CHAPTER ONE

INTRODUCTORY OVERVIEW

INTRODUCTION

In our economy today, want satisfaction has generally replaced the necessity of fulfilling only basic physiological requirements. This, however, has in no small measure exposed Nigerian consumers who by the virtue of circumstances are becoming more aware and enlightened to numerous influences. This in effect propels them to develop or build a preference for a particular product.

Interestingly, studies have shown that the contemporary Nigeria consumers are also becoming more rational and speculative in their spending. Thus, they will only spend on products they believe will maximize their satisfaction. Consequently developing penchant or preference for those products they believe will maximize their utility.

Also, the crucial and controversial nature of competition and market interactions (especially in the soft drink beverage market) which portray both opportunities and threats for all the players is interesting. Interesting because consumers who

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hold the key to success or failure of any product are greatly influenced to decide either for or against a product.

The role of middlemen in the distribution and generally logistics at different times have been shown to be a factor of great influence to the level of utility derived by consumers of soft drink beverage drinks. Thus, constant and or consistent availability in a competitive market is of great importance. This is because product availability creates an unquantifiable impact in the minds of the customers often constraining, motivating or persuading their preference of the product(s), their prices and or qualities most – times notwithstanding.

Statistics have shown that majority of Nigerian consumers are poor. This was associated with the nation’s present economic state, which as quoted by the International monetary fund {IMF} was in a state of quagmire (bog). Consequently, it would not be surprising if the poor consumers prefer products their purchasing power could afford. In other word, price to a certain degree influences the preference of a product by consumers. Nevertheless, it has been logically proved that taste and preference of a product are factors of the consumer’s individual tastes and idiosyncrasies.

Nevertheless, the topic of this research study stemmed from the researcher deep desire to personally investigate into the success of Nigerian Bottling Company Plc and Seven Up Bottling Company Plc with respect to the preference of their soft

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drinks (Coca cola, Sprite and Pepsi cola) by consumers. This desire, however, was

reinforced when the researcher observed majority of soft drink consumers opting for Coke, Sprite or Pepsi cola against similar brands. The researcher’s imagination of the above will continue to hover until the root cause(s) is/are unraveled at the end of the investigation.

1.2        STATEMENT OF THE PROBLEM

The ever dynamic nature of Nigerian consumer market has abinitio both opportunities and threats to the producers of consumer goods. Unfortunately, Nigerian Bottling Company Plc and Seven up Bottling Plc the bottlers of Coke, Sprite and Pepsi cola respectively were no exceptions.

The deplorable economic state of Nigeria has been very instrumental in subjecting most Nigerian Consumers to live below poverty line. Although most companies, especially the ones under study have geared efforts towards revamping the economy in their respective small ways as well as embarking on a comprehensive consumer education for a purported positive effect on its marketing effort, nothing spectacular has thus far happened.

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The roles of middlemen in constantly or consistently making the products available in the market for the consumers leave much to be desired.

This inconsistent availability of the products in the market has constituted a source of deterrent for the effective marketing of the products. Competition amongst soft drink producing companies in Enugu has been stiff. Consequently they sometime go outside their ways to make sure they keep the patronage of the customers.

The promotional messages of both companies (NBC Plc and SUBC Plc) with respect to the real or true nature of Coke, Sprite and Pepsi cola seem reliable and convincing. Although, they have not been able to achieve much in re-orientating the perceptions of the consumers with respect to the true nature of Coke, Sprite and Pepsi cola.

The variable factors responsible for the preference of Coke, Sprite and Pepsi cola against similar brands by Nigerian soft drink beverage consumers have nonetheless defied the reasoning of many consumers and producers alike. Hence, the need for this study.

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1.3        Objective of the study

The objective of the study includes:

1.                  To identify the nature of extent of competition existing among competing brands in Enugu soft drinks market especially Coke, Sprite and Pepsi cola.

2.                  To establish the reason(s) for consumer preference of Coke, Sprite and Pepsi cola in the soft drink beverage market.

3.                  To determine the factors responsible for consumer perception of the true nature of Coke, Sprite and Pepsi cola.

4.                  Finally, to ascertain other factors that gives a product an edge over competing brands.

1.4        RESEARCH HYPOTHESES

In having a study of consumer brand preference for Coke, Sprite and Pepsi cola, the following postulation were made to keep abreast with the objective of the study.

1.                  There is a significant different in the extent to which Coke, Sprite and Pepsi cola are consumed in comparison with similar brands.

2.                  Price of the products under study is not significantly higher than similar or competing brands.

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1.5       SIGNIFICANCE OF THE STUDY

This research study hopefully will be of immense help to the producers of consumer goods. This is because it will be very instrumental in helping them to better position their products in the market for a consistent consumer preference. Consistent exposure and better positioning of

products to a target market indisputably leave an indelible impact in the minds of both buyers and prospective buyers, consequently their continuous patronage or preference.

The study will also be of great assistance to the marketing outfits of both Nigeria Bottling company Plc and Seven Up Bottling Company Plc in formulating policies and or taking decisions concerning their respective soft drink brands. This is because any flaw in their policies will inadvertently affect the preference of the consumers for their soft drink. This will also not only affect their returns but their images.

The consumers through the study will be more aware / better positioned and more objective in taking decisions among competing brands and also appreciate the true nature of soft drinks. This is very important because the wrong notion that Coke, Sprite and Pepsi cola is medicinal is very dangerous, hence, hazardous to health. It has since been proved that soft

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