beverage/drink product.

Lever Brother, Nigeria PLC, has also bought up the share of Lipton (Nig) its, maker of Lipton tea bag and Boncafe coffee. The performance of this section is that as early as 1885, lever brothers (Nig) plc has found a need for marketing strategy and took  innovate step in penetrating the market for product

 

ORGANIZATION CHART OF LEVER BROTHERS  PLC.

           

Source: From the personnel Department, Aba, (1997).

1.2  STATEMENT PROBLEM

       Post – purchase satisfaction has always been a major indicator as a level of satisfaction of customer who used the product in the market. Effective marketing strategies have contributed towards the achievement of these set objectives. Well established and implemented marketing strategies have played a major role in the success of the business in Nigeria.

       Every company which intends to improve on it’s marketing has to create good marketing strategies for it’s operation. These strategies of effective should increase the sales sand profitability of such companies and will also help the company to achieve its goals.

       Omo detergent produced by lever Brothers PLC, has contributed towards the success of the firm in recent year due to good marketing strategies mapped out for it. Omo detergent which is one of the leading detergent ever produced by the firm has maintained its market share due to good penetration of the product into the market has however for some time now experiencing some as poor sales of the product, inability of the product to the product to face other competing detergents in the market and so on. As a result of these problem in which study will be carries out and adequate recommendation will be made.          

 

1.3  OBJECTIVES OF THE STUDY

       The objectives of the study includes.

1. To identify marketing strategies that can be implemented in order to increase the sales and profitability of the product.
2. To investigates on the causes of poor sales for the product in the market
3. To determine whether the pricing method of LBN has helped to increase sales of Omo detergent
4. To determine whether the quality of Omo detergents has helped to increase its sales  
5. To determine whether distribution method of LBN has helped to ensure the availability of Omo detergent in the market.
6. To determine whether the promotional strategies adopted by LBN has helped to increase sales of Omo. 

 

1.4  STATEMENT OF HYPOTHESIS

1.    The quality of Omo has not helped to increase it’s sales.

The quality Omo has helped to increase it’s sales

2.    The price system applied by lever brother has not helped to

increase the sales of Omo.

3.    The price system applied by lever brother has helped to

increase the sales of Omo

4.    The distribution method of LBN has not helped ensure the

availability of Omo in the market. The distribution method of

LBN has helped to ensure the availability of Omo in the

market

5.    The overall promotional strategies adopted by LBN has not

helped to increase sales of Omo. The overall promotional

strategies adopted by LBN has helped to increase sales of

Omo

The overall marketing strategies adopted by LBN has not

helped to increase sales of Omo. The overall marketing

strategies adopted by LBN has helped to increase sales of

Omo.

 

1.5  SIGNIFICANCE FO THE STUDY

It can be seen from the problem stated that lever Brother (LBN) major difficulties are identified with marketing. It is hoped that the study will help the company to adopt a better marketing strategies that will improve the overall marketing performance of the company’s products and help the company realize its business objectives.

       The recommendations made in this study if accepted and applied would provide initial step in major decision on the determination of the preset marketing strategies that can be used to improve the performance of the product (Omo detergent) and also for Virtual expansion of the business activities.

       The study also will help the reader know that the success of a business depends on good marketing strategies so that it will promote good image for the company and increase their sales revenue.

       It will also widen the researcher knowledge about the various strategies available and how they can be applied to the company products to improve the performance of the business.

       Above all, the study will also help the people to know value of marketing strategies and how it can be used to attract new market customers from existing market.

1.6             SCOPE AND LIMITATIONS OF THE STUDY

       The study covers the different effective marketing strategies as regard to the 4ps for improved performance of lever Brother’s product with special reference to management, distributor and consumer of lever Brothers PLC, in Enugu metropolis.

                         There are many problems encumbered by the researchers during the course of writing of this project; the problem encountered were.

REFUSAL OF RESPONDENT:- The refusal of the respondent to answer some of important question that are relevant to the study.

JOURNALS:- Sympathetically, the school victory does not make provision of major marketing journals, the researcher find his way out in order to get current marketing journals.

FINANCIAL:- The shortage for fund also affected the number of times, the researcher would have to visit the company in order to the through in examine all the areas pertaining to the degree of past sales of now detergent produced by LBN.

TIME:- The time delighted to this work was very short as a result of other commitments, the researcher must have gone different places to get more samples about the study.

 

1.7  DEFINITIONS OF MAJOR TERMS

MARKETING;- Asocial management process by which individual and group obtain what they need and went through creating and exchanging product and Value with other.

MARKET:- The set of actual and potential buyers of a product.

MARKET PENETRATION:- A strategy for company growth by increasing sales of current product to current market segment without changing the product in any way

POSITIONING:- The are of fitting to one or more segment of the broad market in such a way as to set it apart form competition and optimize opportunity for greater sales and profit.

MARKET CHALLENGE:- A runner up firm in an industry that is fighting hard to increase it’s market share.   

MARKET STRATEGY DEVELOPMENT:- Designing our initial market strategy for a new product based on the product concept. MARKET LEADER:- The firm in an industry with the largest market share, it usually head other firms in price changes, new product introduction, distribution coverage and promote spending.

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