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PROJECT TOPIC: THE EFFECT OF PRODUCT ADVERTISEMENT ON SALES VOLUME OF COMPANIES A CASE STUDY OF NIGERIAN BREWERIES PLC THE MILE CORNER,ENUGU

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Advertising is one of the four promotional tools companies use to direct persuasive communications to consumers or buyers and the general public.  Advertising policy constitutes such an important strategy in the marketing programme of companies and its negligence could spell doom for companies. Generally speaking, companies exist to produce and market products. This objectives cannot be actualized if the manufactured products are not brought to the  knowledge of the consuming public. If the consumers and the general public are not informed and educated on the needs and wants some products could satisfy, they will definitely stay clear of the products. Against this background, product advertising focuses on projecting the image and marketability of products in such manner that will make them acceptable to the consumers and buyers. Odunsi (1998: 19)  noted the importance of product advertising when he stressed that the growth being  recorded in the advertising field is connected with its potentiality to enhance the acceptability marketability of companies products. Product advertising has helped so many companies to revive and reposition some of their products which have almost reached the decline  stage in their life cycle.             Furthermore, the continuous existing survival and growth of companies to some extent depend on the performance of  their products and the level of their sales volume. The fact still remains that for a company to decline profit and possibly grow, its sales volume must be high. For its sales volume to be high, its products must be acceptable to the consumers, hence giving rise to their high demand. These can only be achieved when these products are made known to the buyers through advertising. Product advertising as stressed by Ebue (2000.75), is an effective promotional tool that will not only inform and educate buyers or consumers about a company’s products but highly significant in achieving the targeted sales volume of the company. For over fifty (50) years of existence, Nigerian breweries Plc is one of the leading breweries operating in Nigeria today. The company has a wide range of products that includes alcoholic, malt and soft drinks. The notable products in the company’s product mix includes; Golder, star, Amstel malt, maltina, Legend and schepps. The company has a large factory at Agbara, Lagos and a brewery plant at 9th Mile Corner, Ngwo, Enugu. the Company again commissioned its new Ultra – modern brewery in Ama Enugu State in  October 27th 2003, by his excellence president OlusegunObasanjo.(formal President). The Nigerian breweries Plc has depot in most state capitals of the federation to facilitate the distribution of its products. The products of the company are seen and known in every nook and cranny of the southern parts of this country as well as some Northern States.

According to the Saturday Champion paper May 1st (2004); Nigeria Brewery is totally committed to Nigeria course in areas of Entertainment through a vigorous music sponsorship programme which has brought International Stars like Naught by Nature, Usher, Shaggy  and Awilo that have thrilled Nigerians live in recent times courtesy of Nigerian Breweries Star Mega Jam and Legend fun Rampnage. Nigeria Breweries is also involve in discovering and promoting local and budding artists through the star Quest and Star Trek (Star sponsored music programmes. Foreign Investment;  Nigeria Breweries has through their performance attracted some foreign companies like Heineken which invested over 500 million Euros (70 million). The company have supported in Institution of higher learning. For example; Education tax funds in  which IMT is one of the beneficiaries. Nigeria Breweries are the major facilitators in the building of a sickle cell foundation. Again they also support various health Institutions through the donations of blood Bank equipment, child incubators. They have also sponsored sports like football, chess, Golf, cycling, Athletics, table tennis, Lawn tennis. They are also committed in the areas of tax and social responsibility, environment, employment generation and so on. All these are done to promote their products and educate, inform the  public about their products and finally to achieve the sales volume target.


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