the role of branding in consumer decision making
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THE ROLE OF BRANDING IN CONSUMER DECISION MAKING:
(A CASE STUDY OF CADBURY NIGERIA PLC)
BY
SALAUDEEN, ISHOLA JAMIU MATRIC NO: 06/66MC208
A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION, FACULTY OF BUSINESS AND SOCIAL SCIENCES, UNIVERSITY OF ILORIN, KWARA STATE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF SCIENCE DEGREE IN BUSINESS
ADMINISTRATION
JUNE, 2010
CERTIFICATION
This research work entitled “The role of branding in consumer
decision making, a case study of Cadbury Nigeria Plc, has been
read and approved as meeting the requirement of the department of
business administration university of Ilorin for the award of B.Sc
(Hons).
……………………………… ……………………..
Mr. I. B. KADIRI Date
Project Supervisor
……………………………… ……………………..
Dr. (MRS) S. L. ADEYEMI Date
Head of Department
……………………………… ……………………..
PROF. A. F. ADEDAYO Date
Dean of Faculty
……………………………… ……………………..
External Examiner Date
ii
DEDICATION
This project is dedicated to Almighty Allah for making it
possible for me to come for this first degree programme (i.e. BSc)
despite all obstacles and to my noble mother MISS SALAUDEEN
SIKIRAT. Who have supported both financially and morally in
always.
iii
ACKNOWLEDGEMENTS
I give every thanks and glory to Almighty Allah for given me
the opportunity to scale through the programme without any hitch.
No human endeavour can succeed without love, support and
encouragement from certain people.
To my beloved mother Mrs. Salaudeen Sikirat you are
wonderful to the parent, i say thank you mum. My gratitude to my
supervisor Mr. I. B. KADRI, who has taken his time to read through
my roughly written scripts and made useful suggestions and
corrections that have led to the production of this work.
No statement of indebtedness would be complete without
paying tribute to my father Alhaj Nasir Salaudeen and my uncle Mr.
Ralph Bello,
I highly value the goodwill, help and cooperation of Mr.
Muhammed Malik (Baba), Mr Salau olabode, Mr. Bakare Abdullahi
and my course mates, Mustapha Ibrahim, Gbadegenshin Wasiu,
Salau Omotayo, Rasheed Olukosi, and others.
iv
Finally, my thanks goes to all who have assisted me both
morally, financially and spiritually to achieve this dream. God bless
you all (AMEN).
v
TABLE OF CONTENTS
PAGE
TITLE I
CERTIFICATION II
DEDICATION III
ACKNOWLEDGEMENTS IV
TABLE OF CONTENTS VI
CHAPTER ONE
1.1 Introduction 1
1.2 Objective of the Study 6
1.3 Scope of the Study 6
1.4 Research Question 7
1.5 Research Hypothesis 7
1.6 Statement of Research Problem 8
1.7 Limitation of the Study 9
1.8 Study Plan 9
vi
1.9 Definition of Terms 10
CHAPTER TWO
LITERATURE REVIEW
2.0 Literature of Review 12
2.1 Branding Decision 13
2.2 Manufacturer’s Brand 14
2.3 Consumer Behaviour 17
2.4 Consumer Buying Motives and Habit 18
2.5 Consumer Buying Decision Process 19
2.6 Reasons for Branding 23
2.6.1 To the Consumer 23
2.6.2 To the Marketer 24
2.7 Research for Consumer Behaviour 24
2.8 Promotional Strategies of Cadbury Nigeria PLC, Products 27
2.9 Advertising 29
2.10 Personal Selling 30
2.11 Brands as Consumer Protection 31
2.12 Defining Brand Expectation 34
vii
2.13 The Role of Brand Awareness 36
2.14 How Does Brand Awareness Benefit The marketing 37
CHAPTER THREE
RESEARCH METHOLOGY
3.0 Introduction 41
3.1 Research Design 41
3.2 Population of The Study 42
3.3 Sample And Sampling Technique 42
3.4 Research Instruction 43
3.5 Method of Data Analysis 44
3.6 Data Collection Procedure 46
3.7 Question Assumption 48
3.8 Validity 49
3.9 Reliability 50
3.10 Historical Background of Cadbury Nigeria Plc 51
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction 53
viii
4.2 Data Presentation and Analysis 54
4.3 Hypothesis Testing 71
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Summary 74
5.1 Conclusion 75
5.2 Recommendation 76
References 78
Appendix: Questionnaire 80
ix
CHAPTER ONE
1.1 INTRODUCTION
Marketing managers have realized the importance of
branding, while more others yet to be convinced. It is very vital
however to point out that branding has not only come a long way but
also has way to go. Cadbury Nigeria PLC is a leading manufacturing
concern in the Food and Beverages industrial sector. Its core
manufacturing business is divided into three strategic business units
namely, Food, Drinks and Confectionery.
A fourth business unit is the Industrial Materials Unit (IMU)
which comprises our intermediate products businesses notably, the
Cereal Conversion Plant in Lagos the Tomato Puree factory in Jos.
This business unit manufactures key inputs - glucose syrup,
sorghum extract and tomato puree to feed the three mainline
businesses, and for sale to third parties, especially in the food and
pharmaceutical industries. The heartland of this unit, the Cereal
Conversion Plant is an enduring example in technological
innovation. The Company also owns a subsidiary business, Stan
1
mark Cocoa Processing Company, Ondo. A fully integrated export
oriented unit with a singular mission to be the preferred supplier of
cocoa butter, cocoa liquor and cocoa powder to select user
customers around the world. Stan mark has been granted the Export
Processing Factory status by the Federal Government which no
doubt is a major boost to its future success. The Stan mark
investment was clearly a strategic move to generate foreign
exchange earnings and to understand the vagaries and discipline of
international markets.
The Company wide portfolio of high quality branded products
are heavily supported with strong advertising. On-going investments
in the development of route-to-market has ensured a nation-wide
distribution coverage, and a key source of competitive advantage.
With the network of 19 depots, consumers in all 36 states of the
country are served products that offer real value for the money
spent. An increasing proportion of our brands are now being offered
to the export markets as well.
The Food Drinks:
2
The Food drinks range consists of Bourn vita (the nourishing
food drink fortified with extra vitamins and minerals for total vitality)
Pronto (Nigeria’s favorite chocolate drink) Richoco (a rich, tasty food
beverage) These brands have collectively maintained market
leadership in their category.
Confectionery:
The Confectionery range features such household names as
Tom Tom, Goody Goody, Butter mint, The Trebor range (Luckies,
Trebor Peppermint Original (TPO), Malta Sweet Fruities, Ginger
Orange, Koffstick, Tofi Chocolate Éclairs Jollies Lollipos (in banana,
orange and Malta Lollipops). This range straddles principally the
hard candy, compressed sweets and lollipop segments in which they
have a distinctive leadership.
Foods:
The Food range comprises Tomapep (a choice blend of pure
tomato puree and ground pepper) and Dadawa (the first and only
wholly Nigeria seasoning cube made from locust beans). Others are
Cheff Tomato (the rich red puree for extra delicious taste) Knorr
3
cubes (premium quality seasoning cubes in beef and chicken
flavours) and Cheff Peppersoup cubes (easy, tasty, convenient
pepper soup in double quick time) another pioneering effort by the
Company. They are strong number two position in this category.
Aside from the unwavering commitment to making whenever
possible with locally sourced raw materials, (exemplified by
Tomapep, Cheff, Dadawa and Cheff pepper soup cubes) there has
been a deliberate effort to re-invent the various brands to position
them for market leadership in their various segments.
The past two years have witnessed major improvements in the
packaging and product delivery of Bourn vita, Trebor Peppermint
Original and lately Chocolate Éclairs. The company’s brands now
come with a Quality Guarantee, a demonstration of our commitment
to product quality standards. It is worthy of note that no other
company in Nigeria carries this guarantee on their brands. The
Company’s corporate social responsibility policy is expressed
through generous donations to and sponsorship of meaningful
endeavours in the Arts, Education, Health and Sports, and the
important needs of the society. The policy and structure of 4
Cadbury’s corporate giving is directed by the Board.
