The Effect Of Advertising On The Sales Of Consumer Goods (A Case Study Of Uniliver Nigeria Plc)

Project and Seminar Material for Marketing

The Effect Of Advertising On The Sales Of Consumer Goods (A Case Study Of Uniliver Nigeria Plc)


Abstract


Advertising in this modern age of highly competitive market has become a push bottom word with a powerful communication force and a vital marketing tool helping to sell goods, services, images and ideas through channels of information and persuasion. Hardly exists anything that advertising has not been equated with the ability to sell. In fact, there exists a plethora of adjectives describing the power of advertising- alluring, dynamic, fascinating, indispensable, materialistic, obstructive, persuasive and ubiquitous, whatever the myths and half –truths spairwell around advertising, the fact is beyond contention that advertising has evolved as an indispensable tool for the marketing of goods, services and ideas. Voluntary, everyone is a consumer of advertising. The topic the effect of advertising on the sales of consumer goods”, is aimed at identifying advertisement and its effects on the sales of consumers goods based on the researcher studies carried out and the data analyze, the researcher wish to make the following recommendations:

  1. Producers of consumers’ goods should mark on serious advertisement to convince the consumers why their product is better than competitors offer.
  2. Advertisers should make use of television media and radio as a means of reaching out to a wider audience.
  3. Advert should be place between interval of night movies and special programmes.

Table Of Contents


Preliminary Page(s)

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the problems
  • 1.3 Objectives of the study
  • 1.4 Research questions
  • 1.5 Significance of the study
  • 1.6 Scope of the study
  • 1.7 Limitation of the Study
  • 1.8 Definition of terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 Type of Advertising
  • 2.3 Role of Advertising
  • 2.4 Objective of Advertising
  • 2.5 Effectiveness of Advertising
  • 2.6 Advertising Media
  • 2.7 Factors Influencing Selection of Media
  • 2.8 Advertising Budget

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Sources of Data
  • 3.3 Methods of Investigation
  • 3.4 Population of the Study
  • 3.5 Determination of Sample Size
  • 3.6 Method of Questionnaire Distribution
  • 3.7 Sample Method Used

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Data Presentation
  • 4.3 Data Analysis
  • 4.4 Statistical Test
  • 4.5 Testing of Hypotheses

Chapter Five

5.0 Summary, Conclusion, and Recommendations

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendations

Chapter One


1.0 Introduction

1.1 Background Of The Study

In every modern society, advertising play a vital role in influencing the economy and social-cultural attitudes of people. In present day society, where consumers are gradually transforming from emotional buyers to rational ones, advertising is becoming not only a necessity but also an important and significant integral part of business promotion in our society.

According to Cathering Calty, (1969), advertising is said to be any paid form of non personal presentation and promotion of idea, goods or services by an identified sponsor. Frank, Jefkins, (1973. p.23) is of the view that, advertising present the most persuasive possible selling message to the right prospects for the product or service at the lowest possible cost. To back this claim, John Wright and Co. (1980), explained that is usually cost considerably to make a personal call on a house wife or business executives than to deliver a message by means of communication media to the same house wife or business executives.

Advertising involves such media as magazines and newspaper space, radio and television, outdoor display (such as posters, signs, skywriting), direct mail, novelties (March boxes, blotters, calendars); catalogues, directories and references, programmes and menus and circulars. It can be carried out for such diverse purchases as long-term build-up of the company name (institutional advertising), long-term build-up of a particular brand (brand advertising), information dissemination about a sale, service or client (classified advertising, announcement of a special sale, sales advertising), and so on.

Because of many forms and uses of advertising, it is hard to advance all-embracing generalizations about its distinctive qualities as a component of the promotional mix. Yet the following qualities can be noted, especially when it comes to brand and institutional advertising. Public presentation: Advertising, unlike personal selling, is a highly public means of communication. Its public nature confers a kind of legitimacy to the product and also suggest a standardized offering.

