Enhancing The Sales Of Consumers Goods Using Marketing Segmentation (A Case Study Of PZ Nigeria Plc, Kaduna)

Project and Seminar Material for Marketing

Enhancing The Sales Of Consumers Goods Using Marketing Segmentation (A Case Study Of PZ Nigeria Plc, Kaduna)


This project is focused on enhancing the sales of consumer good using market segmentation with particular reference to the PZ Nigeria plc as case study. To achieve this, the work is divided into 5 chapter in chapter one started with introduction of research work, the statement of the problem, the purpose of the study has been presented, the chapter two which deals with literature review in the area of market segmentation, in chapter three which also presented methodology used in carrying out the research and major instrument used to collected data, are simple random method questionnaires, personal interview and documentation which were presented in chapter four. The estimated management and customers population is 2000 people which a sample size of 155 was selected for questionnaire, 35 for management staff and 120 were for customer and distributors respectively. The sample percentage method and chi-square test were used respectively, the following null and alternate hypothesis are formulated tested and prove in the study HI: Market segmentation of PZ plc has impact on the sales of its consumer goods, Ho: Market segmentation of PZ plc does not have impact on the sales of its consumer goods. The researcher accepted the alternate hypothesis (H1), rejected the null hypothesis (Ho). The researcher observed new finding in the studies such as the strategies adopted by PZ plc, the strategy of segmentation is applied by the PZ plc in its marketing activities. In summary it was seen that the marketing concept is all about satisfying the identified needs of people by supplying them with acceptable goods and services, PZ Nigeria Plc are living to the expectation of their customers by embarking on marketing segmentation, the researcher concludes on the fact that PZ Nigeria plc is marketing oriented firm, the researcher also suggested several recommendations, such as PZ Nigerian Plc should maintain the quality of the company’s product and also make room for improvement so that the lowest income earner can afford their products and should also engage in promotional activities in order to increase awareness for PZ plc product and services.

Chapter One

1.0 Introduction

Marketing is a business that identifies unfulfilled needs and wants defines and measures their magnitude determines which target market, the organization can best serve and decide on appropriate product, services and program to serve these markets.

Consumer are the most important things to consider while operating any business environment. It must therefore be clear that a through and constant study of the consumers is one thing and another entirely those needs of the consumer at a profitable level, hence marketers resort to a lot of strategies.

Many people are confusing marketing for its sub-functions such as advertising selling and merchandising. But an authentic marketing is not the act of selling what you can make but knowing what to make. It is art of identifying and understanding customers profit to the producers and benefits for the stakeholders.

Market leadership is a gained by creating customer services therefore marketing can be viewed as customer oriented philosophy. It is the creation and delivery of a standard of living. Organization must try to identify a particular market that is more attractive and that can be managed affectively and profitable. Market segmentation attempts to identity significant difference in buyer characteristic which is used to determine which target market should be aimed at and the type of product to be given to that market.

Market segmentation can be define as the act of dividing a market into distinct parts. A market consists of buyer and these buyers differ in one or more respects.

They may differ in wants resources and geographical locations. Buying attitude and buying practices. Any one of all these can be used to segment a market in order to serve the customer more effectively and efficiently.

Market segmentation can therefore be defined as the act of dividing a market into distinct parts, that is the process of dividing the total heterogeneous market for a product into several submarket or segment each of which tends to be homogeneous in all. Significant aspects, it can also be define as the act of dividing a market into distinct and meaningful groups of buyers who might merit separate product and or market mixes.

Segmentation strategy helps the organization to find reaction in customer trait and producing in line with those characteristics so as to conform to those identified needs of the customers.

1.1 Background of the Study

It is obvious that companies can not connect all customers in large broad or diverse market and as a result of the needs to divide market in to group of consumer or segments with distinct needs and wants. It therefore becomes paramount for a company to identify

which market segment to serve better. Before the objective can be achieved, it is required that a keen understanding of consumer behaviour and careful strategic thinking. To develop the best marketing planning, managers need to understand what makes each segment unique and different. Modern marketers in their quest to study consumer behaboviour and responses to benefit offer by the product for example do people want quantity rather than low price. In an attempt to increase benefit to consumers, this will aid marketers to know how best to satisfy each category of these customers. It required a keen understanding of consumers behaviour and careful strategic thinking.

