ABSTRACT
This research was
concerned with the incident of Brand loyalty among the consumer of cereal foods
in Enugu metropolis, using Phinomar Foods in Enugu as case study. Given the
background of the problems the study sought to know the existence and extent of
brand loyalty among consumers of cereal foods, to determine the influence of
prices of the products on brand loyalty, whether consumers perception of the
attributes of the cereal foods influence brand loyalty for particular brands
and such attributes includes thing as taste, Milk content sugar content
dissolvability and nutritional value and finally to ascertain the extent
company image and brand name influence brand loyalty. All the same, this study
was restricted to six popular brands namely; Cornflakes, Golden morn Soy pops,
Cocopops, White oat and Fruit Fiber.
Further, among the
objectives and significance of study was to investigate the existence of brands
loyalty among consumers of cereal foods and to find possible solutions to the
problems identified.
This work was
accomplished through the use of questionnaire oral interview, revision of
previous work by different authors and the use of Top man’s formula to
determine the sample size (288) and analyzed the findings by the use of Z-test
method. At the end of the work it was discovered that consumers are to a
reasonal extent loyal to particular brand, price, quality, products attributes,
company’s brand name and image exert a significant influence on the loyalty of
consumers. Also consumers have basic expectations in their favorite brands and
are not naïve as advertisers would want us to believe. The orders of importance
of the attributes to consumers are as follows: Nutritional value, Milk content,
Taste Dissolvability and Sugar content. Based on the findings it was
recommended that companies should focus on product quality and integrated
marketing communication (IMC) on popular already existing brand names in the
market. This will help sustainability of consumers’ loyalty.
|
TABLE OF CONTENTS |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHAPTER ONE |
|
|
|
|
|
|
|
|
1.0 Introduction:
- |
|
|
|
|
|
|
|
1.1 |
Background
of study: |
|
|
|
|
|
|
||
1.2 |
Statement
of problem: |
|
|
|
|
|
|
||
1.3 |
Objectives
of the study: |
|
|
|
|
|
|
||
1.4 |
Research
questions: - |
|
|
|
|
|
|
||
1.5 |
Hypothesis: |
- |
- |
|
|
|
|
|
|
1.6 |
Scope
of the study: |
- |
|
|
|
|
|
|
|
1.7 |
Significance
of the study: |
|
|
|
|
|
|
||
1.8 |
Limitations: |
- |
- |
|
|
|
|
|
|
1.9 |
Operational
definition of Terms: |
|
|
|
|
|
|||
|
References |
|
|
|
|
|
|
|
|
CHAPTER TWO |
|
|
|
|
|
|
|
Literature Review |
|
|
|
|
|
|
|
2.0 |
Review
of Related Literature: |
|
|
|
|
|
|
2.1 |
Purchase
decision making: A choice not change- |
|
|
||||
2.2 |
Habit
purchase and Brand loyalty: |
|
|
|
|
||
2.3 |
Models
of Consumer Behavior and: |
|
|
|
|
||
|
consumer
learning |
|
|
|
|
|
|
2.3.1 The
Marshallian (Economic) Model: |
|
|
|
|
|||
2.3.2 |
The Pavlovian (Learning) Model: - |
|
|
|
|
||
2.3.3 |
The
ferudian (Psychoanalytic) Model: |
|
|
|
|
||
2.3.4 Contingency
Approach: |
|
|
|
|
|
|
|
2.4.5 Theoretical
Framework: |
|
|
|
|
|
|
|
|
References |
|
|
|
|
|
|
CHAPTER THREE |
|
|
|
|
|
|
|
Methodology |
|
|
|
|
|
|
|
3.1 |
Research
design: - |
|
|
|
|
|
|
3.2 |
Source
of data collection: |
|
|
|
|
|
|
3.2.1 |
The
primary source: - |
|
|
|
|
|
|
3.2.2 |
The
secondary source: |
|
|
|
|
|
|
3.3 |
Research
Instruments: |
|
|
|
|
|
|
||
3.4 |
Population
and simple size determination: |
|
|
|
|||||
3.4.1 Population: |
|
|
|
|
|
|
|
|
|
3.4.2 |
Determination
of simple size: |
|
|
|
|
|
|||
CHAPTER FOUR |
|
|
|
|
|
|
|
|
|
4.1 |
Method
of Distribution: |
- |
|
|
|
|
|
||
4.2 |
Presentation
Analysis: |
- |
|
|
|
|
|
||
4.3 |
Test
of Hypothesis: - |
- |
|
|
|
|
|
||
CHAPTER FIVE |
|
|
|
|
|
|
|
|
|
Summary of Findings, Conclusion and Recommendation |
|
|
|||||||
5.1 |
Summary
of Findings: |
|
|
|
|
|
|
||
5.2 |
Conclusion: |
- |
|
|
|
|
|
|
|
5.3 |
Recommendation: |
|
|
|
|
|
|
|
|
|
Bibliography |
|
|
|
|
|
|
|
|
Appendix
Questionnaire
CHAPTER ONE
1. BACKGROUND OF STUDY
Human behaviour is
enormously varied and very complex and is predicted on attitude, learning and
habit. Consumers learn from past experience and future behaviour is conditioned
by such learning. Marketers, the world over differ considerably in their
prediction of human behaviour.