Because, many people receive the message, buyers know that their motives for purchasing the product will be publicly understood. Persuasiveness: Advertising is a persuasive medium that permits the seller to repeat his messages many times. It also allows the buyers to receive and compare the message of various competitors.

Owing to the growth of competition in the manufacturing industry mostly in consumer goods, there is need for organizations like Unilever to differentiate her products from competitors and this can only be achieved through effective advertising. Advertising capitalizes on superior performance benefit or special qualities of a product brand to persuade prospective customers.
Advertising is necessary for both manufacturers of and dealers of new product, and manufacturers of and dealers of existing products.

Short Historical Background Of Unilever Nigeria Plc

The company first came into existence in Nigeria in 1923 when it was incorporated as a private company under the name Liver Brother Limited. In 1924, the name was change to the West Africa Soap Company Limited and was later changed to Liver Brothers Nigeria Limited in 1955. in compliance with the company and allied matters decree 1990, the company substituted the word “Limited” in its name with PLC to become Liver Brother Nigeria PLC, and the name was changed again to Unilever Nigeria PLC which it still bears till today.

In accordance with the Nigeria Enterprises promotion Acts of 1972 and 1977, 60 per cent of the Company’s equity has been sold to Nigeria citizens and institution numbering 33,402 while remaining forty per cent is held by Unilever Overseas Holding, Lipton Tea Company Limited and Chesoborough – ponds international limited.

Unilever Nigeria PLC entered into foods, drinks and personal product business by its merger with Lipton Nigeria Limited in July, 1985 and Chesoborough product industries Limited in December 1988.
Unilever Nigeria PLC must therefore know the effect of advertising on the sale of their consumer goods in order to ensure great success in the competitive market which is the aim of this research


1.2 Statement Of The Problem

There are many views and opinions about the role advertising plays in marketing of product. Some view advertisement as an inducement to buy products while others see it as misleading in purchase of product that someone do not intend to buy.

Also increased competition in the industry has imposed a lot of problems to the company in terms of advertising media. For example, 15 companies fighting over advert space of 1 or 2 television station.
Another outstanding problem is low performance and productivity of advert messages form the company to the public. The advert perform below expectation and couple with the high cost of placing it on radio, television and billboards. All these impose a problem to the company.

Another problem is the choice of media and irregular power supply. The choice of media to use in order to reach the target audience has always been a problem to the company, considering the fact that our country cannot boast of 24 hours power supply.


1.3 Objectives Of The Study

Advertising of business organization’s product is a vary sensitive matter to the business organization so concerned. This research is done to know the effect of advertising on the sale of consumer goods.
Specifically, the research is expected to examine the following:

  1. To know the extent to which advertising affect the purchase of consumer goods.
  2. To determine how consumers make choice among various brands of products.
  3. To determine the extent advertising can be used to educate consumers on the use of a product.
  4. To determine the effect of advertising on brand switching.

1.4 Research Questions

The following research questions were formulated in the course of this research work.

  1. Does Advertising affect the purchase of consumer goods?
  2. Do consumers make choice among various brands of products?
  3. Does money spent on advertising has a positive effect on the purchase of consumer’s goods through increase in sales?
  4. Does advertising affect the purchase of consumer goods?
  5. Does advertising educate consumers on the use of product?

1.5 Statement Of Hypotheses

Hypotheses I
  • Ho: Advertising does not affect the purchase of consumer goods.
  • Hi: Advertising affects the purchase of consumer goods.
Hypotheses II
  • Ho: Consumers do not make choice among various brands of products.
  • Hi: Consumers make choice among various brands of products.
Hypotheses III
  • Ho: Advertising cannot be used to educate consumers on the use of products.
  • Hi: Advertising can be used to educate consumers on the use of products.
Hypotheses IV
  • Ho: Advertising has no effect on brand switching.
  • Hi: Advertising has effect on brand switching.

1.6 Significance Of The Study

Unilever Nigeria PLC will gain from this study in the sense that the researcher will identify or find out the impact or effect of advertising on the sale of their products and the best media to use for advert.