Beyond this, we have maintained a policy of attaining the highest
standards in environmental management. Our Approach to our
corporate social responsibility spans several facets, beginning with
the creation of healthy and nutritious products for consumers.
Several exemplary activities are undertaken as well. In 1998, Bourn
vita provided free rides for school children under the Bourn vita
Scholars’ Free Bus Ride. Also, over 100 children were sponsored on
an excursion to the Federal Capital City, Abuja under the Bournvita
ADC Children’s Magic Flight. And in its pioneering effort towards
sports development in nigeria, the company recently sponsored The
Cadbury Cup quadrangular golf tournament, the first ever inter-club
gold competition among top golfs clubs in Nigeria - the essence of
which is to raise existing standards of the game, just as it did with
football with the pioneering of the Professional Football League, and
Table Tennis. Our Primary objective is to grow the value of the
business for our shareholders. Managing for Value to the business
philosophy which unites all our activities in pursuit of this objective.
Our approach is necessarily holistic, galvanizing the energies of our
5
managers and staff in a single-minded fashion. In line with the
objectives of MFV, the Company has taken the following strategic
medium and long term quantitative targets are:-
Grow economic profit by 15% per annum.
Raise Operating profit Return to 26% by 2002
Secure a significant positive cash flow of 3% of NSV annually.
1.2 OBJECTIVE OF STUDY
The main objective of this study is to examine the role of re-
branding in consumer decision making.. Other objectives will be to:-
i. Investigate the sales and profit level as a result of Re-branding in
Cadbury Nigeria Limited.
ii Examine other benefit o Re-branding consumer products in
Nigeria.
1.3 SCOPE OF THE STUDY
6
The scope of this study focuses and centers around Cadbury
Nigeria PLC being one the largest in the beverage productions
business. It has also in particular focuses in public affairs
department responsible is dealing with the company’s communities.
It is very important to note this department will be the only arm of the
company’s that will save to a large extent the purpose of this
research.
1.4 RESEARCH QUESTION
The study seek to answer the following question;-
i. Will the branding of Cadbury Nigeria plc, product (i.e. Bournvita)
influence buying decision of consumers?
ii. Why do the organizations engage on Re-branding of their
products?
iii. How does branding influence buying decision of consumers?
iv. What are the effects of Re-branding of products?
7
1.5 RESEARCH HYPOTHESIS
Hypothesis statement will provide a logical scientific condition to my
statistical estimate. To achieve objectives stated above, the
following hypothesis will be tested.
HYPOTHESI 1:
Null Hypothesis (Ho): Branding has not influence the purchase level
of Cadbury products.
Alternative Hypothesis (Hi): Branding has influence the purchase
level of Cadbury products.
HYPOTHESIS 2:
Null Hypothesis (Ho): Branding has not improved consumer decision
making on Cadbury Nigeria plc, products.
Alternative Hypothesis (Hi): Branding has improved consumer
decision making on Cadbury Nigeria PLC, products.
8
1.6 STATEMENT OF RESEARCH PROBLM
The study seeks to address the influence of branding on buying
decision of Cadbury’s products which militate against the ability of
the beverages industry to fulfill their branding decision. Among these
problems and militating factors are:-
i. Inadequate sourced to generate required funds
ii. Weak economic or financial base
iii. Shortage of technical staff
iv. Miss- Management of Marketing Resources
v. Low effort to generate revenue from the consumers
1.7 LIMITATIONS OF THE STUDY
9
There is some evident limitation of the study such as
Unwillingness on the part of management to give information s
regards the company in order to guard against espionage from
competitors; this is a major difficulty.
Also, the busy schedule of the workers is another limitation which
makes it a bit difficult to carryout interviews with a many relevant
people as possible. Another limitation of the study is the fact that
the information provided in the study will only be limited to the case
study (Cadbury Nigeria plc) and as such cannot be applicable in
another organization.
1.8 STUDY PLAN
The research work is made up of five chapters. The first chapter
consists of the introduction i.e. Background to the study, The
statement of the research problem, objectives of the study, research
questions, scope of the study, limitation of the study, the study Plan,
and the definition of key terms.
10
Chapter Two is the Limitation Review While Chapter Three involves
the research Methodology which consists the Historical profile of the
case study, Method of the data collection, Population and Sample
size, Sampling techniques Hypothesis and The method of data
Analysis. Chapter Four of the study is the Data Analysis and
Interpretation and Chapter Five consists of the Summary,
Conclusions and Recommendations.
1.9 DEFINITION OF KEY TERMS
In carrying out survey on a particular project some of the
following key term has to be designed and it has follows:-
i.. BRANDING:- This is the use of a distinctive name and / or mark
on a project to differentiate it from similar competitive products. It is
a major tool used by marketer to distinguish their product from
competitor’s products.
11
ii. CONSUMER BEHAVIOUR:- This has been defined as the
decision process and physical activities that an individual are
engaged in where they evacuate, compare, acquire and use or
dispose of products and services.
iii. BUYING DECISION:- This is defined as the ability of the
consumers to conclude and purchase a specific products and
services.
iv. MARKET SHARE:- This is the percentage of total market that
accrues to a particular company.
12
CHAPTER TWO
2.0 LITERATURE REVIEW
Perhaps the most distractive skill of professional marketers is
their ability to create, maintain, protect and enhance brands.
Marketers say that “branding is the art cornerstone of marketing”.
The American Marketing Association (A.M.A) defines a brand as
follow:-
13
A brand name, term, sign, symbol or combination of them,
intended to identify the goods or services of one seller or group of
sellers and to differentiate them from those of competitors. (America
Marketing Association). In essence, a brand identifies the sellers or
marketers. It can be a name, Trade mark, Logo, other symbol.
Under trade mark Law the seller is granted exclusive rights to the
use of brand name in perpetuity. This brand differ from other assets
such as patent and copy right, which have expiration dates. A brand
is essentially a seller’s promise to consistently deliver a specific set
of features, benefits and services to the buyers. The best brand
conveys a warranty of quality. Aaker (1991).
2.1 BRANDING DECISION
One of the basic tasks of Cadbury PLC is decision making on
branding. The variety decision options ope to management of
Cadbury plc covers branding and non-branding, manufacturer’s
branding and private branding, family and individed.
This can be diagrammed as:- 14
Aaker [1991] managing Brand Equity
2.2 MANUFACTURER’S BRAND
15
This identifies producer with the product as the point of
purchase. The Manufacturer initiates branding and becomes
involved in the distribution; promoting and pricing decision Examples
of manufacturer’s brands are Goldee, Burn vital e.t.c. Many
distributors (Whole sales and Retailers) rely on Cadbury Plc brands
because they are too small to develop their own. Such as
distributors derive some benefit from Cadbury Plc branding which
include:-
i Promoting by Cadbury Plc helps to re-sell products and develops
strong customers loyalty.
ii Cadbury Plc brands attract new customers and thereby enhance
dealer’s prestige.
iii Dealer’s carry fewer inventories as a result of efficiency of
manufacturers.
16
A. FAMILY BRANDS
Cadbury Nigeria plc markets several different product product
under the same brand names. Cadbury Nigeria PLC benefits from
using a family whenever it is possible and such benefit includes.
i It is facilitate the introduction of new products as less money is
required to promote the new product (Goldee) with and already
family name.
ii It improves market share of Cadbury Nigeria PLC, Since it is
safe to buy a new product with an established family name than
buying a product with a new name.
B. INDIVIDUAL BRANDS
This is an alternative strategy used by Cadbury PLC where all
products do not lend themselves to sale under a family name.
17
C. TERMS IN BRANDING DECISION OF CADBURY NIGERIA
PLC.
According to Stanton (1984), the following are the terms used in
branding decision;
i. A brand is a name, term, symbol, design or combination
therefore that identifies a Cadbury PLC product and differentiates
them from competitor’s products.
ii. A brand name is that part of a brand that can be spoken include
letters, words, and numbers
iii. A brand mark comprises of the element that cannot be spoken
because it is not made up of words rather than it is symbol or
design.
iv. A brand mark; This is a legal term , indicating the owners
exclusive right to use the brand or part of the brand , and that others
are prohibited by law from using without permission.
