THE EFFECTS OF MARKET SEGMENTATION AND BUSINESS PERFORMANCE IN SOFT DRINK MANUFACTURING COMPANY

THE EFFECTS OF MARKET SEGMENTATION AND BUSINESS PERFORMANCE IN SOFT DRINK MANUFACTURING COMPANY

(A CASE STUDY OF 7- UP P.L.C)

ABSTRACT

This study is aimed at examining the effect of market segmentation and business performance in a soft drink manufacturing company. A case study of 7 up Nigeria plc, as an organization. To achieve this aim, the researcher used personal interview, questionnaires administration and documentary methods to collect information. Also, percentage and chi square techniques were used for analyzing and listing of hypothesis. The finding is that, 7 up company is a challenger in the soft drink market , it also sell her product in institution market , it made their price even in all sector of market e.t.c. The conclusion was made base on the finding and recommendation are as follows, marketing manager should intensify its market strategy so as to obtain reasonable market share, the company should ensure that there is a mix brand in selling stock all the time to avoid sales force complaints and the company should also source for funds from the bank to ensure that they can reach the market segmentation. The above recommendations were made on how to segment market for better business performance.

CHAPTER ONE

1.1     BACKGROUND OF THE STUDY

The project emphasis is on the effect of market segmentation and business performance in a soft drink manufacturing company. A case study 7 up Nigeria Plc.

Like any other corporate business or organization that has a major form of economic contribution to the owner’s and the country. The reason for this is that like other corporative business organization.

7up Nigeria Plc; has its mission and vision most importantly as a business enterprise to make profit.

To achieve this effective market segmentation and business performance is paramount.

Effective market segmentation requires an understanding of the market in order to enhance business performance for the company to achieve its aims and objectives.

In a nut shell, the project over view will be on how the market segmentation improve, contribute and enhance the business performance of 7up Nigeria Plc.

1.2     STATEMENT OF THE PROBLEM

It has been discovered that most business organization have not really segmented their markets to enable them reach their target consumers. This informed the reason why the researcher decided to investigate what led to this attitude with a view to coming out with for reaching recommendations that will be of benefits to the organization.

1.3     OBJECTIVES OF THE STUDY

The objective of the study are as follows:

1.     To examine the effect of market segmentation on the performance of the organization.

2.     To know the positive impact and contribution of the market segmentation to the growth of the organization.

3.     To make appropriate recommendations.

4.     To enhance the power of the market segmentation to ensure the actualization of their objectives and goals of the organization.

1.4     RESEARCH HYPOTHESIS

In pursuance of the objectives of this study, the researcher provides the following hypothesis:

Ho:   That the market segmentation have no effect in the business performance

Hi:    That the market segmentation have a great effect on the business performance

Hypothesis 2

Ho:   Market segmentation effect on business objectives do not in any way affect customers of the 7up Nigeria Plc.

Hi:    Market segmentation effect on business objectives has great impact on customers of the 7up Nigeria Plc.

1.5     SIGNIFICANCE OF THE STUDY

The significance of the study has become imperative because 7up Nigeria. Plc; is a profit oriented business.

The project topic would not have come in other better time because soft drink manufacturing company in a contemporary society are owned and controlled by business oriented entrepreneurs whose interest is profit making or maximization and higher return on capital.

The study also educates the managers and markets on the strategy to use in segmenting its market, so as to enhance their resources material for those who may carry out research in similar areas.

1.6     SCOPE OF THE STUDY

Market segmentation itself is a very vast and wide area of the study in corporative business. The research will therefore delimit this work to the effect of market segmentation and business performance in a soft drink manufacturing company. One to topics vast nature, the theme focus shall be on 7up Plc.

1.7     LIMITATIONS AND CONSTRAINTS

In the course of the study, many problems are encountered which limited the scope of this study.

 Amongst other problems are:

1.     There is the common problem of lack of appropriate records by respondents.

2.     The unwillingness by management to disclosed some documents, which will greatly enhance this research work.

3.     Inability to travel in sources of research information.

4.     Finally, other limiting factors are time and finance which compound the problem.

1.8     DEFINITION OF TERMS

MARKET: It is a set of individuals or organization that desire a product and willing and able to buy it.

TARGET MARKET: A selected market focus and develop marketing programmes.

CONSUMER MARKET: It is a set of individual buyers who purchase or use product or services for their own personal or household use.

MARKET SEGMENTATION: It is the process of dividing a large market into smaller subset of customers or organization that is similar in characteristics, behaviour, wants and needs.

MARKET MIX: They are elements of market usually referred to as 4p’s. Product, price, promotion and place.

HOMOGENOUS MARKET: A market consisting of consumer or organization with similar needs, wants and behavioural tendencies.

HETEROGENEOUS MARKET: A market consist consumers with devise characteristics, needs and wants.

PRODUCT: Any thing offered to the market for acquisition, attention, use or consumption that satisfies wants or needs.

MARKET STRATEGY: A market logic used by firms to achieve set objectives.

INDUSTRIAL MARKET: It is a market consisting of business, industrial or institution organizations that buy goods or services to make other product.