The Impact Of Advertising In Enhancing Sales Volume (A Case Study Of Nigeria Bottling Company Ilorin)

Project and Seminar Material for Business Administration and Management BAM

The Impact Of Advertising In Enhancing Sales Volume (A Case Study Of Nigeria Bottling Company Ilorin)


The impact of advertising in an organization can never be over emphasized to the fact that it denote the medium of awareness creation for the target audience (consumer). Advertising according to G.B. gills is “a non-personal communication directed at target audience through various communications in order to present and promote products, service and ideas the cost of modia space or time being borne by the sponsor or advertiser”. As it simply implies that audience is the target and they are otherwise called the consumers or the potential consumers.
For advertising to lead my organisation to promise land i.e. perform its purpose, it has to be properly applied, it has a cost but appropriate application of advertising will labour its cost and also enhance sales simultaneously.

This project work intends to express the meanings of advertising according to different authors and perceptions it s components, its application and relevance to organizations. With special reference of Nigeria Bottling Company Plc in Ilorin.

The project is divided into Five Chapter for easy understanding of the entire work.

  • Chapter one is an introduction to the to plc, background to the study, statement of problem, significance of the study, scope and limitation of the study, definition of the terms used, historical background of the case study.
  • Chapter two encompasses the reviews of related literatures in the filed of study, what is advertising, advertising agency, media and strategies, types of advertising, needs for advertising, relevance of advertising to an organization, what is sales volume, relevance of sales volume to an organization, interrelationship between advertising and sales volume.
  • Chapter three deal with the research methodology, research design and assumption, data collection instrument.
  • Chapter four based on data presentation, analysis and interpretation.
  • Chapter five deals with the summary, conclusion and recommendation.

Table of Contents

  • Title page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of contents

Chapter One:

General Introduction

  • 1.1 Back ground to the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Significance of the study
  • 1.5 Scope and limitation of the study
  • 1.6 Definition of terms used
  • 1.7 Historical background of the case study

Chapter Two:

Literature Review

  • 2.1 What is advertising
  • 2.2 Advertising agency, media and strategies
  • 2.3 Types of advertising
  • 2.4 Needs for advertising
  • 2.5 Relevance of advertising to an organization
  • 2.6 What is sales volume
  • 2.7 Relevance of sales volume of an organization
  • 2.8 Interrelationship between advertising and sales volume

Chapter Three

Research Methodology

  • 3.1 Research design
  • 3.2 Population of the study
  • 3.3 Sample size
  • 3.4 Questionnaire design and assumption
  • 3.5 Data collection instrument

Chapter Four

Data Presentation, Analysis and Interpretation

  • 4.1 Data presentation
  • 4.2 Data analysis
  • 4.3 Data interpretation

Chapter Five

Summary, Conclusion and Recommendations

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation
  • Bibliography
  • Appendix

Chapter One

1.0 General Introduction

1.1 Background to the Study

The impact of advertising in enhancing sales volume is the ultimate goal of advertising in order to increase the firm’s profitability.

Advertising is the mass paid communication designed to impart information about an organization, brand or services to develop attitudes and awareness and to induce action beneficial to the advertiser generally through the sale or promotion of the product.

According to John Hobson (1958), advertising is a form of communication, the special nature advertising of this is that it is paid for by some interest party who stands to benefit from the communication of the message. Moreso, getting your name out to the public is the key to raising our sales volume.

The old adage that you have to spend money to make money is very true in this case if you want your customer base to expand, you must advertise word of mouth is a great way to get local business is Fantastic and always well came, but there is a far larger scale of people that advertising will help bring in. the business all advertising in many ways and have been extremely successful.

Coca – cola “I’d like to teach the world to sing” that was one of coke’s famous advertising campaigns many years ago, who is coke’s biggest rival: Pepsi – Cola of course.

Pills bury doughboy: Say he’s that cute little guy whom you would have to give a little poke in his tummy to make him laugh. This character has been around for many years. Why? Because of the success of his advertising power.
Advertising business increase sales volume because people like buying a name they feel they know. That is why so many people refuse to buy products that are a generic brand. They do not know the name because they have never heard of it. They have never been given a reason to trust the name and therefore they dont trust it.

If your goal is to simply reach more people in your area, that can be done on a smaller scale. Advertising hire people to stand with signs a long the road to encourage customers to come to their place of business.

Advertising makes smart business sense yes, you do have to spend some money in order to advertise. However, the increase in your sales volume will make up for it. Many falling business have used advertising as their last ditch effort to save their businesses and it works.

1.2 Statement of the Problems

This research will indicate various problems that an organization sales volume will encounter without advertisement which includes the following

  1. It can lead to low sales volume.
  2. It can lead to low productivity.
  3. It reduces the company profit.
  4. It encourages competition.
  5. It reduces organization market shares.
  6. It reduces organization recognition.