The over all intent is to identify groups of similar customers and potentials customers to prioritize the groups to address to understand their behaviour and to respond with appropriate marketing strategic that satisfy the different performance of each choosen division and thereby improve the company revenue. This can however be achieved through a distinct division of groups of buyers who might requires separate product and for marketing mix known as market segmentation.

According to Michael Porter (1970 P:37) with the right segmentation, the right list can be purchased advertising results can be improved and customer satisfaction can be increased leading to better reputation

Nelson (1984 page 125) explain that united states in the 18 century provides a broad segmentation of the population of their country based statistical analysis of house hold and geo-demogrpahic data. The recent times market have been divided based on the number of general criteria. Such as industrial or public versus private, although industrial market segmentation is quite different from consumer market segmentation but both have similar objectives. Regardless of which type of segmentation a marketer uses, the secret behind the marketing programmes recognize customer differences and efficiently highlight the differences to offer maximum satisfaction to every division.

1.2 Statement of the Problem

The quest for increasing the sales of consumer goods is every organisation’s problem. Both marketers of services and tangible seek to enhance profit and sales turnover and the objective of profitability can only be achieved when firms properly understand and apply the marketing segmentation strategy. Firms are also faced with the difficulty at identifying and selecting particular market target and satisfying them by blending the marketing mix elements thus marketing segmentation, recognize that every market is made up of distinguishable segments consisting of buyers with different needs. The task of clearly understanding consumer needs and wants identifying various homogeneous customer characteristic according to an outlined dimension in order to group them together adequately and to effectively develop marketing mix to match these characteristic and buying requirements. All posses a fundamental marketing problem to firms.

Marketing segmentation is one among the various strategic concept that form the basic for marketing programs. Segmenting markets into subsets with the aim of satisfying customer groups equally sales of consumers goods and profitability for the total organization and the stakeholders is an objective and goal of every business that practices the marketing concepts most organisation encounter the problem of determining the appropriate pricing promotional and distribution strategy to adopt in satisfying the numerous customers. Though some firms fined it excruciating to marketing segmentation strategy due to their inclination of the strategy as an expensive and time consuming exercise. This is because of inadequate information on its importance of marketing segmentation and its impact on sales of consumers goods has become a research problem.

1.3 Purpose of the Study

The purpose of this research work is described below

  1. To establish the relevance of marketing segmentation and its effective on sales of consumer goods
  2. To enumerate the importance of firms adopting the strategy of marketing segmentation in order to achieve organizations objective of profitability and customers satisfaction
  3. To examine the dimensions and bases for segmenting in market and their relationship on sales of consumer goods
  4. To determine the degree to which the organisation in question (PZ plc) practices market segmentation
  5. To highlight the limitations of the strategy
  6. At the end of the study, it is intended to give relevant recommendation to the firm on how to adopt market segmentation strategy.

1.4 Significance of the Study

This research work a part from being an essential requirement for the partial fulfillment of higher National Diploma, it will be an added value and benefit to the researcher, other individual and groups. The project will beneficial to Nigeria PZ plc, as the findings and recommendations will help to improve their marketing activities. The project benefits my fellow student and student of other institutions in related course. The lecturer of Kaduna polytechnic will also benefit from the accumulated knowledge in the research works.

The information in this project work will enable marketing firms re-appraise the segmentation strategy applied in their business and make better use of marketing resources and efforts in their marketing activities. The study will also widen the knowledge base on the researcher in the curse of conducting the research.

1.5 Statement of Hypothesis

Hypothesis is a set of preposition that attempts to explain the subject under study in a short and brief statement. It is a set of statement generated in respect of the problem under study.

The hypothesis leads to the structuring of the questionnaires to assess validity of various hypothesis by sampling the views of consumers and company management for this study the following hypothesis is designed to be tested.

  • Hi: Market segmentation have impact on sales of consumer goods of Nigeria PZ plc.
  • Ho: Market segmentation does not have impact on sales of consumer goods of Nigeria PZ plc.

1.6 Delimitation and Scope of the Study

The study was intended to be a case study of PZ Nigeria Plc Kaduna and therefore covers all staff of the organization it is the intension of the researcher to fined out how this company’s segment its staff in relation to their markets and what has been the outcome of this system to the organization as a whole and relations of the employee of the organization when appraised.

Delimitation of the study, it’s a tasking job to conduct research of this nature and thus a number of constraints are prevalent in the course of the investigation. Financial constraint is one major problem encountered by the research because of the depressed economy and limited fund/financial resource available to the researcher for the study.

