an appraisal of coca cola

AN APPRAISAL OF COCA COLA’S SALES STRATEGY ON

FEDERAL POLYTECHNI NEKEDE STUDENTS CONSUMERS.

BY

ANYANWU CHIEMELA T.

13EH/0211/MC

IN PARTIAL FULFILLMEMT FOR THE AWARD OF HIGHER

NATIONAL DIPLOMA (HND) IN

DEPARTMENT OF MASS COMMUNICATION

SCHOOL OF HUMANITIES AND SOCIAL SCIENCE

FEDERAL POLYTECHNIC NEKEDE OWERRI

IMO STATE

OCTOBER, 2015.

1

APPROVAL PAGE

This project work has been approved as satisfying the requirements of the Award of Higher National Diploma in by Mass Communication by Federal Polytechnic Nekede, Owerri.

---------------------------- ----------------------MRS. SHEBA TAYO-GARBSON DATEPROJECT SUPERVISOR

---------------------------- ----------------------DR. MRS. BASILIA IGBOKWE DATE(Head of Department)

---------------------- ----------------------EXTERNAL EXAMINER DATE

2

CERTIFICATION

ANYANWU CHIEMELA T., a higher national diploma student in the department of business administration and management with registration number 13EH/0211/MC has satisfactorily completed this work which is original, and has not been submitted in part or full in another institution.

………………………………………… ……………………..

Mrs. Sheba Tayo-Garbson Date(Project supervisor)

……………………………………….. ………………………..DR. MRS. BASILIA IGBOKWE Date(Head of Department)

………………………………………… ……………………….External supervisor Date

3

DEDIACTION

This project work is dedicated to God Almighty for his loving care

and favour towards me.

4

ACKNOWLEDGEMENT

I wish to express my profound gratitude to God Almighty for His

loving, kindness, protection and guidance, good health and

knowledge given to me in carrying out the project work.

My sincere thanks goes to Mrs. Sheba Tayo-Garbson

my project supervisor who made all the necessary corrections and

advise throughout the write-up.

I would also love to express a deep sense of gratitude and

affection to my siblings, General Management of fleet coca cola,

and Mr MALCDONA IHEME personnel manager Coca cola for their

courage, advice and support throughout my period in school.

Who has the greatest influence on my academic.

Finally, I lack words to express my sincere gratitude to my HOD,

and to my lecturers for their relentless effort, more grace to your

elbow.

5

ABSTRACT

This research Tend to Appraise the sales strategies used by Coca Cola Company on Federal Polytechnic Nekede Students Consumers and Nigeria as a whole. The four (4) basic marketing strategies which are commonly called the 4ps which denote price, product, promotion and place are exceedingly used by Coca Cola Company in Nigeria . Coca Cola Company strategy of sales was price penetration where low price are charged and the company attends large market as possible. Unlike price skimming where higher price are charged. Product strategy was strongly applied such as the modification of its product as well as after sales services which all help to facilitate the marketing of the product. Promotion strategy which includes the sales promotion, technological change and advertisement were all used by coca Cola Company in the marketing of its product in Nigeria. Finally place strategy which involve selection of distribution channels, transport arrangement etc. which are very essential to the corporation was used. For example coca cola Company have twelve (12) factory plants, sixty (60) depots and over four hundred thousand (400,000) dealers or retailers of coca cola product in Nigeria.

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TABLE OF CONTENT

Cover page------------------------------------------------------------i

Approval page--------------------------------------------------------ii

Dedication------------------------------------------------------------iii

Acknowledgment----------------------------------------------------iv

Table of content------------------------------------------------------v

Abstract--------------------------------------------------------------vi

CHAPTER ONE

1.1 Background to the Study--------------------------------------1

1.2 Statement of the Problem-------------------------------------4

1.3 Purpose/Objective of the Study-------------------------------4

1.4 Research Questions--------------------------------------------5

1.5 Significance of the Study--------------------------------------5

1.6 Scope of The Study (or/Delimitation of The Study )---------6

7

1.7 Limitation of the Study----------------------------------------6

1.8 Operational Definition of Terms------------------------------7

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction---------------------------------------------------9

2.1 Theoretical Framework ---------------------------------12

2.2 Conceptual Review--------------------------------------14

2.3 Empirical Review----------------------------------------------18

CHAPTER THREE

3.0 Introduction --------------------------------------------------20

3.1 Research Design----------------------------------------------20

3.2 method of data collection ------------------------------------21

3.3 Population of the Study--------------------------------------22

3.4 Sample Size and Sampling Techniques----------------------22

3.5 sample size----------------------------------------------------23

3.6 Description of measuring instrument -----------------------23

3.7 Reliability of measuring Instrument------------------------24

3.8 Validation of instrument--------------------------------------25

8

3.9 Method of Data Analysis---------------------------------------26

CHAPTER FOUR

4.0 Data Presentation and Analysis------------------------------27

4.1 Data presentation---------------------------------------------27

4.2 Data Analysis-------------------------------------------------31

4.3 Discussion of findings----------------------------------------33

CHAPTER FIVE:

5.0 Introduction---------------------------------------------------34

5.1 Summary of findings------------------------------------------34

5.2 Conclusions----------------------------------------------------35

5.3 Recommendation---------------------------------------------36

Reference

Appendix

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

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Coca-cola Company is one of the fastest growing multinational enterprises in Nigeria.

History has shown that the coca-cola company has touched so many lives since World

War II Retro planet (2008). However, to examine the ways in which the coca-cola

company has used marketing strategies to grow in the overseas markets, more especially

Nigeria, and to also evaluate the strategic responses it has made or might make when

entering overseas markets, it is imperative to know briefly the history of the coca-cola

company.

A brief history of coca-cola company

The history of Coca-Cola Company as portrayed by Retro planet (2008) that, it was first

invented by John Stith Pemberton in 1886 as a drink meant to impart good health and

stamina. Pemberton was a pharmacist from Columbus, Georgia who originally made a

Coca wine called Pemberton’s French wine coca in 1885.When prohibition laws were

passed within his country, Pemberton position out to make a new non-alcoholic drink.

What he creates was pleasant tasting syrup that could be mixed with carbonated water

and served at the soda fountain as a refreshing drink. He first sold this drink for five [5]

cents a glass at his establishment Jacob’s pharmacist in Atlanta, Georgia. The average

sales for the first eight months average nine glasses a day. Another Atlanta pharmacist

and businessman, Asa Griggs Candler brought into Pemberton Company, and in the

following year, pemberton sold Candler his remaining interest in the company. Asa

Candler purchase exclusive rights to the coca-cola formula in 1891 and by the subsequent

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year had increased sales ten times over. Sales were going so well that Candler sold his

pharmaceutical business and committed himself fully to the success of coca-cola. His

brother, John and pemberton former partner frank Robinson joined Candler and together

they formed the coca-cola company.

The trade mark “coca-cola” was registered in the US patent office on January 31,

1893.Candler constantly grow the business with persuasive advertising and distributing

thousands of free drinks coupons. In 1894 the popular drink was sold in bottles for the

first time. Beginning in 1899, independent bottling companies were licensed to bottle the

drink, a practice that is still in use today by US soft drink industry. In 1920 to 1926

Robert woodruff was president and established the foreign department, which in

1930 became a subsidiary of coca-cola known as the coca-cola export corporation.

Woodruff was dogged to expand of the coca-cola company internationally. Plants had

already been built in France, Cuba, Panama, Canada, Puerto Rico, the Philippines and

Guam. Woodruff brings out the world-shattering new 6 bottles cartons that made it easier

to take bottles of coca-cola home. In 1928, sales of coca cola in bottles go beyond sales at

the soda origin for the first time. In 1929 metal top opening coolers were created to

dispense bottles of ice-cold coca cola in stores and filling stations.

An evaluation of marketing strategies undertaken by Coca Cola company as a

multinational Mechanical soda dispensers made their entrance in 1933 at the Chicago

world’s fair when coca cola introduced the dole master dispenser. This was the first soda

dispenser that was able to mix the carbonated water and soda syrup together

11

automatically which was then dispensed merely with a pull of the handle. When the

world war II broke out Robert woodruff was quoted as saying that he wanted to “see that

every man in uniform get a bottle of coca cola for 5cents. Wherever he is and whatever it

cost the company”.

During the war, 64 bottling plants were constructed as closed as was possible near areas

of combat in North Africa, the pacific and Europe. Military personnel consumed more

than 5 billion bottles of coca cola during World War II. The coca cola company

introduced diet coke in 1982. This was the first extension of the coca cola and coke

trademark. In two years time, diet coke was the top selling diet soft drink in the world. In

1985 the formula for coca cola was transformed and the coca cola company free a new

coke. There was such a negative reaction to this change that the old formula was re-

released within 8 months with the name coca cola classic. On July 12, 1985, the new

coke was the first soft drink to be consumed in space, having been place in specially

designed cans just for the trip on the space competitor. These containers were called the

“coca cola space can”. Diet coke became the first diet soft drink consumed in space

aboard the space transport discovery in February 1995.this trip marked the first time soda

fountain equipment was used in space. Today coca cola produces nearly 450 brands in

more than 200 countries and rates as one of the most acknowledgeable brand in the

world.

1.2 Statement of the problem

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This project is focused on studying the various marketing strategies of Coca-Cola and the

scenario, the problem lie on how to get to student of Federal polytechnic Nekede as its target

customer, as earlier said that coca cola is a multi-national company. How to get there products to

the reach of student as at when due, is one of the strategy of that need to be considered by the

personnel manager/ management of the company.

Another problem is producing what the student wants and what they like and giving it to them

when need.

1.3 Objective of the study

The objectives of this study is as follows

1. To study the marketing strategies adopted by Coca-Cola

2. To study the advertising effectiveness Coca-Cola on customer.

3. To analyze effect of reference of the product.

4. To examine how distribution of product affect sales performance in Owerri, Nekede

in particular.

1.4 Research questions

In order to get information from respondents the following questions where

formulated:

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1. What is the marketing strategies adopted by coca cola?

2. How effective is advertisement of coca-cola on consumer preference?

3. What is the extent of awareness of consumers on coca cola?

4. Does the distribution of a product affect sales performance?

1.5 Significance of the study

With sales people about their personal career goals. After creating the long-term sales

strategy based on long-term goals, sales managers should create monthly and weekly sales

strategies based on the long-term strategy. This allows for short-term performance measurement

of the sales team.

This study will be useful to the executive and managers in the Planning and creating an effective

sales strategy requires looking at long-term sales goals and analyzing the business sales cycle, as

well as meeting their prospective buyers (students). This is because it provides guidance which

will enhance effect and efficient sales management aimed at attaining and boosting maximum

profitability and sells.

Finally to the researcher, this is an eye opener because as a potential manager it will guide one

in future on how to manage sales strategy. Going through these exercises helps business

owners and managers gain a more intimate knowledge of the sales intervals, seasonal changes

and what motivates the sales team.

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1.6 Scope of the study

This research is on coca cola’s sales strategy on federal polytechnic nekede students consumers.

And also the various forms of sales strategy used by company. The researcher will base this

work on the entire consumer federal polytechnic nekede students in particular.

1.7 Limitations of the study

There are constraints encountered in carrying out this research work, this includes;

1. TIME FACTOR

This research work was conducted simultaneously with normal academic work within a short

period of time in which some valuable information could be obtained.

2. FINANCIAL DIFFICULTY

In an effort to have a sufficient research material to be able to write extensively on the subject

matter, the researcher was faced with some financial predicament considering high cost of not

only education materials coupled with the high transport fare.

1.8 Definition of terms

Marketing Strategies: Evans & Berman (1995) described marketing strategy as a plan designed

to influence exchanges to achieve organizational objectives.

15

Kotler & Armstrong (1996) viewed marketing strategy as the marketing logic by which the

business unit hopes to achieve its marketing objectives. It consists of specific strategies for target

markets, positioning the marketing mix, and marketing expenditure levels.

Multinational Companies: Onuoha (1991) defines multinational companies as companies that

have subsidiaries and sales facilities throughout the world. They are also considered to be

companies having production and marketing facilities in many countries depending on foreign

income and being with a worldwide point of view. Nickels et al(2002) viewed multinational

company as an organization that manufactures and markets products in many different countries;

it has multinational stock – ownership and multinational management. They further said that, the

more nations in which a company operates, the more it attempts to avoid restriction from various

Marketing mix: It is a set of controllable tactical marketing tools - product, price, place &

promotion - that the firm blends to produce the response it wants in the target market.

Sales Strategy: A sales strategy consists of a plan that positions a company’s brand or product to

gain a competitive advantage. Successful strategies help the sales force focus on target market

customers and communicate with them in relevant, meaningful ways. Sales representatives need

to know how their products or services can solve customer problems. A successful sales strategy

conveys this so that the sales force spends time targeting the correct customers at the right time.

Appraisal: Impartial analysis and evaluation conducted according to established criteria to

determine the acceptability, merit, or worth of an item.

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CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction

17

The coca cola in Nigeria have used the strategy of marketing mix to market her products

internationally. This strategy takes into account different tactics which the coca cola company

have survey and discovered it to be acceptable for the company to use in Nigeria. Under this

marketing mix, the following tactics are used by the company to convince the consumers to

patronise the coca cola product as the number one beverages drinks in Nigeria. This tactics

employed by the coca cola company has four elements term “the 4Ps” which is express as,

promotion, products, price and place. However, the basic task of marketing is combining these

four elements into a marketing programme to facilitate the potentials for exchange with

consumers in the market place.

PROMOTION TACTICS.- This explains the organisational total effort attempt to attained

increase sales in the short run. The coca cola had spent a large sums of money on the given and

provision of reasons and incentives to the middlemen and the consumers of the coca cola

products to pull them to buy their products. As admit by Belch and Belch (2007 =P9) that “a firm

can spend large sums of money on advertising or sales promotion but it stands little chance of

success if the product is of poor quality, if priced improperly or does not have adequate

distribution to consumers”.

The coca cola company would continuous to grow in Nigeria because it spent much amount of

money in sales promotion and advertising. For example the company organises different

competitive shows in Nigeria tertiary institutions (polytechnic) in the name of sales promotion

and advertising, also towards the period of festivities such as Christmas and sallah, the company

would always introduced one promotional activities or the other. In spites of all these activities,

18

the coca cola company uninterruptedly grows. This is because the standardization of their

product is appreciated and contributory to the fast growing of the company. This is what Michael

porter term “jockeying for position” in his theory of five marketing strategies analysis, Wall,

et’al(2010 nd Ekpenyong=P241). He further states that policies towards pricing, promotion,

product innovation and services level must be analyze very well to successfully position the

company for defense against competitive forces, influence the balance of forces through strategic

move and anticipate changes in the factors underlying the forces and respond to them.

PRODUCT TACTICS.- this tends to explains the life cycle of a product. In Nigeria for example,

the coca cola company since her establishment in Nigeria 1951, it is still growing and maturing,

it’s has not get to the declining stage Obi (2011). The international marketing managers have

work well to know the basic needs of Nigerians on the aspects of beverages drinks. In fact most

of the ethnic groups in Nigeria have included the coca cola drinks as one of the items listed on

the bride price of their marriage rites particularly the EGGON EXTRATE in Nasarawa state. The

coca cola in Nigeria over five years ago have introduced plastic bottles of the coca cola drinks

alongside with the already existing bottles in which the consumer can buy anywhere in the

country and disposed after used. This reduces the stress of buying and consumed at a spot and

given back bottle. The coca cola dealers in Nigeria have a unique common characteristic of

delivery the products in bits from kiosk to kiosk to their retailers at a uniform price. This activity

is termed after sale services. It is believe that the coca cola company is discipline and acts

accordance to the legal and political guide lines of the overseas societies. As found by Cateora

and Graham (2007 =P13) that “the Indian Government, for example, gave the coca cola company

19

the choice of either revealing its secret formula or leaving the country. The coca cola chose to

leave. When it was welcomed back several years later, it faces harassment and constant

interference with its operations from political activities, inspired by competing soft drink

companies”. All this effort put forward by coca cola Company in international marketing of their

products has helped them to grow very well in Nigeria. Kenneth Andrew SWOT and PESTLE

theory is highly practice in their process of marketing. For example, new plastic coca cola

bottles, after sales services obedience to the law etc are classified under external situation that the

firm must cope with at the cause of international marketing of his product Wall, e’tal(2010

