ADVERTISING’S EFFECT ON CONSUMER PATRONAGE

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FIRST PART

INTRODUCTION

1.1 Background of the Research

Producing for sales and profits is the raison d’être of each business enterprise. In order to stay in business, a company must produce sufficient revenue from its products to cover its operational expenses and generate fair profits. For many firms, budgeting or profit planning begins with an estimate of revenue. This is because, in most circumstances, it must be assessed before production units can effect material procurement.

Due to the dynamic nature of the environment in which businesses operate and the changing attitudes of their customers, it is necessary for the majority of organizations to establish, adjust, or alter their Advertising strategy to accommodate the current changes. Companies must provide consumers with more than they expect from their products; they must inform consumers and strategically position things in their minds.

Cadbury Nigeria Limited is a prominent manufacturer in Nigeria, producing a variety of household goods like Bournvita, Éclairs chocolate, sweet, choco-milo, and pronto, among others. Cadbury Fry export, a company established in the United Kingdom, began selling Pronto at No. 9, Orange Road,Apapa, Lagos, Nigeria in 1956. Mr. George Heywood, the export agent of Cadbury, was dispatched to Nigeria from his base on the Gold Coast (Ghana) in order to report on the possibilities for sales growth. His extremely ebullient report was accepted. The Cadbury brothers then leased a warehouse on Aerodrom Road, number 10 in Apapa.

The success of Cadbury’s initial product (Pronto) on the Nigerian market led to the release of Bournvita and Malt-based food drinks, both of which were also instant successes. In December 1963, the warehouse was enlarged to add a small production equipment that packaged pronto and Bournvita in bulk from the United Kingdom into tins. Cadbury Nigeria Limited was established on January 9, 1965 as an independent subsidiary of the Cadbury Schweppes company.

Cadbury Nigeria Limited has expanded its production operations to include Tom-Tom candies, Parazone bleach, Buttermint Sweet, Goody Goody, and Tomapepe, among others. Trust has played a significant role in the company’s growth over the years. In May of 1965, domestic manufacture of Bournvita and Pronto began, following the establishment of a comprehensive manufacturing plan for their production in 1964.

Marketing, economics research and development, computerization, and an effective information management system have been implemented into the company’s operations.

The current factory was founded in 1966. It was nearing completion when the Nigerian civil war broke out, which delayed its completion for some time. During the period, Cadbury’s sales decreased because the Eastern states, which were cut off, accounted for more than fifty percent of total sales. During that time, however, the government restricted the entry of finished items. Bournvita and Pronto had a monopoly on the market once their manufacturing facilities were in place. In the same year that Tom-Tom Sweets began production, nearly 2 million pounds were approved for new goods, including the expansion of capacity for several brands. In 1976, Cadbury Nigeria Limited became a publicly traded corporation. The decision to go public was made prior to the 1977 enterprise promotion decree.

1976 also saw the establishment of the Jayes health and chemical division, which produced parazone bleach and other household chemicals. The following year, 1977, the first phase of a Malta extract factory was constructed to create Malta extract from barley, so supplanting the import of Malta barley. Further share sales in 1978, in accordance with the decree, led to a change in stock holdings from 40% foreign to 60% Nigeria. Cadbury Nigeria Limited is investing in the future as a sign of company confidence. Its workforce has grown from a smattering of 250 workers in January 1966 to more than 2,000, of which roughly 350 are managerial staff; six of the ten directors are Nigerian.

The organization maintains regional sales offices in Lagos, Ibadan, Kaduna, Jos, Kano, Aba, Enugu, Asaba, Sokoto, Maiduguri, and Ilorin. In addition, trading records have been especially excellent. In 1989, the company’s turnover had increased from one hundred and twenty thousand pounds to three hundred and thirty seven million Nigerian naira, and it had made substantial investments in many industrial processes, plant, and equipment.

Because manufacturing or production is incomplete until the product reaches the ultimate consumers/buyers, the acceptance of an organization’s products by consumers is crucial to its success. Numerous research have been conducted on advertising’s origins and contemporary tendencies. For example, Holtje (1978), as cited by Ewuola (2004), asserted that contemporary advertising operations began during the American Colonial period, when colonial newspapers began receiving advertisements directly from individuals and institutions in need of their services. In this regard, several local post offices also assisted by acting as agents for these journals.

1.2 Statement of the Issue

A key fact is that we are daily inundated with advertising messages from every conceivable medium. Every day, the average consumer is exposed to a significant number of advertising, especially in urban and semi-urban areas. Advertising is seen as a medium capable of exciting, inspiring, and influencing the purchase and other behavioral responses of their prospective clients. How has advertising been able to accomplish this and gain Cadbury customers? Can it be argued that Cadbury’s advertising based on consumer preferences has been successful? Does Cadbury employ any advertising strategy in the promotion of their products? Exists a relationship between Cadbury Nigeria Plc’s advertising strategies? Does Cadbury Nigeria Plc have an advertising strategy? Is there an advertising plan that will increase customer brand loyalty? This research tries to explore and develop solutions for these and numerous more difficulties.

1.3 Objectives of the Research

These are the objectives of this study:

Determine the relationship between Cadbury Nigeria Plc’s different advertising methods.

To assess the efficacy of Cadbury Nigeria Plc’s advertising efforts.

Examine the most effective advertising method for fostering consumer brand loyalty.

Analyze the aspects that will influence the consumer’s behavior in relation to advertising techniques.

1.4 Research Concerns

Before attempting to sell their products, manufacturers should aim to comprehend the difficulties and develop solutions to overcome them. In the course of this study, the following research question will be used to provide recommendations.

What is the relationship between the numerous advertising methods Cadbury Nigeria Plc employs?

What is the efficacy of Cadbury Nigeria Plc’s marketing strategies?

What is the most effective advertising technique for building brand loyalty among Cadbury Nigeria Plc customers?

What elements influence the consumer’s behavior in relation to advertising strategy?

1.5 Research Scope and Limitations

This study is limited to Cadbury Nigeria Plc, a key player in the manufacturing of consumer goods. It is intended to encompass both the theoretical and practical effects of advertising on consumer behavior. Geographically, the study will encompass the state of Lagos.

1.6 Significance of Research

The importance of this research cannot be overstated. The research would be of considerable benefit to marketing professionals, manufacturers, and consumers, particularly of beverages.

1. The purpose of this study is to shed light on the reality of the premise upon which advertising policies and strategies for consumer goods are founded.

Additionally, it would be useful to know which advertisement applies to whatever technique.

It will facilitate the adoption of new advertising methods, particularly for consumer items, by marketers.

It will give supplementary literature in the field of advertising strategy.

1.7 Terminology Definitions

Advertising is any sort of compensated, non-personal presentation of goods, services, or ideas by a sponsor who is named.

A consumer is any person who purchases items for final consumption (i.e., the household buyer) and no other reason.

Consumer behavior can be defined as the actions consumers take when searching for, purchasing, utilizing, and evaluating products, services, and ideas that they anticipate will meet their requirements.

Marketing can be defined as the process of discovering what people want and choosing the most profitable method to price, market, and distribute the goods or services.

5. strategy: a series of decisions that identify and reveal the objectives, purposes, and goals, as well as the plans for attaining them.

ADVERTISING’S EFFECT ON CONSUMER PATRONAGE

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