The whole marketing
effort is generally centered on the consumers. This is implied in the marketing
concept echoed by most markets which is consumer satisfaction at a profit as
the basis for successful marketing. In their varied description of consumers as
Theodore Levit (1960) puts it, some people described consumers as
unpredictable, varied, fickle, stupid, shortsighted, stubborn and generally
bothersome.
This does not however,
in any way make the consumers less important. Therefore the consumer is still
of utmost consideration in the planning of the marketing mix or any other
marketing effort. Product branding is one of such marketing effort. Products
are branded for many reasons, one of which is identification of the products.
Today most of the products are purchased under some particular brand. This
contrast with what obtained when products were once considered simply as
commodities in the early days of marketing. Commodities or goods are
differentiated only by their uses and not by their suppliers. Today’s marketers
recognize that the total product is greater than simply the physical good
itself and believe that all goods and service can be distinguished by their own
unique qualities.
A products brand carries
good deal of information, reducing or eliminating the need to find out about a
product before buying it. Consumers confronted with a familiars brand have
information about the products images as promoted by the company. Even products
that are very similar are now considered distinguishable by brand. Consumer’s
perceptions of different brands of various product categories determine to a
large extent their buying pattern. However O’Shaughnessy, John (1988) comments
on the above claim that “different brands bought at different times could
reflect different occasions, temporary changes in taste or family or wants
rather than picking from a repertoire of brands with indifference as to which
brand is bought. Complete acceptance of what O’shaushnessy advanced is
accepting that their is no brand loyalty.
If indeed, there is no
brand loyalty, in the buying pattern of consumers, then one of the main purpose
of branding is defeated.
Other researchers are of
the view that consumers gain experience in purchasing and consuming products,
they learn what brands they like and do not like and the features they like
most in particular brands. The consumers adjust purchase behaviors based on
past experience. The existence of brand loyalty among consumers of a product or
non-existence of it thereof could depend on the extent of consumers covered,
the product under consideration and the approach employed in the search for
this important consideration is product marketing.
This study seeks to find
out the existence or non existence of brand loyalty among the consumer of
cereal foods. The researcher is aware of the fact that brand loyalty is an
exhibition of consumer’s attitude to products which is some what difficult to
measure. However it is believed that just as David Relbstein (1985) puts it,
the buying pattern of the product, and the proportion of purchase a particular
brand bought are indications of brand loyalty.
1. STATEMENT OF PROBLEM
The cereal foods industry in the country is experiencing a
continuous increase in the number of brands competing for consumers income.
From the record of importation of white oat, fruit and fiber in the early
sixties as the only food cereals in the country, there has been a continual
increase in the number of cereal foods in the country. Today there are no less
than six different brands of cereal foods available in the market. In those
early days the beverage market was the seller’s market. Initially it was white
oat is the leading brand. But because it was imported as a wholly finished
product, it lost its position to corn flakes following the ban placed on the
importation of beverages at the beginning of the Nigeria Civil war in 1967.
Corn flakes, the product
of NASCO foods Nigeria PLC, dominated the market for a long time. Consumers
were multiplying, buying more of the brand. However, more firms have continued
to enter the market with local plants each producing different brands of
instant cereal foods. It is therefore unrealistic for any company to rest on a
mere assumption of market leadership without considering the changing market
share.
In today’s factored market place, things like branding products
and markets share for instance no longer guarantee loyal customer. In one case
after another, the old established brands have been supplemented by the rise of
other brands. No single company can claim largest share of any product market
in a competitive environment. These days, the idea of market share is a trap
that can lull business people into a false sense of security. Managers should
wake up every morning uncertain about the market place because it is invariably
changing.
Companies should however
not be caught in the excitement of selling things just to increase their market
share. As Regis Mckenna (1991) puts its, the real goal of marketing is to own
the market, not just to make or sell products. Smart marketing means defining
what of the whole pie is yours. This is not just an issue of defining your market
share. The company should rather be sure what share of the market is loyal to
their product(s). Stopping at the idea of market share “turns marketing into an
expensive fight over crumbs rather than a smart effort to own the whole pie.
Owning the market demands some responsibilities such as bringing into your camp
third parties who want to develop their own products, or offer new features or
add-ons to argument your product. You get the first look at new ideas that
others are testing in the market, you attract the most talented people because
of your acknowledge leadership position. This is why it has become necessary to
investigate the existence or otherwise of brand loyalty among the consumers of
cereal foods drink in Enugu metropolis.
