EFFECTIVE BRANDING DECISION AND CUSTOMERS CHOICE OF BEVERAGE
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EFFECTIVE BRANDING DECISION AND CUSTOMERS CHOICE OF BEVERAGE
Chapter one
1.0 Introduction
Branding is a fundamental issue in product planning; nevertheless, producing a branded product involves significant long-term investment, particularly in advertising.
In addition to promotion and packaging, many brand-oriented businesses subcontract manufacturing to others.
Manufacturers, on the other hand, eventually discover that developing their own brands provides them tremendous market strength. Japanese and South Korean corporations pay heavily to establish brand names such as Sonny, Toyota, Golderton, and Samsung.
Even when these companies can no longer afford to manufacture their products in their home countries, the brand names maintain client loyalty.
Nigeria’s economy has boomed in the last year, and with significant foreign exchange reserves, the population rely heavily on imported items, particularly home products. Then came the recession.
They had a negative impact on citizens because many did not value Nigerian-made products. There is an increase in expenses, and importation is discouraged.
At this moment, Nigeria began to seriously consider industrial development. With the attainment of independence in 1960, there was a clamour for another type of economic freedom, as most businesses and economic enterprises were controlled by foreign investors in 1962.
The Nigerian Enterprise Promotion Decree went into effect in February 1972. The major goal of this decree is to provide chances for Nigerian businesses to maximise local profit retention in order to improve the proportion of indigenous ownership in industrial ventures.
The third and fourth national development plans aim for self-sufficiency, which requires the country to reduce its reliance on imports. Marketing campaigns, such as trade fairs, are frequently organised to promote and expose local manufacturers.
It raises awareness of the products; it is organised by the Chamber of Commercial and Industry, and product industries include Guinness Nigerian Plc, Aba United African Company (UAC),
Paterson and Zodiac Plc, and the International Equitable Association, to name a few. They produce a near equivalent, but they differentiate their goods and strengthen their market position by using brand names.
1.1 Background of the Study
Branding began in the Middle Ages with the formation of craft guides and merchant guides to oversee production quantity and quality. Each producer has to ensure that his output could be reduced as needed.
This also meant that bad quality, which could reflect inconsistently on other guide products and deter future trade, could be traced back to the guide produce.
Early trademarks also provided buyers with security by allowing them to identify the source of the product. More recently, branding has been employed primarily for identification; the earliest and most aggressive brand promoters in America were patent pharmaceutical businesses.
They were joined by successful manufacturers who expanded their operations following the civil war. Some of the brands that began in the 1860s and 1870s and are still in business today are Border’s Quarters, Pilsburgs,
Best Flour, and Wary Soap. Today, familiar brands exist for the majority of product categories; a well-known brand makes purchasing easier. Even for infrequent purchases, consumers frequently rely on well-known brands as an indicator of quality.
Brand promotion benefits both branders and customers. A solid brand shortens the sales cycle for customers, saving marketers time and effort. When clients frequently buy from a brand, the brand is safeguarded from competition from other sources. This can boost sales volume while lowering promotion expenditures.
Good brands can boost the company’s image, accelerating acceptance of new products promoted under the same name. Guinness Nigerian Plc is a manufacturing/marketing company that sells over twenty distinct brands in a variety of pack sizes throughout the home care, personal care, and food categories.
To achieve marketing excellence, the organisation has a defined policy of maintaining excellent product quality that is widely acknowledged across the country. The company is committed to meeting the needs of consumers in terms of product performance and quality standards, outperforming the competition.
It ensures that brand advertising claims meet quality standards and are generally supportive of overall brand positioning, and it maintains regular contact with the market, distribution, chain, trade, and consumers to closely monitor product performance and quality in comparison to competitors.
Guinness Nigeria Plc competes with other soap businesses, so goods are developed, produced, and sold especially to fulfil the specified needs of customers. It is seen as a need in every home.
During the course of this investigation, Guinness Nigerian Plc (RC 113) was identified as one of Nigeria’s longest-surviving manufacturing outlets. In 1923, the company was formed as a private company to manufacture soaps using locally sourced palm oil.
Over the years, the company has diversified and expanded its operations to include the production and distribution of personal products, namely Guinness products, detergent, and body care products.
In particular, and by selective acquisition, the business has strengthened its personal product through its combination with Chase Products Industries Limited in 1988, and more recently in 1995 through a merger with Lever Brothers Nigeria Limited, which effectively passed to Guinness Nigerian Plc.
