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Utilization of Non-Price Competition Marketing Strategies by Breweries in Nigeria

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Utilization of Non-Price Competition Marketing Strategies by Breweries in Nigeria.

Abstract

The major purpose of this study was to determine the utilization of non-price competition marketing strategies by breweries operating in Nigeria. The study has five specific purposes. Five research questions were raised and eight null hypotheses were formulated for this study. Literature was reviewed on the conceptual and theoretical frameworks.

A survey research design was employed for the study. The study covered six geopolitical zones of South-south, south-east, South-west, North- central North West and North-east. The population for this study was drawn from breweries operating in Nigeria. A total of 73 commercial managers, 85 senior marketing managers, and 91 senior sales managers were involved to give correct information on the utilization of non-price competition marketing strategies.

The instrument for data collection has six sections. The instrument was subjected to face- validation by two experts in marketing and one in vocational education. Cronbach alpha reliability test was used to determine internal consistency of this study. A reliability coefficient s of 0.85 was obtained which showed that the internal consistency of the instrument was high.

Questionnaire was administered on respondents with assistance of five research assistants. Data collected were analyzed using frequency count, mean and standard deviations for research questions. The eight null hypotheses were tested using Analysis of Variance (ANOVA) and t-test statistic at 0.05 level significance.

Based on the findings of this study, it was concluded that non price competition strategies when used could reduce costs accompanying price cuts among breweries in Nigeria and that utilizing customer service practices would create customer satisfaction thereby enhancing repeat buying from customers.

The study recommended that breweries should use harmless handling practices so that their products would remain safe for human consumption. It was also recommended that breweries should not be deceitful in their promotional activities so that only correct messages are sent to prospective and potential buyers.

 

TABLE OF CONTENTS

Title Page – – – – – – – – – i
Approval Page – – – – – – – – ii
Certification – – – – – – – – – iii
Dedication – – – – – – – – – iv
Acknowledgements – – – – – – – – v
Table of Contents – – – – – – – – vi
List of Tables – – – – – – – – ix
List of Figures – – – – – – – – ix
Abstract – – – – – – – – – xi
CHAPTER ONE: INTRODUCTION
Background of the Study – – – – – – – 1
Statement of the Problem – – – – – – – 6
Purpose of the Study – – – – – – – 8
Significance of the Study – – – – – – – 8
Research Questions – – – – – – – – 12
Hypotheses – – – – – – – – – 12
Delimitation of the Study – – – – – – – 13
CHAPTER TWO: REVIEW OF RELATED LITERATURE
Conceptual Framework – – – – – – – 15
Developing Good Product Features as a Non-Price Competition
Marketing Strategy – – – – – – – – 19
Branding as a non-price competition marketing strategy – – 23
Product Handling as Non-Price Competition marketing Strategy – 29
Product Positioning and Differentiation as a Non-Price Competition
Marketing Strategy – – – – – – – 30
Customer Service as a Non-Price Competition Marketing Strategy – 34
Promotion as a Non-Price Competition Marketing Strategy – – 40
Breweries in Nigeria – – – – – – – 62
Theoretical Framework – – – – – – – 65
Related Empirical Studies – – – – – – – 71
Summary of Literature Reviewed – – – – – – 91
CHAPTER THREE: METHODOLOGY
Design of the Study – – – – – – – – 98
Area of the Study – – – – – – – – 98
Population for the Study – – – – – – – 98
Sample for the Study – – – – – – – 98
Sampling Techniquefor the study – – – – – – 99
Instrument for data collection – – – – – – 99
Validation of the Instrument — – – – – – 100
Reliability of the Instrument – – – – – – 101
Methods of Data Collection – – – – – – 101
Method of Data Analysis – – – – – – – 102
CHAPTER FOUR: PRESENTATION AND ANALYSIS – – 103
Research Questions – – – – – – – – 103
Hypotheses – – – – – – – – – 109
Major findings – – – – – – – – 114
Discussion of findings – – – – – – – 117
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS – – – – – – 129
Restatement of the Problem – – – – – – 129
Description of Procedure Used – – – – – – 130
Summary of Findings – – – – – – – 131
Implications for Marketing Education – – – – – 132
Conclusions – – – – – – – – – 133
Recommendations – – – – – – – – 134
Limitations of the Study – – – – – – – 134
Suggestions for further Studies – – – – – 135
References – – – – – – – – 136

INTRODUCTION

The aim of companies to maximize profit and remain consistently viable in their chosen businesses is usually threatened by other companies producing similar or identical goods or services for the same market. Those companies producing the same goods or services for same market are looked at as competitors or business rivals.

