CONSUMER PERCEPTION OF PROMOTIONAL STRATEGIES ON STAR LAGER BEER (A STUDY OF STAR MEGA JAM, STAR-TIME-TO-SHINE AND STAR WIN AND SHINE PROMOS)

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ABSTRACT

This work looks at Consumers Perception of Promotional Strategies on Star Lager Beer (A Study of Star Mega Jam, Star-Time-To-Shine and Star Win and Shine Promos). In conducting this study, the researcher used explanatory mixed method design to generate both quantitative and qualitative data using survey and In-depth interview methods. Quantitative data were generated through questionnaire, while qualitative data were generated through in-depth interview. A sample size of 401 was drawn from the residents of Enugu State (3,267,837) using Australian Calculator as provided by the National Statistical Service (NSS). After a thorough analysis, finding revealed that beer consumers in Enugu State were aware of some Star Lager Beer promotions and most of the information about the promotions came from promotion posters and handbills. It was also found that beer consumers in Enugu State were knowledgeable about these Star promotions (Star Mega Jam, Star time to Shine and Win and Win Promos) to some extent and majority of the respondents believe that Star Lager Beer promotions are very good, attractive and show the superiority of the Star brand over others. Finally, it was found that majority of the respondents were influenced to a great extent into patronizing the Star brand. Based on these, it was recommended that Nigerian Breweries PLC should invest more in using posters and sales ambassadors in promoting all its brands. This is because most studies have found these two promotional channels as the most effective.

TABLE OF CONTENTS

Abstract

CHAPTER ONE: INTRODUCTION
1.1       Background of Study
1.2       Statement of Problem
1.3       Objectives of Study
1.4       Research Questions
1.5       Significance of Study
1.6       Scope of Study
1.7       Definition of Terms

CHAPTER TWO: LITERATURE REVIEW
2.1       Focus of Review
2.2       Star Lager Beer Promotions: An Overview
2.3       Influence of Alcohol Advertising on the Awareness and Knowledge of Consumers
2.4       Understanding Consumer Perception and Buying Behaviour
2.5       Theoretical Framework

CHAPTER THREE: RESEARCH METHODOLOGY
3.1       Research Design
3.2       Research Population
3.3       Sample Size
3.4       Sampling Technique
3.5       Sampling Technique for Qualitative Analysis
3.6       Measuring Instrument
3.7       Reliability and Validity of Measuring Instrument
3.8       Method of Data Collection
3.9       Method of Data Analysis
            References

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND RESULTS
4.1       Data Presentation, Analysis and Results
4.2       Discussion of Findings
            References

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1       Summary of Findings
5.2       Conclusion
5.3       Recommendations
Bibliography
APPENDIX

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study
The marketing community is, more than ever before, full of competitions. The growing sophistication of these competitions has brought to the fore the need for every organisation that has a product or service to offer to remain committed to the ideals of modern marketing. This has made business organisations all over the world to now inject innovative and creative marketing plans to beat their competitors in order to remain in the lead. Just as they are in the lead, efforts are also made to ensure that such position is maintained by effectively using the needed marketing mix. This is the case with the brewing industry in Nigeria where all the companies therein do everything to control the brewing market. This is because the market is flooded with different brands of beer begging for loyalty.


Of the four marketing mix of price, product, promotion and place, promotion is indispensable in influencing consumers to patronise a product or a service. Globally, promotion is seen as a “diverse collection of incentive tools, mostly, short term designed to stimulate quicker and/or greater purchase of particular products/services by consumers” (Kotler, 1998). Many scholars have argued that promotion has become a valuable tool for the marketers and importance of it has been increasing rapidly over the past few years (Rizvi & Malik, 2011, p.2). Whenever promotion is mentioned, a lot of things come to mind. In any case, promotion here includes consumer sales promotions, trade promotions and promotions to the sales force. Kanagal, (2014,P.4) asserts that “consumers are more likely to buy in response to coupons, rebates, price packs, samples, cash refunds, premiums, patronage awards, contests, product demonstrations, tie-in promotions, cross promotions, pop displays and warranties”. According to Kotler, Keller, Koshy and Jha (2013, p.5) sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and / or greater purchase of particular product/services by consumers or the trade.

Kotler & Armstrong (2006.p. 342) cited in Umeh (2013, 19) see marketing mix as the 4Ps of product, price, promotion and place that are designed to influence consumer decision-making and lead to profitable exchanges and argue that the promotional strategy used to sell a product is all that really matter. Talking about promotion, Okoro (1998, p.141) insists that promotion is needed in every business activity of an organization to communicate the qualities or merits of its products, services, etc. and to persuade the target market to buy them. Still on promotion, Sindhu (2011, p.1) writes that


promotion decisions are taken simultaneously with other decisions like finding target group, determining objectives, budgeting for promotion, launching of new products, distribution, etc. Promotion is one of the variables through which information regarding products or services is being communicated to customers to change their attitude and behaviour”.

With the need for an effective promotional strategies established, one is concerned about the kind of promotional strategies adopted by Nigeria Breweries Plc to stay ahead of its competitors. This is because the kind of promotional strategies used at every point in time determine to a very large extent, the place of a product in the market (Umeh, 2013, p.14). Little wonder, Okoro (1998, 143) citing Emeagwali (1998,p.11) likened promotional strategy of any company to a war situation where missiles are launched and competitors are expected to react with a war plan. “Indeed, the competition in the market place has become so fierce resulting in promotion clutter and cut-throat actions, giving rise to what has been tagged “promo war” (Okoro, 1998, p.143 citing Emeagwali, 1998). Okoro concluded that “to survive and eventually perform creditably in the environment of stiff competition means that one must evolve a strategy for peak performance”. The fundamental role of promotions has made it a dominant subject in marketing. This is one principle that the Nigerian brewing industry and indeed other sectors understand.

According to Owomoyela, Olasunkanmi and Oyeniyi (2013,p. 1), the Nigerian brewing industry is flooded with many brands of beer, from different breweries such as Nigerian Breweries Plc, Guinness Nigeria Limited, Benue Breweries, Olympic Breweries, Sona Breweries and Consolidated Breweries and the consumer is spoilt for choice with the abundance of different brands of beer in the market. This has made it pertinent for these companies to engage in different marketing activities in order to remain firmly in business. Of all these brewing companies, Nigerian Breweries Plc and Guinness Nigeria Limited are the major rivals.

Guinness Nigeria Limited as the major competitor of Nigerian Breweries Plc has always put up challenging marketing activities to beat its rival, the Nigerian Breweries Plc. With this, Nigerian Breweries Plc is therefore faced with the continuous task of determining what customers’ preference is and what marketing strategy is needed to keep them. In most cases, the company is also concerned with how to increase purchase by winning prospective consumers to their brands. To achieve these, there must be a conscious effort to engage the four marketing Ps (Price, Product, Promotion and Place) especially promotion.

Since Nigerian Breweries PLC came into full operation in Nigeria in 1949, it has designed and implemented quite a number of promotional strategies to bring to the notice of every Nigerian that they are in the market and to influence buying behaviour. This, Umeh (2013, p.15) confirmed, has been very successful. As the pioneer brewery company in Nigeria, quite a lot has been put in place in the way of promotion to sustain its customers and at the same time expand its market. Nigeria Breweries Plc carry out sales promotion in two ways, namely: consumer sales Promotions targeted at the members of the marketing channel, such as wholesalers and retailers. Within the last ten years alone, the company has developed and executed several promotions such as Guilder


Max Brand promo, Gulder Ultimate Search, Maltina Dance All, Amstel Malta Box Office.....

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