The Impact Of Advertising On The Consumption Of Noodle Foods (A Case Study Of Honeywell Noodles Nigeria Limited Lagos)

Project and Seminar Material for Marketing

The Impact Of Advertising On The Consumption Of Noodle Foods (A Case Study Of Honeywell Noodles Nigeria Limited Lagos)

Abstract

The rate of consumption of a particular product is not only determined by the desire of the consumer but also by the level of adverting of the product to the consumer. Advertising therefore is regarded as a very important part of marketing mix. This project is aimed at investigating the impact of advertising on the consumption of noodle foods in Nigeria. In actualizing this, questionnaires where designed and shared among different age brackets and sex and the responses obtained help in drawing possible conclusion to this project that was realized. advertising plays a vital role in the consumption of noodle food in Nigeria. Possible recommendation where made in order to improve on the advertising strategies to enhance further consumption of noodle foods.

Table of Content

Chapter One:

Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of the Study
  • 1.7 Scope of the Study
  • 1.8 Limitation of the Study
  • 1.9 Definition of Terms
  • 1.10 Organisations of the Study

Chapter Two:

Review of Literature

  • 2.1 Conceptual Framework
  • 2.2 Theoretical Framework
  • 2.3 Empirical Review

Chapter Three:

Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sample Size Determination
  • 3.4 Sample Size Selection Technique and Procedure
  • 3.5 Research Instrument and Administration
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Validity of the Study
  • 3.9 Reliability of the Study
  • 3.10 Ethical Consideration

Chapter Four:

Data Presentation and Analysis

  • 4.1 Data Presentation
  • 4.2 Analysis of Data
  • 4.3 Answering Research Questions
  • 4.4 Test of Hypotheses

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • APPENDIX
  • QUESTIONNAIRE

Chapter One

Introduction

1.1 Background to the Study

The central focus of any firm should be the maximization of customer’s satisfaction. The marketing manager has control of number of factors called the marketing mix. In attempting to satisfy customers desire one of those factors is the forms of promotional activities. advertising is one of the most important elements of promotion.
Many companies consider advertising as a superior promotion tools to personal selling, sales promotion or publicity. This is because adverting provides multiple presentations of masses of people with one message, compared with personal selling that involve individual contact with each prospect. Also sales promotion frequently, requires individual contacts publicity may provides multiple presentation like advertising, but the firm has limited control one the message content and placement. While advertising is given such a credit, it is crucial to our understanding therefore, that we appreciated from the start the place of adverting in marketing.

Advertising is a form of paid communication designed to sell a product or service or disseminate an idea to the public is the promotional tools. Advertising is just one of the elements that make up promotional mix. Other element in the marketing mix include sales promotion, direct mail etc the important of advertising has been appreciated by all organization (public and private) because it helps in marketing and non marketing activities, it is used to announce new product, invite enquires, educate consumer, retrieved lost sales, recruits new staff, attract investors and make a special product etc it is a favorable means of communication between them and their audience.

Advertising is used to reach a wide market to induce consumer behaviours. However, advertising consist of non-personal form of communication conducted through paid media under clear sponsorship. Also advertising can be said to consist of all paid activities in presenting openly sponsored message regarding a product service. All the above aim at making impact on consumer habits, (jake 2015).

Consumer’s habits about anything object is based upon what the things are related to the feeling of satisfaction. The techniques to include change in another person behaviour includes: the characteristics of the communicator may influence how much change occurs. They way in which message in presented may make difference example whether the message is poorly organized or not some situation variable may help to increase like the supporting audience surrounding the target.

There is power, so much power in information, and when this information is repeated, it leaves an impression. It is generally believed that individual consumers lack either the time, interest or capabilities to actively search for and evaluate relevant information for purchasing decisions. Advertising conveniently solves this problem because, it is the primary method of informing the public about the availability of a product.

Advertising is concerned with motivating people, thus it is able to tap into the human desire and resolve the issue of what to buy – and keep buying.

1.2 Statement of the Problems

Advertising is costly; often its effects are uncertain, and sometimes it takes a while before it makes any impact on consumers’ buying behavior. It is for these reasons that many companies think it appropriate, occasionally to reduce expenditures on advertising or to entirely eliminate it. On the other hand, some companies sometimes consider it unnecessary to advertise when their brands are already enjoying great success without advertisement. Such behavior implicitly fails to consider the fact that advertising is not just a current expense or mere exercise but an investment, (Ugo, 2017).

Competition poses another problem area of this study. Prior to year 2014, indomie was the only noodles in the market, which means, absence of competition. Given this situation, the product recorded high sales within the afore-mentioned period. Today, the massive introduction of the noodles earlier mentioned had made way for competition as so many women who used to sell only indomie noodles now share their resources among the different brands in order to maximize profit. Also, identified was in the area of children who are seen as the chief consumers of noodles, (APCON, 2015).

