ADVERTISING AS COMPLIMENTARY TOOL IN MARKETING OF ALUMINUM KITCHEN WARE
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ADVERTISING AS COMPLIMENTARY TOOL IN MARKETING OF ALUMINUM KITCHEN WARE
Chapter one
INTRODUCTION
1.1 Background of the Study
An organization’s marketing efforts are governed by six marketing mix components, which are controllable variables used by marketers to fulfil their marketing objectives. The combination of product, pricing, physical distribution, and promotion, known as the four Ps, acts as the pivot of marketing management.
Promotion can be defined as the use of communication to persuade or convert potential clients. In other terms, it refers to the seller’s concerted attempts to build channels of information and persuasion to promote the sale of goods, services, or ideas.
It encompasses advertising, personal selling, sales promotions, publicity, and public relations. However, the general nature and scope of this endeavour are limited to advertising.
Advertising is a powerful instrument for manufacturers to shape consumer attitudes and behaviours towards their products, ideas, and services. As a result, it has evolved into an essential component of our society.
Canvassing is used to capture people’s attention and inform them about what producers have to sell or what consumers need and want to buy through numerous channels of communication.
Recognising the relevance of advertising as a complementary instrument in marketing operations, the study seeks to investigate the variables that increase the necessity for achieving desired sales growth in a highly competitive environment.
1.2 A Brief History of the Company.
Tower Aluminium (Nigeria) plc is Nigeria’s leading aluminium production firm. The company begins operations on September 18, 1959. It began manufacturing aluminium cooking utensils (ports and pans) on Oba Akran Avenue in Ikeja,
Lagos, after securing a franchise ship from Tower Brazil and the United Kingdom to reserve the right of a worldwide firm. In 1977, the business began a progressive diversification drive by establishing facilities to manufacture and extrude profiles in Dopemuin, Lagos state.
The next big step in its backward integration strategy came in 1982, when Tower opened its most modern facility at Otta, Ogun state. It employs the most modern and continuous casting technology, converting molten aluminium (Bauxite-ore) into sheets and bullets during operation. It has several divisions, namely:
TOWER HOLLLOWARE: tagged, the mother of Tower Aluminium, was the first division that engaged in the manufacturing of domestic and industrial kitchenware, ranging from quality ware casseroles, food steamers, gas ranges, light weighted and polished casseroles, water filters and so on, located at the Head Office in Oba Akra Avenue, Ikeja, Lagos.
In 1994, the division adopted a horizontal integration strategy, Progress, with the goal of acquiring home aluminium items and renaming.
Tower Housewives plans to develop lighter-weight cookware than Hollowware in order to compete with similar aluminium products on the market.
TOWER BUILDING PRODUCTS: Manufacturer of corrugated and manufactured aluminium and steel sheets, as well as accessories. They include roofing sheets with cladding and colour coating. Other divisions include Alufoil, Tower Tools, and Engineering.
Currently, the firm has eleven recognised shareholders and an authorised share capital of N500 million as of December 31, 1998. The share capital held by foreigners is 81%, while Nigerians own 19%, with an issued share capital of N175, 444, 515.
The company’s sales turnover increased from N1.8 billion in 1996 to N2.55 billion in 1997 and N2.8 billion in 1998.While the corporation paid 50% VAT on net sales, 30% income tax, and withholding tax to the government.
In 1998, they paid a dividend of $20,000 per share and now have the largest market share in the aluminium business, accounting for almost 60% of the overall market.
The company’s high level of profit and successful operations can be traced back to:
Effective promotional actions.
Effective Management of Operations
Strategic market penetration into the environment.
The corporation went on an ongoing search for enhanced technology and sales tactics. With effect from April 1999, we are currently embarking on over a million naira research and development initiatives. It sought to produce and import ceramic flanks and lanterns for neighbouring West African countries.
1.3 PURPOSE OF THE STUDY
It is to identify and analyse how advertising has helped the company achieve its marketing objectives, particularly in a competitive context.
In Nigeria, there are numerous brands of kitchen ware on the market, both imported and locally manufactured, and in order for a company to succeed, promotional programmes aimed to reach consumers through advertising and sales promotion are required.
