EFFECTIVE MARKETING STRATEGIES FOR IMPROVED PERFORMANCE IN THE SOFT DRINK INDUSTRY
Effective marketing strategies have proved to be the only logical base towards the sustenance of the soft drink bottling companies and of course the marketing mix variables will not be left out of the integration, in this ever-changing marketing environment. This work is done to find out the problems of soft drinks industry (7-up) as they pertain to marketing strategies in Nigeria and of course to give recommendations from it which will contribute to the enhancement of the economy.
The researcher reviewed all related literature necessary in order to have a better understanding of effective marketing strategies and their applicability in the soft drink industry (7-up).
The research revealed that for marketing strategies to be effectively and efficiently implemented, the company should consider its position, the economy of the country, the product life cycle and the product strategies.
The data for this study were collected both from the primary and secondary sources. A pilot survey of the population was conducted to determine the sample size.
In the course of the analysis, many problems which hampered the sale of seven up bottling company were found out. The major findings centered around the implementation of the marketing activities and some of these includes:
1. The company not following good promotional programme
2. The need for improved quality of the product
3. Seven up bottling company’s marketing strategies are not effectively integrated.
Certain recommendations were given by the researcher for improvement. These recommendations also centered around marketing activities which includes:-
1. To communicate the planned strategies to all the key decision making managers.
2. Make sure the strategies contribute and reflect to the objectives of the company.
3. Put up a good and catchy promotional programmes
4. Finally the company should carefully study its problems as enumerated in the project, follows its various recommendations and implement them to attain its corporate goals.
TABLE OF CONTENTS
List of table
Table of contents
1.1 Background of study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Hypotheses formulation
1.5 Significance of study
1.6 Scope of the study
1.7 Definition of terms
2.1 Review of related literature
2.2 The improvement marketing performance in soft drink
2.3 Marketing is concern with provision to satisfy the consumer needs and wants
2.4 Effective, competitive in soft drinks
2.5 Identified the problems
2.6 Effective marketing planning
3.0 Research methodology
3.1 Area of study / population of study
3.2 Determination of sample size
3.3 Method of data collection and sample technique
3.4 Method of distributing questionnaire
3.5 Description of data analysis tool
3.6 Limitation of the Study
4.0 Data presentation, analysis and interpretation
4.1 Data analysis
4.2 Testing of hypotheses
5.0 Summary of findings, recommendations, and conclusion
5.1 Summary of findings
The need for effective marketing strategies arose and grew as society moved from agro-based economy and self-sufficiency to build economy through division of labour, industrialization and urbanization. During this period, people are largely self-sufficient, they arrow their own food, make their own clothes and build their own houses and tools. There is no marketing in absence of exchange.
However, as time passed on the concept of division of labour began to evolve and people concentrated more on producing the items in which they excel. This resulted in their producing more than needed of some items and less than needed of others. When people began to produce more than they want or want more than they have, the foundation is laid for trade, thereby giving room for trade exchange which is the heart of marketing.
People get what they need through this process, eventually different people started producing the same product and at time in different forms and styles to exchange for what they actually wanted and/or needed. The surplus of goods gave rise to choice as a concept of economics. As a result, the best out of all the good available are considered in the market environment. This made the traders to improve their products in order to satisfy a particular customer for a repeat purchase, consumes then have the benefit of price reduction. The trader who offers the lowest possible selling price, good quality and at the particular time it is needed stands a better chance of selling more than the other traders, especially when it is well displayed. This gave rise to competition among traders.
Therefore, the processes and methods, which the traders use to get their product to their potential customers, are called the marketing strategies and maintaining these strategies refers to effective marketing strategies.
Today most firms, not withstanding the economic and political crises in the country placed high premium on marketing strategies and marketing activities in their plans and budgets. It is argued that, “the degree of success achieved by a particular firm in the industry to a large extent depends upon its success in selecting the right strategy, taking cognizance of its particular situation” (Nnolim 1986).
There are four generic strategies, as identified by Porter (1990). The three winning strategies and a losing strategy viz:
(i) Cost leadership
(ii) High product differentiation
(iii) Market focusing marketing nitching
(iv) Jack-of-all trade master of none.
(i) COST LEADERSHIP: The firm in this case will determine the prices to be set for a particular product in the industry. This means that the firm’s product is higher in price than other products in the same market forcing the customers to believe that with higher cost of the product, higher quality is implied.
(ii) HIGH PRODUCT DIFFERENTIATION: A firm can market its products by making sure that its product is of the highest quality, style, packaging and so on, than other firms in the industry.
(iii) MARKET FOCUSING/MARKET NITCHING: A firm can decide because the market is saturated to find new market opportunities and develop them, while its competitor has no interest in the market.
(iv) JACK-OF-ALL TRADE, MASTER OF NONE: Using this strategy, the firm does not find it very easy to succeed. There is the need to make commitments to one or more of the winning strategies to survive.
Various definitions of marketing strategies as given by different authorities became necessary.
The layman’s definition or marketing strategies says – a method or ways whereby a firm over takes its competitors to the mutual satisfaction of the consumers and company.
Giles (1992) observed marketing strategies as the company trying to ask a lot of questions about its environment and competitors viz “marketing strategies is considering the firms overall marketing policy and tactics, to know if it requires further information about competition, costs and probably the results of its different courses of actions.
(a) Where, how and at what cost do competitors advertise?
What are the competitive price structure and practices?
(b) How do marketing and distribution costs compare with competitive costs?
(c) How do sales differ by territory, industry, type of outlet and why?
(d) What effect on demand will there be if a new product is being introduced under an established corporate image or separate brand name?
(e) What would be the effect of a change in pricing structure, on the number and frequency of orders, or on factory and store inventory levels?
(f) What is the effect of sales promotional activity?
(g) What amount of services and at what cost is necessary to provide, maintain o improve profitability?
(h) What are the most effective channels or distribution?
In another definition, Kotler (1988) viewed marketing strategy as the marketing logic by which the business unit expects to achieve its marketing objectives. He went on to say that marketing strategy consists of making decisions on the business’s marketing expenditures, marketing mix and marketing allocation in relation to expected environmental and competitive conditions”.
The soft drink bottling firms as the case of study have to be effectively blended with the above variables (marketing logic, objectives. Expenditures, mix and allocation) in the most efficient and well oriented manner. This is to enable them get the best out of their strategic effort, which results to an improved performance.