CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The marketing activities of an organization is guided by six marketing mix that comprises of controllable variables that marketers use in the achievement of their marketing objectives. It includes the combination of product, price, physical distribution and promotion; generally referred to as the four Ps which serves as the pivot of marketing management.

Promotion can be seen as the use of communication to persuade or convince prospective customers.  In other words, it is the coordinated efforts initiated by the seller to establish channels of information and persuasion to foster the sales of goods, services or ideas.  It includes Advertising, Personal Selling, Sales Promotions, Publicity, Public relations.  But the general nature and scope of this project is limited to Advertising.

Advertising is a forceful tool in molding consumer’s attitudes and behaviors towards goods, ideas and services by the manufacturer.  Hence, it has become an integral part of our society.  It gets the attentions of the people through canvassing to make them know what the manufacturers have to sell or what the consumer need and actually want to buy via various channel of information.

In recognition of the importance’s of Advertising as complementary tool in marketing activities that the project is all about, to investigate those variables that enhances the necessity for the attainment of desired sales growth in a highly competitive environment.

1.2    BRIEF HISTORY OF THE COMPANY

Tower Aluminum (Nigeria) plc; is the leading aluminum manufacturing company in Nigeria. The company commences operation on 18thSeptember 1959. It started manufacturing aluminum cooking utensils (Ports and Pans) at the Oba Akran Avenue Ikeja, Lagos after securing franchise ship from the Tower Brazil and U.K. to reserve the right of a multinational company.  In 1977, the company embarked on a progressive diversification programmed by setting up facilities to manufacture, extrude profiles at Dopemuin Lagos state.

The next significant step in its backward integration programmed was in 1982, when Tower opened its most modem plant at Otta, in Ogun state. It employs the most modem and continuous casting technology whereby molten aluminum (Bauxite-ore)is converted into sheets and bullets in their operation.  Ithas various divisions namely;       

TOWER HOLLLOWARE: tagged, the mother of Tower Aluminum was the first division that engaged in manufacturing of domestic and industrial kitchenware's ranging from the quality ware casseroles, Food steamer, Gas range, light weighted and polished casseroles, water-filters etc situated at the Head Office in Oba Akra Avenue Ikeja, Lagos. In 1994, the division took to a Horizontal integration Progress, towards the acquisition of household aluminum products, and re-named. Tower Housewives to produce kitchenware that are relatively lighter than that of Hollowware to compete with similar aluminum products in the market.

TOWER BUILDING PRODUCTS: Manufacturer of corrugated and fabricated sheets and accessories made of aluminum and steel. They includes roofing sheets with cladding and colour coated.  Other division includes Alufoil, Tower tools and engineering.

Presently, the company is having eleven recognized shareholders with authorized share capital of N500m. as at 31st Dec., 1998. The share capital held are 81% and 19% of foreigner and Nigerian respectively, comprising of issued share capital of N175, 444, 515. The company sales turnover increases from N1.8b in 1996 to N2.55,in 1997 and N2.8b in 1998.While the company paid the sum of 50% V.A.T on the net sales, income tax of 30% and withholding tax to the government.  In 1998they had a dividend of 20k per share and presently having the highest market share in the aluminum industry with about 60% of the total market share.

The company high level of profit and success operation can be traced to:

Effective promotional activities.

Efficient Management of Operations

Strategic market penetrations into the environment

The company embarked on continuous search for improved technology and sale techniques.  Presently embarking on over a million naira research and development programmes with effect from April 1999.  It aimed at producing and importing ceramic flanks and lanterns to theneighboring West African Countries. .

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