CHAPTER ONE

1.0    INTRODUCTION

The need to study this topic, the effectiveness of advertising in the marketing of consumer oriented product in Nigeria is very vital to identify the impact advertising has on sales volume, especially the sales volume of 7up bottling company Plc,a company in Nigeria which has a competitive market environment.

          In the early 1960s the economy of Nigeria was dominated by few well-known companies and competitive economy then was more or less perfect. Advertising was therefore focused on top management and in effect different kind of products were advertised including beverages. The consumers had more money at their disposal for goods and services. However, it was indeed and economy of surplus, lower process, subsidized goods and higher disposable income. The economic recession of the 1980, had changed all these and oil price dropped to a certain level and different kind of trade restriction were introduced to restrict the economy. Firms as well as individuals started feeling the impact of the recession, price of goods and services skyrocketed, different fees and taxes were instantly imposed. Consumers’ disposable income dropped and large amount of consumer oriented goods were not sold(e.g.) soft drinks. Producers and manufacturers of soft drinks such as 7up bottling company experienced low sales, profits and turnover. This gave rise to the importance of advertising which objective is to create awareness of a particular product and in this context consumer oriented goods like soft drinks of 7up bottling company and impact more ledge and desire to persuade consumers to patronize their product that will satisfy the need of which it is bought.

1.1    BACKGROUND OF THE STUDY

          7up bottling company is a company in Nigeria that has the sole right to bottled and distributes 7up products. One of the most perspective multi-national companies, 7up is fully known as one of the best soft drink producers in Nigeria.

          In order that 7up is made, the first is to select the bottles (both new and returned) and dispose of these with defects. The bottles are closely scrutinized to ensure that they are hygienically clean and not clopped. In order section of the plant, purifies sugar is added to pure drinkable water to produce a solution called single syrup. In the next stage, the syrup is passed through a filter bed to ensure its purity. This then flow to a point where it is mixed with the undiluted 7up solution called concentrate carbon (iv) oxide. A gas known as (Ho2) is added to give a refreshing 7up soft drink.

          Facts gathered suggest that Nigeria drink about 9,000,000 (nine million) bottles of 7up soft drinks every day. 7up products dominated the market share in early 1970s. Few soft drinks companies were in existence then and competition among them were not keen and perfect.

          Advertising played an important role in the increase of sales volume of this company in question. It is through advertising and other marketing activities that people get to know about 7up. The advertising was done in over 20 (twenty) different languages in Nigeria. It was as a result of this that there is an increase in sales volume of 7up bottling company products.

          The company devoted much importance on advertising of their product and this recorded much profit yield for the company. The company generated and annual turnover of about N 1.8 billion last year. This turnover is limited to Lagos state which is my case study. The company had also made some impact in the sponsorship to qualified candidate in primary secondary and also institution of higher learning. The relevance of this section relates to the fact that as early as the foundation of the company, 7up has attended and created a reputable image for itself through advertising.

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