This study was carried out to ascertain consumer perception
towards leading brands of beverage produced by the Nigerian Breweries Plc and
how branding can be used by brewers as a marketing tool to increase or boost
I employed a combination of tabulations and weightings to arrive
and consumer ratings of brands.
The result showed that taste and flavour emerged as the most important
attribute to respondents in the research sample. This was followed by alcoholic
content, price and aroma/smell in that order.
The questionnaire method of data collection was adopted and
administered to a systematic random sample of respondents.
The results of the study revealed that consumers preference for a
brand is a function of the relative importance of the product attributes and
beliefs about the brand. In the preference ranking by consumers, star emerged
as the most preferred brand and legend extra stout as the least preferred
brand. Results revealed that there as no relationship between brand preference
and the demographic variables like sex, age and income level.
Therefore, it was recommended that brewing firms should use
“consumer is king” concept in dealing wit their consumers and not just paying
jip services. They should also be carrying out periodic research on consumer
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of Research Problem
1.3 Objectives of the
1.4 Significance of the
1.5 Scope of the
1.6 Limitations of
1.7 Hypothesis of the
1.8 Definition of
CHAPTER TWO: LITERATURE REVIEW
2.2 Brief history into the World of Branding
2.3 The Concept of Branding and Brand Management
2.4 The Power of
2.5 Manufacturers and Consumers Perception
2.6 The Development of Brand Promise and
2.7 Attitudes towards Alternatives and Brand
2.8 Approaches to Buy
2.9 Consumer Personality and Brand
and Cultural Variables as Determinants
and Dissonance Theories as Related
CHAPTER THREE: RESEARCH METHODOLOGY
2.3 Data Collection
2.8 Method of Data
2.9 Scope of
Brief History of Nigerian Brewery
4.1 Presentation and Analysis of
4.2 Consumers Evaluation and Brand Rating on
FIVE: SUMMARY OF
FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Summary of
5.3 Implication for Product Management, Development
5.4 Implications for
5.5 Recommendations and
5.6 Suggestion for Future
1.1 BACKGROUND TO THE STUDY
One of the most recent ideas in the history of exchange relations
is the marketing concept. The marketing concept is a management orientation
that holds that the key task of the organization is to determine the needs and
wants of target markets and to adapt the target organization to delivering the
desired satisfaction more effectively and efficiently than its competitors.
Economic history is well stocked with enough insight into the
humble beginnings of present-day great corporations. Evidence abound that about
all of the multi-national giant corporations in America, Europe and Nigeria
were once cottage enterprises that grew as a result of the sheer ability and
especially the marketing skills and efforts to produce and reproduce existing
products better and cheaper.
The adoption of a customer orientation, which forms the basic
assumption of the marketing function of a firm, places a high premium on
customer satisfaction. This of course has very wide applications for all areas
of the organization. One major implication is that if the firm or organization
has to manage its limited financial resources profitably, there is an acute
need to identify consumers’ needs and wants before actual production or
provision of the goods is undertaken. In the absence of this, the company may
be faced with the threat of product failure in the face of more competitive
One of the most frequently used for identifying consumers’ needs
and wants is the study of brands and brand preference patterns. Brand
preference consists of a customer’s perception of a brand’s ability to satisfy
his prescribed set of needs more than similar brands in the product class. A
consumer’s preference for a particular brand among alternative brands is an
indication that ceteris paribus, he
will translate this preference to a purchase action when the situation arises.
Consumer preference therefore is a crucial factor for management consideration
especially in an attempt to implement the marketing concept. Since modern
marketing holds the consumer as the centre-piece of all marketing actions, it
appears logical to state that no fruitful marketing programme can be formulated
and implemented without vigorously attempting to identify the tastes and
preferences of the target market. The need for this becomes even more crucial
in a developing economy like Nigeria’s at the threshold of technological
An understanding and determination of consumer preference and the
factors that give rise to them ultimately becomes highly fundamental in planning
and implementing the company’s marketing strategies. Brand and brand preference
do result from both the nature of the product, the characteristics of the
producer, the seller and the consumer as well as the prevalent situation. In an
attempt to understand consumer preference on the basis of the nature of the
product, one basic approach is consumer attitude measurement. Hence the
inefficiency and ineffectiveness in the distribution management of the brewery
industries in Nigeria prompted this research and also to investigate the
factors responsible for this poor sales performance and also to proffer some
workable solutions to them.
1.2 STATEMENT OF RESEARCH PROBLEM
Numerous researches have been carried out to investigate the
relationship between brand preference and consumer characteristics,
characteristics of the product and the existing economic situation.
Most have used numerous measures which are not products of brand-specific
to establish the relationship. Majority of these researchers have attempted to
study consumer preferences and choice on the basis of personality,
psychograghic and demographic characteristics.
