A STUDY OF PRODUCT BRANDING ON CONSUMER BEHAVIOUR

A STUDY OF PRODUCT BRANDING ON CONSUMER BEHAVIOUR

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

ABSTRACT

This project a study of product branding on consumer behavior a case study of Nigeria Bottling Company Limited (Coca-Cola) Abuja is aimed at examining the impact of product branding on consumer behaviour with special interest in Nigeria Bottling Company, Abuja. This study is guided by the following specific objectives: To determine the impact of product branding on consumer behavior, to determine whether there is a relationship between consumer’s perception of a product brand and his or her purchase. to evaluate the effects of product branding on organizational performance and profitability and to identify various problems associated with product branding. Data were collected through the administration of questionnaires to some management and production staff of Nigerian bottling company (coca-cola) Abuja. The researcher make use of tables, descriptive statistics and chi-square to present and analyze the data. The researcher conclude that most of the activities or concepts concerning branding techniques are highly practiced and impact positively on consumer behaviour as result in more sales. Lastly, the chapter five which summarize, conclude, and recommend on the general findings of the research work.

CHAPTER ONE

1.0     INTRODUCTION

 The purchasing process is a combination of mental and physical activities that ends with an actual purchase almost daily (Sheth & Mittal 2004) Therefore it is interesting to study the connection within “what we buy” and “why we buy it”. In this circumstance, product brands play a leading role in consumer behaviour. There are many factors or attributes of consumers effecting their view and decisions.

In today’s increasing competitive marketplace, Consumers differ in their perceptions; they would necessarily hold different images for any specific brand and often have to make a choice among a range of products or brands in the market that differ very little in its price or function. In such circumstances, their final decision depends on the image they associate with different brands.

Product branding has been an important concept in consumer behaviour research and is a crucial factor influencing the consumer behaviour towards purchasing of any product especially in the aspect of soft drinks and beverages. Keller (1997) demonstrates that the product brand is essential in apparel purchase behaviour because it impacts consumers’ preferences and purchase intentions as well as their willingness to pay a premium price and recommend the brand to others. Thus, when consumers hold a strong and constructive brand image, they will be more likely to evaluate the apparel product positively, regardless of price.

1.1     BACKGROUND OF THE STUDY

Product brand represents product image, quality or value. Brand influences the buyer in making his buying decisions and reduces his searching time in finding products with desired features. A brand generally suggests that quality and standard of the product. Thus, it helps a consumer in purchasing a good quality product. (Aaker, 2014).

Product brands also have a symbolic value which helps the people to choose the best product according to their need and satisfaction. Usually people do not buy certain brands just for design and requirement, but also in an attempt to enhance their self esteem in the society (Leslie and Malcolm, 2012).

Product brand names present many things about a product and give number of information about it to the customers and also tell the customer or potential buyer what the product means to them. Furthermore it represents the customers’ convenient summary like their feelings, knowledge and experiences with the product brand. More over customer do not spend much time to find out about the product.  When customer considers about the purchase they evaluate the product immediately by reconstructed product from memory and cued by the brand name (Hansen and Christensen, 2003).

Product Brand plays a very important role in the consumer behaviour with regards decision making processes. It is really important for companies to find out consumer behaviour and identify the conditions, which consumer applies while making decision (Cravens and Piercy, 2003).

Marketers are highly concerned to know how brand names influence the customer purchase decision. Why customers purchase a particular brand also implies how customers decide what to buy. Customers follow the sequence of steps in decision process to purchase a specific product. They start by realizing a requirement of product, get information, identify & evaluate alternative products and finally decide to purchase a product from a specific brand. When customers purchase particular brand frequently, he or she uses his or her past experience about that product brand regarding performance, quality and aesthetic appeal (Keller, 2008).

Ramasamy (2005) reported that, the consumer behaviour is vastly influenced by awareness and attitude towards the product. Commercial advertisements over television was said to be the most important source of information, followed by displays in retail outlets. Consumers do build opinion about a brand on the basis of which various product features play an important role in decision making process.

Today’s business environment is highly competitive and rapidly changing. Therefore if firm wants to succeed in its goals it has to do a continuous observation of the consumer behavior and their preference because consumers are the kings in the business world.

In earlier days soft drinks market in Nigeria was thin and had few varieties of soft drinks such as Coca Cola and very few local unknown brand. But nowadays it is changed inversely and grown over time. Today soft drink has become a vital daily usage which no one can avoid. The usage differs according to age, sex, income, culture, and different models, different taste, different customer’s style, different volume, and different smell, different verities of product which are available in the present market. It is therefore, important for the consumer who is described as the ‘King’ in a competitive marketing environment to identify those factors, which influence their buying behavior.

 1.2     HISTORICAL BACKGROUND OF THE CASE STUDY

Nigeria Bottling Company (NBC) plc is one of the few multinational organizations that had its beginning in Nigeria from a small family owned operation at inception. They are the predominant bottler of alcohol free beverages in Nigeria, responsible for the manufacture and sales coca cola brands.

The Nigerian Bottling Company (NBC) Plc was founded and incorporated in November 1951, as a subsidiary of the A.G Leventis Group with the franchise to bottle and sell coca cola products in Nigeria.

