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ABSTRACT
This research was based on finding way of improving the sales of
supermarket through effective marketing strategy. Some selected
supermarket in Enugu metropolis was used.
The major problem faced in
this research was how to improve sales by using the tools of marketing
strategy. This research also found out how the full application of
marketing concept could help to improve sales in supermarket. The acute
importance of the customer to success of any business in the era to
buyers market was also research on.
In collecting information for
this research, two source of data collection were used. They are primary
and secondary data sources. The primary was data gotten through the use
of questionnaires and oral interview, while secondary data were
collected from libraries and other information center.
Four
hypothesis were stated and proved which helped to show ways through
which the sales of supermarkets could be improves. Percentages and 1 –
distributions were used in analyzing the questionnaire while 2 – test
formula was used in testing hypothesis.
CHAPTER ONE
BACKGROUND OF STUDY
1. HISTROY AND ORIGIN OF SUPERMARKET
Supermarket
as we know them today started in the depression days of the early
1940s. They were owned and operated by independents, attempting to
compete with the Chain food stores. The supermarket method of food
retailing becomes an immediate success and the innovation was soon
adopted intendments. Today supermarkets are dominant institution in food
retailing. There are close to 34,000 supermarket in the United States
and about 29,000 in Nigeria and they account for about 75% of total food
sales.
1980s were not good year for conventional supermarket cost increased
(Sometimes
dramatically), inflation hurt, competition intensified and both profits
and productivity. Now, in the 1990s, supermarket management in facing
the challenge of revealing these trends especially the decline in profit
and productivity. The challenge is being met cutting costs and
stressing their price by offering limited services.
A few supermarket
organizations are going the opposite route – featuring a wider
assortment of products of higher prices. Both groups are using
technological innovations at the chicken stands, in packaging and else
where in the stores. Perhaps the strongest challenge the supermarket
management is the task of encouraging the adopting of a greater number
of those technological innovations at a faster rate then in previous
years.
There are many factors which caused the take off of supermarket in the 1940s some of these factors are:-
The
mass ownership of cars:- For the fact that many supermarket patrons own
their own cars, they can afford to go to some distant places to make
their weekly shopping.
The advance in technology:- Both supermarket
and their patrons can store perishable goods for a long period of time.
They can also make bulk purchases which could be stored in their
refrigerator.
The packaging technology:- For many products now have
consumer size packages and distributor size container. This consumer
packaging enhances self – service operation in supermarkets.
Integration
of grocery, meat and produce departments has made one to stop shopping
regularly. In a supermarket, there are different section which makes for
all time and efficient shopping.
1.1 STATEMENT OF PROBLEM
It is no exaggeration to
say that some supermarkets in Enugu are performing below standards and
expectations that is to say that, they do not meet the required sales
volume considering the opportunities open to them for exploitation.
The supermarket visited had not been treating their customers as supposed there by not adopting the concept of marketing.
The
investigation carried out confirmed that consumers were not given
special attention regarding their Enquirer as a result most of them
suddenly patronize these supermarkets.
The information flow was
discovered to be inefficient thereby affected service delivery that
would here interested the customers.
The supermarket prices were
found to be inhabitant when compared to open market prices. The consumer
preferred these open markets because of the degree of satisfaction
received from them.
1.2 PURPOSE/OBJECTIVE OF STUDY
The main objective
of carrying out this study is to find out the reasons behind poor
performance of supermarkets in Enugu and ways through which super market
managers can increase their sales through effective marketing strategy.
To
investigates how the adoption of the marketing concept of treating
consumers as the king would make the consumers patronage the selected
supermarket.
To examine the best marketing strategy that could be adopted for consumers to be given special attention.
To
assess the information flow between sellers and buyers that would
satisfactory make customers patronage the supermarket under study.
To approve the pricing policies of these supermarkets with a view of adopting a satisfactory pricing policy for them.
1.3 SIGNIFICANCE OF STUDY
This study when
completed will definitely help the supermarket managers to increase
their sales volumes and when their sales volumes increase; their profit
margin will also increase.
This study will also help those wishing to
undertake supermarket business to collect information which will help
them in establishing their business.
Again this study will provide
various strategies which will help the managers to select one or two
strategies that will make his business to be cost effective that is the
one that will be less expensive.
It will also make the owners to
super markets to remain in business because without adequate and
comprehensive strategies, they can go out of business.
1.4 HYPOTHESIS / RESEARCH QUESTIONS.
According to
Webster .N. (1981) hypothesis is “ a proposition put forward as a basis
for reasoning a superstition formulated from proved data explanation of
occupancy as in science insider to establish a basis for further
research”
Based on the problem and objective of the research, the following hypothesis are formulated:-
Null Hypothesis (HO):- Sales of supermarket will not increase with adequate use of promotional tools.
Alternative hypothesis (H1) sale of supermarket will increase with adequate use of promotional tools
Ho: Good public relation will not enhance customer loyalty which leads to increase in sales.
Hi: Good public relation will enhance customer’s loyalty which leads to increase in sales.
Ho: Selling goods at reasonable low prices will not increase the sales of a supermarket
Ho: Offering producers better qualities will not increase the sales volume of a supermarket.
Hi: Offering producers better qualities will increase the sales volume of a supermarket.
1.5 SCOPE AND LIMITATION OF STUDY
This study was
intended to cover all the supermarkets in the metropolis and their
marketing strategies. But considering the number of supermarkets in
Enugu the researcher has decided to limit its scope to selected few
using Tonson supermarket as case study.
The researcher is studying
how to improve sales through effective marketing strategy. The more
pronounced strategies around which the researcher will concentrate on
are:- product, place ( distribution) price and promotion. These are
major marketing strategies which supermarket managers will have to
manipulate inadequately so as to improve their sales.
Generally,
marketing strategy can be regard as a consistent, appropriate and
feasible set of principles through which a particular company hopes to
achieve its long run customer and profit objective in a particular
competitive environment.
This research will equally drive into the
area of introducing the marketing concept phenomenon into the management
of supermarket.
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