CHAPTER ONE

BACKGROUND OF STUDY

HISTORY AND ORIGIN OF SUPERMARKET

Supermarket as we know them today started in the depression days of the early 1940s. They were owned and operated by independents, attempting to compete with the Chain food stores. The supermarket method of food retailing becomes an immediate success and the innovation was soon adopted intendments. Today supermarkets are dominant institution in food retailing. There are close to 34,000 supermarket in the United States and about 29,000 in Nigeria and they account for about 75% of total food sales.1980s were not good year for conventional supermarket cost increased (Sometimes dramatically), inflation hurt, competition intensified and both profits and productivity. Now, in the 1990s, supermarket management in facing the challenge of revealing these trends especially the decline in profit and productivity. The challenge is being met cutting costs and stressing their price by offering limited services.A few supermarket organizations are going the opposite route – featuring a wider assortment of products of higher prices. Both groups are using technological innovations at the chicken stands, in packaging and else where in the stores. Perhaps the strongest challenge the supermarket management is the task of encouraging the adopting of a greater number of those technological innovations at a faster rate then in previous years.There are many factors which caused the take off of supermarket in the 1940s some of these factors are:-The mass ownership of cars:- For the fact that many supermarket patrons own their own cars, they can afford to go to some distant places to make their weekly shopping.The advance in technology:- Both supermarket and their patrons can store perishable goods for a long period of time. They can also make bulk purchases which could be stored in their refrigerator.The packaging technology:- For many products now have consumer size packages and distributor size container. This consumer packaging enhances self – service operation in supermarkets.Integration of grocery, meat and produce departments has made one to stop shopping regularly. In a supermarket, there are different section which makes for all time and efficient shopping.

STATEMENT OF PROBLEM

It is no exaggeration to say that some supermarkets in Enugu are performing below standards and expectations that is to say that, they do not meet the required sales volume considering the opportunities open to them for exploitation.The supermarket visited had not been treating their customers as supposed there by not adopting the concept of marketing.The investigation carried out confirmed that consumers were not given special attention regarding their Enquirer as a result most of them suddenly patronize these supermarkets.The information flow was discovered to be inefficient thereby affected service delivery that would here interested the customers.The supermarket prices were found to be inhabitant when compared to open market prices. The consumer preferred these open markets because of the degree of satisfaction received from them.

PURPOSE/OBJECTIVE OF STUDY

The main objective of carrying out this study is to find out the reasons behind poor performance of supermarkets in Enugu and ways through which super market managers can increase their sales through effective marketing strategy.To investigates how the adoption of the marketing concept of treating consumers as the king would make the consumers patronage the selected supermarket.To examine the best marketing strategy that could be adopted for consumers to be given special attention.To assess the information flow between sellers and buyers that would satisfactory make customers patronage the supermarket under study.To approve the pricing policies of these supermarkets with a view of adopting a satisfactory pricing policy for them.

SIGNIFICANCE OF STUDY

This study when completed will definitely help the supermarket managers to increase their sales volumes and when their sales volumes increase; their profit margin will also increase.This study will also help those wishing to undertake supermarket business to collect information which will help them in establishing their business.Again this study will provide various strategies which will help the managers to select one or two strategies that will make his business to be cost effective that is the one that will be less expensive.It will also make the owners to super markets to remain in business because without adequate and comprehensive strategies, they can go out of business.

HYPOTHESIS / RESEARCH QUESTIONS.

According to Webster .N. (1981) hypothesis is “ a proposition put forward as a basis for reasoning a superstition formulated from proved data explanation of occupancy as in science insider to establish a basis for further research”Based on the problem and objective of the research, the following hypothesis are formulated:-Null Hypothesis (HO):- Sales of supermarket will not increase with adequate use of promotional tools.Alternative hypothesis (H1) sale of supermarket will increase with adequate use of promotional toolsHo: Good public relation will not enhance customer loyalty which leads to increase in sales.Hi: Good public relation will enhance customer’s loyalty which leads to increase in sales.Ho: Selling goods at reasonable low prices will not increase the sales of a supermarketHo: Offering producers better qualities will not increase the sales volume of a supermarket.Hi: Offering producers better qualities will increase the sales volume of a supermarket.

SCOPE AND LIMITATION OF STUDY

This study was intended to cover all the supermarkets in the metropolis and their marketing strategies. But considering the number of supermarkets in Enugu the researcher has decided to limit its scope to selected few using Tonson supermarket as case study.The researcher is studying how to improve sales through effective marketing strategy. The more pronounced strategies around which the researcher will concentrate on are:- product, place ( distribution) price and promotion. These are major marketing strategies which supermarket managers will have to manipulate inadequately so as to improve their sales.Generally, marketing strategy can be regard as a consistent, appropriate and feasible set of principles through which a particular company hopes to achieve its long run customer and profit objective in a particular competitive environment.This research will equally drive into the area of introducing the marketing concept phenomenon into the management of supermarket.