MARKET SEGMENTATION AS AN EFFICIENT TOOL OF ACHIEVING INCREASED MARKET SHARE
ABSTRACT
This main aim of business is to seek, attract and retain customers who will use the company various products to meet their needs or solve their problems. Successful service organization must therefore understand how customers view services and in what ways it presents a different advantage relative to the company’s offering. Therefore the main objective of this study is to determine the efficiently of market segmentation in increasing market share of a company. The research questions were asked, problems identified and objectives set. At the same time some existing literature on the subject matter was reviewed while a pattern was followed to gather and analysis the data collected. Eight research questions were formulated which guided the study. The analysis is presented by the sue of table, sample percentage to enable one to have an overview. Some of their findings principles were based on the increased in sales of the organization product and determining the efficiency of market segmentation which depends on the managers getting what they want from planning. To change the minds of non-user of market segmentation, organizations and management should know that the planning as rewards. Also management should try to identify each managers needs and expectations so as to increase their moral and planning performances. Based on this study some conclusions were drawn from the findings and they include, organizations should maintain an effective plan, provide a good planning and working environment, pay fair and adequate salaries and also encourage the management. Theoretical research needs to be carried out by other researchers to find out the efficiency of market segmentation in achieving increase market share of the company. Conclusively, the factors mentioned above can make management to be satisfied with planning and more rewarding to the manager and society.
CHAPTER ONE
INTRODUCTION
7up plc was introduced by a Lebanese called Mr. Mohammed Elkhail as a business man, he came to Nigeria in 1926 and trade on household and Kitchen utensils. He also owned later one of the biggest transporting company in West Africa. He went into soft drink business as a kind expansion in 1959, and subsequently introduced 7upbottling company now plc.
The location of the 7up first plant was at Ijora in Lagos now the head quarter where the first bottle of 7up was produced in 1960. also on that day, a total of fourteen crates were produced.
The Ibadan, Ikeja, Kano, Kadunna and Aba plant were opened between 1980 till 1989. also till date more plant have been opened across the country including many depots.
Due to the location of their depots act many place in the country, it was very easy for them with the help their good marketing strategies to enhance distribution across the country penetrating the areas their products were not available.
Finally, the company’s brands of soft drink include 7up, Pepsi Cola, mirinda orange, Mirinda soda, mirinda fruity and maintain dew which was must introduced.
BACKGROUND OF THE STUDY
No where has business practice been more effected than by the growing consumer demand for variety. The relatively homogenous market of less affluent time could be satisfied with limited product offerings. Increasing purchasing power, however, caused markets to become more heterogeneous and to demand greater advice.
Recognition of this change led to wide acceptance of market segmentation. (Encyclopedia of professional management 1995) in Awa, (2003: 291).
During the decade of the 1930’s the work of Rebonson and chamber line resulted in a revitalization of economic theory. While classical and neoclassical theory provided a useful framework for economic analysis, the theories of perfect competition and pure monopoly had become inadequate as explanations of the comtempony business scene. The theory of perfect competition assumes homogeneity among the component of both the demand diversity and hetero genetic had come to be rule rather than the exception. The reasons for the presence of market segmentation in specific market are many and includes the following:
The specialized or superior resources enjoyed by favourably situated manufacturers.
Variations in producer’s estimates of the nature of market demand with reference to such maters as price sensitivity, colour, materials or package size.
Variations in production equipment and methods or process used by different manufactures of products designed for the same or similar uses.
Because of these and other factors, both planned and uncontrollable difference exist in the product of an industry. As a result, sellers make different appeals in support of their marketing efforts.
As amongst the manufacturers, goals are to satisfy the needs of the consumer, having in mind that no two consumers behave alike although they may have similar be avoid characteristics like:
Buying status; potential;, first time regular
Usage rate
Purchase procedure: seated bids negotiation etc.
Also industrial market might be segmented on the location of the company types. The fact that not every consumer patroness the same retail outlet during each purchase occasions and do not consume a particular product with the same consumption rate; does not entirely limit the income but will help a producer earn an increase in market share. By segmenting of market into more targeted buyers or groups of buyers, it will be able to grow the existing sales and build news sales, and grow them without cutting price, thereby increasing market share.