18
v. A trade name; This is the fuel and legal name or an organization
such as Cadbury Nigeria PLC rather than the name of specific
product.
2.3 CONSUMER BEHAVIOUR
19
Stanton (1984) sees consumer behavior as the decision,
process and physical activities that individuals engaged in which
they evaluate, compare, acquire ad use or dispose of product
service. Consumer behavior can be describe as the behavior
exhibited by people in planning, purchase and using economic
goods and services. It is determined by economic, physical and
sociological consideration. The study of consumer behavior is
central to marketing management because success or features
depends importantly on target customers, individual and group
reactions expressed in the form of buying patterns. The behaviour of
consumer can be determined through behavioural research. As a
result human behaviour is influence by complexity of factors among
which is branding. The variables involved can sometimes be so
many and inter meshed that it is possible to identify them separately.
Olusanya (1985) asserts that any attempt at interpreting or
explaining consumer behaviour, in which data analysis is involved is
therefore, potential hazardous since the explanation are related to
the phenomenon under investigation.
2.4 CONSUMER BUYING MOTIVES AND HABITS20
According to Stanton (1984) consumer has been defined as he
decision process and physical activities that individuals are engaged
in when they evaluate, compare, acquire and use or dispose of
products. They study of consumer therefore, is the study of what
consumers buy, where they buy it, why they buy it, how often they
buy it, and how often they use it.
A motive by W,J, Stanton (1984) is defined as an internal energizing
force that orients a person activities toward satisfying a need or
achieving a goal. It is the driving force that cause a person to take
action to satisfying a need or achieving a goal. It is driving force that
causes a person to take action to satisfy specific needs. This as a
result, is what makes Cadbury PLC to recognize forces that affect
consumer’s purchase action like branding product quality etc.
Consumers buying motives can be generally classified as:-
i. Rational (which, involves deliberation reasoning and self-
approval)
ii Emotional (Non-rational or involving with reasoning)
iii Conscious (without being aroused)21
iv Dormant (Aroused by marketing operation)
v Primary (which is influential in buying a particular brand)
vi Selective (which involved decision to buy a particular brand)
vii Patronage (which involves decision to regularly buy from a
particular source)
2.5 CONSUMER BUYING DECISION PROCESS
According to Stanton (1984), consumer buying decision process
is a major aspect of consumer behaviour. It implies that buying does
not just happen, rather it follows a step by step process of which
actual buying is stages. It is also true that not all decision process
lead to purchases as the individual way end the process at any
state. Stanton (1984). Basically a consumer buying decision process
involves five stages illustrated below:-
22
A. PROBLEM RECOGNITION
This is the starting point in the buying process and involves the
buyer recognizing a problem or need. This stage occurs where the
buyer becomes aware of the gap between his actual condition and
the desired state.
This can be triggers by internal and external stimuli. The task of
companies such as Cadbury PLC is therefore to identify those
stimuli that trigger a particular need and then develop strategies that
trigged consumers’ interest. Also, where consumers are unaware of
a need, marketer can trigger of recognition of such needs through
appropriate strategies like branding, advertising etc. Stanton (1984)
B. INFORMATION SEARCH
23
After recognizing the problem or need, the buyer continues in the
buying decision process by searching for more information about
products that will help to solve the problem or satisfy the need. This
information search makes him to more receptive to information
and /or actively searching or information.
Information search can take the form of:-
i. Internal search is where buyers search their memory for
information about product branding that might solve the problem.
ii External search involves collection of information from personal
source (family, friend, neighbour acquaintances) commercial
sources (advertising, sales person, branding, packaging etc), public
sources (mass media consumers rating organization) and
experimental sources (handling, examine and using the product ).
Stanton (1984)
C. EVALUATION OF ALTERNATIVES
24
Information search leads to the awareness of the availability of many
competitive brands. These alternative brands most be evaluated on
criteria for evaluation include need of the buyer, benefits expected
from the product, attributes and abilities of the alternatives to deliver
the benefit sought. Stanton (1984)
D. PURCHASE DECISION
The result of the evaluation stage guides the buy in choosing the
product or brand to be bought. he also chose the seller from whom
he buys. The brand that is eventually chosen most met the buyer’s
expectations terms of product characteristics and ability. The
availability of the product also affects its choice and if the choice is
not available the next board that is available will be chosen. Family,
the actual buying takes place at this stage. Stanton (1984)
25
E. POST PURCHASE EVALUATION
This stage occurs after the product has been purchased. The
product has to be assessed to ascertain whether its actual
performance meets buyers expectation. The result of this evaluation
is an experience of satisfaction and dissatisfaction. The task of
marketing does no end at the purchase stage rather, it continues
into the post purchase stage. Marketer must therefore monitor post
purchase stage as it determines whether buyer complains about the
product, tell other about the product or purchase the product again.
Stanton (1984)
2.6 REASONS FOR BRANDING
Kotler (1997) shows numerous reasons for branding a product. An
understanding of these reasons brings about the importance of
branding to bout the consumer and to the marketer.
2.6.1 TO THE CONSUMER
26
i. Branding assure the consumer of he uniformity of the product is
buying in term of quality and performance.
ii It assists him in identify the product desire.
iii It serves as a source of information to consumers.
iv It identifies the form behind the product.
v It offers consumers to opportunity to compare products and
make a choice among available alternatives.
vi It assists consumers during repeat purchase.
vii It gives the consumers certain psychological satisfaction.
viii It bridges the gap between the manufacturer’s promotional
programmes and consummation of sales to customers.
ix It enhance consumer welfare as consumers can get new or
improved product that come as a result of branding.
2.6.2 TO THE MARKETER
i. Branding afford a company the opportunity to control sale of its
products.27
ii It aids advertising and display programme as a manufacturer can
now build his promotional company round his products.
iii It stimulate repeat purchase and other protection against product
substitution by consumers.
iv It reduces competition based on prices, rather products
development and improvement, promotion, and distribution etc are
use to competitive tools.
2.7 REASONS FOR CONSUMER BEHAVIOUR
Stanton 1984 shows the important involve predicting human
behaviour is a laborious task. This notwithstanding however, the
study is important because of each certain important functions it
performs as it can be seen form three different perspectives.
28
2.7.1 The knowledge of consumer behaviour can be valuable to an
individual in making decision concerning his purchases. This will
save consumer from making unwanted or unsatisfactory purchase
arising from the influencing of some deceptive slogans. It is very
common in our society today to see sales man going around to
convince people to purchase their product, thus they usually used
big promotional activities like using a slogans that will arouse the
interest of the people. As a result of all these consumers find
themselves buying goods and services of prices that are often
higher than those available for similar or identical items in a buying
store.
2.7.2 A potential marketer will find the knowledge useful as he
approaches the problem of developing and implementing a
marketing strategy. The related advantage can be derived by
studying consumer behaviour are as follows:
(a) Marketer gain better understanding of consumer needs leading
to a more effective implementation of the marketing concept.
29
(b) The marketer are able to know consumer needs through the
consumers communication.
(c) The profit position of the company may be improved by turning
real consumer needs into effectives product appeal.
(d) Marketer could be effectively segmented into sub-groups
depending on common behaviour characteristics.
(e) The cost and resources wastage associated with new products
features are minimized.
2.7.3 The knowledge of consumer behaviour will have a significant
impact of the marketers and executors of public policies dealings
with marketing practices. A number of public policies have been
instituted to regulate the selling and buying procedures. Some of
these are essentially to protect the consumers while other are in the
interest of manufacturers of products and services. Therefore, he
study of consumer behaviour will benefit the public policy markers in
the following ways:
30
i. The gain better insight into how to provide and protect free
consumer choice.
ii They understand ways of encouraging marketer to provide better
production information.
iii They understand techniques for encouraging all consumers to
use available information to make better decision.
31
2.8 PROMOTINAL STRATEGIES OF CADBURY PLC PRODUCTS
Promotion and selling are synonymous terms although
promotion is normally preferred. Selling suggest only does not
include advertising or other methods of stimulating demand.
