MARKET SEGMENTATION AS AN EFFICIENT TOOL OF ACHIEVING INCREASED MARKET SHARE
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MARKET SEGMENTATION AS AN EFFICIENT TOOL OF ACHIEVING INCREASED MARKET SHARE
ABSTRACT
The primary goal of business is to find, attract, and keep consumers who will use the company’s varied goods to meet their wants or solve issues. To be successful, service organisations must understand how customers perceive services and how they differ from the company’s offerings.
As a result, the primary goal of this research is to establish how effective market segmentation is at increasing a company’s market share. The research questions were posed, difficulties recognised,
and objectives established. At the same time, some existing literature on the subject was evaluated, and a methodology was used to collect and analyse the data.
Eight research questions were established to lead the investigation. The analysis is presented in the form of a table with sample percentages to provide an overview.
Some of their main principles were based on increasing the organization’s product sales and determining the efficacy of market segmentation, which is dependent on managers obtaining what they want from planning.
To persuade non-users of market segmentation, organisations and management must understand that planning serves as a reward. Also, management should endeavour to discover each manager’s needs and expectations in order to improve morale and planning performance. The outcomes of this study led to the following conclusions:
organisations should maintain an effective plan, create a suitable planning and working environment, pay fair and adequate remuneration, and encourage management.
Other researchers should do theoretical study to determine the effectiveness of market segmentation in increasing the company’s market share. To summarise, the elements described above can increase management satisfaction with planning and make it more rewarding for both the manager and society.
Chapter one
INTRODUCTION
7up plc was founded by a Lebanese businessman named Mr. Mohammed Elkhail, who arrived to Nigeria in 1926 to sell in domestic and kitchen supplies. He later became the owner of one of West Africa’s largest transport companies. In 1959, he expanded into the soft drink market and established the 7upbottling company, which is now plc.
The 7up initial plant was located in Ijora, Lagos, which is currently the headquarters, and the first bottle of 7up was created in 1960. Also on that day, fourteen crates were created.
The Ibadan, Ikeja, Kano, Kadunna, and Aba plants were operational from 1980 until 1989. Furthermore, more plants have been opened across the country, including numerous depots.
Because their depots were located in a variety of locations throughout the country, it was simple for them to improve distribution across the country by accessing areas where their products were unavailable.
Finally, the company’s soft drink brands include 7up, Pepsi Cola, Mirinda Orange, Mirinda Soda, Mirinda Fruity, and the recently announced Maintain Dew.
Background of the study
The increasing customer need for diversity has had the greatest impact on corporate practices. The relatively homogeneous market of the less affluent era may be satisfied with minimal product offerings. However, as purchasing power increased, markets became more heterogeneous and demanded more counsel.
Recognition of this trend resulted in widespread acceptance of market segmentation. (Awa, 2003: 291) cites the Encyclopaedia of Professional Management from 1995.
During the 1930s, the work of Rebonson and Chamberline resulted in a rebirth of economic theory. While classical and neoclassical theory provided a useful framework for economic study, the notions of perfect competition and pure monopoly were no longer appropriate for explaining today’s commercial scenario.
The notion of perfect competition argues that homogeneity among the components of demand diversity and heterogeneity has become the norm rather than the exception. There are numerous reasons why market segmentation exists in a certain market, including:
The specialised or superior resources enjoyed by well-positioned manufacturers.
Variations in producer predictions of market demand based on factors such as price sensitivity, colour, material, and package size.
Variations in production equipment, procedures, or processes employed by different manufacturers of items with the same or similar applications.
Because of these and other circumstances, there are both intended and uncontrollable differences in the products of an industry. As a result, sellers make various pleas in favour of their marketing campaigns.
As among the producers, goals are to serve the needs of the consumer, keeping in mind that no two consumers behave similarly, even if they have comparable avoidance characteristics such as:
Buying status: prospective; first-time regular.
Usage rate
Purchase procedure: sitting bid negotiation, etc.
The industrial market may also be split based on the location of company types. The fact that not all consumers visit the same retail outlet on each buy occasion and do not consume a certain product at the same rate does not completely limit income,
but it does assist a producer acquire market share. By segmenting the market into more targeted consumers or groups of buyers, it will be able to increase existing sales and build new sales without decreasing prices, resulting in increased market share.