Firms within the industry have an opportunity to gain from the research as they may be confronted with a similar problem.

Generally, the business world stands to benefit from the research.

Finally, this study will help future researchers on this topic which would serve as a guide or leeway to ride on.


1.6 Scope Of The Study

The scope of this study covered Aba where Unilever Plc has a branch. This study was also limited to this area because of high cost involved. The researcher therefore further assured that what obtains in one area could also be applicable to another area .


1.7 Limitation Of The Study

Lack of fund, limited time, and negative attitude of the company toward answering questions posed and falsified information given by the respondents formed the limitation of this study.


I.8 Definition Of Terms

Advertising

This is a promotional tool used by the advertiser to reach the target.

  • Sale
  • Consumer
  • Goods
Target Market

Is a well defined set of customers whose need the company plans to satisfy

Marketing Segment

Is the systematic design; collection of analysis and reporting of data to finding relevant influence to a specific marketing situation facing the company.

Product

Is any thing that can be offered to a market for attention, acquisition and consumption that might satisfy a need.

Services

An intangible benefit that one party can offer to another without result in the ownership of anything

Slogan

Striking and easily remembered phrase in advertisement.


Chapter Five


5.0 Summary, Conclusion And Recommendations

5.1 Summary

In our findings, it shows that 27.78% of respondents buy product because of adverts, 16.67% said no because their purchase is as a result of need while 44.44% of respondents buy goods based on quality and taste, and 11.11% said they were not sure. This data shows that although advert help in influencing purchase, the quality and taste are also considered in advertising a product.

From the analyzed data, it can be deduced that advertising plays an important role in creating awareness on the sales of consumer goods. This is because the study has shown that advertising apart from enhancing sales, it also helps to demonstrate the quality, taste and other attribute of the product.

Chapter one covered the introduction of the topic that is the effect of advertising on the sales of consumer goods, Purpose of the study and limitation of study are clearly spelt out.

In chapter two, the literature review relate to advertising, types of advertising, role of advertising, objective of advertising, effective of advertising, advertising media, factors influencing selection of media and advertising budget.

Chapter three deals with research methodology. it deals with how data were collected through the use of secondary and primary data, population sampling method and sampling size. Chapter four deals with the presentation of data and analysis of data collected from the customers and the public and statistical test of research hypotheses. .


5.2 Conclusion

On the basis of literature review and the data analyze the researcher concluded that advertising improve the choice of consumers. It brings about changes as result of general awareness and ensures a healthy competition between indigenous manufacturers.

In advertising business, there is a held believe among advertisers that their consumers do not really buy products but benefits. In advertising, there is the issue of media selection. Most of the business organizations study the best medium that will suit their goods and services because a medium that is best for one product may not be for another. Each medium must therefore be considered in terms of how well it meets the product requirement.

Television, radio, Newspaper and Billboard seems to be the best non-personal channels for advertising. A high percentage of consumers claim to be very familiar with these media. It appears that television and radio are the most appropriate media for advertising. This is because about two third of the respondents were aware of goods through these media. This shows that radio and television is increasingly popular instead of other media.
Advertising in totality is the one fact of business activity that touches the lives of most people. Therefore, advertising to a greater extent play an important role in creating awareness for consumer goods. This is why almost all members of the society have least interest in advertisement. It is mainly targeted towards influencing our own preference and behaviour pattern.


5.3 Recommendation

Based on the findings of this study, the following recommendations are made.

  1. Advertisers should make use of television and radio as means of reaching out to a wider audience.
  2. Producers of consumer goods should embark on serious advertisement to convince the consumers on why their product is better than other competitors offer based on packaging, colour, branding, designing, taste and quality.
  3. Adverts should be placed between intervals of night movies and special programmes.
  4. Finally, before embarking on any advertisement, management should find out the type of promotional tool that is suitable at a particular time to reach their audience and also what the company will achieve if such an advert is run.
  5. Also the activities of other competitors should be taken into consideration.

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