This has retrained the researcher from conducting a detailed survey. Transportation to and from, to various branches of PZ in Nigerian posses a lot of problem during the process of obtaining information for the research work. The duration of time required for the research work is too short this constraining the liberty to search further for more information.

The company’s employee and the executives proved uncooperative during the search of data about the company’s activities in relation to subject matter. The executives were elusive because of the fear of exposing crucial financial information regarding the firm to competitors.

Unavailability of books to source for relevant data posed a problem, the Kaduna polytechnic library is stocked with very few books and those available were outdated or irrelevant to the research topic.

1.7 Definition of Terms


This is a set of individual; or organization that desire a product and are willing and able to buy it

Target market:

A select market to focus and develop marketing programs


Any thing is offered to the market for acquisition sale, attention use or consumption that satisfied a want or need

Market mix:

They are element of marketing usually referred to as the 4ps of market i.e product, Place, or distribution, promotion and price.

Market segmentation:

It is the process of dividing a large market into a smaller subset of consumers or organization that are similar in characteristic, behaviour, wants or need.

Consumer market:

It is a set of individual buyers who purchase or use product or services for their own personal or house hold use

Marketing planning:

The setting of goal and strategy for the marketing effect in an organization

Marketing strategy:

A marketing logic used by firms to achieve set objective

Product line:

A group of similar products intended for essential similar use


A currently accepted or popular style in a given field

Market aggregation:

It is a market strategy where an organization treats its entire market as if the market are similar

Industrial markets:

The market for industrial goods and services

Industrial goods:

A product used in the production or processing of industrial goods e.g. raw materials


The process of planning, implementing and evaluating the effort of a group of people in achieving a determined goal.

Homogeneous market:

A market consisting of consumers or organizations with similar needs, wants and behavioural tendencies.

Chapter Five

Summary, Conclusion and Recommendations

5.0 Introduction

This chapter summarize the study it highlight the conclusion drawn based on the findings of the study and suggests some recommendations.

5.1 Sumamry

The study of the enhancing the sales of consumer goods using the market segmentation with reference to PZ Nigeria plc Kaduna has produced many important results, which are summarized below:

  1. Chapter one which deal with the introduction of the subject mater, the statement of research problem, the background of the study, the purpose of the study, the significance of the study, the statement of hypothesis, the delimitation and scope of the study and definition of terms which the Mickle (1980 p74) highlight the subject market as any management that selects one or more of these market segmentation or group of segment as the organizations target market and develop separate marketing mix for each segment
  2. The chapter two which serve as literature review comprise of, the introduction, the market segmentation, the historical background, the importance of market segmentation, the condition for effective segmentation, the target market, the differentiated market, the validity and viability of market segmentation, the segmentation and targeting, the segmentation and profitability, the benefit of segmentation and market segmentation and company assets.
  3. The chapter three which deal with methodology has highlight the following the introduction, the area of study, the research design, the population of the study, the sample and sample techniques, the instrument for data collection, the administration of the instrument and method of data analysis presentation.
  4. The chapter four also highlighted the following, introduction of the chapter, the characteristics and classification, the presentation and analysis of management, the presentation and analysis of customer and distribution questionnaire, and proofing of hypothesis, and the chapter five that also show the following at the end which are summary, conclusion and recommendations.

5.2 Conclusion

Market segmentation as some people say is considered to be the essence of marketing. It is a logical follow up to the widely received marketing concept. Its adoption as a market strategy depends on the existence of clusters of needs which are large enough to be serviced at a profit. It is a deliberate policy of maximizing market demand by directing marketing efforts of significant sub-group of customers.

