EFFECTIVE MARKETING STRATEGIES FOR IMPROVED PERFORMANCE OF NON – DURABLE CONSUMER PRODUCTS

(A CASE STUDY OF OMO DETERGENT).

ABSTRACT

          This research project is very crucial study for unilcuer Nigeria Plc.  The study was motivated by the necessity to improve performance of Omo detergent through effective marketing strategies.  This research project was aimed at the following:

a.       to identify marketing strategies that can be implemented in order to increase the sales and profitability of the product.

b.       To determine whether the pricing methods of LBN has helped to increase sales of Omo detergent.

c.       To determine whether distribution method of LBN has helped to increase it’s sales

d.       To determine whether distribution method of LBN has helped to ensure that availability of Omo detergent in the market.

          Both primary and secondary data were collected to solve the research problem.  The population of the study comprised of the personnel of Unilever Nigerian Plc. The distributors and consumers of Omo detergent. The research instrument used for data collection were questionnaire, oral interview, tables, frequencies and percentages in presenting and analyzing  the data collected.

The chi-square statistic was used to test the various hypothesis since this was a test of goodness of it.

          From data analysis, the researcher came up with the following findings:

-              About 63.4 percent of consumers are satisfied with the quality of Omo detergent in the market.

-              The respondents agreed that the price of Omo detergent is moderate.

-              About 95.1 percent of consumers are satisfied with the availability of Omo detergent in the market

-              About 96.6 percent of respondents agreed that indirect distribution system have ensured the availability of Omo detergent in the market.

-              About 54.8 percent of those who consumed the product agreed that quality and price are good.

-              Distributors agreed that Omo detergent has been well received by consumers and its selling or moving within the market

-              The overall marketing strategies adopted y Unilever Nigeria Plc. Has helped to increase sales and profitability of the product tremendously

Based on the findings, the researcher recommended the following: the company should: -

1.       Maintain or ever enhance the high quality of Omo detergent

conduct periodic regard studies to assess how the product is performing in the market

2.       Conduct periodic research studies to assess how the product is performing in the market

3.       Set of consumer panels to give feedback information in the products performance.

4.       Maintain good supplies of the product with distribution to satisfy consumers’ demand.

5.       Improve more on advertising of the product for further stimulate of enhance sales.

          The conclusion of the study is the Omo detergent which is one of the leading detergent produce by Unilever Nigeria Plc. Has been successful and in order to keep up its marketing of the product , the company should use effective marketing strategies.

                             TABLE OF CONTENTS

Chapter One:        Introduction

Background of the Study

Statement of Problem

Objectives of the Study

Statement of Hypothesis

Significance of the Study

Scope and Limitation the Study

Definitions of Major Terms

Chapter Two:       Review of related Literature

Theoretical Review

Importance of Marketing Strategies

Problems of Marketing Strategies

Basic Strategies Companies use

Chapter Three:     Research Methodology

Sources of Data Collection

Population of the Study

Sample size Determination

Sampling Techniques

Instrument for Data Collection

Method of Data Treatment and Analysis

Questionnaire Allocation and Administration

Chapter Four:      Presentation, Interpretation and Analysis of Data

Presentation of Data

Testing of Hypothesis

Chapter Five:       Summary of Findings, Recommendations and Conclusion

Summary of Findings

Recommendation

Conclusion

Bibliography

Appendix

                                                CHAPTER ONE

                                                INTRODUCTION

BACKGROUND OF THE STUDY

          In Nigeria where the importance of marketing is yet to be fully appreciated, people talk of marketing their product as if they are referring to our problem.

A successful marketing operation must rest a carefully though and plan.

          The strategy aspect of the plan should be based on what was known of the enemy’s strength and positioning the physical characteristic of the battle ground, the financially of hostile sentiment of those who occupied the territory, and of course, the strength and character of the resource available to the commander.

          In this business organization, these is safety on activity where element of marketing and marketing strategies can not be traced.  Marketers must therefore make the right decision about the four component of the marketing mix, price, product, place and promotion.  These key components must be co-ordinated and more into a unified effective strategy if their product must reform well in the market.  The analogy of business strategies is direct and useful in business and in marketing, the terrain is the market place in particular and economic, potential, social and technological environment in general.  There source are personnel with wide – ranging skill and expertise as well as factories laboratories, transportation system, and financial resource and the corporation reputation.

          Moreover, the performance of the product depend largely on the post purchase satisfaction, whether they satisfied or dissatisfied with the purchase potential consumer expect to derive satisfaction from the product when compared with the ones they have previously used.

          Depending on the nature of business, strategy may have other dimension as well. At heart of any business strategy is a marketing strategy, business exist to deliver product to the markets to the extent that they serve this purpose well and efficiently they grow and profit.

          Expectation therefore play a major role in the reaction of the consumer towards a product, consumes base their expectation o in the information or message received from sellers, friends another source of information.

All these are the marketing effort, the objective of organisaiton has to be considered, particularly profit maximization.

          The conclusion strategies must reflect all aspect of market and above all, it must anticipate the action and reaction of competitors.

HISTORICAL BACKGROUND INFORMATION OF LEVER BROTHERS PLC.

There is no way to treat the history of Lever Brothers Nigeria Plc. (LBN) without connecting it with Unilever.  Lever Brothers (Nig.) Plc, parent and muti-national company in London.  Unilever history in turn limited with it’s founder William Hesketa Lever.

          William H. Lever started at a tender age of 19 years by 1985, he had stated buying the purest soap from Local Soap maker.  Infact, he was the first man to start selling in faslets, Wrapping it in bar of  specific advertising through local Newspaper. “No soap does his buyer business than advertising” was his usual shagan.  It is innovation evidently was to lead to modern brand a product management.

