Advertising Strategy In A Competitive Business Environment (A Case Study Of Nigerian Bottling Company Plc Ibadan Plant)

Project and Seminar Material for Business Administration and Management BAM

Advertising Strategy In A Competitive Business Environment (A Case Study Of Nigerian Bottling Company Plc Ibadan Plant)


This project is written to discuss on advertising strategy in a competitive business environment, advertising by Nigeria Bottling company (PLC) as case study advertising consists of paid message designed to inform or persuade buyer or idea by the identified sponsor. Meanwhile, strategy can be seen as the technique used to perform activities. Advertising strategy is a philosophy designed to accomplish the stated advertising goals.

Chapter One


1.1 Background of the Study

It is important when discussing advertising to be fully aware of what advertising is all about. Advertising definition are as numerous as the number of advertisements available in the mass median but there is yet to be a universally accepted definition. Advertisement is seen daily on television, newspapers, magazine, radio, posters e.t.c. It the question “What is advertisement? I asked, the common commercial seen or heard readily comes to mind. But there is much more to advertising that exists and experienced by every one.

It could mean different things to different people. To some, advertising is a profession, a business tool to many and a form of communication to almost every one. And like communication advertising is either good or bad. It is amusing, entertaining, useful, boring, wasteful deceptive an intrusion, silly, or a necessity. There are as many perspectives to advertising as there are individuals. For it is the gains or losses from it that shade individuals perception. These who gain from advertising would always control its virtues many definitions to be given while those who have nothing to gain from it would surely hold negative views about it. Advertising is much like electricity, it is greatly known and also the uses, but to define it successfully are not easy.

In a study “the consumer view of advertising” carried out in 1974 by the American Association of Advertising Agencies. For as more than half of the respondents described advertising as a channel of information from manufacturers to consumers. More than a third of this representative sampling of consumers defied advertising as a form of salesmanship or persuasion. Some defines advertising as manipulation propaganda and misleading. Many scholars professional bodies sand association had given various definition of advertising with minor differences. However, it is note worthy that each definitions is unique on its own. Hence we can say advertising is a complex field.

A more comprehensive definition was provided by the American Marketing Association (ASMA) which says advertising is any paid form of non personal presentation and promotion of goods services or ideals by identified sponsor. This definition is widely accepted. It is acceptable simple because of key element it provided.

1.2 Statement of the Research Problem

It the project work, answer will be provided to the following research problem.

  1. What is advertising?
  2. What are the reasons for advertising?
  3. What are the tools for advertising?
  4. What are the functions of advertising?
  5. How do we budget for advertising?
  6. What are the types of advertising?
  7. What are the methods and approaches of budgeting expenditure?
  8. What are the forms of advertising?
  9. What is competition?

We can also write the statement of the problem in this way.

The importance of stork in any organization can not be over emphasized. Control must be accorded a great attention so as to minimize some of the problems associated with advertising control, some of these problems are:

  1. Advertising valuation methods are many.
  2. There are improper record keepings.
  3. The supply of raw material is in effective.
  4. No policy regarding minimum and maximum stock levels determination.
  5. The company adapts manual advertising control system.
  6. The bi-annual stock taking is not enough for effective controls.

1.3 Objectives of the Study

The objective of the study is to highlight the importance of many research works to various groups. What really brought about this topic is the challenge encounter during the course of study and gain there has not been a real precision in the study of advertising strategy in a competition business environment.

Like in a Nigeria Bottling Company PLC of the topic chosen will be of benefits to successful advertising planners and an effective advertising research in any business organization in the future.

The project will also serve as guide to the future students when embarking on a similar research. The business organization in the country could draw some facts in how a firm could design effective advertising strategy which is believed its will enable the business organization to achieve its goals and objectives. More so, to industrial companies this work will provide the guideline for designing effective advertising strategy between competitors.

1.4 Significance of the Study

Nigeria Bottling Company that engages in planning an advertising strategy through various methods will find the research very useful in planning their day-to-day operation. In a way the study is a crucial review of the role in advertising strategy in competitive business especially in the Bottling Industries.

Nigeria Bottling Company Management owns a duty of putting there houses in order all their advertising strategies.
This study has showed how the company task can be achieved, it is also discovered in the course if this research that advertising strategy is used in the increase of the sales. If product in both competitive oligopolistic and monopolistic markets.

Apart from the above important factors of students saddle with project similar to this study will also find the research useful. Effective and efficient advertising strategy will also help companies that experience keep competition among themselves to achieve its set out objective.

The research is equally significant to the researchers as it part of the requirement for the award of National Diploma (ND) Certificate in the polytechnic.

1.5 Scope of the Study

Owing to time and financial constraints one will not be able to involve other companies that are in soft drink bottling business. No matter how important they are to the study.

Bottling company like Top Bottling Company, Limca Bottling Company, Tandy Gruanner and Schweppes Bottling Company e.t.c are involved in Bottling of soft drinks that promote the product of business organization. This organization would have been added in the study.

With the fear of the secret with which Bottling Company treat their information and the scarcity of time labour and resources limited their study to just one Bottling company (Nigeria Bottling Company PLC) the justification being that since this is wholly bottling company it is photo – type of other companies.

1.6 Limitation of the Study

There are a lots of factors which limits the researcher ability in carrying out a wider study of research out of which the following major factors.