Following the recent acquisition of A.J. Seward, and in order to ensure sustained management focus, the company now has four manufacturing sites for its operations from the original six, namely Apapa Lagos, the second site, Aba, which is devoted to the production of Guinness detergents, and here the company produces such popular brands as Guinness Nigerian Plc.
The company is entirely committed to backward integration and self-sufficiency, and it has made significant progress in its efforts to source and develop materials locally. The Guinness Plateau highlights the company’s unwavering strive for self-sufficiency.
The first crop of Guinness was harvested for test packaging at the end of 1991, and a processing factory for the Guinness leaves was completed on-site.
The company also built a large Guinness drink at its Aba factory to demonstrate that the supply of Guinness drink is an essential raw material in edible production. It is also investing in the Guinness drink to strengthen local sourcing.
Guinness Nigeria Plc’s quality products are distributed and sold uniformly throughout the country via an established and tested distribution network that employs authorised distributors and is overseen by a well-trained sales team.
The company employs around 2.250 people in its manufacturing facilities and numerous distribution outlets throughout the country, of whom just three are foreigners. This demonstrates the amount to which the organisation has invested in training and developing management resources.
The goal is to bring in expatriates who are willing and able to work in Nigeria and contribute to training Nigeria, giving the firm an international flavour in exchange for Guinness Nigeria Plc’s.
PRIVATE BRANDING.
According to Aham Anyanwu (1998), resellers imitate and own a single brand. This form of branding is not very widespread in Nigeria; nonetheless,
it is envisaged that over time, the environment would include products created by him but labelled with the reseller’s own brand. These products may be identical to those sold by the manufacturer, or they may have different specs and quality levels.
Mixed branding
According to Berkowetz et al. (1986) in their book “marketing” fourth edition, the compromise between manufacturer and private branding is mixed branding, in which a firm markets a product under its own name as well as that of a reseller because the segment attracts resellers from their own market.
GENERAL BRANDING.
Berkowiz believes that an alternate branding method is the generic brand, which is a no-name product such as food, peanut butter, or greens. One of the most appealing aspects of the contents is that they cost less than branded items; generic brands account for less than one percent of total supermarket sales.
Reasons for Branding
Aham Anyanwu’s book “Dimensions of Marketing” provided numerous reasons for branding, including:
To achieve repeat purchases: Satisfied consumers will always return to the store where they were satisfied. Brand marketing benefits both the brander and the customers. Good brands make it easier for people to shop, which saves marketers time and effort in selling.
To improve market share and profitability, Pete Drucker suggests that a company should have a variety of products, each in a different stage of its life cycle, so that a steady stream of profitable items is constantly available. Drucker refers to this line of products as “today breadwinners,” “tomorrow breadwinners,” and “yesterday breadwinners,” all of which will be replaced by ale.
Develop brand loyal customers: An organisation that differentiates its products through branding is more likely to develop customer loyalty to the product.
The ultimate goal of differentiation is to develop a unique selling proposition, which is typically accomplished by adding value to products and being committed to the production of high-quality brands and packages that remain a must-have and, in fact, the very best in all homes.” For the purposes of this study, the products are Guinness and detergent.
1.2 Statement of the Problem
Brands differ in terms of the amount of power and worth they have in the market; at one extreme are brands for which purchasers have a relatively high level of brand awareness. Beyond those are brand preferences.
Finally, there are brands that enjoy a high level of brand loyalty. Today, competitive conditions characterise almost every market in Nigeria’s industrial industry, and the quality of competitive products varies greatly.
Every human being, by nature, wants to be the best and have the best items. There is a prevalent perception that some materials are inferior, and preferences are demonstrated for things with higher quality. The problems noted below remain: –
Is branding the secret to consumers identifying and purchasing the correct products?
Why do customers trust Guinness Nigeria Plc’s product brands?
What is the role of branding in product marketing?
1.3 GOALS OF THE STUDY
This project effort was written with multiple goals in mind. The goals of writing the research include the following:
To illustrate what branding is all about with a full treatment of all types of businesses in Nigeria.
To provide an overview of how branding affects consumer goods marketing.
To describe branding tactics used in organisational activity.
To determine ways to increase the quality of Guiness Nigeria Plc’s products.
1.4 RESEARCH QUESTIONS.
The following questions were raised for the study:
Does branding contribute to profit?
Does branding encourage the introduction of new products?
Does branding influence product selection?
Does branding provide you an advantage over your competitors?
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