=P240)

PRICE TACTICS.- price is the determinant of the forces of demand and supply by allocating

resources among the consumers and the producers in the market. Here it is use to predict the

competitors responses, it is also help to select particular pricing approaches for the firms’

product. In Nigeria for example, the coca cola used what we called “price penetration”. That is

price set in, so as to cover a large market as possible in a short period of time. This is what the

company use to capture the beverages market in Nigeria. If you go to any part of the country

(Nigeria) today you would discovered that the price of the coca cola is uniform. However, it is

also pertinent to know that the coca cola company in Nigeria neither practice price skimming,

that is charging of high price in order to attract high revenue and profits nor discriminatory

pricing where lower prices are charge for the same product in same market than in other.

20

The porters’ analyses of treating customer as rivals are shown here. This is because no customer

can attest to the formula use by the coca cola company to produce their product but the

companies have a friendly relationship with the customer in terms of performance and integrity.

PLACE TACTICS – this involve selection of distribution channels, transport arrangement etc.

The Coca cola Company in areas of distributive channels has tried so much by reaching almost

every part of Nigeria. The company is said to have twelve factory plants, sixty depots and over

four hundred thousand dealers nationwide Obi (2011). The above expression shows that the coca

cola company have a strong base in Nigeria in the areas of distribution channels. This also

contributed to her fastest growing among the multinational enterprises in Nigeria.

2.1 Theoretical framework

There are many theories of business strategies being forwarded by different academic writers.

Amongst these theories includes:

Kenneth Andrew SWOT and PESTLE analysis = this theory was based on the premise that

the final strategy adopted by a company should achieve a “fit” between her internal power

(strength and weaknesses) and the external situation (opportunity and threat). This is

commonly known as SWOT analysis. The external situation highlighted the general

environmental influence that firm must cope with .e.g. political, economic, social,

technological, legal and ecological factor (PESTLE) The internal situation identify those

things the organisation does specifically well (strength) and those that limit her ability to fulfil

her purpose (weaknesses).e.g. marketing, organisation, personnel and financial features. Wall,

21

et’al (2010:P240)

Mechanical soda dispensers made their entrance in 1933 at the Chicago world’s fair when coca

cola introduced the dole master dispenser. This was the first soda dispenser that was able to mix

the carbonated water and soda syrup together automatically which was then dispensed merely

with a pull of the handle. When the world war II broke out Robert woodruff was quoted as

saying that he wanted to “see that every man in uniform get a bottle of coca cola for 5cents.

Wherever he is and whatever it cost the company”.

During the war, 64 bottling plants were constructed as closed as was possible near areas of

combat in North Africa, the pacific and Europe. Military personnel consumed more than 5 billion

bottles of coca cola during World War II. The coca cola company introduced diet coke in 1982.

This was the first extension of the coca cola and coke trademark. In two years time, diet coke

was the top selling diet soft drink in the world. In 1985 the formula for coca cola was

transformed and the coca cola company free a new coke. There was such a negative reaction to

this change that the old formula was re-released within 8 months with the name coca cola classic.

On July 12, 1985, the new coke was the first soft drink to be consumed in space, having been

place in specially designed cans just for the trip on the space competitor. These containers wer e

called the “coca cola space can”.

Diet coke became the first diet soft drink consumed in space aboard the space transport

discovery in February 1995.this trip marked the first time soda fountain equipment was used in

space. Today coca cola produces nearly 450 brands in more than 200 countries and rates as one

of the most acknowledgeable brand in the world.

22

2.2 Conceptual review

This is the activities of a firm or business organisation in making one or more marketing mix

decisions across national boundaries Doole and Lowe (2004). That is a situation which

involves a firm establishing manufacturing facilities overseas and coordinating marketing

strategies across the globe. In international marketing, the world is seen as a market

segmented by socio-cultural, legal, economic, political and technological grouping which

constitute international marketing environment. For the firm to be successful in his

international marketing decision, the above factors must be strictly followed. For example

socio- cultural factor includes language, religion and materials culture affect consumers’

perception and patterns of buying behaviour. The legal factor also involves the law of the host

country in which the firm operate under; this therefore determined the level of the firm

operation etc. According to Evans and Berman (1990) in Idio (2010 =P156) state that

marketing is the anticipation, stimulation, regulation, facilitation and satisfaction of

consumers and public’s demand for product, services, organisation, people, place and idea

through the exchange process. Therefore in marketing, firm would always consider the future

of the economy, demonstrate benefit of their product, product must always be available, have

a good and easy service to the consumer and satisfy consumer expectation.

STRATEGIES– according to Johnson etal (2009:219) define strategy as the path and scope

of an establishment over the long-term which achieves benefit for the organisation through its

23

composition of resource within a demanding environment, to meet the needs of markets and to

accomplish stakeholders’ hope. It is about where is the business trying to get to in the long

run, which market should a business compete in and what kind of activities are involved in

such market? How can the business perform better than the competition in those markets?

What resources are required in order to be able to compete? What external environmental

factors affect the business ability to compete and what are the values and expectations of those

who have power in and around the business. All these are what strategy tends to achieve.

2.2.1 The sale strategy that should be used by coca cola’s on student of federal polytechnic

consumers is as follows.

