EFFECT OF BRANDING ON THE SALES VOLUME OF PZ NIGERIA

EFFECT OF BRANDING ON THE SALES VOLUME OF PZ NIGERIA

A Case Study of PZ Nigeria Abuja Branch

CHAPTER ONE: INTRODUCTION

1.0     BACKGROUND OF THE STUDY

This project work is on the “Effect of Branding on the sales volume of Paterson Zochonic Nigeria PLC”A study of PZ Cusson Abuja Branch.This chapter focuses on the background of study, Historical background of Peterson Zonchonic, Statement of problem, Statement of hypothesis, Objective of the study, Scope of the study, limitation of the study and operational definition of terms.

Brands and branding are by no means a new phenomenon neither or academics or the business world. Francis and Stephen (2003) perceive branding as the creation of three dimensional characters of a product, defined in terms of name packaging color and symbols. The authors posit that brand aid to differentiate product from its competitors, they also added that branding helps the customers to build a relationship with the product. It is possible to trace back the use of brand to the stone age, when hunters used weapons of specific brand’s to succeed in the hunt Almgnist and Robert: (1995). It was during the 16^th century; however, those brands similar to those we see today have started to take shape. Some of the earliest known brands were established by the English ceramist Josiah Wedgwood and French Fashion designer Rose Bertin Burke (1996); de Puola (1985).

Since the 18^th Century, England and France, there has been a massive development of the knowledge, procedures and theories within branding. Contemporary branding theories have their origin and evolutionary starting point in mid-20^th Century, primarily due to development of commercials in mass media Farquhar (1995:10). 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 need and want of target markets and to adapt the target organization to delivering the desired satisfaction more effectively and efficiently than its competitors. The relationship between the consumer and the brand- consumers perception of that brand- customer’s perception of that brand is the key to brand acceptance. The strength of the relationship between the consumers own physical and psychological needs and the brands functional attribute and symbolic values as perceived by the consumer. Hankinson and Cowking (1993).

It has been shown that consumers define the brand relationship from their own individual perspectives and the brand relationship and relational value are very much personalized in the mind of consumers. Customers generate individual relationship based on their individual perception and brand value, brand meaning and their experience. That is, customers seem to personally create and the brand through their comnmunication across multiple contexts Lindberg-Repo, Kirsh, (2001:233).

Fournier (1998) argues that brand could be seen as relationship partner view is to highlight ways in which brands are animated, humanized and personalized that such relationship add value and purpose to their existence and these extra values could be both functional and emotional by nature.

The concept of brand identity has received much attention, and today the majority of marketing companies have specified their brand identity has grown to become a wide concept, now encompassing many of the earlier discussed theories e.g positioning, relationship and brand personality. According to Kapfereer (2008) the brand identity gives guidelines to what parts of the brand identity gives guidelines to what parts of the brand should be kept at the same and what element can modified, allowing brands to evolve in time.

Economic history is well stocked with enough insight into the humble beginnings of present day great corporations. Evidence abound thast about all of the multi-national giant corporation in America, Europe and Nigeria were once cottage enterprises that grew as a result of the sheer ability and especially the marketing skillb and efforts to produce and reproduce existing product better and cheaper.

The adoption of a customer orientation, which forms the basic assumption of the marketing function of a firm places in high premium on customer satisfaction. This of course has very wide application 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 want before actual production or provision of the goods is undertaken. In the absence of this, the company may be faced with the threat product failure in the face of more competitive brands.

One of the most frequently used means for identifying consumers needs and wants is the study of brand and brand preference patterns. Brand preference consists of customers perception of a brands 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. Consumers preference therefore is a crucial fact for management consideration especially is an attempt to implement the marketing concept. Since modern marketing holds the consumer as the center piece of all marketing action. It appears logical to state that no fruitful marketing programme can be formulated and implemented without vigorously attempting to identity the tastes and preference to the target market. The need for this becomes even more crucial in a developing economy like Nigeria’s at the threshold of technological take off.

An understanding and determination of consumer preference and factors that give rise to them ultimately become highly fundamental in planning and implementation 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 basisn of the nature of product. One basic approach is consumer attitude measurement. For that reason, marketing academicians and practitioners see the symbolic image of products and services as more important in their success than their physical characteristics and attitude Aaker (1991).

It therefore becomes imperative to embark on this research to explore ways of solving problem and restoring confidence. This is the essence of this study with a particular focus at the effect of branding on the sale volume in Paterson Zochonic Nigeria PLC.

1.1     STATEMENT OF THE PROBLEM

Branding no doubt aids to differentiate product from its competitors and also helps customers to build a relationship with the product. Fournier(1998) argued that most consumers attach a lot of importance to the brand name of the product they are willing to purchase,hence branding increase consumer loyalty, However, in today’s competitive industry market, some brands are largely unknown to most buyers. Other brands have high degree of consumer awareness while others enjoy brand preference. In some cases, a product sell more than other not because they are better in quality, but because of the name it has made on the label, including the level of advertisement.

1.3     OBJECTIVE OF THE STUDY

The general objective of this study is to find out the effect of branding on the sales volume of Paterson Zochonis Nigeria Plc.

1. To find out the effect of brand awareness on sales volume
2. To find out the effect of brand availability on sales volume
3. To find out the effect of brand personality on sales volume

1.3     RESEARCH QUESTIONS

The study will be guide by the following research questions.

1. Does brand awareness increase product sales volume?
2. Does brand personality influence patronage?
3. Does effective branding result in the growth of manufacturing company?
4. Does brand name have any significant impact on customer repeat purchase?

1.4     STATEMENT OF HYPOTHESIS

Ho: Brand awareness does not increase product sales volume

Ho: Brand personality does notresult in the growth of manufacturing company

Ho: Brand does not have any significant impact on customer repeat purchase

1.5     SIGNIFICANCE OF THE STUDY

The finding of the study will be useful to the department of marketing and of any private and public organization in making decision on marketing strategy. Again the finding of this study will provide additional knowledge to the students who are aspiring to become marketers. Also the final findings of this study will help consumer to benefit through efficient product identification resulting from product branding.

Furthermore, this work will also help to solve the company branding problems and endow the product with distinctive features. It will also provide the basis for further studies.

1.6 SCOPE OF THE STUDY

This study is restricted to the effect of branding on the sales volume Peterson Zochonic Nigeria Plc. a case study of Abuja depot. My critic is not to expose the problem in the company distribution policy but rather to examine and give suggestions and recommendation where the need arises.

1.7     LIMITATION OF THE STUDY

Time was one of the major constraints in writing this project, the researcher being a final year student had to cope with other academic activity,

Another limitation encountered by the researcher is financial support. The researcher found it difficult to realize enough finance to enable her travel as often as it could have the desire for the prospect of this research and get enough related data.

1.8     OPERATIONAL DEFINITION OF TERMS

Brand: It is a product strategy referring to a symbol or design or combination of them for the purpose of product identification from other.

Sales volume: It the number of unit sold with a reporting period. This figure is monitored by investors to see if a business is expanding on contracting.

Product: A product refer to those physical goods services,experiencesevents,person,places,properties,organization and ideas that is offered to target market for the purpose of satisfying a want and needs.

Trademark: Is a part of brand that is given legal protection because it is assigned exclusively to the company.

Trade name: Is the legal name of an organization as in case of Paterson Zochonic Nigeria plc.and Nigeria Breweries plc.