EFFECT OF MARKET SEGMENTATION ON PERFORMANCE OF BREWERY INDSUTRY

(A CASE STUDY OF GUINNESS NIGERIA PLC AND NIGERIA BREWERY PLC.)

ABSTRACT

This research project examine the effects of market segmentation on performance of brewery industry with special reference to Guinness Nigeria Plc. And Nigerian Breweries Plc. The research design took both an inferential and a descriptive approach.  A sample size of One hundred was drawn from the population. A hundred questionnaires were distributed randomly to stratified groups among the staff of De-United Food Industries Plc. Eighty five respondents duly filled and returned the questionnaires. A 5 - point likert scale was developed and validated to collect information from the respondents. The data collected was analyzed with basic descriptive statistics such as frequency and simple percentages. Chi­-square analysis was also made. The core findings from the results obtained show that there is a significant correlation between Integrated Marketing Communication and level of sales, Integrated Marketing Communication promotes brand loyalty, and Integrated Marketing Communication increases consumer's awareness of a particular product. Conclusion was draw from the summary of the result. Various remarks and recommendations were proffered to the organization of study.

TABLE OF CONTENTS

Title                                                                                         i

Certification                                                                            ii

Dedication                                                                               iii

Acknowledgment                                                                    iv

Table of contents                                                                     v

Abstract                                                                                  viii

CHAPTER ONE- INTRODUCTION

1. 0    Background to the study                                               1

1.1     Statement of problem                                                    2

1.2     Objective of the study                                                    3

1.3     Research questions                                                        3

1.4     Research hypothesis                                                      4

1.5     Scope of study                                                               4

1.6     Significance of the study                                                         4

1.7     Operational definition of terms                                               5

CHAPTER TWO:

2.0     Literature Review                                                          8

2.1     Historical background of case studies Guinness            8

2.1.2 Historical background of Nigeria breweries plc             9

2.1.3 GNPLC/NBPLC compared                                            10

2.2     Nature of segmentation                                                  10

2.3     Market segmentation process                                        13

2.4     Basis for segmentation the markets                               14

2.4.1 Geographical segmentation                                            15

2.4.2 Demographic segmentation                                           16

2.4.3 Psychographics                                                              18

2.5     Condition necessary for successful market segmentation        21

2.6     Appraising the market segments                                    22

2.7     Choosing the appropriate market segments                            24

2.8     Segmentation resulting from marketing strategy           25

2.9     Selecting a market targeting strategy                             28

2.10.  Benefits of segmentation                                                30

2.11   Limitations of market segmentation                              32

CHAPTER THREE: RESEARCH METHODOLOGY

3.1     Introduction                                                                   35

3.2     Research design                                                             35

3.3     Population of study                                                       36

3.4     Method of data collection                                              36

3.5     Method of data analysis                                                          37

3.6     The data analysis instrument                                         38

3.7     Restatement of research questions                                 39

3.8     Restatement of research hypothesis                               39

3.9     Validity of the instrument                                              40

CHAPTER FOUR: ANALYSIS AND INTERPRETATION

4.0     Introduction                                                                   41

4.1     Analysis of section A data analysis                               41

4.2     Analysis of section B of the questionnaire                     42

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1     Summary of findings                                                      57

5.2     Recommendation                                                           58

5.3     Suggestion for further studies                                        59

5.4     Conclusion                                                                     59

BIBLIOGRAPHY                                                                             61

APPENDIX                                                                                      62

QUESTIONNAIRE                                                                 63

CHAPTER ONE

INTRODUCTION

1.0    BACKGROUND TO THE STUDY

The impact and effectof market segmentation with the view of globalization throughout the world be it developing or developed economy, the supremacy being accordthe free market system cannot be over emphasized, that is achieving economic efficiency which ultimately leads to economic growth is free competitive market system otherwise refer to as the capitalist system.

Market segmentation is one of the steps into defining and target specific market.  It is the process of dividing a market into distinct groups of buyer that require different products or marketing mixes.

A key factors to success in today'smarket place is finding subtle differences togive a business the marketing edge.

Business that target specially market will promotes us products andservicesmore effectively than a business aiming at the "average" customer.

Segmentation is so important that Kotler (2004) described the heart of modern strategic marketing as segmenting, targeting and positioning (STP). Since no marketer can satisfactorily satisfy the whole market or industry, it is thereforeimperative that the market is segmented. Segmentation is also precipitated by the fact that the market is heterogeneous-made up of different consumers withdifferent needs and want.

He also viewed market segmentation as an act of identifying and profiling distinct groups of buyers who might require different products and/or marketing mix.

Opportunities inmarketing increase when segmented groups of clients and customers with varying needs and wants are recognized.

Market can be segmented or targeted using a variety segmenting consumers markets include:

·        Demographical bases (age, family size, life cycle)

·        Geographical bases (state, regions, countries)

·        Behavior bases (product knowledge, usage attitude, response)

·        Psycho graphical bases (life style, values, personality)

Today, it could be generally agreed that almost all the manufacturing industries especially breweries, practice market segmentation due to tremendous benefit derived from it.

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