PROMOTION STRATEGY

This involve levels of emphasis put into advertising, sales promotion, technological change,

personal selling, public relation etc. The advertising-the coca cola popular saying “share a coke

today and is on the body of the coca cola bottle and a name is printed with it”. Therefore,

advertising is act of keeping the consumers or user of a product inform about the existence and

relevance of a product compare to others. The firm has to launch tactical and special method to

bring consumers into notice about the existence of her product within the school and why

consumer must buy her products. Iganiga and Ikharehon( 2004 ) in Effiong and Ekpenyong

(2010 =P27)state that “as advertising give reasons to buy the brand of the product or services,

sales promotion offers incentives to buy the product”. This further explains what advertising

24

does in marketing of the product. According to Engel at’el (1991)g (2010 =P27) state that

advertising paid non personal communication through various media by business firms,

nonprofit organisations, and individuals who are in some way identified in the advertising

massage and who hope to inform and/or persuade members of a particular audience ; include

communication of products, service, institution and ideas. The sales promotion- For many

business expert and academics, sales promotion is regarded as typical marketing techniques that

add value to a product in order to achieve specific marketing goals Andromida (2011). However,

the institute of sales promotion defines sales promotion as “a range of tactical marketing

techniques, design within a strategic marketing framework, to add product or services, in order to

achieve a specific sales and marketing objective, Chartered Institute of Marketing (2011). Just as

admitted by Iganiga and Ikharehon (2004 ) in Effiong and Ekpenyong (2010 =P27) that “as

advertising give reasons to buy the brand of the product or services, sales promotion offers

incentives to buy the product”.

Therefore, as a result of the above explanations, sales promotion is very important as it did not

only help to boost sales but also help a firm to attract new customers and maintained older ones.

Technological change- technology has simplified almost all kinds of activities in the world. In

marketing, it is a major driving force both in international marketing and in the move towards a

more global market place. The impact of technological advancement can be seen in all aspect of

the marketing process. The ability to gather data on market, management control capabilities and

the practicalities of carrying out the business function internationally have been revolutionised

in recent years with the advances in electronic communications. Satellite communications, the

25

internet and the worldwide web, client server technologies, cable as well as email, faxes and

advanced telephone network, have all led to dramatic shrinkages in worldwide communications.

Access to information using all these gadgets is 24 hours a day service believed by Doole and

Lowe (2009 =17)

2.2.2 Products strategy

-This involved the art of modifying the various stages, such as introduction, growth, maturity,

decline etc, of the “product life cycle”. Example, attempt may be made to extend the “maturity

stage” by finding new markets for existing product, new uses for the product or modifying the

product and after sales services and policy for customer care. All these activities help to facilitate

the marketing of the firm’s products.

2.2.3 Price strategy

This is use to predict the competitors responses. Price also helps to select particular pricing

approaches for the firm product. Example “price skimming and price penetration” can be use.

The former explain how price is allotted high in order to attract higher revenue and profit and the

later explain how low price is set in, so as to reach a large market as possible in a short period of

time. “Discriminating pricing” may also be allotted by the firm where lower prices can be charge

for the same product in some market than the other.

26

2.2.4 Place strategy

This involves selection of distribution channels, transport arrangement etc. For example pre

eminence in distributional policy might be given to distributional channels such as selling from

the producer to the consumer, producer to the retailer and producer to the wholesaler or

franchising.

2.3 Empirical review

The guiding principle of any business organization is to maximize profit and any other reason is

added. Therefore for any business to be carried out the firm would undergo a strong business

research to know the strategies he will employed in order to run a successful business in a given

society. Once a survey has been conducted, the firm or organization would develop a marketing /

sales strategy to guide her on marketing activities. However, there are marketing strategies

adopted by firms which are classified under the concepts of marketing segmentation and

marketing mix. These concepts are further explained by Wall, et’al (2010 =P239) as follows:

Marketing segmentation - strong choice has to be made as to which market segment to target.

Market segment is a group of valuable consumers who posses unique characteristics in common.

For example found within certain income range, age rang, or occupational profile. Quite a

number of these segments have been identified as more likely to patronize that product than

others. Having identified the segment, the organization would take decision whether to

implement one segment or all the segments. Once the decision on which segment to use is

taking, the firm can go ahead and make production positioning to the segmented areas.

27

Segmentation contributed to “niche” or specialist market. That is, people who are more affluent

or are highly place in the society demanding product that are of high quality and attract higher

prices. Niche market supported the growth of small firm. This is true because large firm has

found many of these segments too small to service with the expectation of high benefits.

28

CHAPTER THREE

Research methodology

3.0 Introduction

The methodology adopted for conducting this research is aimed at finding out an

appraisal of coca cola’s sales strategy on federal polytechnic Nekede students consumers.

Research design aimed at showing the various methods and procedures of the research work. The

methodology adopted for this work reflects the researcher’s sense of originality and power of

mental enquiring. The method of enquiring data collection, questionnaire design and data

analysis technique will substantiate this fact.

3.1 Research design

Research design according to Osuala E.C. (2001) is the blue print or plan which determine the

nature and scope of study carried out or proposed.

The research design used in this project is descriptive design which seek to describe the existing

status of what is being investigated and it will also help the researcher to know where the

variable are gotten and how the objectives could be achieved.

This descriptive approach involves the normal gathering analysis and interpretations or a set of

data so as to explain the underling factors that surround the problems that triggered of the

research.

29

3.2 Method of data collection

The researcher used two basic sources of data collection in the process of

conducting the research, the researcher used both primary and secondary sources of data

collection.

i. Primary source of data collection

Primary source of data collection are information that are generated specifically

for the purpose of this research work. In this study, data were got from personal observation,

interview and responses on the questionnaire.

The questionnaire is a well structured one, which permit the respondents to

answer (yes or no). the questions are designed in the closed ended manner in order to ensure

accurate statistical evaluation.

ii Secondary source of data collection

The secondary sources of data were gotten from existing information that are already written,

published and unpublished that are related to the topic which includes textbooks, journals

newspaper, international financial publication towards development.

30

3.3 Population of the study

Population is the number of respondents, the researcher is investigating. This also known

as the universe. The population under study consists of 200 student’s Federal Polytechnic

Nekede .

3.4 Sample size and sampling techniques

We study a sample because it would be virtually impossible to study the entire population due

to constraints of time and costs.

However, the sample must be representative of the population from which it is

draw. In other to determine the sample size, the researcher used a 5% level of

significance, the sample size was derived using Yaro Yamnane formular

n = N

1+ N (e)2

Where

n = sample size

N = Population of the study

e = level of significance/Error estimate at 5%

1 = Constant

n = 200

31

1+ 200 (0.05)2

n = 200

1+ 200 (0.0025)

n = 200

1+ 0.05

n = 200 = 133.33

1.5 = 133

3.5 Sample size

The sample size of the study as determined from the population is 133, therefore the sample size

= 133. the researcher used simple random sampling technique to select the sample from the

population.

3.6 Description of measuring instrument

The researcher will make use of the most appropriate and suitable instruments for data

collection. The instrument is questionnaire and direct interview, the questionnaire will be

32

generated in line with the research questions in a simple and clear grammar to enable the

respondent understand and respond to the research questions.

(Example of a questionnaire)

i. Do you like the coca cola product? Yes no

ii. Which of the coke brand do you like best? Fanta coke sprite limca

eve water soda water five alive

iii. Are you ok with the prices of the product? Yes no

In this study, the researcher will also employ other instruments for data collection

like personal observation and interview.

3.7 Reliability of measuring instrument

Odo ibid, citing Ibanga, Williams, Kerlinger, Behing, Bowen et al and Borg et al

defined reliability of an instrument as a process of obtaining information on degree to which a

measure will yield similar results for the same subjects at different times under different

conditions on a consistent, dependable, stable, predictable and accurate way.

The researcher used the test-retest process to establish the reliability of the

instrument. According to Odo ibid, stated that the test-retest is a process whereby the researcher

administers the constructed questionnaire to the same reliability sample group more than once

with the view of discovering how consistent each element of the group is in the scoring of the

instrument at those different times. The researcher wants to show the reader that she ought to

trust or depend on the results generated with her instrument of the study.

33

Measuring instrument is reliable it provides the same data when administered

twice or more times in any other local government under similar conditions. The instrument was

test-retest for reliability, test-retest was conducted at Umuahia South Local Government where

the questionnaire was administered to members of selected staffs.

These was retrieved, presented and analyzed. The results of the two were

compared. Where the results are found to be similar, the researcher was convinced that the

instrument was reliable.

3.8 Validation of instrument

According to Bowen etal and Runkel etal validity can be defined as the

process of finding out the degree to which a researcher or a test indeed measures what it

purports to measure. In other words the questionnaire instruments or tests or items concern the

content of the variables or rational categories the researcher has identified as the element of

these variables of which she feels that by using them to test her respondents, she will receive

similar answers from them. By instrumentation validation, the researcher tries to show her

readers that what she thought the contents of the study to mean are what the umpires have taken

them also to mean.

In order to establish the validity of the instrument, the researcher used the pilot

test technique. According to Odo pilot test technique could be defined as the process of trying

out the entire aspects of a study including analysis of the data following closely the procedures

34

planned for the main study before launching the main study. For this purpose, the researcher

selected 14 respondents identical to the proposed sample group of the main study from a

population other than the main study.

The researcher distributed the constructed questionnaire to them to score. She

scored one the way she expected them to score. She then compared the result side by-side with

each one scored by the respondent 12 out of the 14 (86%) of the respondents made definite

decision on the questions. The researcher, therefore claimed that the instrument was valid.

3.9 Method of data analysis

The data collected is going to be presented in a tabulated form with focus on the

major research questions in other to enable the researcher determine the results. Data collected

were analyzed by use of simple percentage analysis. The following formular was applied.

f x 100

n 1

Where f = frequency of response

n = number of respondents

Decision Rule

All positive respondents to any item are recognized as a factors.

35

CHAPTER FOUR

DATA ANALYSIS

4.0 Introduction

In this data that were considered relevant to the objective of this study were selected and

analyzed. The data collected from the questionnaires will be interpreted using the chi-square

because it gives accurate solution ion the problem identified in the questionnaire. This will reveal

whether or not the problem of improving the efficiency workers in public sector.

It also focused on the analysis of general characteristic of respondents and empirical test

of two hypothesis using the chi-square technique and concluded by stating the decision rule.

4.1 Data presentation and analysis

Table 1: Distribution and return of questionnaire

Questionnaire Number Percentage %

Total unreturned

Total returned

Total distributed

53

80

133

39.8%

60.2%

100%

From table one, the researcher distributed 133 questionnaires to the staff, of which 80

answered questions were returned and 53 were not returned.

36

Research Question No 1

Is Sales strategy embarked upon by your firm.