1.3 Objectives of the Study

The main objective of this project may be classified into two major areas.

Firstly, the study aims is to show how “Advertisement” play a critical role not only to an organization but also to the consumers to whom the information about the products is being conveyed. Advertisement tends to inform the target audience about the product being advertised. The potential buyer will be informed about the product, quality, quantity, how and where to get the product, its price etc.

Secondly, to show how demand for products are been enhanced through advertising the product may be on rough existing or a newly introduced one. Advertising is sometimes used to popularize the organization and not a particular product or brand.

For example an advertisement carried out by NIGERIA BOTTLING COMPANY PLC. Which say “I’d like to teach the world to sing” which is advertising coca-cola as a product.

1.4 Significance of the Study

It is expected that the findings in the project world have both the theoretical and practical usage of students of business administration, Nigeria Bottling Company Plc. And the general public by helping them in the following ways.

  1. Educate managers on effective advertisement process.
  2. Advise managers on various advertisement strategies that can be used to achieve their aims and objectives.
  3. Produce awareness, persuade, influenced and remind the actual potential buyers about their products.
  4. Enlightening managers in such a way as to gain acceptance and approval of their plans.

1.5 Scope and Limitation of the Study

Advertising is a very wide subject though a topic under marketing as a course. But today advertising has reached a stage that it worth a study in its own. Due to the improvement and technical requirement of advertising there has been association of advertiser, institute of advertising and public relations as we have in marketing.

This means that advertising is no longer consider as a topic but rather a course.

Despite this, it should be noted that advertising is still a supplement to marketing in profit and non-profit making organizations.

Therefore because of wideness of the topic “The impact of advertising in enhancing sales volume” the following areas have been focused for study.

Firstly, the researcher has chosen Nigeria bottling company plc as a case study and looked into the impact of advertising in their marketing system which leads to their excellent performance and profitability of the company.
Secondary, the project work includes the definition of advertising, types of advertising, relevance of advertising, needs for advertising, advertising strategies, agency and media, and also definition of the word sales volume on its own.

1.6 Definition of Relevant Terms

Some of the terms used in this study are as follows:

(i) Effectiveness:

In management the term effectiveness means the ability to achieve the set goals and objectives.

(ii) Objectives:

An objective may be defined as the end point which a firm directs its effort or resources. It represents specific results or resources. It represents specific results or targets to be achieved within a period of time.

(iii) Strategies:

This could be defined as the method used in achieving goals and objectives at case.

(iv) Target:

This is the set goals which an organization wants to achieve.

(v) Persuade:

This is the method used by the organization to manipulate the buyers to buy their products by influencing their decisions.

(vi) Sales volume:

This is the total in a given period of time.

(vii) Innovation:

In management, innovation means adopting new ideas in order to reach a set objectives.

(viii) Profitability:

This is the monetary gain as result of total sales in an organization.

(ix) Advertising Agency:

They are the organization whose business is to advertise for other companies. They fix and make the order through media houses or by using any other promotional tools the client and the agent have agreed up on.

1.7 Historical Background of Nigeria Bottling Company Plc

The Nigeria Bottling Company Plc was in co-operated in the year 1951 under the standard organization of Nigeria decree No 56 of 1971. The company was authorized to use the Nigeria Industrial standard certificate mark on the following product’s are as follow: fanta, coca-cola, sprite, krest, bitter lemo, fants club sod, fanta tonlc, limca and Eva water.

The above products are hereby certified to meet the national standard requirement for good quantity. Nigeria Bottling Company is the largest producer of soft drinks in Africa today. It is a public company on the Nigeria stock exchange and 60% of its share owned by some 26,000 Nigeria share holders. The company ensures that no trade of imparity or extraneous substance exist in its products. Therefore, for the purpose of maintaining the product quantity. Every factor has a fully equipped laboratory managed by trained personnel.

Nigeria Bottling Company is licensed by the board of customers and excise factory No. 47 both Africans and foreigners are members of board of directors of Nigeria Bottling Company Plc some of them includes H.S.A Adedeji chairman, G.K. Karfakirs chief, A.A. Adesanyan A. Lerentis A.A and chief S.A Ade john CTR who contributed the highest share presently in the company.

The company employed over 9000 people and operates (18) eighteen soft and bottling factors it is the sole bottle and distribution in Nigeria of the eight soft drinks afore mentioned. In addition to the 18 product centers the company has over distribution deposit and operate above 1,000 specially fitted distribution lorries making weekly deliveries to over 1,000,00 registered dealers.

According to the structure above the board of directors is recognized as the organization principal leader.