Stanton (1984) defines promotion as following: “Promotion includes
the function of Advertising, Promotion selling, all other selling tools”.
Promotion is the one of most important aspect of marketing
management. The buyer would have to be informed about the
existence of the product. The information concerning the quality,
price and after sales services of a products can only be made known
to including buyers through promotion. In the past advertising,
personal selling publicity, and sales promotion were viewed as the
only elements of promotion mix, but today, marketers are becoming
more aware of the fact that everything an individual or an
organization does or says has promotional impact.
32
Horper 1977, in is write-up explained that “ more and more, it is
appeared that marketing is most entirely communications, the
product communicates, the price communicate, the package
communicates, the prospects, to management and each other.
Also, prospects, dealer’s management, competitors communicates
Cadbury plc, in carrying out its promotion, normally takes into
consideration the following:-
i. The nature of the market as it true in most problem areas in
marketing, decision in the promotional mix will be greatly influence
by the nature of the market this influence is felt in least three ways.
ii Geographical scope of the market- personal selling may be
adequate in a small market broaden geographical, greater stress
must be placed on advertising.
iii Types of consumers. The promotional strategy is influenced by
whatever the business is aimed at ultimate consumers.
iv Concentration of the market. The total number of prospective
buyers is one consideration. The former potential buyers there are
the more effective personal selling is compare to advertising.33
v Funs available. Regardless of what may be the most desirable
promotion mix, the amount of money for personal is the real
determination of mix. Therefore, with the above the methods in the
promotional mix use by Cadbury PLC will be fully discussed.
2.9 ADVERTISING
As defined by American Marketing Association committee on
definitions, advertising can be said to be: “Any paid form of
promotional presentation and promotion of deal goods and services
by identified sponsor”
it assists all activities involved in presenting to a group a non-
personal oral or usual openly sponsored message regarding a
product service or idea. The message called advertisement is
discriminated through one or more media and paid for by an
identified sponsor. Their reasons for advertising include:
A. To support personal selling to open customer door for sales
people an acquaint prospects with seller company.
34
B. To increase the sales for the products.
C. Expend the market share.
D. To build goodwill for the company and improve its reputation.
2.10 PERSONAL SELLING
Personal selling according to Evans and Berman 1978 is: “An oral
presentation in a consideration with one more prospective purchase
for the purpose of making sales” Cadbury PLC salesmen are
involved with order getting personal. They are involved with
informing and persuading customer for the company products like
Goldee. The main objectives of using the personal selling by the
company is:
A. To create awareness for the company’s product.
B. To provide adequate level of sales
C. To provide feedback information to company
D. To improve and maintains customers satisfaction.
35
The advantages derived by the company from the use of personal
selling include:
i. provision of mandate feedback by the salesman organized o
electoral allotment for effective coverage in order to mistune
wastages
ii. Flexibility I analyzing. Alternative solution to customers needs.
iii. Alternation of message by sales persons to the need of individual
customers.
iv The attention span of the customer to be made high.
2.11 BRANDS AS CONSUMER PROTECTION
A century ago, branding was in its infancy. At that time, people still
made most of the products that they consumed (such as Goldee,
Bournvita, Chocolate) or purchased them directly from producers
who were their friends and neighbors. People had faith in the quality
and safety of the products because they knew the people who made
them.36
As our economy became more specialized a trend that, as
Adam Smith predicted, created an unprecedented degree of wealth
consumers were more removed by both distance and time from
producers. The introduction of labor-saving machinery, which
increased productivity markedly, also dictated the concentration of
producers in a manufacturing area. Thus, the village silversmith or
baker or cobbler was replaced by a factory that produced a high
quality product at a more competitive price. Consumers valued the
potential quality consistency and savings, but they no longer knew
the people who made their products. Similarly, as individual
consumers became more specialized in their roles as producers,
they themselves made even fewer of the products they consumed
and relied increasingly on other specialists to meet their material
needs.
37
In a large market, consumers do not care who makes their
products. In this sense, the market is the great equalizer, as
producers of all races, ethnic origins, religions, and genders unleash
their creative energies to meet the needs of consumers, While
consumers do not care who makes the products, they care very
much how the products perform. They want to know that the product
they purchase will meet their expectations.
In this consumer environment, brands play a critical role.
When consumers first started purchasing more food and raising less
themselves, they purchased items from a bulk bin. They had no
information about what ingredients the products contained, how safe
they were, and how they would perform. Branding created the
protection that consumers demanded. The brand name signified a
level of quality and consistency consumers could trust. Thus,
Bournvita, Chocolate, Éclair, and Tom Tom, instilled in consumers a
degree of confidence that their unbranded competition did not.
38
2.12 DEFINING BRAND EXPECTATIONS
Brands are effective only when the product delivers a
consistent level of quality from product to product. McDonald’s
delivers the same level of quality regardless of location or time of
visit. A consumer may choose not to dine there for a particular meal,
but that decision is not a rejection of branding. Rather, it is an
informed decision not to consume that expected level of quality on a
particular occasion.
39
Consumer confidence in brands varies with the type of
product. Typically, confidence in branded goods such as
automobiles, detergents, movies, and clothing runs extremely high.
After all, standards can be defined and controlled strictly when the
product is produced entirely in one central location and can be
inspected before being presented to consumers. These brand
names deliver the highest level of consumer confidence. The
consumer may accept or reject the product; in either case, the
decision is made with a clear expectation about the performance or
level of quality of the goods.
Confidence in a product that is composed of a combination of both
good and service is somewhat reduced because part of the output
cannot be controlled in advance. A McDonald’s hamburger, bun,
lettuce, and tomato can be inspected before they arrive at a
particular franchise, but other inputs the actual cooking.
40
2.13 THE ROLE OF BRAND AWARENESS
41
Rossiter and Percy (1987) describe brand awareness as being
essential for the communications process to occur as it precedes all
other steps in the process. Without brand awareness occurring, no
other communication effects can occur. For a consumer to buy a
brand they must first be made aware of it. Brand attitude cannot be
formed, and intention to buy cannot occur unless brand awareness
has occurred Rossiter & Percy (1987); Rossiter et al. (1991). In
memory theory, brand awareness is positioned as a vital first step in
building the “bundle” of associations which are attached to the brand
in memory (Stokes 1985). The brand is conceptualized as a node in
memory which allows other information about the brand to be
“anchored” to it Aaker (1991b). The conceptualization of a network
of brand associations in memory with the brand as a central core
has been put forward by many others e.g. Keller 1993; Holden
(1993); Holden & Lutz (1992).
42
2.14 HOW DOES BRAND AWARENESS BENEFIT THE
MARKETING MANAGER?
Brand awareness should be an important goal of the marketing
communications efforts of a firm as it have a number of important
functions. It is widely acknowledged that without brand awareness
occurring, brand attitude and brand image cannot be formed.
However, equally important but less widely recognized is the
importance of brand awareness as a heuristic which can affect
inclusion in the consideration set, and in many situations may be
sufficient by itself to determine choice from the consideration set.
According Aaker (1991a, b) argues strongly the case for brand
building and maintaining brand equity; he cites brand name
awareness as one of four major brand assets which add value to the
product or service and/or its customers. Investments in brand equity
and in particular brand awareness can lead to sustainable
competitive advantages and thus to long term value. Brand
awareness can add value by Aaker (1991a,b.)