Therefore, in other to stay in business, firms ought to recognize the marketing philosophy which says “consumers are the economic and social justification of business existence” (Anozie 2003:28).
Conclusively, segmentation of market into different units is regards the need of the consumer would attract more sales and thereby increase market share which means the proportion or percentage of sales of a particular product or services in given region that are controlled by a company. Market share determines the competitive strength of business in a sector to another.
As in the case of 7-up bottling computer, the strategy of market segmentation is employed.
BRIEF HISTORY OF 7UP BOTTLING COMPANY IS THUS:
7up plc was introduced by a Lebanese called Mr. Mchammed Elkhahit, as a business man, he came to Nigeria in 1926 and trade on household and kitchen utensils. He also owned later one of the biggest transporting company in West Africa. He went into soft drink business as a kind of expansion in 1959, and subsequently introduced 7up first bottling company now plc.
The location of the 7up first plant was at Ijora in Lagos now the head quarter where the first bottle of 7up was produced in 1960. Also on day, a total of fourteen crates were produced.
The Ibadan, Ikeja, Kano, Kaduna and Aba plant were opened between 1980 till 1989. also till date more plants have been opened across the country including many depots.
Due to the location of their depots act many places in the country, it was very easy for them with the help of their good marketing strategies to enhance distribution across the country penetrating the areas where their products were not available.
Finally, the company’s brands of soft drinks include 7up, Pepsi cola, Miranda Orange. Miranda Soda, Miranda fruity, teen lemon, and maintain dew which was just introduced.
STATEMENT OF PROBLEM
Most organizes, firms, industries or companies find it difficult to increase their market share in a competitive economy and as such the researcher wants to empirically investigate the efficiency of market segmentation as a tool for achieving increased market share
OBJECTIVE OF STUDY
Based on the background of the study, the major objectives market share.
To determine the efficiency of market segmentation in increasing market share.
To determine the usefulness of market segmentation to a company.
To determine the significance of market share
To differentiate the different levels of market segmentation
To ascertain the requirements of market segmentation.
To find the extent to which organization adopt market segmentation.
To make necessary recommendation and suggestions to the possible solution of the problems of market segmentation
RESEARCH QUESTION
This study aims at giving answer to some of te questions below:
Can segmentation help to achieve an organization goal?
Is market segmentation an efficiency toll of achieving an increased market share?
In competitive economy, can market share determine the supremacy of organization?
Could the research on segmentation of the market increase the standard of the organization?
Do you think that market segmentation has an effect on organization revenue?
THE SIGNIFICANCE OF THE STUDY
This work exports thee efficiency, effectiveness and usefulness of market segmentation in the increasing of the market share of a company and as such will be of immense benefit to this group.
THE RESEARCHER: It will assist him in pointing out the importance of market segmentation which is derived from the desire to satisfy the interest of the consumer with a profit.
7UP BOTTLING COMPANY PLC: It will assist them to know that the effect of marketing segmentation in the market share increment is the first phase of strategic planning.
SOCIETY: The study of market segmentation will help the larger society in a competitive economy, since market share in very important to economy.
THE SCOPE OF STUDY
The range of his is directed towards the efficiency of market segmentation to increasing market share in 7up bottling company plc. Although, the researcher tends to narrow the research to 7upo bottling in Aba.
LIMITATION OF THE STUDY
The researcher was confronted with the following constant in the cause of this enquires.
Time factor due to the time frame under which the study must be completed, there was no much time to visit most of the department of Nigeria breweries plc for interview as a result of this the coverage is the limited.
Finance for the lack of finance the research was unable to carry out the research to its satisfaction.
Human factors the manager in marketing department of Nigeria breweries plc who was suppose to give me the necessary information needed was always out for one assignment or the other.
DEFINITION OF TERMS:
MARKMET:-[he actual and for potential buyers of a product or service. It is an aggregate of a people who have needs for products or services, the ability, wittiness and purchasing power of such product/service.
SEGMENTATION:-The process of dividing a heterogeneous market into homogenous units. It is also the identification of portions of the market that are different from one other.
HETEROGENOUS:- This is when something is made of different kinds, like we have different kinds of market.
HOMOGENOUS:- This is a segment of the total market which is made up of individual with the same set of needs of specific product class.
MARKET SHARE:- This is the portion or percentage of a particular or services in a given region that a controlled by a company.
