AN APPRAISAL OF MARKETING STRATEGIES AS A MEANS TO COMPANY’S GROWTH

AN APPRAISAL OF MARKETING STRATEGIES AS A MEANS TO COMPANY’S GROWTH

(A CASE STUDY OF COCA-COLA COMPANY, ABUJA)

ABSTRACT

Marketing strategy plays a vital role in an organization, the company’s effort would be fruitless if there is no marketing strategy to communicate with the target market. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. This work has intention on this and has the ability of implementing effective marketing strategies that will assist companies in reaching their marketing goals. It is to make known the importance of marketing strategy and how it increases the organizations market share and to also bring to notice that a company’s goal/objective will not be achieved when the company fails to design a winning marketing strategies to reach it’s marketing goals. In this research primary and secondary sources of data were used which includes questionnaires, secondary information such as textbooks, journals, notebook etc. finally a hypothesis was duly subjected to test.

CHAPTER ONE

1.0 INTRODUCTION

Due to many competing firms in the market, it is essential for every company to plan a secure marketing strategy in other to achieve a sustainable competitive advantage.

There is no doubt that marketing strategy describes how firms will achieve the stated goals that is in line with their mission.

Marketing managers must draw a plan towards the attainment of pre-determined stated goals and objectives and formulates a broad plan of action known as strategy.

Strategy is a method or plan choosen to bring about a desired future, such as achievement of a goal or solution to a problem.

Success in life is a function of planning, as the saying goes “failure to plan, is planning to fail”.

In essence, marketing is not exceptional of this planning process, therefore marketing managers must strive to develop strategies that will enable them to create and maintain a sustainable relationship with their target market by meeting their needs and wants profitably.

American Marketing Association (A.M.A) 2005 defined Marketing as “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange”.

1.1 BACKGROUND OF THE STUDY

In other to design a suitable marketing strategy, an outstanding marketing company goes a great length to learn and understand consumers needs, wants and demand in the marketing process. This can be achieve by dividing the market into segments of consumer (market segmentation) and selecting which market should be target (target market) next, the company must decide how it will serve target customer (how it will differentiate and position itself in the market place).

Marketing management can adopt any of the five (5) competing marketing orientations.

The production concept holds that managements task is to improve production efficiency and bring down prices, the product concept holds that consumer will favour products that offer the most quality performance and innovative features. Thus, little promotional effort is required. Selling concept holds that consumers left alone will not buy many of the firms product unless through aggressive promotion effort. The marketing concept holds that the keys to achieving its organization goals consist of a company being more effective than its competitors. The societal concept holds that generating customer satisfaction and long-run societal well-being are the key to both achieving the company’s goals and fulfilling it’s strategies.

The aim of this study is to look into marketing as a whole. The management strategies and all it’s  related functions and company’s goals and objectives. The main focus of this study is to bring out the relationship between marketing strategies and company’s goal.

An appraisal of marketing strategy in a company will ascertain how well, a company is using their company marketing strategies to achieve their company’s goals.

In other to do an indepth study, this research will narrow down it’s scope to that of a well known marketing company.

The Coca-Cola Bottling Company is a very wide industry and well known nation wide in marketing of consumer products.

This research will look into it’s operation as a marketing firm, it marketing strategies and subsequent attainment.

1.2 HISTORICAL BACKGROUND OF COCA-COLA BOTTLING COMPANY NIGERIA PLC ABUJA

The company as a whole came into existence in 1886 at Georgia, United State it was originated as a Soda fountain Beverage in 1886 selling for five cents a glass.

Its early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. Coca-Cola first arrive Nigeria in 1951 that same year, the Nigeria Bottling Company Ltd (NBC) was incorporated to bottle and sell carbonated non-alcoholic beverages.

The Nigeria Bottling Company has a sole franchise to bottle Coca-Cola products in Nigeria. For some decades now, Nigeria Bottling Company has continued on its journey, keeping its promises of refreshing consumers, strengthening its communities, enriching the workplace, and preserving the environment.

In 1953, production of Coca-Cola began as a bottling facility in Ebute-Metta Lagos State, the same year, the company opened it’s first bottling plant in Apapa.

The year Nigeria got her independence (1960), N.B.C exceeded the one million case a year mark. The following year (1961), N.B.C commissioned its second bottling facility at Ibadan, Oyo State and rapidly expanded its operation over the next couple of years.

In 1972, Coca-Cola bottling company listed its shares on the Nigeria stock exchange and became a publicity quoted company. In 1991, Coca-Cola bottling company acquired the Eva premium water and Schweppes brands. In the year 2000 (nine years later), the Coco-Cola bottling company became a member of the newly formed Coca-Cola Hellenic Bottling Company S.A. (an anchor bottling group with operation in 28 countries world wide).

In the year 2001, Coca-Cola bottling company commissioned the first intra-modern fully automated N.B.C. plant in Benin.