Table 2:

Option No of respondents Percentage %

Yes

No

50

30

62.5%

37.5%

Total 80 100%


Does Your firm conducts customer analysis on the students

Table 2:


Yes

No

60

20

75%

25%

Total 80 100%


Sales strategy is it a frequent activity in your firm.

37

Table 2:


Yes

No

40

40

50%

50%

Total 80 100%


Sales strategy is directed at final users.

Table 2:


Yes

No

30

50

37.5%

62.5%

Total 80 100%


Consumer promotion improve your sales volume/market shares

Table 2:


Yes

No

50

30

62.5%

37.5%

Total 80 100%

38


Your company targets dealers in its sales strategy activities.

Table 2:


Yes

No

30

50

37.5%

62.5%

Total 80 100%


Is strategy needed within the school environment?

Table 2:


Yes

No

60

20

75%

25%

Total 80 100%


39

How does the company appraise its product on the effect of the students?

Table 2:


Yes

No

50

30

62.5%

37.5%

Total 80 100%

4.2 Data analysis

The above Research question 1

Shows that 62.5 in the yes type with 50 respondent while 37.5% comes from other 30 respondent

said no.

Research question 2

Does yes from conducts customer analysis on the students? On the data that 75% with 60

respondent type yes while 25% with 20 respondents type no.

Research question 3

Sales strategy is it a frequent activity in your firm?

On this data presented the table shows that 50% with 40 respondent type yes while 50%

with 40 respondent type no to the question.

40


Sales strategy is directed at final users.

On this data presented the table shows that 37.5% with 30 respondent type yes while

62.5% with 50 respondent type no to the question.


Consumer promotion improve your sales volume/market shares




Your company targets dealers in its sales strategy activities.




Is strategy needed within the school environment?

On this data presented the table shows that 75% with 60 respondent type yes and agree

that sales strategy is needed within the school environment, while 25% with 20 respondent type

no to the question.

41

4.3 Discussion of findings

This multinational companies coca cola operating in Nigeria in order to satisfy the needs and

preferences of the student of federal polytechnic and the host country at large embraces the

adaptation sales strategy.

The adaptation sales strategy adopting by the multinational company coca cola in particular in

Nigeria is based on the effective manipulation of the marketing mix elements of product, price,

production and place to success in the international market place.

It is observed through the study that the major reasons while multinational companies in Nigeria

adopting the adaptation marketing strategies are because of the economics and cultural

differences among the nations.

For example, cars sold among nations especially in less developed countries typically lack many

of the features found in the west.

However, based on the study, the multinational companies operating in Nigeria are affected with

some problems which includes, poor infrastructure facilities in some areas in the country, high

cost of operation, inadequate specialize manpower, stiff government regulations, high tariffs,

customers preferences, lack/high cost of raw materials in the host country, stiff competition with

companies in the host country etc.

42

CHAPTER FIVE

5.0 Introduction

The result of analysis carried out is summarized under this chapter; most importantly the

research questions and hypothesis, also conclusion and recommendation for this study would be

made under this chapter.

5.1 Summary of findings

To have an effective sales strategy a business needs to consider its products, its market and how

the sales effort will be directed to ensure it captures profitable growth selling to customers. Sales

strategy is a business decision on (1) who the sales teams are going to sell to (2) what are they

going to sell them and (3) how are they going to sell to them?

Sales strategies ensures market and customer coverage with plans that give the best possible

opportunity to win business. In more detail, a sales strategy defines the customer segments it

wants to target(verticals, industries, geographical), the business value propositions for each

segment (product, pricing, distribution), how the sales force will be structured (inbound, field,

deal value) and the selling processes.

Today’s business is more about “Smarketing” than sales and marketing. Effective business

strategy brings marketing and sales together to drive traffic, generate leads, build awareness and

43

improve consideration levels so more customers buy. In a nutshell a good sales strategy will help

a business identify and take advantage of the best opportunities available.

The sales strategy must be based on the business and marketing plans. Outline in as much detail

as possible – how will the sales team deliver marketing objectives, plan to target market

segments and how will they support marketing activities, such as content marketing or

promotional events. Next identify the key aims of the strategy – sell more to the same? Is it about

market penetration or market development? Also which target markets you are aiming for and

the time, money and resources needed.

Findings

– The findings of this study clearly show that managers' perception of the adoption of strategies

on the part of the selling firm is associated with the adoption of some specific classes of

behaviors (i.e. customer‐oriented selling, adaptive selling, relational strategy) which can

contribute to the creation of strong and long‐lasting positive relationships with customers

5.2 conclusions

In conclusion, the coca cola company in Nigeria has grown fast and well because it has used

human oriented strategies which contributed to her ever growing in the country. Among the

strategies make use of by the coca cola company that won the attention of the consumers to her

products include; consistent advertising of the products, constant organisation of sales promotion

activities, the production of standard products, provision of after sale services, obeying law and

44

political structure of the country, introduction of disposable bottles of coca cola, charging of

affordable prices for their products and finally the company has twelve strong factory plants,

sixty depots and over four hundred thousand dealers of the coca cola products.

5.3 Recommendation

The coca cola companies have tried much in international marketing of her products in Nigeria.

However, the same factors that had pushed her up would as well pull her down if good

sustainable measure is not taken. Therefore, the researchers recommend that firstly, the area of

corporate social responsibility should be highly considered and should gear toward rural areas

where highest population of developing economy like Nigeria are found. In the same vein the

people oriented project should be executed. This would sustain and will also increase the level of

demand for the coca cola products; Secondly, in a country of over one hundred and sixty million

people, the coca cola company needs to increase their factory plants in other to meet the people

need and demand.

