Accessing The Impact Of Advertising On Product Performance (A Case Study Of P.Z Nigeria Limited)

Project and Seminar Material for Business Administration and Management BAM

Accessing The Impact Of Advertising On Product Performance (A Case Study Of P.Z Nigeria Limited)

Chapter One


1.1 Background to the Study

Advertising is one of the major tools companies use to direct persuasive communication to target buyers and the public. It consists of non-personal forms of communication conducted through paid media under clear sponsorship. The spender included not any commercial firms but museums, fund raisers and various social-action organization seeking to advertise their causes to various target public. Infact, the twenty-sixth largest advertising spender is an non-profit organization in the USA government. The advertising dollars goes into the various media: magazine, newspapers, space, radio and television, outdoor displays (poster, sions sky writing) direct mail novelties (match boxes, blotters calenders) card cars, but catalogue directories and circular. Advertising has many used, long term building of the organization image (Institutional Advertising) long term build up of a particular brand (brand advertising) information dissemination about a sales service (classified advertising) announcement of a special sales (sales advertising) and advocacy of a particular cause (advocacy advertising). Although; advertising is primarily a private enterprises marketing tools, it is used in all the countries of the world, including socialist countries.

Advertising is a cost effective way to disseminate message, whether is to build brand preference for coca-cola all over the world or to motivate a developing nations consumers to drink milk or practice birth controls. Organization obtain their advertising in different ways. In small companies, advertising is handle by someone in the sales department who work with an advertising department , whose manager report to the vice-president to develop the total budget, approve advertising agency adverts and campaign and handle direct-mail advertising, dealer display and other firms of advertising not ordinarily performed by the agency.

1.2 Aims and Objectives of the Study

The aims and objectives of the study are:

  1.  To examine the impact of good advertisement on the performance of the PZ product.
  2. To examine the significance of advertisement on creation of awareness of the company product.
  3. To identify the relationship between advertisement and the price of the company product.
  4. To identify whether advertisement passes real message to the target audience.
  5. To determine the relationship between the advertisement and sales volume of the company product.
  6. The study will provide suggestion to improve advertisement strategies in the company.

1.3 Significance of the Study

This research work would be so useful for researchers who intend to know the various terms in advertising and also useful for both the undergraduate and graduate in the field of business studies, purchasing and supply, marketing management and other related courses, as well as professional managers. The research is also useful to PZ Nigeria plc and other companies in our nation in industry for informing , reminding and persuading consumer about their product and to create better awareness as well for the newly established enterprises.

1.4 Statement of the Problem

Severally, some individuals find it so difficult to started business, especially in environment like kwara state in some years ago, due to the lack of capital and the company find it difficult to start with little capital they have, as the company could not easily produce then future nearest, as a result of lack of capital, the company now decide to go back source of their financial. Lack of business:- since the company is not new business, people in the rural area may not be aware of their existence in which case there is no market for their product , and there is many competitive from that competing with them. In order to solve this problem, they go on aggressive marketing strategy like product, business advertising, sponsoring essays, donation handbook, organization lectures, seminars, in order to beat the competitive product.

Finally is lack of qualify personal:- During the 1980, most of the workers has the low qualification and lack of train on manufacturing product, such of the company has to send some of their staff to the polytechnic and some of morels institution of management, but the recent problem is lack of raw material since price has gone up as a result of subsidy in morels. So this has been cause uses of local raw materials, Despite the above problem pz Nigeria plc has been able to survived till today and is one of the leading one man business in morels with many branches throughout the whole federations.

1.5 Scope and Limitation of the Study

This research work covers pz Nigeria plc Ilorin among all the private manufacturing companies in the entire (country) morels. This researcher work would cover management and staff of PZ company in Ilorin. There are many problem encountered by the researcher in producing this research as learners mostly in the area of getting advertising textbook which may be use in carrying out this research; financial constant is another big problem to considered faced by the researcher in the producing of the project. The researcher also face some organization policy, because some of staff disclose some secret about the organization, additionally time factor, researcher face some conflicting programmes, such as project works and academic works, and attitude of the response when you get to the vital secret of the company, and the language barrier, some people will first ask about your tribe before answer your questions. Finally is lack of finance as a student.

1.6 Definition of Related Terms

Public Presentation:

Advertisement unlike personal selling is a highly public morel communication.


Advertisement is an pervasive media that passive media that persist in which the seller to repeat a message many time.

Amplified expressiveness:

It provide opportunity for dramatizing the company and its product, although it attract high cost of print, sound and colours.


This can be defined as the act of exchanging of goods and services; business can also be refers as the way of transacting business or goods and services which bring income at the end.


Is the largest amount of money that incurred on a budget at a time.


Is a specified amount of sales that a management set for achieving or exceeding within a company.


Is a broadcasting instrument which make other people aware of a particular thing as a result of broadcasting , such as radio, television, space, magazine, newspaper etc.


Is a moving or changing from one position to the other, promotion is an activity that support the further once of a cause venture or aims.

