EFFECT OF MARKET SEGMENTATION ON PERFORMANCE OF BREWERY INDUSTRY
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EFFECT OF MARKET SEGMENTATION ON PERFORMANCE OF BREWERY INDUSTRY
Chapter one
INTRODUCTION
1.0 Background of the Study
The impact and effect of market segmentation in the context of globalisation around the world, whether developed or emerging economies, the supremacy being.
Accordingly, the free market system cannot be overstated; that is, achieving economic efficiency, which eventually leads to economic growth, is a free competitive market system, also known as the capitalist system.
Market segmentation is one of the procedures used to define and target distinct markets. It is the practice of segmenting a market into discrete groups of purchasers who require different products or marketing approaches.
Finding small differences to give a business a marketing advantage is a critical aspect in success in today’s industry.
Businesses that target niche markets will promote their products and services more effectively than those aiming for the “average” customer.
Segmenting, targeting, and positioning (STP) are at the basis of modern strategic marketing, according to Kotler (2004). Since no marketer can serve the entire market or sector,
the market must be segmented. The market’s heterogeneity—consisting of different consumers with different demands and wants—also contributes to segmentation.
He also saw market segmentation as the process of discovering and profiling separate groups of buyers who may require different products and/or marketing strategies.
Marketing opportunities expand when segmented groups of consumers and customers with different requirements and desires are identified.
A wide range of factors can be used to segment or target the market. The bases for segmenting consumer markets are:
· Demographic factors (age, family size, life stage)
· Geographical bases (states, regions, and nations).
· Behaviour bases (product knowledge, usage attitudes)
· Response:
· Psychographic bases (lifestyle, values, and personality).
Today, it is widely accepted that practically all industrial businesses, particularly brewers, use market segmentation due to the significant benefits it provides.
1.1 Statement of the Problem
Today, it has been seen that many organisations in our country are deteriorating due to the instability of the Nigerian business environment, combined with price variations in the business cycle as a result of market homogeneity, necessitating the concept of market segmentation. This can be simplified using the following points.
a) Problems caused by pricing swings, low market demand, and even the collapse of some businesses.
b) Monotony in production occurs when a producer engages in mass manufacturing and distribution of a single brand of product, which does not increase profit maximisation.
c) A visionary management team or marketing people fails to find segmentation variables. For example, how to identify customer preferences, standards, and acceptable quality. (Market fluctuations).
d) Failure to establish the marketing mix (pricing, product, promotion, and location) and target market.
e) Inconsistent production output and decreased product delivery.
1.2 Statement of Objectives
This study aims to:
i. Determine how a marketer might effectively employ segmentation approaches in the brewing business to increase consumer pleasure while maximising profit.
ii. Determine the foundation for segmenting the market.
iii. Investigate the benefits and drawbacks of market segmentation.
iv. Identify the market targeting tactics used.
v. Assess the attractiveness of each segment.
1.3 RESEARCH QUESTIONS.
The following research questions will be asked during the study:
a) Is there a strong link between market segmentation and organisational performance?
b) What approach would be implemented to attain the marketing mix, which includes price, product, promotion, and placement inside an organisation?
c) How prepared are marketing personnel or management to identify segmentation characteristics, such as customer preferences for standard and acceptable quality?
d) Are there suitable industrial rules in place to increase production output and ensure product delivery consistency?
e) Are there any incentives in place through market segmentation to increase the production and distribution of all types of items that promote profit maximisation in the economy?
1.4 Research Hypothesis
Ho: Is there no significant relationship between market segmentation and organisational performance?
Hello: Is there a strong relationship between market segmentation and organisational performance?
Ho: Is there no significant association between market segmentation and organisational competitive advantage?
Hello, is there a substantial relationship between market segmentation and organisational competitive advantage?
1.5 Scope of Study
In this study, two companies were selected to investigate the influence of market segmentation on the performance of the beer industry. Based on its lengthy history in Nigeria. The study focused on Guinness Nigeria PLC (GNPLC) and Nigeria Breweries PLC.
Furthermore, the study will examine how and to what extent the companies have effectively combined and directed their marketing mix product, pricing, promotion, and place to fulfil the needs of their target markets.
1.6 Significance of Study
This study will be extremely valuable to the beer industry and marketers since it will educate them on the value of segmentation techniques in outperforming competitors. It will assist the focus areas, GNPLC and NBPLC.
Suggestions and recommendations provided at the conclusion of this study will allow businesses to improve their services, which will inevitably lead to profitability.
More importantly, this research will aid future researchers in beer and soft drink manufacturing and marketing.
1.7 Operational Definition of Terms
MARKET: An assemblage of forces or situations that influence buyer and seller decisions resulting in the transfer of commodities and services.
Again, Market refers to a group of people or organisations having unmet needs or desires and sufficient purchasing power.
MARKETING: Marketing has been defined as the alignment of an organization’s own strengths with the needs of its consumers. It has also been suggested that an organization’s focus on the 4ps (product, pricing, promotion, and place) results in better matching.
SELLING: Selling is simply the aspect of marketing associated with persuading customers to purchase the product or service that best matches an organization’s capability and its customers’ desires.
SEGMENTATION: Segmentation is the identification of consumer groups that react differently than others to competing strategies that necessitate the conceptualization, creation, and assessment of a competitive product.
TARGETING: This is the act of selecting a sector of the market to whom all effort will be directed.
STRATEGY: This is a well-planned succession of steps to achieve success.
A brewery is a facility where beer is manufactured or brewed.
PERFORMANCE: This is the act of assessing the impact of market product segmentation on consumers. OR the comments received as a result of product marketing segmentation.
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