CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The practice of marketing is a crucial human invention. It is set of activity which facilitates exchange transaction involving economic goods and services for the ultimate purpose of satisfying human needs (Ihionkhan, 2008).
Sellers and buyers sought to understand each others needs, wants, capacity and psychology with the goals of getting the exchange of goods and services to take place. Such meeting place embodied many aspects of today’s marketing methods such as marketing planning and strategy.
The role of marketing planning and strategy on sale cannot be overemphasized in a hostile and increasing competitive environment. The ability of any business organization like Nigerian Bottling Company Plc, Benin City to achieve profitable sale is impacted by effective and efficient marketing planning and strategy.
According to Dale et al (1995), marketing planning is simply a logical sequence and series of marketing objectives and the formulation of plans for achieving them while marketing strategy is the process which involves not only the coordination of the traditional element of the marketing mix but also the other organizational functions.
Marketing planning and strategy is a specialized management function involves the setting of marketing goals and objectives, implantation and evaluation of marketing plans, developing, package, pricing, distribution, promotion, marketing research and sales forecasting.
The overall purpose of marketing planning and its principal focus is the identification and creation of competitive advantage (MC Donald, 1984).
Business organizations generally go through some kind of management process in developing marketing planning and strategy. However, this research will investigate the marketing planning and strategy in Nigerian Bottling Company Plc Benin City.
A marketing strategy is a method by which a firm attempts to reach its target markets. Marketing strategy starts with market research, in which needs and attitudes and competitors’ products are assessed and continues through into advertising, promotion, distribution and
where applicable, customer servicing, packaging, sales and distribution. Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost. However, quantifying the return on investment from marketing expenditure on activities such as advertising, promotion and distribution is one of the most complex issues facing decision makers. Marketing performance is central to success in today’s fast moving competitive markets, and measuring marketing’s performance is critical to managing it effectively.
1.2 HISTORICAL PROFILE OF NIGERIAN BOTTLING COMPANY (NBC)
The Nigerian Bottling Company Ltd is one of the biggest companies in the non-alcoholic beverage industry in the country and is the sole franchise bottler of The Coca-Cola Company in Nigeria.
The company serves approximately 160 million people by producing and distributing a unique portfolio of quality brands, bringing passion to marketplace implementation, and demonstrating leadership in corporate social responsibility.
NBC Ltd started operations in Nigeria in 1951. Based in the city of Lagos, they operate 13 bottling plants across the country. In addition, they channel products through 59 warehouses and distribution centers.
The company employs about 4,800 people and indirectly supports the jobs of up to more than a million more in our value chain.
The company aims to be our customers’ most preferred supplier, and conduct programmes to support more than 450,000 customers who sell our products to consumers.
The company is part of the Coca-Cola Hellenic Group, one of the largest bottlers of the Coca-Cola Company’s products in the world, and the biggest in Europe. Coca-Cola Hellenic operations span 28 countries, serving more than 570 million people. The company is headquartered in Athens and listed on the Athens, New York, and London stock exchanges.
The company produces, sells and distributes a wide range of beverages, most of which are trademark products of the Coca-Cola Company. The company product’s portfolio consists of:
leading brands Coca-Cola, Coca-Cola light, Fanta and Sprite local brands such as Schweppes, Five Alive, Limca and Eva
The company continuously reviews opportunities to expand our product portfolio in order to offer consumers in Nigeria an increasing range of choices. Every measure is taken to ensure that The company’s products are of the highest quality.
1.3 STATEMENT OF THE PROBLEM
Marketing planning and strategy is used virtually by various business organizations. In most cases, there is always a problem in analyzing and evaluating the usefulness of marketing planning and strategy in an organization. Some of the key issues to address are:
1. To verify if the strategic steps are being adopted by the company to obtain their set goals and objectives.
2. Another major problem is the inability to identify the result of any given plans. Since planning can only be valued when economic and their market condition pose challenges to managers.
3. The poor method of marketing planning and strategy by the company in achieving their marketing activities.
4. To verify if marketing planning and strategy is in operational.
5. To ascertain whether or not marketing planning and strategy is one of the key corporate survival in the long-run.
6. To determine whether strong competition to make marketing planning in an organization look like a wasteful exercise.
7. To determine whether marketing strategy encompasses selecting and analyzing a target market.