1.7 Historical Background Of The Case Study

In 1879, George Patterson and George zochonis set up a trading post in sierra-Leone; afterward, in 1899 Paterson zochonis (PZ) opens a branch office in Nigeria. PZ cussons Nigeria is principally engaged in the manufacture, distribution and sale of a wide range products and home appliance, which are leading brand names across the country in detergent, soap, pharmaceuticals, cosmetics, confectionery, refrigerators, freezers and air conditioners. The company also distributes the products of nutritional limited.

In 2011, the company recorded strong revenue growth in all its business units of personal care, home care, electronics and nutrition. In order to combat the threat facing manufacturing companies in Nigeria, PZ cussons has invested in improving its manufacturing and distribution facilities under the “project unity” program it concluded in 2010, with the upgrade of the white goods ( white goods are major household appliances) manufacturing and distribution facilities in Ilupeju, Lagos state. Also, the new detergent tower in Ikorodu, Lagos state, which was completed at the end of 2009, is now fully.

In 1920, Paterson zochonis began to trade in Cameroon. The company success was based on its intimate knowledge of the West Africa market, its network of trading contacts and the high reputation of its goods.

Although Paterson zochonis did not manufacture any of its export goods, these goods were branded with its own trademarks. One of its major export commodities was wax printed cotton fabrics. The role that Paterson zochonis played was that of a merchant converter. This means that Paterson zochonis took responsibility for acquiring supplies of grey cloth, the term for unbleached cotton fabric, and commissioning cotton printing companies to produce finished fabrics using designs produced by its own designed. The fabrics were stored and packed for export in its own warehouse.

Threats: PZ cussons is a manufacturing company, and thus is susceptible to the challenges facing the manufacturing businesses in Nigeria. These include; epileptic power supply, the country’s deficient infrastructure, credit squeeze, low purchasing power, high financing cost in the financial market among others.

Chapter Five

5.0 Summary of Finding, Conclusion and Recommendation

5.1 Summary of Finding

There are some reasons why advertisement is important to PZ Nigeria plc. The reasons are as follows:

Awareness creation to the public about the product, is the concrete reason behind advertising in PZ Nigeria plc i.e. For current and potential customers to be informed, reminded and be persuaded as well.

Also because of the direct competitor that faces PZ Nigeria plc i.e. company that produce very related product that can be used to substitute for PZ Nigeria plc. Therefore they must always inform the public that there product is still the best among other alternatives.

The objectives set by PZ Nigeria plc, if it is to improve or increase the market share it means they have to embark on aggressive promotional campaign so as to induce people to demand for more of their products and thereby improve the market shares.

5.2 Conclusion

In articulating the whole concept of advertising, its role, importance, relevance and development cannot be overemphasized.

In summary, this product (the influence of advertising on product performance. A case study of the PZ Nigeria plc) discussed the importance, merit as well as the objectives of advertising which cannot be overemphasized.

In conclusion, the project content has noticed the needs and importance of advertising as a controllable variable of market mix. To be specific, one could see how advertising in PZ Nigeria plc could be utilised to serve as a means of stimulating demand for the product.

Advertising serves as the one vehicle by which a company directs persuasive communication to the potential customers thereby creating awareness of the products existence and the benefit they can derive from its usage, it also plays an important role in the marketing where there are different brands of product. The firm therefore needs to stimulate demands for its product through advertising advantage to firms.

Finally, I recommend the use of advertising, sales promotion etc to other firms that are not utilizing the advantage while those that have been indulging in best of luck in future to PZ Nigeria plc.

5.3 Recommendations

The researcher recommends the use of advertising and sales promotion to other firms that are not utilizing the advantage while those that have been indulging in such an investment should keep it up. Best luck to PZ Nigeria plc and more grease to their elbow.

The communication system is both within the company and without need to be improved. Both informal and formal communication will help the company to promote sales. There is need for the management to have suggestion box, where customer can express their views about area of improvement.

There is also need for PZ Nigeria plc to have reference library facilities to update the knowledge of the staff especially the skilled worker and researcher that need secondary data. Also for the management to have the forum of sharing opinions in PZ Nigeria plc, I hereby recommend more departmental meetings. All the above recommendation will assist the company a lot in improving advertisement on product performance particularly for PZ Nigeria plc.

5.4 Suggestion for Further Study

A company may have the best designed product, the most efficient system of distribution and the fairest price but the company product will not sell if the customers are not aware of it. Therefore, advertising is a critical element in marketing strategy.

Through advertising PZ Nigeria plc product has been made known to the public and tell them that their product is the best and the quality is maintained. New customers have also been persuaded to try PZ Nigeria plc product and shift their patronage from the other competitors to PZ product.

Advertising is significant to PZ Nigeria plc by representing a significant proportion to PZ Nigeria plc wealth. Millions of naira are spent annually on advertising of various goods, services, ideas, sales promotion activities, personal selling and hence this create a job opportunity for the people and their success will surely improve the profit of the company and their market shares.

Advertising also allows PZ Nigeria plc to remain competitive and go in line with their customers from being snatched. Advertising embarked upon by PZ Nigeria plc has been able to compete with their competitors both local and foreign counterpart and able to compare the quality of their product with the competitors as well as the standard.

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