Looking at the rate of noodles competition in the market, this work seeks to know if advert of honeywell noodles nigeria limited lagos is influenced by the purchase of the product, looking at various competitions adverts of noodles in the market. So the questions this research raises are:

  • Do adverts stimulate demand?
  • Do adverts counter the moves of competitors?
  • Do adverts affect sales volume?
  • Can the expenditure on advertising be justifiably applied to achieve a more than usual contribution to business growth?

1.3 Purpose of the Study

The objective of the study is to make a detailed analysis of the impact of advertising on the consumption of noodle foods (a case study of honeywell noodles Nigeria limited Lagos). specifically, the study aims;

  1. It is also the objective of advertising to build up brand loyalty among customers
  2. Through adverting, people have the opportunity to select the product that best suit the functional and social needs
  3. One of the objective of adverting is to introduce a new market or product
  4. It is also objective of advertising to create favorable climate of maintaining and improving sales, and also neutralizing competitors

1.4 Research Question

  1. How effective is advertising campaign in persuading consumers to patronize their product ?
  2. What is the significant role of advertisement as a promotional mix ?
  3. Is the advertising campaign persuasive to make consumer to buy their product ?
  4. Does advertisement enhance the profit level of the company ?
  5. Does advertisement have any effect on consumer buying behaviour of your company’s product ?

1.5 Hypothesis of the Study

The study formulated and tested the following research hypothesis

Ho: there is no significant relationship between honeywell noodles advertising and consumer consumption of honeywell noodles

Hi: there is significant relationship between honeywell noodles advertising and consumer consumption of honeywell noodles

1.6 Significance of the Study

The significance of any study is measured by the contribution it makes to past, immediate and present efforts at offering solutions to a problem.

Businessmen and business scholars from developing countries are slowly recognizing that people must buy and consume constantly, increasing quantities of goods if the economy of these countries is to continue to grow.

However, in the push for greater sales, businessmen face increasing competition. Competition should not be tolerated, hence, a competitive market means a competitive advertisement campaign.

The significance of this study is to show how the expenditure on advertising can be justifiably applied to achieve a more than usual contribution to business growth of both new and well established organisation.

1.7 Scope of the Study

This work covers the methods employed by many companies in promoting and advertising good and services to the public with reference to the impact of advertising on the consumption of noodle foods; the staff and management of Honeywell Noodles Nigeria Limited Lagos will be used for this study.

1.8 Limitations of the Study

A number of limitations were encountered on the process of writing this project such as:

Communication Barriers:

This was one of the factors that affected this study. Most of the time, the behaviour of consumers change due to inadequate of communication about a particular product. The time allocated for the writing of this project was short and there is test and examination coming.

This affected the effort of the researcher in carrying out the depth study. Another problem is the issue of high cost of transportation to go from one place to another to study the consumer’s habit in buying.

Shortage of Library Facilities

There are most inadequate text books in the school library to enhance this study. The attitude of the management against dissenting and giving vital information to the research affected the study for security reasons as they said they could not give all information needed by the researcher.

1.9 Definition of Terms

Advertising:

To make goods and services known to the public through the information media.

Demands:

The acquisition of goods and services by payment of money or its equivalent consumer goods

Patronage:

This is the habitual purchase by a consumer of a specific product brand.

Consumer:

Those who make use of goods and services

Brand-Name:

The name used to identify a specific product type e.g. Seven-up bottling company

Advertising Chains:

They are attributes or specific to their advertised product or what advertisement say consumer will benefit from the product.

1.10 Organizations of the Study

The chapter one consist of the introductory part of the study which includes the study background, the statement of the research problem, the study objective and scope of the study.

The second chapter is a critical review of other literatures relevant to the study and its objectives including the theoretical framework for the study. While the third chapter is methods of data collection, sampling and data analysis used in conducting the study. The fourth chapter centres around the research findings including an analysis of how it relates to previous findings. The fifth chapter consists of the summary of findings, conclusion and recommendations base on the study objectives.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Summary

This research work is on The Impact Of Advertising On The Consumption Of Noodle Foods (a Case Study Of Honeywell Noodles Nigeria Limited Lagos).Chapter one introduces the background information about the research work and the statement of research problem gives the various problems that necessitated the research work. The objectives of the study were enumerated showing the objectives to be achieved at the end of the study. In the significance of the study, we would know how important the study will be to management of companies, government and students of higher learning or any interested persons or agencies. The horizon of the study was explained in the scope and limitations of the study. Finally, under chapter scheme, all the chapters were summarized in a nutshell for easy understanding.

Chapter two is on literature review and it deals with the existing literature on the effects of advertisement on consumer buying behaviour. It includes the definition of advertisement where advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.