In 2003, they lunched the five alive juice brand. In the following year (2004), they launched PET packaging for its sparkling soft drinks categories. In 2006, they launched the energy drink called “Burn”. In 2007, Coca-Cola Bottling Company launched on-the-go-can packaging for core brands Coca-Cola, Fanta and Sprite in 2006.

In 2008, they eventually introduced the more environmentally friendly “ultra” glass packaging for its Returnable Glass Bottle Product segments.

In 2010, Coca-Cola operations stands at 13 facilities and 59 depots across the country. In 2011, the company was recognized for it’s Corporate Social Responsibility activities as “the most socially responsible company in Nigeria” and “most environmental friendly company” at the Social Enterprise Reporting Awards.

Currently, Coca-Cola Bottling Company have established and maintained approximately 800 independent strategic distribution centres across Nigeria. This distribution centres have distribution equipment to reach smaller customers in congested or outlying areas more efficiently.

1.3 STATEMENT OF THE PROBLEM

The importance of effective marketing strategy in an organization cannot be over emphasized. A company’s marketing strategies are to be planned in such a way that it would enable them achieve a sustainable competitive advantage. But the factors that limit marketing strategies are:

1. The inability of the company to design a winning marketing strategies to reach it’s marketing goals.
2. The inability of the company to integrate marketing goals, policies, and action sequencies (tactics) into a cohesive whole.

1.4 OBJECTIVES OF THE STUDY

Below are the following purpose of this research work:

1. To know how to implement effective marketing strategies that will assist companies in reaching their marketing goals.
2. To determine the importance of marketing strategy and how it increases the organizations market share.
3. To examine the extent to which the problem of in-effective marketing strategies in the country have been solved.
4. To determine how to align marketing strategies with organizations goals, policies and action (tactics).
5. To know the various types of marketing strategies available to an organization.

1.5 SIGNIFICANCE OF THE STUDY

The relevance of any research work is tied to finding out solution to the various problems that are facing mankind in his environment or society, The study creates awareness to every business minded citizen of this country and company, on the Appraisal of the Implication of In-effective Marketing Strategies in a company.

The study will also help policy makers to access the performance of companies following the policy arising from them.

This research work will also help the researcher on contemporary issues, have knowledge of the performance of Coca-Cola Nigeria Plc.

Finally, this research work will also serve as a useful material to students who are writing project on marketing strategy.

1.6 SCOPE OF THE STUDY

The study is concerned with an appraisal of marketing strategy as a means to company’s growth, marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive advantage.

1.7 LIMITATION OF THE STUDY

Every research has its own limitation (problem) therefore, the problems that will tend to limit this research work are:

1. FINANCIAL CONSTRAINTS: In the cause of this research work, the researcher might face some certain financial difficulties which will led to the use of few questionnaires in the study. It might also led to the reduction of calls the researcher will tends to make and thus reduce the intensity of the research. Other financial limitation might include high cost of writing and duplication of materials which will be use in the indepth of this study work.
2. RESPONDENTS ATTITUDES: Most respondents might be unwilling to fill the questionnaire as they are of the erroneous view that it brings no benefit to them due to their previous experience and also, they tend to give inaccurate answers.
3. TIME CONSTRAINTS: Time is usually a constraints that affect researchers work. This is because the time frame between the respondents and the researcher might be little. That is to say, as of when the researcher will be free to ask the respondents questions, the respondents might not have the free time to responds to the researchers questions.

 1.8 STATEMENT OF HYPOTHESIS

Hypothesis are statements that will be treated and tested in the chapter four of this study. The hypothesis will either be Ho or Hi.

Ho: Adoption of marketing strategies does not enhance company’s growth.

Hi: Adoption of marketing strategies enhance company’s growth.

1.9 DEFINITION OF TERMS

1. Growth: is the development process or rapid change in a particular situation.
2. Company: is any entity that engages in business company can also be seen as a group of people that come together to achieve a certain goal.
3. Appraisal: the act of examining a particular thing in order to judge their qualities, success, growth or needs.
4. Marketing strategy: is a process that allow a company to focus limited resources on the best opportunity to increase sales, and there-by achieve a sustainable competitive advantage.
5. Marketing: marketing is the set of activities that facilities exchange transactions involving economic goods and services for the ultimate purpose of satisfying human needs (Nwokoye, 1981).
6. Economic Environment: factors that affect consumer buying power and spending habit.

END NOTES

Philip Kotler (2005): Marketing Management (Prentice Hall: New Jersey) Eleventh Edition: Page 306

Philip Kotler and Gary Armstrong (2008): Principles of Marketing (Prentice Hall India): 12^th Edition: Page 16.

Nash L.E. (1995): Direct Marketing Strategy Planning Executor: 3^rd Edition: (New York: MC Hill International).

Stautou, INJ (1987): The Fundamentals of Marketing Aucland  (MC Graw Hill International Book Company Inc.): New York: 5^th Edition: Page 47.

B.B.C and Harper Collins: BBC Dictionary (1992).