MARKET SEGMENTATION AND BRAND POSITIONING AS AN EFFECTIVE TOOL FOR CONSUMERS SATISFACTION

MARKET SEGMENTATION AND BRAND POSITIONING AS AN EFFECTIVE TOOL FOR CONSUMERS SATISFACTION

                         (A case study of Unilever Nigeria Plc. Abuja)      

ABSTRACT

This research work entitled Market Segmentation and Brand Positioning as an Effective Tool for Customers Satisfaction (A Case Study of Unilever Nigeria Plc.) has shown how useful market segmentation is in respect to customer’s satisfaction. The ineffective marketing segmentation has prompted the researcher into this study. Hence, the population of this study comprises of the staff and customers of Unilever Nigeria Plc. In collecting data fifty eight (58) questionnaire was distributed and fifty (50) was filled and returned. The method of investigation applied was sample survey; the study was executed by using statement of problems from which the research question and hypothesis of the research were formulated. Secondary source of data were collected from related books, journals, newspaper, archival records. The data gathered were segmented according to the problems then analyzed using chi-square test.

CHAPTER ONE: INTRODUCTION

1. BACKGROUND OF THE STUDY

Marketing segmentation and branding have become important areas in marketing research. A proper understanding of these concept and procedures involve in identifying market positioning of the product on brand in the target of the market is of profound importance to market management.

It enables the company to design most suitable strategies to improve the market share earnings. The need for market segmentation arises because a company with limited resources cannot cater for the demand of the total market. Hence the company has to identify the segment where the product will be most profitable.M. Ode, BDuru, Nnebue (2002).

The most important striking concept in modern marketing is market segmentation which is a customer oriented philosophy. Consumers want is the most vital reason for any form of business operations.

The philosophy of market is aimed at best to reach the consumers with the goods produced and service provided. In this study, the product referred to is the service provided by the company. This calls for a thorough and continuous study for consumers as well as product positioning to satisfy efficiently their numerous needs from time to time; forcing the marketer to a lot of fundamental marketing strategies.Fullerton R. et al (2016).

The market is heterogeneous in nature and consumers are widely difficult to reach. No business can produce and serve the whole market entirely. Therefore, it is more effective and efficient for any company to identify its supermarket from the whole elected and reach with distinct marketing mix within it available service resources.

Company business entails investment in a lump sum running to millions and billions of naira. In segmented eviction should be addressed by the manager such as:

Who are the customers?

Where are they?

When and why do they buy and so on?

Market segmentation can be defined as the act of dividing the total entire market into distinct units or segments so that meaningful group of customers might merit separate products within a given market. Michel wedel (2002) Madhavaram S., & Hunt, S. D., (2008)”.The might of market segmentation pushes a company or any business organization to place its product using unique marketing programs suitable for market segment. The dynamism of marketing system and a competitive business by any customer require a continuous refinement and increase in product positioning through market segmentation by management scholars, authors and professionals have illustrated many times the unlimited need and diversity of customers that necessitate marketing philosophy.

Philip Kotler (2004) defines market segmentation as a meaningful group of buyers who might merit separation of products and marketing mix. He stressed that market segmentation requires the company to identify different basis for segmenting the market, develop profit of the resulting market segment attractiveness.

Market can be segmented based on different variables and then considering which of the variable reveals market opportunities. However, a particular variable can be used or the entire variable to individually determine the best with a view to restructuring the market.

1.1    STATEMENT OF THE PROBLEMS

1. Understanding what market segmentation and brand positioning means is one of the most preventing problems in most organization today.

2. Another problem is to know the extent market segmentation and brand positioning affects consumer satisfaction. 

3.  This project will attempt to bring both ways of which an organization could adopt an effective segment action strategy that would be help to serve the numerous needs of the different target market or improve in its services for better result.

1.2     OBJECTIVES OF THE STUDY

          The objective of embarking on this project is given as follows:

The main objective of this study is: To examine the company policy and goals in relation to market segmentation and brand positioning as a tool for effective consumer satisfaction.

The specific objective is:

1. To examine how the company has implemented and carry out the market segmentation and brand positioning in the market.
2. To examine to what extent the workers of the company are aware of market segmentation and brand position in the company.
3. To make recommendation based on the findings of the study.

1.3     RESEARCH QUESTIONS

1. How does market segmentation have impact on the economic development of the company?
2. How does market segmentation and brand position satisfy the consumers?
3. How does market segmentation improve the company among competitors?

1.4     STATEMENT OF THE HYPOTHESIS

Ho: There are no significant influence between market segmentation and brand positioning in the market.

Hi: There is significant influence between market segmentation and brand positioning in the market.

HYPOTHESIS 11

 Ho: Quality produce dose not promote consumers satisfaction

Hi: Quality produced may promote consumers satisfaction

HYPOTHESIS 111

Ho: Segmentation and brand positioning are not effective tools in consumer market

Hi:Segmentation and brand positioning are effective tools in consumer market

1.5     SIGNIFICANCE OF THE STUDY

The study is hoped to help Unilever Nigeria Plc. Abuja to be effective and segment the market to meet the various needs of its target customers.  By marketing product that appeals to customers at different life cycle, a business can retain customers who might switch to competing product and brand.

It hopes that the recommendation made in this research work will facilitate the improvement of the existing system. Finally, the work will be useful to the library which keep the work in their references section for the benefit of users like students, lecturers etc.

1.6     SCOPE OF THE STUDY

The study mainly involved market segmentation and brand positioning as an effective marketing tool for consumer satisfactory with particular references to Unilever Nigeria Plc. Abuja. 

1.7     LIMITATION OF THE STUDY

There are many constraints and factors that were encountered by the research during the research work. The prominent once are:

1. Financial Constraints: The cost of materials necessary to aid in carrying the research are very expensive, a lot of field work ought to have been done, but for inadequate finance, a limited coverage of the company understudy was embark upon.
2. Time Constraints: Lack of time contributed greatly affected the quality of work, the academic session very short and the time given to submit the project work also short. Most of the information needed by the researcher in that information needed by the researcher in that company was not accessible for the sole reason of short notice. The study is limited to Abuja bottling company or plant because of time constraint.
3. Biased Response: Biased response by the respondent was a problem encountered by the research when collecting data.

1.8     OPERATIONAL DEFINITION OF TERMS

Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. Philip Kotler (1997).

Branding:  Is a general term describing the establishing of brand name mark or brand name or trade name of a product.

Product: Can be defined as any commodity that has a monetary or commercial value. However, Philip Kotler (1997)

Brand positioning: Has been defined by Kotler(1998) as “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”. In other words, brand positioning describes how a brand is different from its competitors and where, or how, it sits in customers’ minds.

A brand positioning strategy: Therefore involves creating brand associations in customers’ minds to make them perceive the brand in a specific way.