Marketing Research As A Tool For Increased Profitability

(A Case Study Of Nigerian Bottling Company Enugu)

5 Chapters
|
59 Pages
|
8,106 Words

Marketing research, a strategic instrument for enhancing business profitability, involves the systematic gathering, analysis, and interpretation of relevant data to inform decision-making in the dynamic landscape of commerce. This multifaceted process allows organizations to gain profound insights into consumer behaviors, market trends, and competitive landscapes, enabling them to formulate targeted strategies that resonate with their target audience. By delving into the intricacies of consumer preferences and purchasing patterns, businesses can tailor their marketing initiatives to align with evolving market demands. This data-driven approach not only enhances product development but also enables companies to optimize their resource allocation, ultimately leading to increased profitability. Embracing marketing research as a foundational element in business strategy empowers organizations to navigate the intricacies of the market, fostering adaptability and resilience in the face of changing consumer dynamics and industry trends.

ABSTRACT

This project work is meant to examine marketing research as a tool for increased profitability.
A case study of Nigerian Bottling Company Enugu.
The main objectives of this study include:
– Determination of the extent marketing research can improve product quality.
– To find out how marketing research can increase profitability.
– To ascertain the extent to which marketing research effect customer satisfaction.
The researcher used structured questionnaire and personal interviews to elicit responses from members of the WBC.T-test, percentage and mean cluster mean and standard deviation were used in analyzing and interpreting data collected.
The interpretations and results of hypothesis, testing formed the core findings of this project.
1. NBC improved the quality of its product through marketing research.
2. Marketing research increased their profitability.
3. NBC does not have a separate research department apart from the central one.
4. The engage in field research more than other types of research.

TABLE OF CONTENT

Title Page
Approval Page
Dedication
Acknowledgement
Table Of Contents
List Of Table
Abstract

Chapter One
1.0 Introduction

1.1 Background Of Study
1.2 Statement Of The Problem
1.3 Purpose Of Study
1.4 Scope And Delimitation Of Study
1.5 Research Question
1.6 Hypothesis
1.7 Significance Of The Study

Chapter Two
2.0 Literature Review

2.1 Benefit Of Marketing Research
2.2 Contributions Of Marketing Research
2.3 Problems Facing Marketing Research
2.4 Effect Of Marketing Research
2.5 Impact Of A Marketing Research On The Company
2.6 Marketing Research As A Tool For Increased Profitability
2.7 Summary Of Related Literature Review

Chapter Three
3.0 Methodology

3.1 Research Design
3.2 Area Of Study
3.3 Population Of Study
3.4 Sample And Sampling Procedure
3.5 Instrument For Data Collection
3.6 Validation Of Instrument
3.7 Reliability Of The Instrument
3.8 Method Of Data Collections
3.9 Method Of Data Analysis

Chapter Four
4.0 Discussion, Recommendation And Conclusion

4.1 Summary Of Findings
4.2 Conclusions
4.3 Recommendations
4.4 Suggestion For Further Research
4.5 Limitation Of The Study
References
Appendix

