AN ASSESSMENT OF THE IMPACT OF MARKETING SEGMENTATION ON PRODUCTION PLANNING IN AN ORGANIZATION

AN ASSESSMENT OF THE IMPACT OF MARKETING SEGMENTATION ON PRODUCTION PLANNING IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

Market segmentation is a vital issue in marketing strategy. Therefore, marketing segmentation is the sub-dividing of a market into district subset of customers where any subsets may conceivably be selected as a target to be reaching with a district marketing mix. Kotler (2008) opines that market is a place or a geographical area where buyers and sellers meet and function, goods and services are offered for sale and transfer of ownership of title occur. The aggregate market is so huge that any single market needs to capture only a small portion of it to be very successful hence, the strategy employed. Limsitursti (2009) define marketing strategy can be viewed as the techniques, styles and way that a distributing, developing and selling of their products in order to attract the attention of its customers. It is interesting to note that, each major variable, for the entire firm’s offering requires careful research and studying before short- and long-term marketing plans can be evaluated. Therefore, the needs for this study goes a long way in re-organization that people as buyers and customers differ in their need, taste, family and cultural background, motivation lifestyle, and attitude towards products and purchases. It is relevance to the present time in that, this set of buyers should process distinguishing characteristics so that they may be used as marketing targets product are positioned to meet segment customer need, and a marketing mix appropriate to a particular segment may selected. Kotler (2008) in his view, market segmentation offers an efficient way for marketers to plan for attaining the desire goals and set objectives.

1.1.1        SOKOTO CEMENT FACTORY

Sokoto is a city located in the extreme northwest of Nigeria, near the confluence of the Sokoto River and the Rima River. As of 2006 it has a population of 427,760. Sokoto is the modern-day capital of Sokoto State (and its predecessor, the north-western State).The name Sokoto (which is the modern/anglicized version of the local name, Sakkwato) is of Arabic origin, representing suk, 'market'. It is also known as Sakkwato, Birnin Shaihu da Bello or "Sokoto, Capital of Shaihu and Bello". Being the seat of the former Sokoto Caliphate, the city is predominantly Muslim and an important seat of Islamic learning in Nigeria. The Sultan who heads the caliphate is effectively the spiritual leader of Nigerian Muslims.

Cement Company of Northern Nigeria Plc is engaged in the production and marketing of cement under the brand name “Sokoto Cement”. Presently the company produces CEM II type of cement in accordance with the Nigerian Industrial Standards. The company produces CEM II type cement which is used by the home building and construction sectors in Nigeria for making cement blocks as well as for plastering and concrete works. CEM II type cement is renowned for its high early strength, rapid setting and low heat of hydration which is ideal for major construction works. The cement brand name is taken from the founder of the company, the Premier of the then Northern Region, Alhaji Sir Ahmadu Bello, Sardauna of Sokoto. It was incorporated in 1962 and started producing cement in 1967 to meet the demand for cement needed for the expansion of Kalambaina Plant. Cement Company of Northern Nigeria Plc was privatised and a member of Heidelberg Cement Group, Scancem International ANS of Norway, was elected core investor and technical partner in 2000. A Nigerian-based firm, Damnaz Cement Company Limited, became the new core investor in 2008 when Heidelberg divested its stake in the business. BUA International Limited acquired Damnaz Cement Company and became the majority shareholder in Cement Company of Nigeria plc and its technical partner. The company’s head office is in Lagos, Nigeria. Sokoto Cement is ideal for all construction purposes in Nigeria. Its unique quality makes it the cement of choice for block-making, plastering and concrete works.  Its high early strength, rapid setting and low heat of hydration are all distinct features that characterize our high-quality production process. The Company’s prime market area covers six states of the North-West Zone namely: Sokoto, Kebbi, Zamfara, Katsina, Kano, and Kaduna. The Company is leading supplier within its geographical market area. Over the years, the company has put in place a pro-active corporate policy on social responsibility to its host communities that has endeared it to its host. In line with this policy, a number of community based programmes and projects were executed with a view to carter for and improve the quality of life of the communities. Some of these projects include: