AN ASSESSMENT OF PRICING STRATEGIES FOR NEW PRODUCT IN A COMPETITIVE MARKET IN ABUJA FCT

AN ASSESSMENT OF PRICING STRATEGIES FOR NEW PRODUCT IN A COMPETITIVE MARKET IN ABUJA FCT

(A case study of Airtel Abuja)

ABSTRACT

This research work was based on an assessment of pricing strategies for new product in a competitive market in Abuja FCT” (a case study of AirtelAbuja),was picked to serve as a sample for the population in the course of the research.Scope and limitation and the terms were designed. In chapter two, marketing strategies designed levels of planning the marketing strategies were explained. The marketing mix, marketing environment, have been examined with the summary of literature review. Chapter three shows research designs and methodology, source of data questionnaire design, the population and sample and the questionnaire that are distributed and collected. Chapter four contains data presentation and analysis as well as a reasonable conclusion after which source and useful recommendations were suggested. The researcher used questionnaire method to obtain information, organize the research work in five (5) chapters. The Chi-square method was used to analyze the necessary data obtained from the questionnaire returned. Adequate suggestions and recommendations were made.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

Pricing is one of the most important tools among the 4ps of marketing. It is one of the elements that generate revenue. Therefore, it has to be handled with care since all other piece depends on the sales revenue. Authors in various field of study defines pricing as the amount for which a product, service or ideas is offered for sale regardless of its worth or value to potential buyers. Pricing has been traditionally considered a “me too” available in developing marketing strategies (price is often on e of the most visible element of the firms marketing mix). Potential buyers of some products promotional message product quality or other product features. One of the marketing management’s mean responsibilities is to establishing a price level for brands or product lines with the context of a dynamic pricing strategy (price are based on cost and companies must do all the traditional way of setting the prices).

The prices of any goods of any goods or services are based on the law of demand which states that price reducing generates demand increase and price management demand increase, and price generates demands. Reduction however, it should be noted that not all products display this traditional relationship in some product they reverse it.

1.1     STATEMENT OF THE PROBLEMS

Introducing a new product into a market by any organization in the counterpart and other organization have its own problem in the business circle. Some of these problems are as follows:

POLICY: When pricing a product or services, the firms must observe the general minimum price laws to its types of business. The law sometimes limits an organization opportunity in utilizing its own price strategies.

INFLATION: Inflation is another factor in determining the pricing company’s strategies. The price of goods and services are no longer stable because of inflation; because of this, prediction of future market position becomes difficult.

LAW OF DEMAND AND SUPPLY: The law of demand and supply constitutes a problem to a company in setting its pricing strategies. Hence it states that the higher the price of a product or services the lower the quantity will be bought of that product vice-versa. In these circumstances the law of demand forces the company to set a price that consumers can afford due to the fear that consumer will turn their buying effort to their competitors. Hence, penetrating pricing strategies is the only alternative to be practiced in the market. Economic instability also serves as a problem in setting a price for a commodity. Strategies used to be unstable because of this instability in our economic conditions.

1.2     OBJECTIVES OF THE STUDY

The general objective of this work is to make a detailed analysis and appraisal of the pricing strategies for new products in a competitive market using Airtel Nigeria as the area of study. The objectives of the study include but not limited to; 
1.    To determine the effect of price development strategy on the performance of an organization. 
2.    To determine the extent to which product development and improvement of existing products affects performance of an organization.

1.3     RESEARCH QUESTIONS 

1. Does price development strategy have effect on the performance of an organization?

2. To what extent does price development and improving existing product affect performance of an organization?

3. Does your competition hinder price development?

1.4     STATEMENT OF THE HYPOTHESIS          

H0: Price development strategy has no effect on the performance of an organization.    

H1:  Price development strategy has effect on the performance of an organization.   

1.5     SIGNIFICANCE OF THE STUDY

The project work is necessary in order to know the significance in the pricing strategies for a new product in a completion. It is to focus on the activation of Airtel in the regulative of an effective communication in an organization, firms and ministries etc the Nigerian Airtel and all other business organizations would derive great benefits from this research work. It will assist existing communication organizations to solve or put an end to the problems caused by poor communication or poor network at their disposal. Furthermore, the government and the public sector will find this project very useful in maintaining a perfect pattern of communication design to maintain the day to day running of the sector.

1.6     SCOPE OF THE STUDY     

The study is limited to an assessment of pricing strategies for new product in a competitive market in Abuja FCT.   

1.7      LIMITATIONS OF THE STUDY 
           In the course of carrying out this essay, certain factors militated against the

smooth operation of the work. The exercise was greatly limited due to some of these factors include: 
–       Lack of funds 
–       Time constraints 
–       Inadequate research materials to collect data such as textbooks, journals, magazines  

1.8     OPERATIONAL DEFINITION OF TERMS

PRICE:Is the value of product expressed in terms of naira and kobo.

PRICING: The act of translating into quantitative terms (naira and kobo) the value of a product to customer at a point in time

SKIMMING STRATEGY: Is a kind of marketing strategy where the producer has a higher price and a higher promotion.

PENETRATION STRATEGY: Is where the producer fixed  a low price and a higher promotion. PRODUCT: a is define as something that is capable of satisfying a customer’s need or wants. It may be tangible or intangible.

PRODUCT MIX: This is the composition of products offered  for sale by a given firm or business unit.

PRODUCT LINE: This is a group of products that are closely related either because they satisfy a class in need, they are used together and they are sold to the customers group, marketed through the same market outlet or falls within the same price range.

PRODUCT MANAGEMENT:The manipulation of products to satisfy a given target customers is known as project management.

APPRAISAL OF BRANDING AS COMPETITIVE TOOL IN MARKETING OF CONSUMER PRODUCT

APPRAISAL OF BRANDING AS COMPETITIVE TOOL IN MARKETING OF CONSUMER PRODUCT

(A case study of Globacom Communication Network Abuja)

ABSTRACT

This project work highlights the importance of branding to any organization. Brand and effective brand management are integral part of the strategic marketing management. The role of brands and branding toward corporate performance and customer satisfaction has been variously researched. Branding today, as a marketing tool has been recognized as a source of sustainable strategic competitive advantage tool in the organization. No wonder those organizations that have formulated and implemented strategic brand practicing are more successful and profitable than those that have not. In today’s hyper competitive knowledge driven economy characterized with consumer sophistication, the need for organizations to adopt strategically different approaches and method that will radically differentiate them from the competition in term of product, services, practice, structure, system, procedure among others. The study is quantitative in nature, and adopted a survey descriptive approach with the use of questionnaire.The study concluded and recommended that organizations should invest in effective branding to enable the organization the ability of enhancing their position in the competitive industry.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

In the manufacturing industry today, a lot of importance is attached to branding and packaging for its significant role in the sale of a product. Branding can create a competitive advantage in the market and increase the products chance of success (Dewalski, 2008, Plant and Veryzer 2005). According to Chang and Wu 2007, the appearance of a produce communicates and this helps consumers to assess the product before they buy.

In developing a strategy for a product, the seller has to confront the branding being expert because of the major role it plays in the product strategy. Distributors need branding as a means of identifying super quality standard and increasing buyer’s preference. Branding is one of the major marketing concept and process which has been accepted as a useful tool for differentiating one firm product from another, makes it easier for individuals or customer to identify product of different customer from another.

Brand name influencescustomer’s attitude towards product which always affect their purchasing decision. The main of brands are to serve as guide to quality and encourage a repeating purchase and help in easy purchase. In Nigeria, a good product brand name assists the firm to sell with less difficulty. In the manufacturing industry today, a lot of importance has been attached to branding and packaging for its significant role in the sale of the product. Consumers need brand names to help them identify different shop efficiency.

1.1     STATEMENT OF THE PROBLEM

The main problem of this research work is that many companies fail to understand the functions and influence of branding which serves as competitive tool in marketing of consumer product. This problem has led to the poor acceptance of their product and for this reason, they hardly achieve their paramount aim and objective.