1. Placing the brand in the consumer's mind.
43
2. Acting as a barrier to entry to new unestablished brands.
3. Reassuring the customer of the organization’s commitment and
product quality, and
4. Providing leverage in the distribution channels (between
intermediaries and customers too, and are just as suspicious as
consumers are of unknown products) Aaker (1992)
44
However, there is difficulty in demonstrating the value of
assets such as brand awareness to managers. Aaker (1991a)
complains the problem is that, firstly, enormous pressure exists for
organizations and their brands to demonstrate short-term profit
results. Brand managers are often given a one to three year time
horizon and little incentive to make strategic brand building
investments. And secondly, demonstrating the long-term value of
brand building is "exceptionally difficult" Hogarth (1980), Aaker
(1991a). Even managers, who claim that they are concerned with
the brand building activities of their firm, find difficulty in gaining
support and resources for these activities. In the light of Aaker's
findings, a study by Kelly (1991) is very interesting. Kelly carried out
a series of interviews with Australian marketing managers. Many of
the managers he interviewed “maintained that their advertising was
directed towards building the longer term effects of favourable brand
image and strong brand loyalty”. Other managers were quoted as
saying that they “were not looking for short-term results” but that
advertising provides them with the opportunity “for corporate
branding and image building which is very much oriented to the
45
longer term” Kelly (1991 p.5.). In other words, these managers
claimed the long-term
goals of brand-building and brand image to be of greater interest to
them than short-term objectives such as sales. However this
research was based on discussion with managers, and might
obviously suffer from managers saying what they felt they should do,
rather than what they actually do, especially when talking to a
marketing academic.
46
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION:-
This chapter deals with Research Design, Population of the
Study, Sample and Sampling Techniques, Research Instrument,
Method of Data Analyses, Data Collection Procedure, Questionnaire
Assumption, Validity, Reliability and Historical Background of
Cadbury Nigeria Plc.
3.1 RESEARCH DESIGN
This research design adopted for this study is correlation
design. Correlation survey studies include all research projects in
which an attempt is made to discover or clarify relationship through
47
the use of correlation statistical method. According to Francis (2004)
it is a technique use to describe relationship between two variables
in mathematical terms. It is the descriptions of the degree of which
the variables under study are relate to predict each other in a
chosen population.
3.2 POPULATION OF THE STUDY
The study population consists of staff of Cadbury Nigeria plc
and the categories of workers in the population are: - Top Managers,
Executive Staff, Senior Staff and Junior Staff. Population in each
category is one hundred and one (101), two hundred and thirty six
(236) nine hundred and forty six (946) four hundred and six (406)
respectively. This amounts to one thousand six hundred and eighty
nine (1,689) staffs altogether.
Source: Cadbury Nigeria Plc (2010)
3.3 SAMPLE AND SAMPLING TECHNIQUE
48
These subjects are selected using deliberate sampling
technique or purposive technique. This is because motivation
process is typically administrative function.
According to Olusanya (2004), purposive selection of a
population, there are some elements that have certain
characteristics which are considered crucial to the study at hand and
this is of vital importance to the investigation to include those
elements in the sample.
In the light of this, sample is not restricted to a particular
category of staff. Hence, staffs that are capable of providing the
needed information for the study are selected. Thus, sample for the
population comprises (5) Top Managers, Eleven (11) Executives
Staff, Twenty Five (25) Senior Staff and Thirty Nine (39) Junior Staff.
Thus, total sample for the population is Eighty (80).
3.4 RESEARCH INSTRUMENT
49
The research measurement instrument used for this research
work is employee’s motivation questionnaire and personal interview.
The employee’s motivation questionnaire is in two sections one deal
with respondent bio- data while section two deals with research
oriented questions. Both sections are Eighteen (18) simple scale
questions on how staffs are being motivated in their present job.
There responses are range from: - Strongly Agree, Agree,
Undecided, Disagree, and Strongly Disagree.
Personal interview was also used to gather information that is
not covered by employee’s motivation questionnaire. This is to
complement the information needs of the research work.
3.5 METHOD OF DATA ANALYSIS
The data analysis that will be used in this research involves
the processing of the data from the questionnaire so as to make
meaningful in interpretation. The tables were used to give a clear
view of the distribution of the responsiveness give by our respondent
to each question in the questionnaire. The data will be analyzed with
the following:-
50
- Descriptive analysis:- This involve table and percentage. The
reason for using this kind of method is un availability of value
to be assigned to consumer decision.
- Statistical Technique which will be added by statistical
package for the social science (SPSS). This technique is
restricted to some inferential statistical technique which
include ordinary least square of regression analysis using a
simple regression model in the form:-
Y= ao + ai x + u
Specially the following functional relationships.
To access the application of information technology does not
significantly affect the achievement of organization objection.
OB= F (Cd, Cs, Mi, Qos)
Where:- OB= Organization objectives.
CD= Consumer decision
CS= Commitment of service
M= Motivation51
QOS= Quality of service by the employee.
The following linear equation were generated from the above
functional relationship.
OB= ao + a1 + cd + u1 ---------------------------------- 1
OB= bo + b1 cs + u2 ------------------------------------ 2
OB= co + C1m + U3 ----------------------------------------3
OB= do + d1 + QOS + U4 -----------------------------------4
Similarly:-
OB=go = g! cd + g2 cs + g3m + g4QOS + Ut
Ut = Error term.
It represents other factors that may influence dependent
variable Y apart from salary, working condition and skill that are
specifically inculcated in the model.
3.6 DATA COLLECTION PROCEDURE
52
The accuracy of any useful information depends largely on the
primary source of information. So this study depends mainly on the
collection and analyses of the results of records on effect if branding
in influencing buying decision from the journal published annuals
reports of Cadbury Nigeria PLC, News paper and the Nigeria trade
journals are other basis sources of data for the project.
To construct a good projects of this natural, the following
features of basic data deserve some consideration namely
Accuracy, Availability, Reliability consistence timeless adequate and
stability of the various data source. The basic aim of the data
collection procedure is to get worthwhile data for the problems as
defined. Data collection is consists presenting a structure to a
respondent and recording his or her respondent. The classification
of data is the primary and the secondary data.
a. PRIMARY DATA:- These are the date collected for first time for
their source to solve specific and current marketing problems under
study.
53
b. SECONDARY DATA:- These are the data previously and
published either from the current investigation. Primary data should
always be used in order to prevent the use of inadequate and
absolute data which are normally associated with secondary data.
Above principle was clearly spell out by Azika (2008) in which he
said “when satisfaction secondary data are not available the
researcher must collected primary data”. In a study a combination of
both respondents and secondary data were used. Questions were
asked and response got various respondent and books were
checked for some other facts. Azika (2008), a researcher has two
options to choose from in seeking information they either choose
questionnaire or observation method. According to Taylor, “There
are two principle method of obtaining data from respondents
Communication and Observation.
54
Communication requires their respondents to actually provide
the data verbal respondent while Observation requires the recording
of the respondent passive behaviour. “The most common source of
marketing is communication with respondent”. In the adopted
questionnaires method because it is appropriate in this situation
since factors which influence the analysis cannot observed.
3.7 QUESTIONNAIRE ASSUMPTION
The following assumption was held as regards the questionnaire
drawn up from the purpose of gathering information for further
analysis.
1. That respondent is willing to complete the questionnaire.
2. That information supplied on the questionnaire is true and
uncaused.
3. That the information, this gathered is the true representation
and could be conveniently used to generalized about the whole
population.
55
4. That such information are supplied with maximum of external
influence.
3.8 VALIDITY
Validity of a measure refers to the extent to which the
measurement process is free from both systematic and random
error. Validity is concern with questions that is the researcher
measuring which suppose to measure. There are four types of
validity. These are:-
1. CONTENT VALIDITY: - This involves accessing the
representatives of the response elected by the measuring
instrument.
2. CONSTRUCT VALIDITY: - This involves understanding the
measuring of the obtained measurements.
3. CONCURRENT VALIDITY: - This involves accessing the extent
to which the obtained score may be used to estimate an individual
represent standing with respect to some other variables.
56
4. PREDICTIVE VALIDITY: - This involves accessing the extent to
which the obtained score may be used to estimate in individual
future standing with respect to the criteria variable standing with four
above, I will use content validity to ascertain the extent to which the
information fought from the research work.
According to DANALD Et al “Conduct validity estimate are
essentially systematic, but subjective evaluation of the
appropriateness of the measuring instrument for the task at hand” I
have to evaluate the degree to which the items of the instruments
(Questionnaire) sample the contents of the attitude domain that is
the ideal of the researcher topic.