However, Engel, Kollat and Black well pointed out that since World
War II, economic and demographic variables have become less reliable
determinants of products and brand preferences and choice, while personality
variables have made minimal contributions to the understanding of consumer
The research work is embarked upon due to the problems encountered
by the Nigerian Breweries Plc., in the course of branding and promoting their
1.3 OBJECTIVES OF THE STUDY
Due to the fact that we have many brewers in the country today,
there are many brands of lager beer in the market. The variety of brands of
beer in the market has increased the consumer’s ability to exercise choice with
less restraint. Therefore, the objective of the study is:
i. The primary motives underlying the choice and
subsequent purchase of a brand.
ii. The consumer’s preference pattern for each brand.
iii. The attributes that appeal to the consumers in
their order of importance.
iv. The average beer consumption rate of respondents
v. How the Nigerian Breweries Plc can improve sales
performance through branding.
vi. How the company, Nigerian Breweries Plc, decides
on the particular to use in distributing its products.
vii. To make recommendations in form of proffering
solutions to the existing problems.
1.4 SIGNIFICANCE OF THE
The significance of brand and brand preference as a marketing tool
such as this one is relevant in present-day Nigeria’s dynamic socio-economic
environment to which the brewery industry belongs.
Products are subject to life cycles. A particular may emerge
suddenly, enjoy rapid growth and reach a point of relative maturity and
eventually move into a period of slow decline. The implication of this is that
a company needs to identify consumers’ needs and wants before producing its
brand of beer otherwise, chances are that it may be faced with a threat of
product failure in the face of more competitive brands in its product class.
I therefore intend to find out among other reasons:
a. If the Nigerian Breweries’ pattern of branding
conforms with what obtains in management literatures.
b. To ascertain whether it is adequate and dynamic
enough with the ever changing economy.
c. The relative importance of specific attributes
of beer to consumers and how they relate to brand preference will be
highlighted in this study.
d. This study would be of immense assistance to
brewery companies that want to formulate or reformulate their product strategy.
e. This study would enable the brewers to know what
attributes to improve on in their existing brands of beer and therefore plan
marketing strategies to exploit their strengths.
f. The findings of this study will be useful in the
development of new product brands, improvement of existing brands and the
planning of marketing strategies to exploit the preferences advantages.
1.5 SCOPE OF THE STUDY
The study is focused on the beer industry with particular
reference to Nigerian Breweries Plc and taking a cursory look at its lager beer
and non-alcoholic beverages viz.:
These brands were selected because
a. They are familiar enough for consumers to be
reasonably knowledgeable about them.
b. They are easily and readily available in retail
c. There is some degree of price variation amongst
d. They are sufficiently advertised in the various
The geographical coverage of this study was limited to Benin City
because of time and financial constraints. The limitation of geographical
coverage is occasioned by the need for greater effectiveness of the research,
given the constraints of time and finance.
It is hoped however that the findings of this study will allow for
a more meaningful comparisons to be made with findings of similar studies
conducted in other towns in Nigeria. This is because most experts agree that
Benin City is a microcosm of the behavior of the entire Nigerian Federation.
1.6 HYPOTHESIS OF THE STUDY
A hypothesis is a tentative answer to a research question. It is
often stated in the form of a relationship between a dependent and independent
variable (Agbonifoh and Yemore, 1999).
A hypothesis may be stated in a null form (Ho) or in the
Thus, the following hypotheses are to be tested:
Ho: Consumer buying decision is not dependent on their
perception of a brand’s attribute.
Ha: Consumer buying decision is dependent on their
perception of a brand’s attribute.
Ho: The way a product is branded does not affect its
Ha: The way a product is branded affect its sales.
Ho: Branding does not affect the way a product is
Ha: Branding affect the way a product is distributed.
DEFINITION OF TERMS
Some of the terms used in this research span across various
disciplines vis-à-vis marketing, psychology, sociology, biology etc. In order
to avoid misinterpretation, the following terms are hereby defined below:
attitude is learned predisposition to respond in a consistent favourable or
unfavourable manner with respect to a given object.
PRODUCT ATTRIBUTES: These
are characteristic factors of a product that define its relative position (in
terms of appeal to consumers) among other products or with a product class.
is a name, symbol, term or design that identifies one seller’s goods and
services as distinct from those of other sellers.
BRAND IMAGE: It
is the sum total of all consumer thoughts and feelings about the product or
BRAND PERCEPTION: It
is the actual set of salient association linked to the brand in the consumer’s
BRAND STRENGTH: It
sis the emotional attachment consumers have with a specific brand. This is
based on and can be measured by certain factors which will be enumerated later
BRAND LOYALTY: It
is the extent to which a consumer remains faithful to the brand over time as
revealed by consumers’ behaviors such as repeated purchase.
BRAND EQUITY: This
is the value of a brand based on the extent to which it has high brand loyalty,
name, awareness and perceived quality.
BRAND INVESTMENT: This
is the extent to which consumers are willing to make personal sacrifices for
the brand. For example, going to great lengths in search of the brand, paying a
price premium for the brand, endorsement of the brand, etc.
industry where beer is manufactured. It is a company that makes beer.
MARKET SEGMENTATION: This
is a deliberate policy of maximum market demands by directing marketing efforts
at significant sub-groups of customers or consumers.
REFERENCE GROUPS: This
refers to groups with which an individual closely identifies himself so that
they become for him standards of evaluation.
is the profile of the consumer which includes attributes like sex, age,
education, marital status, occupation, income, family life cycle, family size,
religion and nationality, etc.
TERMS AND CONDITIONS APPLY
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