  • EXTERNAL FACTORS;- one of the external that affect research study is legal factors. This is legal policy prevailing within the organization restricting employees from disclosing some secretes in the organization which would have still be an additional data for the researcher.
  • Secondly, people are sty and afraid to give out information. Despite the assurance by the researcher that information given would be treated in strict confidence and will be purely for academic work, officials at Nigeria bottling company plc, Ilorin we afraid to lot one into their book and vital documents which may contains important information to the research.
  • INTERNAL FACTORS; – the internal factor that affect the researchers include;
  • FINANCE;- the researcher financial back grand is actually poor and this has negative effect on their power to conduct the research to some extent
  • Time; – The researcher were faced with conflicting programs such as the project work and academic work and this also limited the scope of the study.
  • LABOUR;- Since the project work is mostly labour intensive in nature.

1.7. The Historical Background of Nigeria Bottling Company Plc

Coca-cola was first made in 8th may, 1886 by Dr. John styth pemtentun, a pharmacist in his home in altanta, georging USA. The name coca-cola was given to it by frank .m. Robinson, Dr. pemtentun’s partner and book keep. He also designed the script that distinguished the famous trade mark.

Coca-cola remains a secrete as they have been operation for over 100years. The formula known as MERCHANDISE 7X is kept in a special security vault in a bank in the united state.

Coca-cola was established in Nigeria 1953 when the Nigeria bottling company opened it first plan in Lagos in 1951 .It started business with an authorized share capital of 15 million as at 1982. Its products are coke, Fanta, Ehapman, Spirie, Kreast, bitter lemon, Schweppes, bitter lemon soda, tonic ova table water.

So far Nigerian’s drink about 1,200, 050 bottle everyday. Nigeria bottling company is also the largest manufacturer of co2 in the country, which is used to carbonate your favorite soft drink.

Nigeria Bottling Company employs over 6,000 Nigerians in all fields of operations. Quality is the key word which determines the success of the whole operation. Only the very ingredients are used for making out soft drinks sophisticated washing and filling equipments have been made installed at all plants.

An extremely high standard of hygiene is maintained to ensure that top quality products reach the customer. The manufacture process of coca-cola is based on a carefully measured combination of sugar, water and concentrate. The same standard is maintained throughout the would.

1.8 Definition of Terms

There are carbons concepts in advertising which only understand professionals in the field of work. This to make this research work easy understood, the concepts are explained below:-

1. Theme:

The part of an advertising message that is repeated throughout the Campaign.

2. Platform:

Advertising platform is the issue and product benefit that a market wishes to convey in an advertising message.

3. Target Audience:

This is the specific audience to which advertising message is aimed.

4. Advertising Copy:

Refers to the words and picture or illustrations that make up the advertisement and the way they are kid out to create total impression.

5. Reach:

The percentage of total prospects that are exposed to a specific advertisement in a specific period.

6. Frequency:

The average number of time that the average prospects will be expose to a specific period.

7. Readership:

The percentage of recall in a specific advertisement or editorial item in a given issue if publication.

8. Advertising Medium:

This is the channel through which the advertising message are delivered to the target audience.

9. Competition:

This can be defined as “the action of endeavoring to gain what another endeavors to gains at the same time” it explain, it further as the striving of two or more for the same object”.

Chapter Five

5.0. Summary of Finding, Conclusion and Recommendation

5.1. Summary of Finding

From the study so far, many finding are factor were made in the ways Nigeria bottling company plc use various strategies to enhance and promote both sales and co-operate image.

That the company was in angulated with the aim of producing soft drinks with the ownership being public corporation.

Also, there using numerous advertising strategies to complete effective with there competitors.

In addition there is a separate section responsible for advertising with the following functions.

  1. To create awareness to the potential customer
  2. To produces new lines of product to the largest market.
  3. To educate potential buyer on the existence of a product.

That print media and electronic media being used are always available. That advertising can be made more attractive by the combination usage of construction of bill board, screen sign post, radio, television, jingle others towards and effective marketing strategy

5.2. Conclusion

In Conclusion, advertising is the use of paid media by Nigeria bottling company Plc to communicate persuasive information about it products, services or business organization is in important and immeasurable promotion mix, moreover, advertising decision making selling, budget decision, message decision, media selection an advertising evaluation.

5.3. Recommendations

In view of the emergency, evidence shown that the impact or advertising is marketing of product and boosting of company cooperate large ca not be over emphasized. However, despite it is been sued as a channel toward gaining customer sand public loyalty towards a given product or services it is surprising that some firms are yet to make the best use of advertising of the following reasons:

  1. Selection of wrong media to reach the target market.
  2. Over spending on advertising programe of the audience f public which the organization serves.
  3. Miss-presentation of carried idea or message which lead to miscoding and misquoting by the public.
  4. Wrong placement of advertising panel.
  5. Quite significantly, it is imperative at this juncture to recommend that for a to make a successful advertising, marketer should take cognizance of the following geographical coverage of medium e.g. national coverage, regional coverage and local coverage. Medium physical characteristics e.g. color availability, visual oral and quality of production.

Adequate care needs to be taken when presenting idea or message to the audience so that the problem of miscoding and misquoting can be avoided. Advertisement should be well placed for effectiveness.

In conclusion, the above mentioned recommendation should strictly adhere to and successful application of advertising strategy as a competitive business environment.

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