1.2     OBJECTIVE OF THE STUDY

          The objectives of the study are:

1. How branding can be used as a strategic tool in competitive market.
2. To determine the effect of poor branding on product.
3. To investigate the influence of branding on target customers.
4. To evaluate the impact of branding in an organization.
5. To identify the relevance of proper management of branding on marketing of consumer product.

1.3     RESEARCH QUESTIONS

          The following are the research questions:

1. What are the effects of competitive market on your organization?
2. Does poor branding of your product undermine its significance?
3. Does proper management of branding hamper the marketing of consumer product?
4. Is branding an instrument that influences the target consumer?

1.4     STATEMENT OF HYPOTHESIS

Hypothesis is a tentative preposition used as a solution to solve a problem. They are of two types namely: Null hypothesis and Alternative hypothesis.

          Ho: Poor branding of a particular product undermines its significance.

Hi: Poor branding of a particular product does not undermine its significance.  

1.5     SIGNIFICANCE OF THE STUDY

The importance and usefulness of this kind of research work cannot over        emphasized the user of this research work can be categorized in to the following:

The student, who do the research will learn a great deal which as a secondary source, also into importance to the manager of a companies who will gain a lot from the research. It hope that the recommendation made in this research work will facilitate the improvement of the existing system. Finally, the work will be useful to the library which keep the work in their references section for the benefit of users like students, lecturers etc.

1.6    SCOPE OF THE STUDY

The study mainly involved appraised of branding as a competition tool in marketing of consumer product with particular references to Globacom Communication Network in Abuja.

1.7     LIMITATION OF THE STUDY

There are many constraints and factors that were encountered by the research during the research work. The prominent once are:

1. Financial Constraints: The cost of materials necessary to aid in carrying the research are very expensive, a lot of field work ought to have been done, but for inadequate finance, a limited coverage of the company understudy was embark upon.
2. Time Constraints: Lack of time contributed greatly affected the quality of work, the academic session very short and the time given to submit the project work also short. Most of the information needed by the researcher in that information needed by the researcher in that company was not accessible for the sole reason of short notice. The study is limited to Abuja bottling company or plant because of time constraint.
3. Biased Response: Biased response by the respondent was a problem encountered by the research when collecting data.

1.8    OPERATIONAL DEFINITION OF TERMS

For the purpose of good understanding of this research work, time has been taken to enumerate some of the unfamiliar terms that have been used. It will help the reader for a better understanding of this topic.

Brand: A name, term sign symbol, or design or a combination of them intended in identity the goods or service of one seller or group of sellers and to differentiate them from those of competitions.

Branding:  Is a general term describing the establishing of brand name mark or brand name or trade name of a product.

Brand Name: Is a group of words or a word that can be vocalized or spoken that help to identify, facilitate, recognize and differentiate product from that of the competitors.

Brand Mark: Is a part of the brand which can be recognized but not alterable as symbol, design, or lettering colouring etc.

Copy Right: It refers to exclusive legal right to reproduce, publish and soles the matters, things or object inform of literary, musical etc.

Legal Right: This mean that firms competing within the same market are not allowed using similar brand name exclusively preserved by the law.

Trade Mark: Is a brand or part a brand that is given legal protection because it is capable of exclusive approbation or trade mark is a legal right to use the brand name or brand mark.

Packaging: Is the activity of designing and producing the container or wrapper for a product.

Brand Mix: Is the set of all brand lines that a particular seller make available to buyers.

Logos: Is a unique graphic or symbol that represents a company’s product, service or entity. It represents an organization very well and makes the customers well acquainted with the company.

Brand Identity: Is the total proposed promise that an organization makes to consumers or brand identity is all that an organization wants the brand to be considered as.

Brand   Image: It can be defined as a unique bundle of association which in the minds of target customers. It signifies what that brand presently stands for. It is a set of beliefs held about a specific brand.