CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

Communication is fundamental to the existence of every individual, group or organization.  It is so vital that without it no individual, group, product or organization can succeed.  To my mind communication exists as a major indispensable human need because people need to communicate with others in order to share information, ideas, experience and feelings.

          Communication can be viewed from different perspective and like many etymologies, has the ramification and connotations.  It could be viewed from the standpoint of person to person relationship.  It could be seen from the background of communication chains in an organization or a business setting.  And it could indeed be viewed from the perspective of the relationship between the organization and their external publics.

          In the development of this study, all the above perspectives of communication may come into use because in many cases the image of the product and the organization are interwoven and they both play a symbolic role.  However, marketing communication between the marketing organization and their various external publics.  Essentially, a marketing organization needs some elements of marketing communication to importance educate members of its target audience about the existence of its goods and services and to persuade them to patronize it or to develop favourable altitudes and opinions towards it.

          Over the years in Nigeria, companies have been known to continually design strategies to survive in their various markets.  This has become more imperative because of increasing competition between companies whose aim is to gain a better market share and stay in business.  The situation is not helped by the economic recession of the recent past years.  As long as the economic wheel of the nation turns, new products are introduced into the market in various shapes and sizes to compete for a plea with the already existing products.  Some of the products enjoy a sizeable share of the market, others do not.

          While there may be other factors that influence demand for a product and hence its level of consumption.  Marketing communication plays a vital role in stimulating demand.  In many cases there have been inadequate communication and in others there have become barriers to marketing communication.  There is therefore the need to ascertain inadequacies and barriers where they exist and reverse them to make for more effective marketing.

          Consolidated breweries plc, the organization responsible for the manufacturing, development, distribution, sales and marketing of Hi Malt. (the malt drink brand of our study) was incorporated in 1991 as consolidated breweries plc.  The birth of this company was the merge ring of continental breweries and eastern breweries in 1991.  this two companies were merged because they produce the same type of product which is “33”.  These companies came together in 1989 to agreed on each other to be one.  They merge in 1991 and brewery both “33” and Hi malt.  Eastern brewery produces ‘33” but when they merge, they called their company consolidated brewery plc instead of answering any of their former company name.

          The company brewery two rarities of products namely “33” and Hi malt.  These companies have their headquarter at Lagos and they brewery only “33” at Lagos.  They have another branch at Awo-Omamma in Imo State.  They brewery both “33” and Hi malt at Awo-Omamma.  They have many depot all over the country which include Enugu, Abakaliki, Por-Harcourt, Markurdi, Aba etc – they develop this depot to make sure that their product are been circulated / reach to their target market.  It is from this brewery that “33” and Hi malt are manufactured and distributed to every nook and cranny of the country.  The collective success of these two brands in the company’s product portfolio has been responsible for the company’s strength and towering stature.  Together, these products have facilitated the strong leadership position of consolidated brewery Plc in the total brewed products market in Nigeria.

1.2     STATEMENT OF THE PROBLEM

          Over the years the malt drink market has witnessed the introduction of a variety of malt drink products from various breweries.  Many breweries had to diversify their product range to met their overheads make profit and stay in business in a period of recession.

          The first malt drink that made in instant market success in Nigeria was Maltex.  This product was an imported brand from Europe.  Maltex was in fact a household name as it dominated the market in the early and mid 1970’s.  Nigerian try to introduce maltina in 1976; then in 1991 consolidated breweries introduced their our Hi malt with the same bottle with maltex.  And other malt drink were introduced before and after Hi malt include some are named maltina vita malt, Guinness malt all package in maltex type bottle flooded the market.  Except Guinness malt which its bottle is a unique one.

          The choice of topics for this thesis is dictated by the scenario pointed above.  The major problem of this study therefore is to determine the extent marketing communication can play a role in the marketing communication in the effective of marketing of Hi malt drink.

