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THE IMPACT OF ADVERTISING ON SALE OF PRODUCTS (A CASE STUDY OF 7UP BOTTLING COMPANY P.L.C. WARRI)

5,000 2,500

Topic Description

CHAPTER ONE

BACKGROUND OF THE STUDY

  •    INTRODUCTION

In contemporary Nigeria, the economy is largely an urban phenomenon as reference is always make to the dominate and commercially significant activities of business houses.

Perhaps, the ultimate objective of any organization set-up is profit maximization which is the out come of it’s ability to satisfy the ultimate consumer both in short and in the long run, all things been equal, the so- earned consumer need comprehensive knowledge as regard to the product as a result of utility maximization principles, which operate in any buying decision made by the consumer.

Nevertheless, no entity is an Island of itself, events both past and present testing to the variety of this age long assertion, than society influence organization so thus organization influence the society. And so it is the ability of the organization to interact effectively with the environment in which they operates in, and this immediately determine it’s success, and these interaction is accomplish through marketing tools among which is advertising. In other words, due to the interview costumer buying habit which seems to be individually different, the need for advertising on sales of a product and sales performance is an organization cannot be therefore over emphasized. And so! Advertising from management point of view, is a strategic device for gaining or maintaining competitive advantage in the market place, more over as we are giving in our ever dynamic environment the society as a whole is ever changing technology, organizational structure, management techniques, ideology as well as government polices. That is, both external and internal business environment change day in day out.

The ultimate consumer therefore is forced to be on the move, and this. could only be counter balanced through outstanding marketing practices which need to be complemented through the use of effective and consolidated advertising practice and implementation which is one of the arms of promotion.

1.2     SHORT HISTORY OF 7UP

7UP was first produced in Nigeria in October 1960 through the activities of Late Sheik Mohammed El-Khalil. When the company opens its first plant in Lagos, by this time Coca Cola has taken a monopolistic control of the soft drink market and 7UP started struggling behind Coca-Cola to have a fair share of the market. It sold an estimate of four million of its product daily

Today, it’s strong competition with Coca-Cola has been given raise to other competitors like Limca, and has made Company to undertake the production of other brands like Miranda, Team Pepsi, and even Mountain Dew.

Nevertheless, larger sizes of bottle of its brands have also been produced in order to create a distinguished larges number of its sort drink and have kept interest of its share of the soft drink market. And so, with a large sales and yearly turnover, the companies has been able to create employment for over ten thousand skilled workers over the country and indirect complement for over four hundred thousand dealers whom the company calls in once in a week with it’s products.

7UP Bottling Company is striving in the countries industrialization process it’s multiple production plants are located in Lagos, Onitsha, Kaduna, Benin and most mini depots in small towns, over three decades the 7UP company has been earning a lot through large patronage by this she is able to fasten the up liftment of the society.

1.3     OBJECTIVE OF THE STUDY

This study is aimed at measuring the extent at which advertising had influence the sales performance of an organization or influence the sales on a product. And our attention is going to be focus particularly on 71JP Company, from our short history of 7UP we can see that advertisement had been a major source of this publishing, this goes to show that a lot of money is been gloated ‘to advertisement periodically by 7UP. Some of the objectives are as follow:

  1. a) To determine the extend to which advertising has created product awareness.
  2. b) To determine the benefit of advertising to 7UP.
  3. c) To find out whether it has helped the company to provide customers with useful information as regards their products.
  4. d) To know whether advertising has encourage brand loyalty.
  5. e) To find the degree at which the company has gain market control with advertisement.

To determine the ability of a firm to sustain the same sales-volume in a non advertising situation.

  1. g) To determine whether or not the effectiveness of advertising depends highly on company objective over a planned period.

1.4     STATEMENT OF RESEARCH PROBLEM

The ability of an organizations product to be acceptable to the ultimate consumer, the target market-depends on effectiveness of the advertising policy being undertaken by the organization, thus advertising determine the fate of the organization in the long run if not short run.

It has also been observed that manufactures of consumer goods like soft drinks are faced with one problem or the other when making advertising decision. They need to consider some factors. Therefore in order for them to make a good advertising decision resulting in effective advertisement, the advertising decision makers should answer the following question:

  1. a) How far has advertising help in creating product awareness?
  2. b) How has it help in providing consumers with needed product

information?

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