CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Cadbury Nigeria Plc was incorporated in 1965, the company had only brand to its name: Pronto and Bournvita, but those were doing well indeed, infact the decision to incorporated a local Company by Cadbury Fry export, as the oversea company was then called, was informed partly by excellent result obtained from importing both products for sales within Nigeria.
Earlier in 1959, the company had begun to hold stocks locally and by 1963 sales had reached a level where the local packaging of bulk supplies where introduced. Local manufacturer before sighed decision that was pay off handsomely later. Viewed-from UK, Nigeria has before and immediately after independence was a rapidly expanding market with great potential in various filed of industry and commerce.
Some also saw the new nation through the merchant list’s viewpoint as available for very little investment. Cadbury Nig. Plc took off with local manufacturer of Bournvita and Pronto in 1965 and by 1966 a new factory site was situated at Isheri Road, IkejaLagos. Before then, expanded production facility at the company’s take-off base at Apapa had brought two other products (Goody Goody and Tomapep) out of the production line.
The Ikeja factory was fast-paced, but it was finished before the Nigeria Civil War brook out. For a while, the war itself threatened the very foundation of the young company since over 50% of the total turn over then came from the eastern states, fortunately, however, Government was place a band on imported finished food, drinks and suddenly Bournvita and Pronto, the only food drinks then manufactured in Nigeria, had the available market tothemselves.
Sales went through the roof and at least in Naira value terms have not stopped rising since then except for ‘a marginal drop in 1984, that was during the notorious years of import licenses. Speaking to shareholders on the company’s 1984 operations the chairman Mr. G.O. Onosode had said then, that the pressure on profit margin “came from the need to substantial qualities from basic raw materials…………….. From local importers in many cases at prices up to three times those that would have applies, had we been in possession of adequate licenses and in a position to import direct”
In recent time, “We have ensured a stable future in materials supplies for our company’s food, drinks and confectionery products, and put ourselves in a position where we can supply other manufacturing enterprises with some of their raw materials needs”.
The trebor brand now belongs to the Cadbury Nigeria portfolio of products, a strong addition to the existing seventeen (17) products with more on the way. The average number to the person including directors employed by the company during the year 1997 was 1,227 of whom only two are foreigners; while about 300 are senior staff, make up a work force whose watchword is the pursuit of excellence for them and for the company.
Advertising being one of the marketing tools, it is so persuasive now that it has become a very vital part of most organizations heritage in promoting their products. To this end, this study advertisement on consumer behavior.
1.2 STATEMENT OF THE RESEARCH PROBLEM
It has been observed that manufacturers of consumer products are faced with one problem or the other when making their advertising decisions. There are some factors that are to be considered in realiazing a good advertising decision.
Advertising can betray its role as a source of information by misrepresentation and by withholding relevant facts. Sometimes, too, the information function of media can be subverted by advertisers’ pressure upon publications or programs not to treat of questions that might prove embarrassing or inconvenient.
The practice of “brand”-related advertising can raise serious problems. Often there are only negligible differences among similar products of different brands, and advertising may attempt to move people to act on the basis of irrational motives (“brand loyalty,” status, fashion, “sex appeal,” etc.) instead of presenting differences in product quality and price as bases for rational choice.
Advertising can be tasteful and in conformity with high moral standards, and occasionally even morally uplifting, but it also can be vulgar and morally degrading. Frequently it deliberately appeals to such motives as envy, status seeking and lust. Today, too, some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature.
On this note, this project tends to provide solutions to how advertisements could be presented to avoid false / bad interpretation.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of this research is concerned with the impact of advertising on consumer behavior in Nigeria with the following objectives:
· To determine the extent to which advertising has created product awareness
· To determine the benefits of advertising to Cadbury Nigeria Plc.
· To know whether advertising has encouraged brand loyalty among consumers
· To find out whether advertising has being able to influence the consumers.
· To find out whether it has helped the company to provide customers with useful information as their products.
· To find out the receptivity of advertisement due to appeal used in it.
· To explore the impact of personality used in advertisements on consumer behavior.
· To determine the impact of keyword/caption of advertisement on purchasing behavior of consumer.