          In Nigeria, William Hesketa Lever bought a River Pool forum trading in Nigeria mainly in timber in 1910.

Palm kennel crushing mill were erected in 1910 at Oposo and Apapa (Lagos).  In 1920 Mr. Lever   bought off the Niger Company of r8.6 million.  It is this company that meryed with African and Eastern trading company to form what now known as the United African Company (UAC) in 1929.

          Unilever extended it’s business activities into Nigeria when it was incorporated as West African Soap Company (WASC) until 124 at Apapa where laundry soap of key, Sunlight and Magret brands were first manufactured in 1952.  Lux tablet was introduced, Magerine factory which was registered under the name Van Beign (Nig.) Ltd, was opened at Apapa.

          In 1955, both WASC and Van Beigh (Nig.) Ltd. formed till today exist as Lever Brothers Nigeria Plc. Under the same management in 1957, Aba Branch was opened with a soap factory for the production of laundry soap to start.

          Today, Lever Brothers Nigeria Plc. Produce a large variety of product, some of the products like;

a.            Cream and Lotion product

b.            Oral Care product

c.            Baby Care product

d.           Hair Care product

e.            Fabrics washing/home cleaning

f.            Diversify lever/industrial floor care product

g.            Beverage/drink product

Lever Brothers Nigerian Plc. Has also bought up the share of

Lipton (Nig.) Ltd, maker of Lipton Tea Bag and Boncafe Coffee.  The performance of this section is that as early as 1885, Lever Brothers (Nig.) Plc. Has found a need for marketing strategy and took innovative step in penetrating the market for the product.

ORGANIZATION CHART OF LEVER BROTHERS PLC.

SOURCE:   From the personnel department, Aba, (1997).

STATEMENT OF PROBLEM

          Post purchase satisfaction has always been a major indicator as a level of satisfaction of customer who used the product in the market.  Defective marketing strategies have contributed towards the achievement of these set of objectives.  Well established and implemented marketing strategies have played a major role in the success of the business in Nigeria.

          Every company which intends to improve on it’s marketing has to create good marketing strategies for it’s operation.  These strategies of effective should increase the sales and profitability of such companies and will also help the company to achieve its goals.

          Omo detergent produced by lever Brother Plc. Has contributed towards the success of the firm in recent yea due to good marketing strategies mapped out for it.  Omo detergent which is one of the leading detergent ever produced by the firm has maintained its market share due to good penetration of the product into the market has however for some time now experiencing some unfavourable external business environment.

Such as poor sales of the product, inability of the product do face other competing detergents in the market and so on.  As a result of these problem in which study will be carried out and adequate recommendation will be made.

OBJECTIVES OF THE STUDY

          The objectives of the study includes:

a.       To identify marketing strategies that can be implemented in order to increase the sales and profitability of the product.

b.       To investigate on the cause of poor sales of the product in the market

c.       To determine whether the pricing method of LBN has helped to increase sales of OMO detergent

d.       To determine whether the quality of Omo detergent has helped to increase its sales

e.       To determine whether distribution method of LBN has helped to ensure the availability of Omo detergent it the market.

f.       To determine whether the promotional strategies adopted by LBN has helped to increase sales of Omo.

STATEMENT OF HYPOTHESIS

1.       The quality of Omo has not helped to increase it’s sales.

          The quality of Omo has helped to increase it’s sales.

2.       The price system applied by Lever Brothers has not helped to increase the sales of Omo.

The price system applied by Lever Brother has helped to increase the sales of Omo.

3.       The distribution method of LBN has not helped to ensure the availability of Omo in the market.

The distribution method of LBN has helped to ensure the availability of Omo in the market.

4.       The overall promotional strategies adopted by LBN has not helped to increase sales of Omo

The overall promotional strategies adopted by LBN has helped to increase sales of Omo.

5.       The overall marketing strategies adopted by LBN has not helped to increase sales of Omo

The overall marketing strategies adopted by LBN has helped to increase sales of Omo.

SIGNIFICANCE OF THE STUDY

          It can be seen from the problem stated that Lever Brothers (LBN) major difficulties are identify with marketing.  It is hoped that the study will help the company to adopt better marketing strategies that will improve the overall marketing performance of the company’s products and help the company realize its business objectives.

          The recommendations made in this study if accepted and applied would provide initial step in major decision on the determination of the present marketing strategies that can be used to improve the performance of the product (Omo detergent) and also for victual expansion of the business activities.

          The study also will help the reader know that the success of a business depends on good marketing strategies so that it will promote good image for the company and increase their sales revenue.

          It will also widen the researcher knowledge about the various strategies available and how they can be applied to the company products to improve the performance of the business.

          Above all, the study will also help the people to know value of marketing strategies and how it can be used to attract new market customers form existing market.

DEFINITION OF MAJOR TERMS

Marketing: - A social and management process by which individual ad group obtains what they need and want through creating and exchanging product and value with other.

Market: -      The set of actual and potential buyer of a product.

Market Penetration: - A strategy for company growth by increasing sales of current product to current market segment without changing the product in any way.

Positioning: -         the art of fitting to one or more segment of the broad market in such a way as to set it apart from competition and optimize opportunity for greater sales and profit.

Market challenge: - A runner – up firm in an industry that is fighting hard to increase it’s market share.

Market Strategy Development: - Designing our initial market strategy for a new product based on the product concept.

Market Leader; - The firms in an industry with the largest market share, it usually lead other firms in price changes, new product introduction, distribution coverage and promote spending.