          In this regard, and given the above background, I intend to take on the following sub-problems:

1. to determine areas of inadequacy in communication and to ascertain whether enhanced communication will teed to effective marketing of the product.
2. To determine the reach and impact of advertising and buyers and potential consumers.
3. To investigate whether buyers and potential consumers of the product understand and share the ideas and information directed to them.
4. To investigate the feedback mechanism as a way of ascertaining that management follows up marketing communication with adequate assessment of level of understanding and acceptability of the message by the public with a new to increasing sales.

1.3     OBJECTIVES OF THE STUDY

          The main objectives of the study are:

1. To find out marketing communication modes techniques and systems in use of the marketing of Hi malt.
2. To assess the effectiveness of such modes, techniques and systems in the marketing of the product.
3. To explain whether barriers and inadequacies in communication and other related factors or impede effective marketing of the product.
4. To suggest ways of addressing identified problems based on the findings and recommendation better strategies for the effective marketing of Hi malt.

1.4. RESEARCH QUESTIONS

The following forms are my research question in this study.

1. Does inadequate communication hamper consumption of Hi malt drink?
2. To it advertising that influences purchase of Hi malt or is it manufactures good will?
3. Do barriers to communication affect volume of sales of Hi malt drink.
4.  Does two way communication have the potential to increase the volume of sales of Hi malt?
5. Will a change in the packaging of Hi malt in lane with bottle type of other malt drink positively effect consumption or shelf display of the product.

1.5. STATEMENT OF HYPOTHESIS

HO:-  Effective marketing communication increase customers satisfaction with Hi malt.

HI:-   Effective marketing communication does not increase customer satisfactions with Hi malt.

HO:   Advertising does not creak awareness for Hi malt in the market.

HI:     Advertising creates awareness for Hi malt in the market

HO:   Effective use of personal selling increases customers patronage for Hi malt.

HI:     Effective use of personal selling does not increase customer patronage for Hi malt.

HO;   Sales promotion stimulates more purchase of Hi malt on the market.

HI:     Sales promotion does not strumlate more purchase of Hi malt in the market.

1.6. SIGNIFICANCE OF THE STUDY

We must admit that although more less has been said and written in the importance of marketing communication endence still abound to show that many marketing organizations either do not bother to imbibe and hence pratise basic communication principles or are deficient in the proper skills and rudiments of marketing strategy the result of this state, the respect the researcher aims of focusing the attention of marketing communication.

          Today, the emphasis of the Nigeria government is on employment, privatization, commercialization, competition, economic growth an development.  Marketing communication has the potentials of stimulating the economy and also improving organizational performance.

          It is hoped that the findings of this study and subsequent recommendation will benefit not only the selected organization and performance of its product in the market but other marketing organization and product areas.  On the whole, the study is significance became it will be useful to scholars as new problems are likely to be recovered in the processed of investigation.

          Finally, this study will contribute to knowledge since the investigation is essentially aimed at problem solving.

1.7. SCOPE AND LIMITATION OF THE STUDY

The impact of marketing communication and the role plays in effective marketing in Nigeria touches on many marketing organization and their product, but given the limited time and available resource, it is unrealistic to contemplate an exposition on all the marketing organization and their product portfolio.

          Consequently, the study is limited to consolidated breweries and Hi malt drink.  In effect, the study is not on determine the extent and role f marketing communication in the effective marketing of Hi-malt in Enugu metropolis.

          Conducting an empirical research is not an easy task, even for a competent or professional researcher.  This research may not be on exception to the usual constraints and other problems associated with similar researcher given the Nigeria society.  Cultural differences exist from place to place.

1.8. DEFINITION OF TERMS

Communication: the art and science of transmitting, information, idea, attitudes or opinions, facts, instructions, thoughts and images from one person to another or one group to another.

