THE EFFECTIVENESS OF PRODUCT POSITIONING IN ENSURING CONSUMER PATRONAGE

THE EFFECTIVENESS OF PRODUCT POSITIONING IN ENSURING CONSUMER PATRONAGE

ABSTRACT

The research work discussed extensively the reason that Unilever Nigeria Plc positioned its brand and the overall effect of positioning its product Unilever Nigeria plc see this singular act as a veritable tool to sustaining it numerous band’s market share and also as defensive tool against intruding competitors that leave no stories untouched in trying to which part of the market share Unilever Nigeria plc. The multiplying effect of positioning to the benefit of Unilever Nigeria plc was experienced in the company’s annual report, which says Unilever Nigeria Plc was experienced in the company’s annual report, which says Unilever Nigeria Plc. Share price as April, 2006 was N2.68 as against N60.80 as at 2002. this showed an increase of about 319% in market share. Unilever Nigeria Plc was established in 1923 and was incorporated in 1924 as a private company. It became a public limited company in 1973. At the end of the last quarter of 2006 financial year, the company which was profoundly known as Lever brothers Nigeria Plc, change to Unilever Nigeria Plc. As a result of the acquisitions of 50.4% share represented by 605, 762, 130 share at 50k per share of Unilever overseas holding by the dwindling for time of the company in the mind, 1940’s and the eventual after tax loss of N32 million in 1997 makes it imperative for the management to face more severe economic hardship. This led to the general over handling of the company with most brands being positional by repackaging into sizes to the advantage of the main segmentation of societal demand and also by distributing through well structure distribution channel. The main aim of this project wok is to identify and analyze the effect of positioning on consumer patronage. The scope of the study shall be limited to Kaduna branch of the company. One of the limitations arising as a result of lack of adequate funds and time. However, the result from analyzing the data obtained from the whole company irrespective of the limited scope, the result obtained from the research work would be reliable enough to represent work would be reliable enough to represent the whole country.

CHAPTER ONE

1.0 INTRODUCTION

The most commonly promoted number one positioning one “best quality, best service, lowest price, best value, safest, most customized, most convenient”.

Most advanced but to mention a few “if a company hammers away at one of those positioned and convincingly deliver on it. It will probably be best know and recalled for this strength. For example “home deposit” has gained a reputation for best services among home improvement of product retailers. The company has created a culture of service that has won the hearts and minds of customers.

The Unilever Nigeria Plc home depot folio has been carefully selected to ensure the best result in all face of laundry and house hold cleaning chores in the Nigerian home.

Positioning will enable a company solve the problem of marketing mix. The marketing mix product, place, price and promotion are essentially the working out of the tactical detail of the positioning strategy, thus a firm that seizes upon the high quality product must distribute through high quality marketing intermediaries, change a high price, and promote through a high quality medium. This is the primary way to project a consistently and believable high quality image.

At the end of this study it will be revealed whether loyalty to our patronage of a particular product is as a result of intrinsic preference for that product to reflect habit change as a result of the various activities carried out by the company e.g. lower price, improved quality, advertisement, informative advertisement, persuading e.t.c.

1.1  BACKGROUND OF THE STUDY

Unilever Nigeria Plc formerly Lever Brothers Nigeria Plc (Rc 113) is the oldest manufacturing company in Nigeria. The founder Lord Lever Hulme established the company in 1923 as a result of exploiting visit in search of vegetable palm oil for making soap. Over the years, the company diversified and expand its operations in the production and marketing of personal washing products, making toilet soaps, non soapy detergents, foods and house hold products including tooth paste, body creams, lotions, baby care and hair cream products.

Through selective acquisitions, the company has strengthened its hold in foods and house hold products through its merger with Lipton Nigeria limited in 1985.

Choose bough products limited in 1988 and lately will Unilever international in the quarter in the financial 2000 to be Unilever Nigeria Plc. In order to ensure sustained focus in management the company’s objective of not holding unto any asset that will not yield dividends. The second oldest site is in Aba.

It is devoted to the production of non-soapy detergent powder, the third plant commission in 1983 to the litra modern food factory in Agbara where the company produces Royco, Blue Band, Plant, Tree top Oroyo, Breedeen and holsum. The fourth, the modern Oregun site and office complex where popular personal products like Elida, Saton sheen, lotus e.t.c. are produced. It is intended to consolidate all the personal product including toothpaste and Vaseline range.

The company is fully committed to backward integrating and self sufficiency. The first crop of tea were harvested for test packing after the end of 1991 and a processing factory for the tea leans has been completed in site.

The company has also built a large palm kernel mill at its Aba factory to improve the supply of vegetable oil can essential raw material for soap and edible products it is also making investment in oinl palm plantation in order to improve its local souring. For example, the company held 28% of the shares in Okiyipapa oil plantation Plc

Unilever Nigerian Plc range of quality products distributed and sold at uniform prices all over the country through an established and tested distribution network using appointed distributors supervised by a well-trained sale force.

The company has direct staff strength about 1, 950 employees in its manufacturing sites and various distribution points through out the country of this total number only five are currently expatriate.

This is the extent to which the company has gone at training and developing location management force the objective is to bring in expatriate who are willing to work in Nigeria and who will contribute an international flavour and are in exchange for Nigeria Unilever Plc managers working over sea to obtain international experience.