3.9 RELIABITY
57
Reliability of measurement refers to the extent to where the
measurement process is free from random errors. Reliability is
concerned with the consistency, accuracy, and predictability of the
researcher findings. There are three major methods of measuring
reliability, they are Test-Retest: Alternative forms and split half
method. For the purpose of this research, Test-Retest methods have
been employed. This method involves repeated measurement of the
same person or group using the same device under condition which
are judged to be very similar. the result of these findings is
compared to determine their similarity.
This method assures that the greater the discrepancy in
scores, the greater the random error present in the measurement
process and the lower the reliability.
3.10 HISTORICAL BACKGROUND OF CADBURY NIGERIA PLC
Cadbury Nigeria PLC operations started in the very early 50s;
in fact, it started, more or less like a trading outpost, sourcing Cocoa
as an input into chocolate factories in Birmingham. But that project 58
soon opened the way for an extensive market and by the end of the
decade we had already setup a packing operation for imported
manufactured goods. So Chocolate beverages, Bournvita and
pronto started being packed here in Nigeria. This operation went on
for about four years and it exposed the potential even further. As a
result, in the early 60s, 1964 more precisely, this factory was built
and started operations in January 1965. It started off as a company
wholly owned by Cadbury Schweppes.
The shareholding structure has changed overtime. Today,
Cadbury owns 40 percent of the company as the remaining 60
percent is owned by Nigerians of the 60 percent; about a third of it is
held by institutional investor while the rest is owned by individual
shareholder’s participation. These are insurance companies,
pension funds, fund managers. e.t.c.
The historical development of the business reflects the
evolution of the strategy. The focus in the early years was import
substitution. The economy was a planned economy, foreign
exchange was limited and controlled, licenses wee required for most
59
operations, and soon. The growth path then was import substitution
which meant that new product development and research where
focused on the utilization of local raw materials. In addition, that
strategy resulted in the creation of the cereal conversion facility
which uses sorghum grain in place of barley customer base and
channels to guarantee low cost service chains, with enhanced
consumer relations interphase.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 INTRODUCTION
60
In the previous chapter, attention was focused on the method
of obtaining data from related customer at Oja Tun Tun market
Ilorin. This Chapter introduce the result of survey conducted in the
topic “ the role of branding in consumer decision making, using
Cadbury Nigeria PLC as a case study. The main instrument for data
collection is questionnaire, while statistical technique were used to
analyse the dat based on the hypothesis and some other relevant
themes given in the earlier chapter.
A covering letter introduced the questionnaire and out of
eighty (80) questionnaire, fifty (50) were returned by the respondent.
Hypothesis is tested using simple percentage. Interpretation,
comment were also reacted at the end of the mathematical
presentation.
4.2 DATA PRESENTATION AND ANALYSIS
61
TABLE 4.2.1 AGE DISTRIBUTION OF THE RESPONDENTS
Frequency Percent Valid
Percent
Cumulative Percent
Below 20
yrs
6 12.0 12.0 12.0
21-30 yrs 24 48.0 48.0 60.0
31-40 yrs 2 4.0 4.0 64.0
41-50yrs 10 20.0 20.0 84.0
51yrs and above
8 16.0 16.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.1 shows that 6 respondent constituting 12% of the
population are below 20 years, 24 respondent which constituting 4
%of the population are between 31 – 40 years, 10 respondent
constituting 20% are between 41-50years and 8 respondent which
constitute 16% are above 51 years.
62
TABLE 4.2.2 SEX DISTRIBUTION OF THE RESPONDENTS
Frequency Percent Valid
Percent
Cumulative Percent
MALE 22 44.0 44.0 44.0
FEMALE 28 56.0 56.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.1 shows that 22 respondent which constitute 44% of the
population are Male, and 28 respondent which constitute 56 ٪ of the
population are Female.
63
TABLE 4.2.3 MARRITAL STATUS DISTRIBUTION OF RESPONDENT
Frequency Percent Valid
Percent
Cumulative Percent
Single 24 48.0 48.0 48.0
Married 16 32.0 32.0 80.0
Divorced 4 8.0 8.0 88.0
Window 6 12.0 12.0 100.0
TOTAL 50.0 100.0 100.0
Source: Field Survey 2010
64
Table 4.2.3 above indicate that 24 respondent which constitute 48%
of the population are Single, 16 respondent which constitute 32%
are Married, 4 respondent which constitute 8 % are Divorced and 6
respondent which constitute 12 % of the population are Widow.
TABLE 4.2.4 WHAT TYPE OF PRODUCT DO YOU PURCHASE
Frequency Percent Valid
Percent
Cumulative Percent
Bournvita 22 44.0 44.0 44.0
Goldee 8 16.0 16.0 60.0
65
Eclaire
Sweet
14 28.0 28.0 88.0
Other 6 12.0 12.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.4 above, it shows that majority of the respondent produce
bournvita which constitute 44٪of the population, 8 respondent
produce Goldee which constitute 16 ٪ of the population, 14
respondent which constitute 24 ٪ of the population produces Eclaire
Sweet, while 6 respondent which constitute 12٪ of the population
produce other products.
TABLE 4.2.5 FAMILY SIZE AND PRICE AFFORDABILITY INFLUENCE YOUR BUING
DECISION.
66
Frequency Percent Valid
Percent
Cumulative Percent
Strongly Agree
10 20.0 20.0 20.0
Agree 26 52.0 52.0 72.0
Undecided 4 8.0 8.0 80.0
Disagree 8 16.0 16.0 96.0
Strongly Disagree
2 4.0 4.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.5 above, it shows 26 respondent which constitute 52.0٪of
the entire, population Agree the family size and price affordability
influence your buying decision, 4 respondent which constitute 8 ٪ of
the population are not certain with their option, while no respondent
are Strongly Disagree that family size and price affordability
influence your buying decision.
67
TABLE 4.2.6 YOU HAVE ESTABLISHED BRAND LOYALTY TO CADBURY BEVERAGES
PRODUCTS.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
18 36.0 36.0 36.0
Agree 16 32.0 32.0 68.0
Undecided 4 8.0 8.0 76.0
Disagree 12 24.0 24.0 100.0
Strongly Disagree
- - - -
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.6 above indicate that, 34 respondent which constitute 68 ٪
of the population, Agree the establishment of brand loyalty to
cadbury beverage product, 4 respondent which constitute 8 ٪ of the 68
population are not certain with their option, while 12 respondent of
the population Disagree, and No respondent Strongly Disagree.
TABLE 4.2.7. CADBURY PROCUCTS ARE ALWAYS BROUGHT TO YOUR ATTENTION
THROUGH PROMOTIONAL MEANS.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
10 20 20 20
Agree 20 40 40 60
Undecided 10 20 20 80
Disagree 10 20 20 -
Strongly Disagree
- - - 100
TOTAL 50 100.0 100.0
69
Source: Field Survey 2010
Table 4.2.7 above, it shows that 30 respondent which constitute 60٪
of the population Agree that Cadbury products are always brought to
attention through promotional means, 10 respondent which
constitute 20 ٪ of the population are Undecided, while 10
respondent also which constitute 20 ٪ of the population Disagree
that Cadbury Product are not always brought to your attention
through promotional means.
TABLE 4.2.8 BRANDING OF A PRODUCT INFLUENCE THE TYPE OF A PRODUCT TO BUY.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
8 16 16 16
Agree 38 76 76 92
Undecided 2 4 4 96
Disagree 2 4 4 -
70
Strongly Disagree
- - - 100
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.8 above indicate that majority of the population 46
respondent which constitute 92 ٪ of the population Agree that
branding of a product influence the type of a product you buy, 2
respondent which constitute 4 ٪ of the entire population are no
certain about their option, and only 2 responden which constitute 4
٪ of the population disagree, that branding of a product influence
the type of a product you buy.
TABLE 4.2.9. CADBURY NIGERIA PROVIDES SALES SERVICE TO ITS CUSTOMER.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
8 12.0 12.0 12.0
Agree 10 20.0 20.0 32.0
71
Undecided 18 36.0 36.0 68.0
Disagree 12 24.0 24.0 92.0
Strongly Disagree
4 8.0 8.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.9 above, shows that 18 respondent which constitute
32.0٪of the Agree that Cadbury Nigeria provides after sales services
to its customer, 18 respondent which constitute 36 ٪ of the
population are not certain above the option and 16 respondent which
constitute 32 ٪ of the population Disagree that Cadbury Nigeria
provide after sales service to its customer.