In order to stay in business, corporations should recognise the marketing philosophy that states “consumers are the economic and social justification of business existence” (Anozie 2003: 28).
In conclusion, segmenting the market into separate units based on customer needs would attract more sales and thus raise market share, which refers to the proportion or percentage of sales of a specific product or service in a given territory held by a company. Market share determines a company’s competitive strength in one industry vs another.
The market segmentation strategy is used, as it was with the 7-Up bottling computer.
The brief history of 7UP BOTTLING COMPANY is as follows:
7up plc was founded by a Lebanese businessman named Mr. Mchammed Elkhahit, who moved to Nigeria in 1926 to trade domestic and culinary items.
He later became the owner of one of West Africa’s largest transport companies. In 1959, he expanded into the soft drink market and founded 7up, the first bottling company that is now plc.
The 7up initial plant was located in Ijora, Lagos, which is currently the headquarters, and the first bottle of 7up was created in 1960. Also that day, fourteen crates were produced.
The Ibadan, Ikeja, Kano, Kaduna, and Aba plants were open from 1980 until 1989. Furthermore, more plants have been opened across the country, including numerous depots.
Because their depots were located in a variety of locations throughout the country, they were able to improve distribution across the country with the help of their effective marketing methods, accessing areas where their products were not available.
Finally, the company’s soft drink brands include 7-Up, Pepsi Cola, and Miranda Orange. Miranda Soda, Miranda Fruity, Teen Lemon, and Maintain Dew, which were just introduced.
STATEMENT OF PROBLEM
Most organisations, organisations, industries, or corporations find it difficult to increase their market share in a competitive economy. As a result, the researcher intends to empirically evaluate the efficacy of market segmentation as a technique for increasing market share.
OBJECTIVE OF STUDY
Based on the study’s context, the primary objectives are market share.
To assess the effectiveness of market segmentation in increasing market share.
To assess the value of market segmentation to a corporation.
Determine the significance of market share.
To separate the various degrees of market segmentation.
To determine the requirements for market segmentation.
To determine the extent to which an organisation uses market segmentation.
To give required recommendations and suggestions for possible solutions to the difficulties of market segmentation.
RESEARCH QUESTION:
This study intends to provide answers to some of the following questions:
Can segmentation help an organisation achieve its goals?
Is market segmentation an efficient method of increasing market share?
In a competitive economy, can market share determine organisational supremacy?
Could market segmentation research help to improve the organization’s standards?
Do you believe that market segmentation has an impact on organisational revenues?
The significance of the study
This work demonstrates the efficiency, efficacy, and usefulness of market segmentation in raising a company’s market share, which will be extremely beneficial to this group.
THE RESEARCHER: It will help him highlight the importance of market segmentation, which stems from the goal to satisfy customer interests while making a profit.
7UP BOTTLING COMPANY PLC: It will help them understand that the impact of marketing segmentation on market share growth is the initial stage of strategic planning.
SOCIETY: Market segmentation research will benefit society as a whole in a competitive economy, as market share is critical to economic growth.
SCOPE OF THE STUDY
His research focuses on improving market segmentation efficiency in order to increase 7up bottling firm plc’s market share. However, the researcher likes to focus the investigation on 7upo bottling in Aba.
Limitations of the Study
The researcher was confronted with the following constant in the course of this investigation.
Due to the time constraints of the study, there was insufficient time to visit most of Nigeria Breweries Plc’s departments for interviews, resulting in limited coverage.
Finance Due to a lack of funding, the research was unable to be completed satisfactorily.
Human Factors The manager in the marketing department of Nigeria Breweries Plc who was supposed to provide me with the relevant information was always unavailable due to one or more assignments.
Definition of Terms:
MARKMET: [the current and prospective purchasers of a product or service. It is a group of people who have a desire for a product or service, as well as the ability, intellect, and purchasing power to obtain that product/service.
SEGMENTATION is the process of dividing a diverse market into homogeneous pieces. It also identifies distinct market segments.
HETEROGENOUS:- This refers to when something is made up of different types, such as markets.
HOMOGENOUS:- This is a part of the entire market made up of individuals who have the same set of needs for a given product category.
MARKET SHARE: This is the fraction or percentage of a specific product or service in a given region that a company controls.
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