MARKETING COMMUNICATION: Communication undertaken to persuade others to accept ideas, concepts or things. Marketing communication could use marketing communication could use marketing promotional tools, namely advertising personal selling, sales promotion, publicity and public relations.  This is so because promotion is the marketing communication process utilizing personal or non-personal mean to remind, inform and persuade buyers or potential buyers of the organizations products.

ORGANISATION: A social system or an organized body of persons working together to achieve a common purpose.  Examples include business or marketing organization in the context of this study means marketing organization.

IDEA:        Thought, plan, picture in the mind, purpose opinion.

IDEATION:        A technical communication fargon for discussing idea formation.  It is therefore the thought or an idea which the sender wants to relay to the receiver.

ENCODING:      The act of putting the massage together in a certain code or symbols that can be understand by both the source and receiver.  These codes or symbols could be words, letters, sentences or signs that represent the idea of the source of communication.  Encoding can therefore be described as the transmission by the source of an already conceived idea into a message appropriate for transmission to the recover.

DECODING:      The translation of an encoded message giving it meaning.  This is done by the receiver and it is important that there is a clear understanding of the transmuted message.

FEEDBACK:      This refers to the signals sent from the hastener / receiver to the speaker / source in order to tell the speaker how far he is understood and possible report the acceptability or non-acceptability, of the message.  It also indicate whether individuals, organizational or consumer behavioural change has taken place as a result of communication.

EFFECTIVENESS:      The ability to bring about the desired or intended result or extent to which it is accomplished.

MEDIA / CHANNELS:         This is the means by which a message travels from sources to a receiver or audience and back.  It is the message carrier.

PRODUCT:         A product is any thing produced by nature or by man which a buyer acquires or purchase to satisfy a need or want.  It has to be priced and have value.

PRODUCT PORIFOLIO:     Product range, units or group handled by an organization.

EXTERNAL PUBLICS:        Individuals or organization an individuals or an organization communicates with.  They includes consumer, communicates, neighbours, dealers, distributors, suppliers, shareholders, government agencies, educators and other publics.

DEMAND: The amount or quantity of product or goods that the consumers with, to purchase at a particular price at a specific time.

REFERENCE:    Marketing choice or choosing a particular brand from different brands of the same product category or preferring a particular brand in a wide variety of other products of the same product category.

CONSUMERS PERCEPTION:      The way Hi malt advertisements are seem be consumers.

TARGET MARKET:  Target market is that area where the company’s product is affectively patronized or the area the company’s product is affectively patronized or the area the company expects and plans effectively patronage.

SALESMANS/ SALES REPRESENTATNES:          These are able bodied men employed and in some cases trained by a company for the sales of its products through demonstration and personal conviction of customer about the product.

FREE SAMPLES:        Free samples are a quantity of a company’s product that are used or given to prospective customers free when the products is new and unknown in the market.  It is done to create product awareness.

BUDGET:  A budget is a financial / quantitative statement prepared and approved prior to a specific period of operation of an enterprise. It is normally used as guide for production, expenditure  and sales.

PUBLICITY:      Activities or activity of securing non-paid significant editorial space, news, stories and features in all media read, reviewed or head by a company’s customers or prospects for the specific purpose of gaining credibility and attention an ultimately meeting the sales goals of the organization.

SALES PROMOTION:         These are a number of techniques that marketer use to stimulate immediate sales.  Thee technique or activities includes contests, trade shows, sampling, and premiums, sales promotion is designed to supplement and co-ordinate person selling and advertising efforts.

PERSONAL SELLING:        This is person to person communication meant to assist a sales person personate a prospect to bring a product or to act favourably upon an idea or a cause.

ADVERTISEMENT:   A communication is the media, paid for by an identifiable sponsor and directed at a target audience with the aim of importing information about a product, services, idea or opinion.

PUBLIC RELATIONS:         Is a philosophy of management whose aim and objectives is the establishment of understanding report and goodwill between an organization and its public, public relation uses a two way communication system between the organization and its publics to achieve its social management philosophy.