Production began in 1953 at a bottling facility in Iddo, Ebute metta, Lagos which also serves as its headquarters. Over the years production capacity has grown and NBC operates eleven (11) production plants and eight (80) distribution warehouses (depots) located across the country with over 1.8 billion bottles sold per year, making it the second largest market in Africa.

The Nigeria Bottling Company Abuja plant is located in Abuja the Federal Capital Territory and started operation since 2006. The plant produces Coca-Cola, Fanta, Sprite and Schweppes and also distributes all product categories.

The Abuja Plant services Federal Capital Territory, Niger State, Nasarawa State, Kogi, and its surrounding towns.

The Nigeria Bottling Company has achieved greatly in terms of pace setting and innovative practices which includes:-

1. The first soft drink company to use standardized distribution bottles
2. First to use special tracts decorated in company’s logo and colour.

• First to use in-route system of distribution

1. Established the first carbon dioxide plant in 1958

From the 1990’s till date the Nigeria bottling company (NBC) has created new innovations as regards their bottling packaging and introduction of new products such as fanta pineapple, fanta lemon, different brands of five alive such as the atoms burst and strawberry flavour.

In conclusion, the success of the Coca-cola Nigeria Bottling company depend on their well known powerful brand name which have greatly uplifted the name of the organization to be known all over the country through their quality products.

1.3     STATEMENT OF THE RESEARCH PROBLEMS

The bottling company market is a very competitive one where different brands are produced targeted towards catching the attention of would-be buyers and consumers with similar products.

Over the years, because of the way products flooded market, consumers are left with no choice to consider choosing a particular brand, hence putting some factors into consideration which affects his purchasing behavior.

It is on this background that this research is aimed at, looking at how product branding has effect on consumer behavior to bring about continuous purchase of that brand. This is what the research, is set to find out.

1.4     OBJECTIVES OF THE STUDY

The general objective of this study is to have an in-depth study of the impact of product branding on consumer behaviour with special interest in Nigeria Bottling Company, Abuja Plant. This study is guided by the following specific objectives.

1. To determine the impact of product branding on consumer behaviour
2. To determine whether there is a relationship between consumer’s perception of a product brand and his or her purchase.
3. To evaluate the effects of product branding on organizational performance and profitability
4. To identify various problems associated with product branding in Nigeria bottling Company, Abuja plant.

1.5     RESEARCH QUESTIONS

The following research questions were designed to guide the study.

1. What are the impact of product branding on consumer behaviour?
2. What is the relationship between consumer’s perception of a product brand and his or her purchase?
3. Does product branding have any effects on organizational performance and profitability?
4. What are the various problems associated with product branding in Nigeria Bottling Company, Abuja plant?

     

1.6     RESEARCH HYPOTHESIS

The following are the hypothesis formulated in line with the aims and objective of this research:

Hypothesis One

H₀: Product branding has no effects on consumer’s behaviour and organizational performance and profitability.

H₁: Product branding has effects on consumer’s behaviour and organizational performance and profitability.

Hypothesis Two                               

H₀: There is no significant relationship between consumer’s perception of a product brand and his or her purchase.

H₁: There is significant relationship between consumer’s perception of a product brand and his or her purchase.

1.7     SIGNIFICANCE OF THE STUDY

This study is of immense importance in the scene that it intends to study the effects of product branding on consumer’s behaviour. The result of this study with be of immense importance to the marketing departments, marketing managers, marketers and sales force of Nigeria Bottling company as it will educate them on the importance of product branding and its effect on organizational performance and profitability.

The results of the study will provide a benchmark that can be used in assessing the effectiveness of the implementation of product branding and how it affects consumer buying behaviour.

The research will also be very significant to researchers, students, and others who intend to carry out further research on a similar topic.

1.8     SCOPE AND LIMITATION OF THE STUDY

The scope of this research is limited to Nigeria Bottling Company Abuja Branch and is specifically to study the impact of product branding on consumer behaviour. This research is limited to the above scope because of setting limitations which hinders the researcher from expanding the scope of the study beyond Nigeria Bottling Company Abuja to branches of the company and Nigeria beverages industry at large. Such limitations are outline below:

1. Time: The researcher has a limited time to carry out this research, since there is no time set aside for writing this project, the researcher has to combine the writing of the project with normal academic work and other commitment in the academic environment.
2. Finance: Finance hinder the researcher from expanding the scope of this study by the Nigeria Bottling company Abuja as this will involve more money which is not at the disposal of the researcher.
3. Lack of adequate materials: Another limitation arises from inadequate research materials and uncooperative attitude of the respondents to attend to the researchers request.

1.9     DEFINITION OF TERMS

Brand: – A brand is a name, combination of those elements which is Intended to identify the goods and services of a producer from those of Competitors.

Brand Name: – A brand name consists of words, letters and or numbers that can be vocalized and letter able e.g. NASCO, AP, chevron etc.

Brand Mark: – This is the part of the brand that can be recognized by Sight but not utterable. It appears in from of symbol, design, coloring or Lettering e.g. red, star of petroleum products, umbrella of PDF, Maize of ANPP etc.

Trade Mark: – This is a brand or its part that is given legal production. A trade mark provides sellers exclusive right to use the brand name and or brand mark.

Generic: – They are unbranded, plainly packed, less expensive version of common product purchased in market.

Competitors: – In business terms; competitor is a person who sells or produces the same product with his opponent. They can also be called business rivals.

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