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EFFECT OF ADVERTISING ON CONSUMER REFERENCE PATTERNS FOR MALT DRINKS IN ENUGU METROPOLIS

EFFECT OF ADVERTISING ON CONSUMER REFERENCE PATTERNS FOR MALT DRINKS IN ENUGU METROPOLIS

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EFFECT OF ADVERTISING ON CONSUMER REFERENCE PATTERNS FOR MALT DRINKS IN ENUGU METROPOLIS

ABSTRACT

The study, titled “The Effect of Advertising on Consumer Preference Patterns for Malt Drinks (A Comparative Study of Amstel Malta and Guinness Malta) in Enugu Metropolis,” had specific aims.

· Determine the impact of advertising on the decision to buy Guinness Malta or Amstel Malta.

· Determine which malt brand is more widely available and popular among consumers.

· Suggesting strategies for companies to improve brand recognition, customer satisfaction, and profit maximisation.

To meet the aforementioned goals, relevant literature on consumer preferences for malt beverages was studied. In addition, primary and secondary data were gathered to solve the research topic, with questionnaires serving as research tools.

The study’s population consisted of consumer distributors, as well as management and relevant staff from both Guinness and Amstel Malta companies in Enugu Metropolis.

Because the population under study was tiny, the researcher conducted a census survey on management and relevant staff, while the sample size for customers and distributors was determined using Topman’s formula.

Tables, frequencies, and percentages were utilised to organise and show the obtained data, and hypotheses were tested using the Z score.

The following conclusions were reached after analysing the data.

Consumers in Enugu believe Amstel is more expensive than Guinness beer.

They found that advertising raises awareness of both items.

Amstel’s advertising leads to higher consumer satisfaction compared to Guinness.

Based on the findings, recommendations were offered.

– Both organisations should engage in excellent advertising strategies and other promotional activities that appeal to consumers in order to achieve their objectives efficiently and effectively.

– Both companies’ products should be continuously available.

– Nigeria Breweries Plc could lower the price of their product orders to attract more customers.

– Guinness should look into the advertising that leads to increased product sales.

– If the aforementioned suggestions and recommendations are applied properly and efficiently, both organisations will see a significant improvement in their advertising performance, and consumers will benefit.

Chapter one

INTRODUCTION

1.1 Background of the Study

It is widely assumed that advertising is as old as human history, yet as a promotional tool, it began with the birth of trade. “In the early days, advertising was practiced in different forms in different parts of the world,” according to Samson (1981: 180).

He argued that “there were small stone printing stamps which were used by the ‘Quacks of Roman times’ to impress on the surface of their solves.” During this period, there are numerous eras of advertising, including “pre-marketing.”

From prehistoric times to the middle of the eighteenth century, buyers and sellers communicated in very primitive ways. “Media” such as clay tables, town criers, and favarn signs were the best way to advertise a product or service.

Towards the end of this era, printing was used. In other words, for millennia, people have expressed their views and needs to one another through advertising; as one can see, advertising takes numerous forms and has a significant impact on modern society and trade. (Connor and Hart, 1999: 5).

During the last 50 years (Research Era), advertisers have methodically improved the techniques of identifying and reaching narrowly targeted audiences with messages tailored to each group or individual; modern communication technology has aided in this pursuit of the perfect advertising campaign.

Awake 22nd August (1998:5). Many years ago, people used primitive hand tools to produce goods, and they lived in small isolated communities where artisans and farmers traded goods and services among themselves.

Distribution was limited, but as technology advanced, Greek and Roman merchants expanded contact with other societies, and people achieved a higher level of production.

However, because ancient civilizations relied solely on primitive hand tools to produce products, the quantity and diversity of available items were negligible.

There was a growth in demand for commodities, which prompted a larger need to publicise their availability. (Marshal 1995: 81) Thus, signs made of clay, wood, or stone were hung in front of businesses so that visitors could see what the merchant had to offer. Because most people at the time could not read, signs were employed to represent the goods for sale.

“The symbolic and pictorial nature of advertising which gave vent to out door advert has proved to be one of the enduring form of aid” (Connor and Hart, 1999, pp. 10-11).

The introduction of printing in the 1450s was a watershed moment in the history of civilization and probably the most important development in the history of advertising. Johannes Gutenberg, the investor in the printing press and its system, changed the way people lived and worked.

In 1740, the first printed outdoor poster known as “Loarding” appeared in London, serving as the predecessor of modern outdoor advertising.

Advertising in Nigeria can be traced back to one of the first forms of mass communication known as “Town crying.” According to Nwabueze (1980:28), modern advertising in Nigeria began with the founding of the first news paper, IWE IOHIN, which carried information.

Advertising is a powerful marketing communication strategy used by businesses to perform promotional tasks. It is an impersonal type of communication or presentation on goods, ideas,

or services that takes place through paid media under open or acknowledged sponsorship. It is a marketing tool used to sell products, services, pictures, and ideas by providing information and persuading.

Its goals could include raising awareness, achieving conviction, developing preferences, influencing purchasing decisions, and encouraging action.

Advertising has a purposeful influence on a consumer’s choice of purchase towards a product brand. When an advertisement is placed showing the benefits and advantages the brand has over another, it will be a motivating factor to entice the buyer.

By tailoring the advertisement to his personality, he begins to initiate conviction, and the next thing he does is take action (purchase).

Advertising is a preferred agent; one of its most significant advantages is that it encourages customers to become active rather than passive agents in the economic cycle. To make a purchase, a consumer must be informed, receiving information from a number of sources before making a decision.

Nigeria has various malt drink manufacturers, including Nigeria Breweries Plc. This is Nigeria’s pioneer and largest brewing firm; it was founded in 1946 and achieved a milestone when the first bottle of STAR Lager bear rolled off the bottling lines in its Lagos brewery in June 1949.

This was followed by the Aba brewery, which opened in 1957, the Kaduna brewery in 1963, and the Ibadan brewery in 1982. The business purchased its fifth brewery in Enugu in September 1993, and on August 31, 2001, it christened the Ama Greenfield brewery in Enugu, Africa’s largest, which was commissioned in October 2003.

Thus, from its humble beginnings in 1946, the company has established file functioning breweries from which its high-quality goods are disseminated throughout this magnificent country.

They offer a strong range of high brands. Star lager beer (1949), Gulder lager beer (1970), maltina (1973), which now has four kinds, Legend extra stout (1992), Amstel malta (1994), and the Sehweppes carbonated soft drink line, which debuted in December 1996.

It was followed by the introduction of Crush in November 1997 and Schweppes Pineapple in October 1999, with Heinelten previously introduced in June 1998.

In August 2001, they chose to depart the carbonated soft drink business in order to focus on their core competencies; the Schweppes franchise was sold off.

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