TABLE 4.2.10. CADBURY NIGERIA PLC, CENTERS ON THE PROVISION OF GOOD BRAND
DECISION.
Frequency Percent Valid
Percent
Cumulative Percent
72
Strongly
Agree
4 8.0 8.0 8.0
Agree 30 60.0 60.0 68.0
Undecided 8 16.0 16.0 84.0
Disagree 4 8.0 8.0 92.0
Strongly Disagree
4 8.0 8.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.10 above, indicate that 34 respondent which constitute
68 ٪ of the population Agree that Cadbury Nigeria centers on the
provision of good brand decision, 8 respondent which constitute 16
٪ of the population Disagree that Cadbury Nigeria PLC center on the
provision of good brand decision.
73
TABLE 4.2.11. CADBURY NIGERIA PLC, LAID MORE EMPHASIS ON THE
PROVISION OF GOOD QUALITY TO CUSTOMERS.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
4 8.0 8.0 8.0
Agree 30 60.0 60.0 68.0
Undecided 8 16.0 16.0 84.0
Disagree 4 8.0 8.0 92.0
Strongly Disagree
4 8.0 8.0 100.0
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.11 Table above, shows that 34 respondent which
constitute 68٪ of the population Agree that Cadbury Nigeria Plc laid
more emphasis on the provision of good quality to customers, 8
74
respondent which constitute 16 ٪ of the population are not certain
about the option and 8 respondent which constitute 16 ٪ Disagree.
TABLE 4.2.12. BRANDING AFFECT CUSTOMER PURCHASING DECISION.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
4 8 8 8
Agree 42 84 84 92
Undecided - - - -
Disagree - - - -
Strongly Disagree
4 8 8 100
TOTAL 50 100 100
Source: Field Survey 2010
75
Table 4.2.12 branding affect customer’s purchasing decision, all the
respondent are some about the option and only 4 respondent which
constitute 8٪ of the population Disagree, that branding affect
customers purchasing decision.
TABLE 4.2.13 CUSTOMER REALLY ENJOY THE QUALITY OF CADBURY NIGERIA PLC.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
6 12 12 12
Agree 25 56 56 68
Undecided 14 28 28 96
Disagree - - - -
Strongly 2 4 4 10076
Disagree
TOTAL 50 100 100
Source: Field Survey 2010
Table 4.2.13 above shows that 36 respondent which constitute 56٪
of the population Agree that customers really enjoy the quality of
Cadbury Nigeria Plc, 14 respondent which constitute 28 ٪ are not
certain about the option and only 2 respondent which constitute 4 ٪
Disagree.
TABLE 4.2.14. CUSTOMERS RATE THE QUALITY OF THE CADBURY NIGERIA PLC
PRODUCTS.
Frequency Percent Valid
Percent
Cumulative Percent
Strongly
Agree
4 8 8 8
77
Agree 24 48 48 56
Undecided 18 36 36 92
Disagree - - - -
Strongly Disagree
4 8 8 100
TOTAL 50 100.0 100.0
Source: Field Survey 2010
From Table 4.2.14 above shows that 28 respondent which
constitute 48٪ of the population Agree that customer rate the quality
of the Cadbury Nigeria Plc product, 18 respondent which constitute
36 ٪ are not certain about the option, and 4 respondent which
constitute 8 ٪ Disagree.
TABLE 4.2.15. CUSTOMERS IMPROVE REAPT BUYING BECAUSE
OF GOOD BRANDING METHOD OF A CADBURY NIGERIA PLC.
78
Frequency Percent Valid
Percent
Cumulative Percent
Strongly Agree
14 28 28 28
Agree 18 36 36 64
Undecided 16 32 32 96
Disagree 2 4 4 -
Strongly Disagree
- - - 100
TOTAL 50 100.0 100.0
Source: Field Survey 2010
Table 4.2.15 above indicate that 32 respondent which constitute
64٪ of the population Agree that customer improve repeat buying
because of good branding method of a Cadbury Nigeria Plc, 16
respondent which constitute 32 ٪ of the population are not certain
about the option, and only 2 respondent which constitute 4 ٪ of the
population Disagree that customers improve repeat buying because
of good branding method of a Cadbury Nigeria Plc.
79
REGRESSION:-
TABLE 4.3.1
Model Summary
.301a .091 .072 .80352Model1
R R SquareAdjustedR Square
Std. Error ofthe Estimate
Predictors: (Constant), BRANDINGa.
source :- computer print out 2010
Table 4.3.1 shows the summary of the fitted model customer
branding and consumer decision, with R square vale of 0.91 or 91٪
or 91% This given the percentage variable in consumer decision
value explained by branding. This small percentage value of 9.1٪
shows that the model is not adequate.
The Test of significant is shown through ANOVA Table. It
shows that the fitted model, brand and consumer decision is
significant at 0.05 level of significant because from the table. The
significance at 0.034 and it is les than 0.05. the “F” calculated is
4.084 and from the “F” is less than 0.05 the “F” calculated is 4.084
and from the “F” table, the “F” tabulated is 4.08. since the “F”
80
calculated is equal, the implication in that branding improve the
consumer decision making in Cadbury Nigeria Plc product. The
coefficients of the fitted model (branding) (is 0.415; 3.004 consumer
decision making) shows that the fitted model is negatively related.
Table 4.3.2
Model Summary
.278a .077 .058 .86276Model1
R R SquareAdjustedR Square
Std. Error ofthe Estimate
Predictors: (Constant), PURCHASEa.
Table 4.3.2 shows the summary of the fitted Model (Branding
and Purchase) with the R square value of 0.077. this gives the
percentage variability in purchase as being explained by variability in
purchase as being explained by branding the small percentage
value of 7.7% shows that ha relationship between purchase and
branding unit adequate.
The ANOVA table gives the test of significance and it shows
that the fitted model purchase and branding is significant since our
81
volume calculated 0.058 is equal to 0.05. Also the “F” calculated is
4.018 and the “F” tabulated is 4.08. since the “F” calculated is
greater than the “F” tabulated, the Null hypothesis will be rejected
and the alternative hypothesis will be accepted. The implication is
that branding has influence the purchase level of Cadbury products.
The coefficients of the fitted model from table 4.2.3 shows the fitted
model (Branding 1. 694; 0.224 purchase).
4.3 HYPOTHESIS TESTING
i Ho:- Branding has not influenced the purchase level of Cadbury
products.
Hi :- Branding has influenced the purchase level of Cadbury
product.
Table 4.3.1
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ANOVAb
2.991 1 2.991 4.018 .051a
35.729 48 .74438.720 49
RegressionResidualTotal
Model1
Sum ofSquares df Mean Square F Sig.
Predictors: (Constant), PURCHASEa.
Dependent Variable: BRANDINGb.
Table 4.3.1 is used to test the above hypothesis the result of the
regression analysis when branding is regressed with purchase
shows 7.7% inadequate variability. The significant of the variable is
shows by the value of calculated “F” which is 4.018 and the value
of “F” tabulated is 4.08.
The tabulated “F” is equal to the calculated “F” therefore, the
alternative hypothesis will be accepted and the Null hypothesis will
be rejected. From the result of the regression, it shows well branded
products increase the purchase level of such products.
ii Ho:- Branding has not improve consumer decision making in
Cadbury Nigeria Plc products.
Hi: - Branding has improve consumer decision making on Cadbury
Nigeria Plc products.
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Table 4.3.2
ANOVAb
3.089 1 3.089 4.784 .034a
30.991 48 .64634.080 49
RegressionResidualTotal
Model1
Sum ofSquares df Mean Square F Sig.
Predictors: (Constant), BRANDINGa.
Dependent Variable: CONSUMER DECISIONb.
Source :- Print out 2010.
