AN APPRAISAL OF ADVERTISING AS A TOOL FOR PROMOTING SALES OF SOFT DRINKS
(A CASE STUDY OF SELECTED SOFT DRINKS COMPANY IN KADUNA)
COMPLETE PROJECT MATERIAL COST 5000 NAIRA
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ABSTRACT
The history of advertising is as old as man himself. The story date back to the prehistoric period when man was using town criers, drummers, flute blowing to pass across important information to present day time where, television radio and other print media is now in use. In advertising, its difficult to trace the result of any given advert or an entire campaign to a products or the entire sales volume. It’s as result of this, that the research work was necessitated. The objectives of the study was to determine what pattern the advertising message took and its effectiveness; to highlight the various types of media and factors to consider before choosing a media type; to evaluate the effectiveness of advertising through sales and communication research. In line with these objectives, three research questions and two hypotheses were formulated for the study. The design of the study was the descriptive survey. The study was conducted in Kaduna metropolis. The population of the study was 480 comprising 180 staff of 7up bottling company and 300 staff of coca-cola bottling company. Out of this population, sample sizes of 80 respondents were randomly drawn, comprising 40 each for 7up and coca-cola bottling company Kaduna. Mean, standard deviation and t-test was used for analysis. The major findings of the study revealed among others that musical messages are now the vogue. Among the most important factors considered in determining a media type to use is cost. In pre-testing activities, most adverts are seen by expert before beaming it to the final consumers. While in post-testing the sales volume level is accepted as the most important post-testing criteria. There was no significant difference in the mean responses of staff of 7up bottling company and coca-cola bottling company on the two hypotheses tested. Recommendations were made, based on the research questions. Among these are that advertiser should look more into other message patterns other than musical. Advertiser should also look more beyond cost as a major determinant in selecting media type.
TABLE OF CONTENT
CHAPTER ONE
Background of the study – – – – – – 1
Statement of the problem – – – – – – 2
Purpose of the study – – – – – – – 6
Significance of the study – – – – – – 6
Assumption of the study – – – – – – 7
Research question – – – – – – – 7
Development of hypotheses – – – – – – 8
Scope of the study – – – – – – – 8
Definitions of terms – – – – – – – 8
CHAPTER TWO
Review of related literatures – – – – – – 10
Definitions of advertising – – – – – – 10
Types of advertising – – – – – – – 10
Objectives of advertising – – – – – – 12
Deciding on the advertising budget – – – – 13
Deciding of the advertising media selection – – – 15
Deciding on the advertising message – – – – 17
Evaluating advertising effectiveness – – – – 18
CHAPTER THREE
Research design – – – – – – – – 20
Area of the study – – – – – – – – 20
Population of the study – – – – – – – 21
Sample and sampling technique – – – – – 21
Instrument for data collection – – – – – 21
Validation of the instrument for data collection – – – 22
Reliability of the instrument for data collection – – – 22
Administration of instrument – – – – – 22
Method of data analysis – – – – – – 22
CHAPTER FOUR
Presentation and analysis of data – – – – – – 23
Proof of hypotheses – – – – – – – 31
CHAPTER FIVE
Summary – – – – – – – – – 44
Conclusion – – – – – – – – – 49
Recommendations – – – – – – – 52
Questionnaire – – – – – – – – 54
Reference – – – – – – – – – 58
CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Advertisement is one of the four major tools that companies use to direct persuasive communication to target buyers and publics. It consists of non- personal or one-way forms of communication conducted through paid media under clear sponsorship. The advertisers included not only commercial firms but museums, fund raiser and various social action organisations seeking to advertise their causes to various target publics. As a matter of fact, the thirty four largest advertising spender in the u.s is the American government within the commercial sector, the top one hundred national advertisers account for approximate one-fourth (1/4) of all national advertising.
The U.S. soft industry began in the late 1880s. John S. Penberton, an Atlanta pharmacist. Developed the coca-cola brand as a soda fountain drink in 1886 and poisoned it as a “brain tonic and intellectual beverage” (Govan and livingood 1977). Both the coca-cola brand and company took an early lead in the soft-drink industry. For the achieved national distribution early on and the company has consistently dominated the industry.
Currently, coca-cola products are sold in about 200 countries with more than 230 different brands. Best-known beverage brands in the U.S include coke. Diet coke, mello yellow, fanta, minute maid, Mr. pibb, Nestea, sprite, Barq`s Root Bear, Dasani Water, Fresca, Fruitopia, and Hi-c (www. Coca-cola.com 2002) seven-up Bottling Company Plc was founded in 1951 by the late Sheik Mohammed El-Khalil. Production started on October 1st 1960. Our brands include 7-up, Pepsi, Mirinda (orange, soda, tonic), and teem. Flavours are added as and when need is justified. We are committed to a culture of excellence in all our activities. Hence, we strive to position our
company to meet and exceed the expectations of our employees, customers, suppliers, shareholders, government and its agencies, including the general public.
In line with the following; our mission is
“To refresh and inspire a youthful lifestyle”
OUR VISION
“To be the most admired and innovative company in Nigeria
Although advertising is primarily a private enterprise marketing tool, it is used in all the countries of the world including socialist countries. Advertising is a cost effective way to dissemination messages, whether it is to build brand preference for coca cola all over the world or to motivate a developing nations consumer to drink milk or to practice birth control.
Organization obtains their advertising in different ways. In small companies advertising is handled by someone in the sales or marketing department, work with an advertising agency. Large companies set up their own advertising departments, whose managers report to the vice president of marketing. The advertising department job is to develop the total budget approve advertising agency advert and campaigns and handle direct mail advertising, dealer displays and other forms of advertising not ordinarily performed by the agency. Most companies use an out side advertising agency to help them create advertising campaigns and to select and purchase media.
In developing an advertising programme marketing managers must always start by identifying the target market and buyer motives.
The advertising Naira support various media magazine and newspaper space; radio television; out door displays (poster, billboards, signs, skywriting); direct mail; novelties (match boxes, pens, calendars); tear pads (carbus) catalogues; directories (yellow pages), and circulars. And advertising has many purposes; long term build-up of the organizations, corporate image (institutional advertising), long term build-up of a particular brand (brand advertising) information dissemination about a sale, or event (classified advertising), announcement of a special sale (sale promotional advertising) and advocacy of a particular cause (advocacy advertising).
STATEMENT OF THE PROBLEM
Although, there has been a great deal of work directed at evaluating advertising effect on product and or services, this has remain unsolved. Giles (1983) said “it is virtually impossible except in mail-order selling or certain direct mail campaign to quantify exactly the contribution of advert to profit.”
Stanton (1983), also said that its difficult to identify the result of any given advert or an entire campaign. He also said that one couldn’t attribute a given unit of sales to any specific advertisement or campaign.
Based on the above context, one can categorically say that its difficulty to trace the impact of advert to the success of a product. Increment in sales volume of any soft drink could have been as a result of any other than advertising