CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years many organizations have been using brand positioning to differentiate and segment their brand (product) among competitive product categories.
Ovaltine was first introduced in the 1gth century in Birmingham United kingdom where it was produced before it was imported into Nigeria along side other malt beverage like pronto and malvota etc. The name Ovaltine was gotten first from the word Bornoille “Ville” meaning vitality hence the Ovaltine.
Pre-1950s Ovaltine, pronto were imported into Nigeria from united kingdom that is during the colonial rule and in 1960-64, Ovaltine, pronto were imported into Nigeria from united kingdom and canned in Nigeria under the license of Cadbury Nigeria Plc.
In 1965, Ovaltine and drinking chocolate were already produced locally, due to the civil war the ban an importation of cocoa beverages affected Ovaltine and gave way for Cadbury Nigeria Plc who took advantage of this to strengthen the position of Ovaltine.
Ovaltine enjoyed the market share until 1970 when the ban on cocoa importation was lifted and Ovaltine, Milo, vita cup etc re-remerged there by reducing Ovaltine market share. Ovaltine introduce the 9009 which stipulated growth again.
Ovaltine observed an increase competitive activity amongst key players, but still maintained its market leadership till the mid nineties. In the past years, the popularity of Ovaltine has been in question. Hence the researcher hereby attempt to find out the significance of brand positioning in marketing activities using Ovaltine as a case study.
1.2 STATEMENT OF RESEARCH PROBLEM
Most food drinks industries have not been successful because they lack understanding of consumer behaviour and the resultant effect is decline in their expected profit.
This is why several criticisms have been made against then. This research will be able to provide answers to the following questions.
1. Do consumers prefer Ovaltine to other food drinks produced by Cad bury?
2. Do consumers prefer other brands of beverage of other companies to Ovaltine?
3. Is the price of Ovaltine reasonable as a factor for
purchase?
1.3 OBJECTIVES OF THE STUDY