Expatriate are therefore brought into meet needs. The company also provide indirect employee for over six thousand people Unilever Plc has been dedicated to the production of top quality brands for Nigerian’s for almost eight year now. The company slogan says these super brands remain “A must an indeed THE VERY BEST IN ALL HOMES”.

1.2 STATEMENT OF THE PROBLEM

It has been observed that in Nigeria today, rarely in marketing of a product alone capable of influencing a proportionate patronage. Most of the consumers are no longer loyal to a particular product to the extent of patronizing the seller all the time.

Manufacturers lay more emphasis on marketing promotion as if product quality has little role to play in wining customer’s patronage.

This trend constitutes a source of worry or the management of Lever Brother Nigeria Plc that has laid more emphasis on product quality. Concern therefore has been that good quality with good product positioning can secure consumer than just product promotions.

1.3 OBJECTIVE OF THE STUDY

Product positioning shows how much selling strategies are attracted to the marketing of a particular product vis-à-vis the available competing product in the market place. This is a function of the distinctiveness in terms of product attributes.

The attraction offered by this distinctiveness would expose given product to a particular space rank and position in the mind and thought of a customer. It is therefore left for the manufacturer (marketer) to determine what speed attributed or product features will be desirable to occupy the mind of the target customer or consumer of such product to fill the position. At the end of this research work the searcher intends to know if positioning a product in the mind of the customer by emphasis a unique feature such as high quality has way of ensuring increased consumer patronage.

1.4  SIGNIFICANCE OF THE STUDY

Firstly, the study will reveal the effect of the activities of companies at enhancing the utility the consumer derive from the various products they consume through total quality management (QM). Total quality management are the activities the company perform at increasing the utilities derived from a particular marketing oriented company without necessarily increasing the price of the particular product. The study will also analyze if it is cost effective for a company to position its product or not.

The study will help to educate other experts e.g. production department on why its better customize (the act of satisfying all the target customers by directing problem solving products to them rather than mass produce and mass market).

Also the study will help exonerate marketing department from various criticism from other departments that marketing departments make use, if a large human and material resources without a reciprocal increase in sales and profit margin.

The study will show the huge sale and profit that the company will be able to generals due to increase patronage.

Lastly, the study will serve as a reference materials for future research work for both the marketing professionals and the organization (Unilever Nigeria Plc) whenever they want to review or introduce a positioning strategy.

1.5 SCOPE OF THE STUDY

The study covered aspect of product as an element of the marketing mix that can be used to influence the market. It dwell more on product positioning as a complement to goods and quality product.

1.6 STATEMENT OF HYPOTHESIS

The following statement were relevant in the study of the image of a company has an effect on its patronage by customers.

1.     Aggressively promoting a product alone encourages consumers patronage.

2.     Positioning a product automatically leads to increased patronage.

The benefits derivable from positioning viable enough to justify the cost.

1.     The level disposable income of consumer will dedicate consumer patronage

2.     The image of the company has an effect on its patronage by consumers

1.7   LIMITATION OF THE STUDY

Among other things, the limitation of the researcher includes:

1.     The time range of the semester being too short and the researcher hardly had enough time to share between the research work and the academic activities of the semester.

2.     Limited available of funds affected the method and extent to which the researcher can apply the questionnaire

The time and resources at the disposal of the researcher were not enough nevertheless, it is the belief of the researcher that despite these limitations the result of the study were reliable enough to justify its conduct.

1.8 DEFINITION OF TERMS USED

1.     Branding: The use of a name, size, symbol, design or combination of those to identify a given product.

2.     Company’s image: These are the set of beliefs, ideas and impressions a person or people hold regarding a company’s products and activities. It is the performance for the public about the company and its product.

• Consumers behaviour: This refers to the behaviour exhibited by individual and house holds who buy goods and services and for personal use or consumption to determine the sets of while, where, how, when and why they buy.

1.     Differentiation: These are sets of marketing strategies used to make a particular company’s product to be different from other offering utility other competitors. It shows a company’s superiority and preference.

2.     Home depot: Consist the range of product line used by or produced by UNILEVER NIGERIA PLC specially for home and personal use.

3.     Market segmentation: A method of dividing the total heterogeneous market at large into specific sub markets that are homogenous in nature and tailoring market offering to fit the carefully defined needs of specific groups or segments.

4.     Marketing mix: Consist of four (4) major variables in marketing which serve as a pillar that make marketing to stand well. They are product, price and promotion. It is also called 4p’s and marketing elements.

5.     Patronage: those are the support encouragement which an organization bought from a consumer. It is how frequent a consumer purchase a firm’s product.

6.     Product: This is the element of the marketing mix that represents as basis offering being made to consumers. It is everything both (favourable and unfavourable) that are received in an exchange. Or any thing that is offered to a market for attention, acquirable and use by individuals including functional, social and psychological utilities or benefits. It may be in the form of goods, services or an idea.

7.     Product position: This strategy emphasises the district features or unique consumers the creation of products perceived image.

END NOTES

Arowomole A.K and Adeyemi M.A (200), Compendium of marketing terminologies (page 25)

1^st (Edition) strategic marketing management in the 21^st century (London, Macmillan and capital publishers Inc) (page 15)

Kotler P (200) Marketing management “the millennium edition” (New depth prentice hall of India private limited) (page 51)

Sanusi, M.O (1998) marketing research 2^nd edition (Lagos, Royal district publishing company) (page 62)