The chief executive that is the managing director of Nigeria Bottling Company and other top management’s attempts to ensure that organizational members channel their effort to appropriate direction.

The Board of Director of Nigeria Bottling Company are also responsible for such aspect of co-operate leadership as selecting and representing the interest of the firm’s share holders. Advertising top management and monitoring managerial and company performance.

Director of Marketing:

He is the head of all sale and marketing activities of the organization. He is charged with task and responsibility of various members of the staff under the marketing unit.
Marketing director has control over the following:

  • Group product manager
  • Marketing and information manager
  • Sale operation manager
  • Marketing service manager

The national sales manager controls all the sales with the help of the sales operational manager. Who oversees the Zonal and district sales representative.

Director of Finance:

He is the controller of the entire department, who acts as the caretaker of all financial activities (including records and documents) of the organization. He also has with him the following managers who work hand in hand to achieve the organization goals.

The are risk managers who take change of securing the company properties. Company treasurer who keeps money that can easily be spent, internal auditor, who takes care of stocks of both inflow and outflow of the accounting records.

Business development manager, who is responsible for keeping record of business run from day – to – day and lastly the face and taxation manager, who is responsible for keeping all accounting records and management accounting records.

Director of Logistics:

He is in control of all emergency cases and operations of the organization who try to find lasting solution to some problems.

Director of Technical:

He is the head of all operational activities in the organization. He has the following under him, they are engineering service manager. Who takes care of electrical and electronics repair and installation inventory control manager, he take charge of the quality control of the organization. Research with vital information for improvement on quality and taste to meet up with the masses demand, technical service manager who takes charge of all technical services in and out if the premises.

Corporate Affairs Managers:

He deals directly between the company and deals directly between the company and outsiders. He also relates with the customers on behalf of the company.

Chapter Five

Introduction, Summary, Conclusion and Recommendation

5.1 Introduction

This project deals with the impact of advertising in enhancing sales volume using the Nigeria Bottling Company Plc, Ilorin as a case study. The aim is to examine how advertising enhances sales volume in a business organization. The advertisement being the medium of communicating and creating awareness of products to the final consumers in order to enhance the firm’s profitability. Then this chapter will put the whole work in concise form with summary, conclusion and recommendation.

5.2 Summary of Findings

The first chapter of his research work is all about the introduction of the research work. The statement of problem, that is, problems that an organization sales volume will encounter without advertisement such as decrease in sales volume. It shows the objective of the study on how advertisement plays a crucial role to an organization, as well as to the consumers. It further indicates significance of the research work to educate, advice and enlightening managers on advertisement strategies that can be used to achieve organization goals and objectives.

The chapter also points to the scope and limitation of the study it also show cases as the historical background of the case study.

The following chapter, exhibits the literature review of the research work, such as: definition of advertising by different scholars. It also indicate advertising agency, media and strategies which constitute to increase in or organization sales volume. Also, various types of advertising is stated such as: product and institutional advertisement it also states the needs for advertising in an organization. It revels the relevant of advertising to an organization interms of increase in sales volume, it relevance to an organization as well as he interrelationship between advertising and sales volume.

The subsequent chapter deals with the method used in collecting date for the study it show the population of the study that is an aggregate of element from which the sample is actually selected. It shows the sample size.

Questionnaire design and assumption, as well as data collection instrument of the study.

Chapter four of this research work is all about the data presentation, analysis and the interpretation. These show cases series of table showing the response of the respondent from the questionnaire collected or received from the staff of Nigeria Bottling Company Plc., Ilorin majority of that staff or respondent believed advertising increases sales.

5.3 Conclusion

It is quite obvious that advertisement has really contributed to the development of Nigeria Bottling Company Plc., Ilorin especially in the aspect of information and persuading the consumer to patronize their product.

Advertisement has helped to increase the benefits they can derive from the implementation of marketing as a means of achieving their aim and objectives for the impact of advertising in enhancing sales volume.

Finally, advertisement has helped to know the best type of advertisement that best suits making awareness of their product which automatically enhance the organization sales volume and performance generally.

5.4 Recommendation

Advertisement in an organization is very important such that, it is the only way by which marketing efforts gain consumers legality, in a product which is carried out to the people, thereby, it serves as a solution to the marketing problems.

Therefore the impact of advertisement in enhancing organization sales volume cannot be over looked.

Despite the importance of advertisement some organizations still do not make use of advertisement successfully due to the following reasons.

Section of wrong media to reach the target market inability to present the message will to the target market.

To make a successful advertising of product, an organization should take the following into consideration.

Geographical coverage of the medium by national coverage regional or local coverage.

Basically, medium’s physical characteristics e.g. availability of colour, visual oral and quality of product, social and economical composition of the audience. Cost of advertisement should not exceed the total.

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