Table 4.3.2 is used to test the above hypothesis. The result of the
regression analysis when branding is regressed with consumer
decision shows 9.1% level of variability consumer decision in
respect to branding. This shows that relationship between the two
variable is not adequate. The “F” tabulated is 4.08 and the “F”
calculated 4.084. since the “F” calculated is equal to the calculated
“F” tabulated, the alternative hypothesis will be accepted and the
Null hypothesis will be rejected.
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CHAPTER FIVE
5.0 SUMMARY
The purpose of this research was to find out and examine how
branding has influence buying decision of the brands of Cadbury 85
products. It is also aimed at finding out how the branding has
improve the sales of Cadbury product such as bournvita, goldee etc.
Summarily, the research is out to find pertinent answers to questions
like:
- To determine whether branding has influencing buying decision at
Cadbury products.
- To determine whether branding has improved the sales of Cadbury
product.
In chapter two, experts view sought in different areas of
marketing that were relevant to the research. Moreover, lot of books
and journals were stitched to discover the views of various authors.
Chapter three explains the method used in data collection and best
of reliability and value ability. Two hypothesis were tested and their
result are analyzed and interpreted in chapter four. Chapter five
consists of the summary, conclusion and recommendation.
5.1 CONCLUSION
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This project studied the role of branding in consumer decision
making. The study also shows how branding improve the sales of
Cadbury products. Having carefully, interpreted the findings this
researcher is convinced that consumer are happy and accept
Cadbury products. These love for the products has enabled them
single it out of many products are even calling others attention to
new ones that might benefit them within Cadbury product products.
That consumer in most cases insists on the type and specific
product they want. That the brand name contributes significantly and
it serves as instruments to stimulate the consumer’s demand of
(bournvita) products of Cadbury Nigeria.
In the past, majority of consumers would not bother
themselves about a particular brand but for many similar product
that are tested and found not suitable in the market has now
necessitate the need to concern about a particular brand and hence
the brand selection. This development has made consumers to keep
on evaluate the quality of products on brand name or producer
image as a yardstick for quality.
87
Consequently, the researcher believes that the Cadbury
products has to a very reasonable extent meet the branding needs
of its consumer which result enabled its consumers to have a
favorable buying decisions. There is no doubt that that branding as
one of the tool used in marketing to stimulate consumers
acceptance of product have contributed immensely to the buying
decision of consumers of Cadbury products especially bournvita.
Moreover, in the area of beverages, where there are many
competitors which has led to over floating of market with different
types of similar products Cadbury have continued to maintain high
quality in branding of its products.
5.2 RECOMMENDATIONS
The researcher recommendation would be specifically
focused on the 4ps of marketing tools i.e product, place, price and
promotion since most effective marketing strategies are built around
these tools. Having taken a critical study of the topic, I hereby
recommend as follows;
88
1. That Cadbury Nigeria plc should ensure that their product is
properly branded in not to discourage potential customers and
consumers totally.
2. Cadbury Nigeria plc should improve the quality of their product
in order to encourage consumers in patronizing them. There should
be enough qualified personnel’s to provide this.
3. Cadbury Nigeria plc should embark on an extensive advertising
campaign since most Nigeria are not aware of their bournvita brand.
4. Move focus and work should be done by Cadbury Nigeria plc to
create awareness on her product especially bournvita and this could
be achieved through the following;
(a) Repackaging with solid material and it should be of high quality.
(b) Advertising as one of the communication tools in creating
awareness and introduction of the brand name in marketing strategy
and unique selling proposition.
(c) Sales promotion is another strategy that should be used by
Cadbury effective distribution is also recommended for adequate
89
coverage of the bournvita product. This would make the product
available in all territories.
REFERENCE
Aaker Da (1991): Management Brand Equity, Capitalizing on the
value of a brand name. New York City. Defining Brand
Expectations, Encyclopedia.
Adam Smith and Village Silver Smith (1776): Consumer Behaviour
(3rd Edition) Dryden Press, New York.
Baker, J. Michael; (1977): Marketing an introductory text, McGraw.
Hill inc. 3rd Edition
Evans and Berman (1978): Retail Management Publishing Co.
Aooriach. Macmillan Publishing Co.
Harold, W. B. (1978): Consumer Behaviour (3rd Edition). Dryden
Press, New York City.
Keller and Holden, Lutz (1992): The Role of Branding Awareness.
Kelly (2003): Marketing Research, Encyclopedia.
90
Marketing Bulletin, 2003, 14, Article 2. Reprinted from Marketing
Research On-line, 1996, 1, 1-15.
Olusanya (2004): Defining Consumer Behaviour.
Philip Kotler: (1986): Marketing Analysis Planning and Control 6th
Edition. Marketing Management, McGraw Hill Inc.
4th Edition.
Philip Kotler: (1997): Marketing Management, McGraw Hill inc. 4th
Edition.
Rossiter and Percy (1992): Encyclopedia.
Stanton, W: (1984 & 1986): Fundamental of Marketing, 6th Edition
McGraw Hill.
World Investment News (1999). Published in Forbes Magazine, Oct
18th Issue
http:// marketing-bulletin-massey.ac.nz
91
APPENDIX
QUESTIONNAIRE
Department of Business Administration,
University of Ilorin,
Ilorin,
Kwara State.
Dear Respondent,
92
I am a final year graduating student, Department of Business
Administration, University of Ilorin. I am writing a research on the role
of branding in consumer decision making; a case study of Cadbury
Nigeria Plc.
This research is in partial fulfillment of the award of B.Sc.
Degree in Business Administration. Hence your contribution and
corporation in answering will be strictly confidential and highly
appreciated.
Yours faithfully
SALAUDEEN ISHOLA JAMIU
SECTION A
PERSONAL DATA
Instruction to respondents: Please tick ( ) against the answer of
your choice from the alternatives provided below and fill the blank
spaces where necessary.
93
1. Age: (a) Below 20 years [ ] (b) 21-30years [ ] (c) 31-
40years [ ]
(d) 41-50years [ ] (e) 51 years and above [ ]
2. Sex: (a) Male [ ] (b) Female [ ]
3. Marital Status: (a) Single [ ] (b) Married [ ] (c) Divorced [
] (d) Widow [ ]
4. Educational Qualification: (a) Pry. Sch. Leaving Certificate [
] (b) SSCE [ ]
(c) OND [ ] (d) B.Sc [ ] (e) Illiterate [ ] (f) Others
please specify [ ]
5. Income Level: (a) Less than N5,000 [ ] (b) N6,000 –
N25,000 [ ]
(c) N26,000 – N75,000 [ ] (d) N76,000 – N100,000 [ ]
(e) N100,000 and above [ ]
SECTION B
6. Cadbury product is your favourite. (a) Strongly Agree [ ]
(b) Agree [ ]
(c) Undecided [ ] (d) Disagree [ ] (e) Strongly Disagree
[ ]
94
7. What type of product do you purchase? (a) Bournvita [ ] (b)
Goldee [ ]
(c) Eclaire Sweet [ ] (d) Others please specify
8. Family size and price affordability influence your buying
decision.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
9. You have established brand loyalty to Cadbury beverage
product.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
10. Cadbury Products are always brought to your attention
through promotional means.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
11. Branding of a product influence the type of product you buy.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
12. Cadbury Nigeria Plc provides after sales services to its
customer.
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(a) Strongly Agree [ ] (b) Agree [ ] (c)
Undecided [ ] (d) Disagree [ ] (e) Strongly Disagree [
]
13. Cadbury Nigeria Plc centres on the provisions of good brand
decision.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
14. Cadbury Nigeria Plc laid more emphasis on the provision of
good quality to customers
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
15. Does branding affects customer’s purchasing decision?
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
16. Customers really enjoy the quality of Cadbury Nigeria Plc
Products.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
17. Does customer rate the quality of the Cadbury Nigeria Plc
products?
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(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
18. Customers improve repeat buying because of good branding
method of Cadbury Nigeria Plc.
(a) Strongly Agree [ ] (b) Agree [ ] (c) Undecided
[ ] (d) Disagree [ ] (e) Strongly Disagree [ ]
97