CHAPTER ONE

INTRODUCTION
BACKGROUND OF THE STUDY

The mineral water industry is slightly transforming into a buyers market hitherto to a sellers market, which it had been for a very long time. This drift may be attributed to the several new entrants into the industry. This situation had made the several industries to strive to survive and hence has aroused the need for effective marketing tools for survival or for attainment is the watchword of every business organization, therefore organizations always work very hard towards the attainment of their objective of set of objectives. In trying to do this, the organization has to imply some of the laid down scientific or modern techniques. Business today demand that planned and defined systems and tools be formulated and adopted to meet organisation’s requirements, and one of such tools in marketing research. Marketing research according to Philip Kottler in Journal of marketing (1973:8), is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Also American marketing Association (1960:4) defined marketing research as the “use of scientific method, to collect information relevant to the marketing of goods and services marketing research concerns itself with co-coordinating responsibilities comparing actual sales volume with forecasted sales volume and acting upon result to achieve maximum profit. The universal application of marketing organization and other fields of human endeavour cannot be over emphasized and the Nigerian Bottling Company is not an exception in this direction.
As already stated that in the Nigerian context, the sellers market rather than the buyers market had been obtainable, this is a situation where whatever sellers of products of goods and services offered to the market must be sold. This situation emanated from the fact tha thte country is experiencing production crises which has led to crises of short supply and always satisfy their consumers adequately.
This situation has been worsened by the non existence of consumerist activities in Nigeria which has made it impossible for the Nigerian consumers to influence governments legislation to protect their rights, the very few attempts which government had made to protect the consumers had been recklessly flouted by the business sector. Consumerism is beneficial firstly to consumers and manufacturers alike because such association will provide a “go ahead” to manufactuers which have what the consumers need and approves, and this can only be achieved through marketing research.
The Nigerian Bottling Company first came to Nigeria in 1953 and established it’s first bottling plant in Lagos. This was to be the beginning of growth and development in 1956, two other plants were established in Kano, and Jos respectively. The opening of the Ibadan plant followed in 1961, the next was that of beginning in 1970.
The Enugu plant at 9th mile corner Ngwo was established in 1975. in all, there are about 21 bottling plants in several parts of the country. In some states where bottling plants are non existents, large depots are always maintained to serve the growing demand for the products by consumers in those areas.
The Nigerian Bottling company plc are sole markers of several brands of soft drinks in Nigeria. Their products include cocoa-cola, fanta orange, fanta tonic water, fanta ginger Ale, fanta chapman, fanta lemon, fanta soda water sprite and krest bitter lemon.
The Nigerian Bottling brought with it the development of number of allied establishments all contributing to the growth of the Nation. Some of the establishments are the Delta Glass company at Ugheli, Delta State that supplies the Nigerian bottling company with the millions of bottles they used, the crown products factory at Ijebu-Ode, Ogun and Kano respectively, which manufacture the metal cork used in sealing the bottles, the Benin plastic company, which make the creates for carrying the products.
The Nigeria Bottling Company as the leader in soft drink production in Nigeria employs more than 60,000 Nigerians in all fields of it’s operation. The company has immensely helped in the development of sport and sporting activities mainly through sponsorships.

1.2 STATEMENT OF THE PROBLEM
A company may have good innovation well equipped plant and office facilities strategically located and good promotion activities but if it has no place for effective marketing research which will bring about customers satisfaction, then the whole effort used in putting the other factors in place has been wasted. Some of these areas, the study will look unto for improvement of this study are.
1. The need to improve the product quality offered to the customers.
2. Effect of production and supply crises.
3. Low profitability on the side of the producer
4. Lack of interest in the customers satisfaction.

1.3 PURPOSE OF STUDY
1. To determine to what extent marketing research can improve product quality.
2. To curb production and supply crises through marketing research programme.
3. To find out the extent to which marketing research can increase profitability.
4. To ascertain the extent to which marketing research can effect customers satisfaction.

1.4 SCOPE AND DELIMITATION OF STUDY
This research was intended to cover, marketing research as a tool for increased profitability with the Nigerian Bottling Company 9th mile corner, as case study.

1.5 RESEARCH QUESTION
To guide this project work, four research questions were formulated to ensure charity.
1. To what extent has marketing research improved product quality.
2. To what extent has marketing research results been used to curb production and supply crises.
3. To what extent has marketing research affected customer satisfaction.