1. OBJECTIVES OF THE STUDY
The research is
basically directed towards the investigation of an existence of brand loyalty
among consumers of cereal foods. To this end, therefore, the objectives of the
study are to seek and possibly find solutions to the problems identified above,
the extent and basis of consumer loyalty.
1. To determine the existence and extent of brand
loyalty among consumers of cereal foods drinks.
1. To determine the influence of price of the
products on brand loyalty.
1. To determine the extent consumers perception of
the attributes of the cereal food drinks influence brand loyalty for particular
brands. Attributes includes such things are:
·
Milk content
·
Sugar content
·
Dissolvability
·
Nutritional value
1. To ascertain the extent company image and brand
name influence brand loyalty.
1. RESEARCH QUESTIONS
Based on the research
objectives, we shall face with the following questions:
1. Does the consumer of cereal foods drink in Enugu
metropolis loyal to particular brands?
1. To what extent does price of the brands
influence loyalty to a particular brand?
1. Does consumers’ perception of attributes or
quality of the brands influence loyalty?
1. What roles does company image and brand name
play in the promotion of loyalty to particular brands?
1. HYPOTHESIS
The rationale behind
this research was to determine the existence of brand loyalty among consumers
of cereal foods in Enugu metropolis. For this reason, therefore the following
hypotheses were made.
1. Hi: Consumers of cereal foods are not loyal to
particular brands.
1. loyalty.
Hi: price is not an important
influence in the choice product brand loyalty to consumers’ loyalty to
particular brands.
Hi: Company image and brand
name do not contribute significantly to consumers’ loyalty to particular
brands.
1. have significant impact on brand loyalty.
Hi: Consumers perceptions of
the quality of the food drinks have no significant impact on brand loyalty.
1. SCOPE OF THE STUDY
This study is restricted
to Enugu metropolis in Enugu State of Nigeria. The surrounding cities are
(Uwani, Abakpa, Coal Camp, Achara-Layout, Awkunanaw, Trans Ekulu,
Independent-Layout and Iva Valley). The rational was that Enugu was the capital
of the defunct Eastern Region which accounted for a substantial population of
the food drink market in Nigeria. Now the capital of Enugu State it is still
very populous because its cosmopolitan nature.
This strategic position
of Enugu Metropolis in Eastern Nigeria is a fair basis for moderate
generalizations of the findings of this study for the Nigeria cereal foods
market. Nevertheless, brands of cereal food drinks covered include:
1. Corn Flakes
1. Golden mourn
2. Soy pops
1. Coco pops
1. White (quicker) oats
1. Fruit & Fiber.
1. SIGNIFICANCE OF THE STUDY
The percentage of
consumers of cereal foods continues to drop as the economy becomes tougher and
general financial melt down continue to
increase the poor performance of companies. Brand loyalty
therefore becomes important in the managerial areas of marketing mix and market
research. This study will therefore be of immense significance to firms in the
industry in the area of manipulation of their market share, price changes of
products, investment in research and development and improvement on the quality
of the products.
the various positions of
the brands in the perception of the consumers will emerge and enable them to
assess their relative position as leaders, followers and niches in the industry.
The study will also be
of great benefit to the advertising agencies, the print and electronic media
whose input in the promotion of those products depends so much in the market
position of the product.
Also to benefit from
this study are companies seeking to introduce new products. With the
identification of existence of brand loyalty or not among consumers and the
factors contributing to it, the company can now find out a suitable unique
selling proposition (USP) to use and appeal to their desired target market.
This will also enable them decide whether to enter the market competing with
the leaders, challengers, or be a follower or even niches in the industry.
Finally the study will also be of great benefit to distributors and retailers
who will be opportune to know the popular brands by the consumer’s assessment
and take advantage of it in stocking their inventory.
1. OPERATIONAL DEFINITION OF TERMS
·
CEREAL
FOODS:
These are all members of the monocotyledonous
family grain crops such as maize, wheat barley, rice, oats, rye and sorghum.
·
METROPOLIS:
Major or chief city of a state or country in
other words a capital.
·
COSMOPOLITAN:
·
CONSUMERS:
These are people who make use of the
product directly.
·
BRAND:
A term use to differentiate or identify a
product from the same product class.
·
BRAND
Loyalty
This implies continuous patronage or
consummation of a particular product all the time. It gives sellers some
protection from competition and greater control planning their marketing mix.
·
CITY
This implies a concentration of people in a
geographic area who can support themselves from the city’s economic activities
on a fairly permanent basis.
Department | Marketing |
Project ID Code | MKT0002 |
Chapters | 5 Chapters |
No of Pages | 121 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
|
Contact Us On | +2347043069458 |