Furthermore, the rate at which competitors are increasing necessitates the necessity for effective advertising, resulting in tactical advertising strategy. The critical evaluation of post-performance of advertisement depicts the importance of advertising in a company’s marketing activities.
Despite the fact that it attracts more conscious and product spending on advertisement, consumers are able to make a buying decision that provides the desired satisfaction in the presence of competitors such as Mulmaco, Green-turtle, first aluminium, Rafolat, and Jimexto, to name a few.
1.4 Object of the Subject
Lack of sufficient and adequate promotional planning leads to failure to reach the intended objectives; so, promotion, as a supplementary instrument in marketing, requires proper planning to ensure successful implementation.
Although advertising efficiency is an essential prerequisite, it is not sufficient for any firm’s continued growth and survival in a competitive industrial climate.
My goal is to find out how Tower Aluminium (Nig) Plc. is dealing with the various uncontrollable factors that exist in the business environments, as well as the recognition of multiple needs of that consumer and the dynamic nature of the society that may result from government legislation, and most importantly,
how the company is able to adopt strategy to combat various marketing problems as a result of prospect consumer development and sustainment through innovation and modification.
1.5 Significance of the Study
A systematic advertising plan is essential for the continued survival of product variants that have resulted in competition. These will cause the corporation to monopolise the market for the commodity to some extent, as marketing plans and tactics cannot be implemented in a vacuum.
The purpose and objectives of this research project are to investigate and highlight the significance of advertising and its corresponding consequences on the achievement of marketing objectives.
It aimed to assess the major issues in media selection, advertising message, target audience, pre-text and post-text of advertisement effects, and potential solutions to unanticipated events that could impede its function.
The completion of this study will provide adequate knowledge about the importance of advertising as a means or weapon in a highly competitive market, as well as assisting the Company’s Management with the secondary data to tackle most promotional problems and other related marketing problems, and for future research work.
1.6 Statement of Problem
Tower Aluminium was well-positioned and had a significant market share due to its high-quality product and effective communication strategy.
However, recent competitor activities indicate visible encroachment into the market share, with competitors appearing to be increasing in their efforts; thus, there is a need for the search for clear-cut information on operational processes,
consumer usage attitudes, and appropriate communications towards the company with the goal of regaining its position and expanding the presences of Tower Aluminium kitchenware market.
To identify a feasible answer to the above-mentioned concerns of how advertisements can be employed in conjunction with product marketing and how the company planned their advertising. There is a requirement to design research questions for the company’s vibrant marketing strategy, viz.
1. Will the advertising message affect customer brand maintenance?
2. Does advertising influence customer purchase decisions?
3. What are the consumer’s beliefs and attitudes towards the company?
4. Does Tower Aluminium (Nig) Plc efficiently use the promotional mix (advertising)?
5. Are Tower’s products frequently advertised?
1.7 Working Hypotheses
A hypothesis is a preliminary statement about the universe that may or may not be true. As the investigation progresses, Hois establishes the null hypothesis, which is used in sampling evidence to assess whether assertions about the population are likely to be correct or incorrect.
The following hypotheses have been proposed to be tested in order to make a valid statement about the topic.
Hypothesis
1. Ho: That advertising message has little impact on customer brand maintenance.
Hello: Advertising messages have an impact on consumer brand maintenance.
Hypothesis
2. Ho: That commercial has no effect on consumer purchasing fantasy.
H1: Advertisement has a considerable impact on consumer purchasing decisions.
Hypothesis
3. Ho: Consumers’ beliefs and attitudes regarding the company are negative.
H1: Consumers have a positive belief and attitude towards the company.
1.8 Limitations of Study
Because of the scale and nature of this research, the requirement for certain study limitations was emphasised; they are connected problems encountered during the research investigation, which include:
– SAMPLING METHOD: The sample size chosen may not accurately reflect the demographic of the intended market.
– MANAGEMENT LAPSES: The incapacity of managers to disclose confidential data used to achieve the company’s objectives.
– QUESTIIONAIRE ADMINISTRATION: Respondents’ bad responses in returning the questionnaire have been emigrated.
– RESPONDENT BIASNESS: Respondent’s inability to provide accurate information in the questionnaire due to a lack of sport assessment.
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