From discussion made in the previous chapter, it has been seen clearly that the strategy of market attitudes motivation, life style, family size, composition etc. segmentation therefore encourage the development of specialist firms which can supply relatively small market profitably. To a consideration degree the mass marketers has to eater for the mythical person, the average consumer, but people seek variety when they buy products for many reasons. These may include the satisfaction of owing something of usual beauty or exclusively. A strategy of segmentation attempts to regain some of the benefits of the close association with customer which was the strength of technical business operation. This marketers must develop distinct marketing mix for different segments. The study has clearly shown that firms must consider different market segment in other to pave way to identified un-reaped opportunities. Satisfied market segment yield high sales of consumer goods for the company’s marketing efforts. Firms have recognized the significance of market segmentation strategy to the marketing of their products. Thus they are adopting and applying the concepts to their marketing activities especially from its strategy planning perception. The measure of success observed by PZ Nigeria Plc from the adoption of market segmentation is commendable, it has been noticed that segmentation strategy does enhance PZ Nigeria plc identify of target markets. The researcher observe that the strategy of mass marketing adopt by PZ Nigeria plc does not allow the PZ directed its marketing resources, to target groups resulting to PZ Nigeria plc wastage of the time and money. With the adoption of segmentation, strategy, PZ Nigeria Plc was able to direct its marketing efforts to a profitable target market group.

In essence the company’s segmentation strategy was achieved using a number of variables in the segmentation process in order to group together consumers with similar needs, wants and buying characteristics, geographic, demographic behaviouristic and psychographic variables are collectively applied, but most often, these generates numerous costs. Thus, the demographic variables were extensively adopted by PZ Nigeria plc.

PZ Nigeria Plc enjoyed a lot of benefits resulting from segmentation strategy such as sales maximization, customer satisfaction and high profit margin, yet it was observed that the adoption of market segmentation strategy increase cost excessively cover all increase in marketing expenses. However with all the above mentioned benefits derived from the company’s market segmentation strategy, the researcher observed that the strategy limits larger market coverage. The researcher noticed that PZ Nigeria plc does not recognized the significance of promotional activities to the success of its market operations for instance advertising, sales promotion, publicity and personal selling are not adequately used in conducting other marketing activities. The investigation for observed that the rate of management staff is very high and this does not urge well for the company business in terms of efficiency and effectiveness and in particular for the company’s policies continuity.

5.3 Recommendations

The following recommendation are made based on the findings of the research work in order to help the management of the company; concerned to do better marketing management, and try as much as possible to maintained its product quality and in addition packaged its product for the lowest income earner to afford, this is as a result of the poor state of the economy that result to poor purchasing power. The company should not assume that because its products are well known in the market they will not embark on intensive marketing strategies

  1. They should as a matter of fact carry up to date marketing activities so as to increase their sales of consumer goods and also gain competitive edge over their competitors such marketing activities will includes the marketing mix which must be used extensively in other to meet the needs of the consumers satisfactorily and hence create brand loyalty. The management must embark on research from time to time in order to be in tune with the market trends. Apart from the fact that consumers need must be satisfied, the workers of the company should be motivated to put in their best efficiently so as to bring about productivity.
  2. The PZ Nigeria plc is also advised to take advantages of the tariff policies regarding the important of agricultural products so as to improve production and total inventory turn over, management must consistently monitor trends in the consumer market in order to identify changes in consumers profile which could affect the level of demand and thus, its resultants affect on reduction on sales of consumer goods.
  3. The PZ plc must always monitor the market trends in order to adopt new strategies to maintain its market share as the leaders and subsequently develop innovative products that will satisfy the dynamic market
  4. Effective promotions of the PZ plc production enhancing profitability and customers awareness of the company’s product and marketing activities PZ Nigeria plc is advised to enhance it promotional activities such that it extends to the rural area because, that market is an emerging potentials market, which will be a profitable market segment.
  5. The PZ Nigeria Plc is adviced to reduce the level of employee turnover in order to obtain a positive operating image
  6. The PZ plc is encouraged to adopts more of demographic segmentation process. This because demographic variable comprises sex, income, education and occupational level etc.
  7. The PZ plc is also advised to not only direct its marketing activities to large market segments but to even small and profitable market segment
  8. The PZ Plc is advised to conduct marketing research into the small but attractive market in order to enhance consumers divers characteristics which will suits it marketing objectives and resources in order to direct its effort.
  9. Employee remuneration system should be improved to motivate them. This motivation will encourage the staff serves as the firm’s eyes and ears acting as intelligence officers to observe changes in the market, this analysis of the market situation will expose attractive opportunities existing in the market or unsatisfied customer group to enable the firm target, its marketing activities towards satisfying them.
  10. Interviews and survey to be upon, to determine the level of customers satisfaction and dissatisfaction, resulting from product consumption. These will guide the firm in developing and adjusting its products features, qualities styles and even the promotional such as advertising messages.

Finally, its believed that these recommendations will help the company to enjoy not only the benefit of segmentation in particular but marketing in general.

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