45

Reference

Adromida, (2011) Sales promotion/marketing mix strategy and ideas and method (online): available at: http://andromida.hubpages.com/hub/co.

Belch, G.E. and Belch, M. A (2007) Advertising and Promotion. An integrated marketing communications perspective. Seventh edition. [3] Bennett, R (1998 =1). International Marketing Strategy, Planning, Market entry and Implementation. Second edition. [4] Cateora, P. R and Graham, J. L (2007) International Marketing. Thirteenth edition

Chartered Institute of Marketing (2011) Marketing Planning Tools. (Online): available at: http://www.cim.co.uk/marketing planning tool. [6] Doole, I. And Lowe, R. (2008=17) international marketing strategy analysis, development and implementation. Fifth edition

Effiong, C. And Ekpenyon, O E(2010). The Strategic Management of the Advertising Massages in Nigeria. 2 nd annual international conference on economic, business and entrepreneurship in Africa. March 9 th -11 th 2010. (Online): available at: http://www.intledgroup.com/uyouni_2010_proceeding.pdf

Idio, U S(2010) marketing strategies for micro-finance bank: reflexions from failed community banks. 2 nd annual international conference on economic, business and entrepreneurship in Africa. March 9 th -11 th 2010. (Online): available at: http://www.intledgroup.com/uyouni_2010_proceeding.pdf

Johnson, G, Scholes K and Whittington, R.(2009) Exploring Corporate Strategy with my strategy lab. Eighth edition

Obi, D.(2011). Branding – NBC unfolds plans for coca cola 60 years in Nigeria. (Online): business day. News you can trust. Available at: http://www.businessdayonline.com/NG/index.php

Retroplanet(2008). a brief history of the coca cola company (online): available at: http://zimbio.com/coca-cola/article.

Wall S. Minocha S. And Rees B.(2010). international business.

46

http://zimbio.com/coca-cola/article

http://www.intledgroup.com/uyouni_2010_proceeding.pdf

Appendix

Department of Mass Communication

Federal Polytechnic Nekede

Owerri,

Dear respondent,

Request for filling of questionnaire on the appraisal of coca cola’s sales strategy on federal

polytechni nekede students consumers.

This questionnaire is meant to help me find out the solution of the above project work. All

matters contained there are for academic purpose. You are requested to tick the answers

appropriate to you or fill the blank spaces, where necessary.

Any information given will be treated with strict confidence.

Yours faithfully

ANYANWU CHIEMELA T

47

Appendix b

A questionnaire on the topic “the appraisal of coca cola’s sales strategy on federal polytechni

nekede students consumers

Please tick (√) in the boxes provided where appropriate.

Name…………………………………………………………………………………………

Age: 20-30yrs 30-40yrs

Sex: Male Female

Marital status: Married Single

Educational background: SSCE ND

HND/B.SC NBA

Questionnaires for coca cola incentive; SA, A, ND, SD

Sales strategy is embarked upon by the firm

True

False

Neutral

Do you often conduct customer analysis (market research before designing sales strategy

programme.

Always

Regular

Sometimes not

Not at all

48

How often do you conduct strategy firm

Once a month

Once a year

Once in six month

Severally in a year

Not at all

Do you agree that sales strategy is directed to final user of your products

Strongly agree

Agree

Strongly agree

Disagree

How will you rate consumers strategy on your sales volume/market growth

Excellent

very good

Average

Poor

Your company target dealers in its sales firm market growth

(a) True

(b) False s

49

(c) Neutral

Do you agree that your company sales forces are motivated via sales strategy event.

Strongly agree

Agree

Strongly agree

Disagree

How well will you rate sales force strategy on the organizational campaign.

(a) Excellent

b) Very good

(b) Good

(c) Poor

How often do you involve Industrial users your sales promotional campaign.

Always

Regularly

Sometimes not

Never

Is your company marketing objective is attained through business (industrial) strategy.

(a) Always

(b) Regularly

50

(c) Sometimes not

(d) Never

From each of the following (SA, A, N, D, SD) indicate your agreement as incentive given

to target audience by your firm during sales strategy displays.

Tools/devices/incentives

Product sampling

Demonstrations

Coupon

Premium

Price-off

Refund offers

Discount

Sweepstakes

Contest/games

Patronage reward

Point-of-purchase display

Advertising specialties

Trade shows and exhibits

Allowance (extra cost compensation)

Direct incentives

Supportive materials (sales aids)

51

Conventions

Shows

Sales contest

B. Timing of sales strategy event

The time frame assigned to sales strategy display by your company is too long

The timing of sales strategy programme by your firm is very short.

The timing given to sales strategy campaigns are enough to quadrate the desired

sales/customer patronage.

The timing of sales strategy event improve company’s profits.

Proper timing of sales strategy programme improve effort of the company sales volume

The timing of sales strategy effort requires coordination of production, distribution and

salespersons.

The timing of sales strategy effort result in repeat purchase.

C. Cost structure

A special budget is set aside for sales strategy programmes.

The allocation to sales strategy activities is adequate.

The cost of incentive is adequate

The cost of sales strategy campaign is justified at the end of the period.

D. Modertaing factors

Government interferes with strategy factors influence the sales strategy programme of

your company.

52

Economic factors influence the sales strategy programme of your company.

Technology is a major consideration in your firm’s sales promotional event.

53

an appraisal of coca cola

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