Competition is an activity in which persons or organizations contest in races, trade or sports. Kotler (2003) says that competition includes all the actual and potential rival offerings and substitutes that a buyer might consider. Price is the monetary value attached to goods and services. It is also one of the marketing mix variables.

While price competition can involve discounting the price of a product to increase demand, non price competition focuses on other strategies to increase market share. Non-price competition is the competition among companies on the basis of marketing variables other than price.

Clay, Krishman, Wolf and Fernandez (2005) define non-price competition as the act of vying for sales through better products, promotion, customer service and convenience with only minor emphasis on price. Non-price competition implies that a company can influence demand of its products or services by its marketing activities.

Brue and McConnel (2002) define non-price competition as a marketing strategy in which a company tries to distinguish its product or service from competing products on the basis of attributes like design, workmanship, quality of service, extensive distribution, customer focus, or any other sustainable competitive advantage other than price.

Non-price competition, they further explain typically involves promotional expenditure such as advertising, personal selling, sales promotion (coupons, special order processing methods or free gifts) packaging, marketing research, new product development and brand management costs.

References

Abah, J.K.N (2005). Marketing Practices Adopted by Citrus-fruit dealers in Ushongo Local Government Area of Benue State Unpublished. M.Ed Dissertation submitted to the Department of Vocational Education, University of Nigeria, Nsukka.

Adamu, J. (2000). Promoting sales through product quality by bakery companies operating in Kano metropolis. Unpublished MBA Dissertation, Bayero University, Kano.

Adirika, E.O.; Ebue, B.C. & Nnolim, D. (2001). Principles and practice of marketing. Enugu: John Jacobs Classic Publishers Limited.

Ajiborah, I.F. (2003). Introduction of a new product in the market using IMC Approach. A case study of aloe vera products. Unpublished B.Sc Project Department of Marketing, University of Nigeria, Enugu Campus.

Anyanwuocha, R.A.I. (2004). Fundamentals of economics for senior secondary schools. Onitsha: Africana Fep. Publishers Limited.

Awara, N.F. (2001). Impact of sales promotion techniques on the sales level of PZ Industries Plc. Unpublished MBA Dissertation, University of Calabar.

Belch, G.E. & Belch, M.A. (2001) Advertising and promotion: An integrated marketing communications perspective (5th Ed.), New York: McGraw-Hill Book Company.

Bennett, P.D. (2005). Dictionary of marketing terms. Chicago: America Marketing Association.

Best,  R.J.  (2000).      Marketing based management: Strategies for growing consumer value and profitability. New Jersey: Prentice-Hall.

Brown, R.G. (1994). Sales response to promotion and advertising. Journal of Advertising Research 36 – 37.

Brue, S.L. & McConnell, C.R. (2002) Economics–principles, practice and policies. Boston: Irwin/McGraw-Hill Inc.

Cespedes,     E.     (2006).     Concurrent     marketing:     Integrating,    sales     and services. Boston: Harvard Business School Press.

Champy, I. (1999) Selling to tomorrow’s customers. Sales and marketing management pp. 28 – 30.

Chukwurah, C.C. (2008). Utilization of integrated marketing communication by manufacturing companies operating in Cross River State, Nigeria. Unpublished Ph.D Thesis, University of Nigeria, Nsukka.

Corporate    Affairs    Commission    (2009).    Breweries    in    Nigeria,    Retrieved 20/05/2010.http/www.nigeriagalleria.com.

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