1.6 NULL HYPOTHESIS
Ho1 – There will be no significant difference (p<05) (at the
profitability level of 05) between the mean perception of senior and junior staff of Nigerian Bottling Company Enugu on how marketing research improved product quality.
Ho2 – There will be no significance difference (p<05) (at the
probability level of 05) between a mean perception of senior and junior staff of Nigerian Bottling Company Enugu on how marketing research results is been used to curb production and supply crises.
Ho3 – There will be no significance difference (p<05) (at the
probability level of 05) between a mean perception of senior and Junior staff of Nigerian Bottling Company Enugu on how marketing research increased profitability.
Ho4 – There will be no significance between (p<05) (at the
probability level of 05) between a mean perception of senior and junior staff of Nigerian Bottling Company Enugu on how marketing research affected customers satisfaction.

1.7 SIGNIFICANCE OF THE STUDY
The benefit of this study are spread to every body including the company, competitors, readers and myself with the customers. The significant of this study should not be left out because without marketing research the organization like the one mentioned in our introduction will not be moving forward.
The company will be benefiting through the means of knowing where they are lacking and where they are to improve when we talk about the competitors, of course, they gain by knowing to challenge or compete, with the competitors, also about the readers of this particular project, the research will benefit the readers in the aspect of selecting or knowing the best mineral company they should go for and this will include the customers also because some times readers night be one of their customers. So the significant of this research to the researcher is a lot, although I went through a lot of stress but eventually I got what I wanted, so I benefited by knowing how they produce their products and how they’ve been talking with their competitors and have more understanding about the above company.

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Marketing Research As A Tool For Increased Profitability:

Marketing research is a powerful tool for increasing profitability in business. It involves collecting and analyzing data about customers, competitors, and the market in general to make informed decisions. By conducting effective marketing research, companies can identify opportunities, mitigate risks, and optimize their marketing strategies. Here’s how marketing research can contribute to increased profitability:

  1. Understanding Customer Needs and Preferences: Research helps companies understand what their customers want and need. By identifying customer preferences, pain points, and buying behavior, businesses can tailor their products or services to meet those demands more effectively. This can lead to increased sales and customer loyalty.
  2. Targeted Marketing: Through market segmentation, businesses can divide their customer base into smaller, more manageable groups with similar characteristics. This enables them to create highly targeted marketing campaigns that resonate with specific customer segments, increasing the likelihood of conversion.
  3. Product Development and Innovation: Research provides insights into emerging trends and customer desires. Companies can use this information to develop new products or improve existing ones. Innovations that meet customer demands can command higher prices and increase market share.
  4. Competitor Analysis: By monitoring and researching competitors, businesses can identify gaps in the market or areas where they can differentiate themselves. This knowledge can inform strategic decisions and help companies gain a competitive edge.
  5. Pricing Strategies: Research can reveal how much customers are willing to pay for products or services. This data can be used to set optimal pricing strategies that maximize profitability while remaining competitive.
  6. Marketing Effectiveness: Research helps evaluate the effectiveness of marketing campaigns. By measuring key performance indicators (KPIs) such as conversion rates, return on investment (ROI), and customer acquisition cost (CAC), businesses can allocate their marketing budget more efficiently and improve campaign outcomes.
  7. Risk Mitigation: Understanding market trends and consumer behavior allows businesses to anticipate potential challenges and risks. This enables proactive risk mitigation strategies, reducing the impact of unforeseen events on profitability.
  8. Expansion and Market Entry: Before expanding into new markets or launching new products, companies can conduct research to assess the viability of such ventures. This minimizes the risk of failure and increases the chances of success.
  9. Customer Retention: Research helps identify reasons for customer churn and dissatisfaction. Armed with this information, businesses can implement strategies to improve customer retention, reducing the cost of acquiring new customers.
  10. Long-Term Planning: Marketing research provides valuable data for long-term strategic planning. By understanding market trends and customer behavior, companies can make informed decisions that position them for sustained profitability.

In summary, marketing research is a fundamental tool for businesses looking to increase profitability. It allows companies to make data-driven decisions, better understand their customers, competitors, and market conditions, and optimize their strategies accordingly. By investing in effective marketing research, companies can improve their bottom line and drive long-term success.