Nwokoye (2000) explained that advertising has become a major form of selling, if not only supports form of selling but also serve as the only selling tool used to inform target audience about producer product. He said in the ancient times, the most common form of advertisement was by the word of mouth, however commercial messages were found in the runs of Pompeli. In setting advertising objectives, it should be based on past decisions about the target market, positioning and marketing mix. The following are the classification of advertising objectives namely: informative, persuasive, reminder and reinforcement advertising. When setting advertising budget Nwokoye (2000) gave five (5) specific factors to be considered i.e. stage in the product life cycle, market share and consumer base, competition and clutter, advertising frequency and product substitutability.

Gary (2012) observed that when developing advertising strategies four (4) steps are followed to develop a creative strategy: message generation, message evaluation and selection, message execution and social responsibility review. According to Irwing (1997) the major steps in media selection are: decoding on reach, frequency and impact, choosing among major media types, selecting specific media vehicles and deerding on media timing.

Kotler (2014) said the advertising programme should evaluate both the communication effects and the sales effects of advertising regularly. The sales effect of advertising are often harder to measure than communication effects and sales are affected by many factors besides advertising such as products features, price and availability.

Kotler and Keller (2012) said one of the common views in understanding consumer behaviour is it has become a factor that has a direct impact on the overall performance of businesses. Thompson (1990) identified four (4) theories of consumer behaviour namely: rational actor’s theory, new institutional economics, process theory and the bullwhip effect.

Five stages model of consumer decision making has been studied by a number of other researchers, but Blackwell (2006) identified the five (5) stages of consumer decision making process as: problem/need recognition, information search, evaluation of alternatives, purchase decision made and post- purchase evaluation. Furthermore, a number of researchers have been carried out by scholars on the factors affecting the consumer buying behaviour. Wiedermann (2007) classified them into internal and external factor, while Wiver (2009) divided them into social, personal and psychological factors.

Chapter three which is on research methodology includes the introduction to the chapter. In the research design, we would know that it’s a survey research which purpose is to examine the effect of advertisement on consumer buying behaviour with a study of Honeywell Mill Nigeria Plc. Under sources of data collection, the researcher collected both primary and secondary data. For the population and sample, the population of the study covers all the workers of Honeywell Noodles Nigeria Limited Lagos, where a selected sample of twenty (20) employees working in the marketing department were takenfrom the entire population. For the data collection methods, the researcher used both the questionnaire schedule and personal interview in collecting information from the respondents.

In the method of data analysis, the researcher presented data in tabular presentation based on percentages in analyzing responses. In testing of hypotheses, the statistical technique employed is the chi-square (X2) method, which is used to test the relationship between the variables concerned.

Chapter four involves data presentation and analysis, it is where data collected were tabulated using percentages to analyse each table. The research hypotheses raised in the opening chapter were tested and all two (2) hypothesis formulated were accepted as true.

Chapter five is on summary, findings and conclusions and recommendations of the whole research work. For the summary, all the chapters were summarized chapter by chapter, while the findings and conclusions consist of the findings observed by the researcher during the study. The recommendations were based on the findings observed before useful suggestions will be given as recommendations to management of blue chips companies, government and students of higher learning or any interested persons.

5.2 Conclusions

With respect to the analysis and the findings of this study, the following conclusions emerged;

Generally, businesses say that advertising provides a public service because it gives them information about their products and in its broadest sense; it is the vital conduct for information between producers and consumers. Of course, we all know that advertising does more than merely inform, its job is to sell. It is not objective or neutral and successful adverts skillfully engagethe mind of the consumer and motivate them to buy the product advertised.

Furthermore, communication does not only enhance mutual understanding and social integration of communities. It foster harmonious relationship that contributes immensely to the overall-social economic, political and well as the cultural development of the human society.

Finally, advertisement campaign worldwide influence the behaviours and attitude formation of consumers not only in Nigeria but also worldwide. The consumers of products have their motivational sources which are advertisement and it’s motivating them to materialize the purchase of durables. The consumers are induced significantly by advertisements when the target is on quality and price. Purchase attitude and behaviour is influenced by variety of advertisements which cover product evaluation and brand recognition.

5.3 Recommendations

Based on the findings and conclusion, the following recommendations are made:

  1. The management of the organisation should evolve a strategy that would fully embrace advertisement as a promotional mix in the marketing of their products.
  2. The efficiency in carryout advertisement in the company depends on the experience and mental alertness of the personnel involved in the advertising campaign for the organisation.
  3. The organisation should intensively monitored customers satisfaction through client complaints and suggestions, because their customers are very vital to the growth and survival of the company.
  4. The company should conduct quarterly marketing research, so as to gather information as regard the ways to meet projected sales and profit level set by them.
  5. There is need for a constant meeting between the management and its customers, so as to establish a good relationship in order to find answers to most of the customers complains.
  6. The management of the organisation should try its possible best to use the promotional mix i.e. advertising, sales promotion, personal selling to pursue its objectives in the target market.
  7. The staff employed in the sales and marketing department should be given adequate training on consumer behaviour, which will help to boost their effectiveness when dealing with customers.

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