ABSTRACT

This research work is a study of consumer brand preference for soft drink beverage drinks in Enugu metropolises. A case study of coke, sprite, Pepsi cola and Seven-up the products of Nigerian bottling company plc and Sevenup bottling company plc—the two giants in non alcoholic beverage industry the world over. However, the study investigated into most of the main factors responsible for the preference of one brand of product over another. Hence, price, constant availability, promotion {advertising}, role of middlemen, attitude of the sales personnel, etc as they affect brand preference were explored. To achieve this, two tentative hypotheses were made to guide the researcher in the course of exploring the subject. The researcher made use of both primary and secondary sources for data used. Hence, the responses of respondents as contained in the questionnaires distributed, the present and past records of Nigerian bottling company plc and that of Seven-up bottling company plc as related to the literature of this study, Marketing textbooks, journals, magazines and unpublished research works of some scholars. Furthermore, in the methodology, the researcher made use of method of research, determination of population and sample size, sapling technique, instrumentation, validation and reliability of instruments, method of administration of instruments, and method of data analysis to obtain reliable information with regards to the study. Survey via interview using questionnaires was carried out with the Sales executives or managers of Nigerian bottling company plc and that of Sevenup bottling company plc, the distributors and consumers of soft drink beverages in Enugu metropolises. Data collected were consequently analyzed using tables, pie charts, and bar charts. Thereafter, the hypotheses formulated were statistically tested by the use of Binomial test.

The following results were accepted after the test;

that there is no significant different in the extent to which coke and sprite were consumed in comparison with Pepsi cola and Seven-up. -that the price of coke and sprite are significantly higher than that of Pepsi cola and seven-up. Based also the findings which were discussed, some recommendations were made. They include:

{1} that competition on {coke + sprite} and {Pepsi + seven-up} be redressed for the survival and continuous preference of the products by the consumers.

{2} that the distribution system or network of Seven-up bottling company plc should be maintained while that of Nigerian bottling company plc should be addressed.

{3} that more emphasis should be laid on consumer education or reorientation on the real or true nature of soft drink beverage as the notion that soft drink is an antidote or performance enhancing drug by majority of the consumers are hazardous to health.

{4} that middlemen handling the products especially coke and sprite should as a matter of seriousness be more reliable in their dealing with the consumers.

{5} that since consumer’s preference of a product is very essential to any firm or company, Nigerian bottling company plc and Seven-up bottling company plc should do everything possible to ensure that the consumers of their respective soft drink beverages are always happy and satisfied. This they can achieve via consumer education, favourable prices, sports promotions and sponsorships, cultural and academic promotions, and other social responsibilities. Finally, the researcher made some suggestions for further research in the areas based mainly on the scope of the study and issues therein, thus:

A comparative study of consumer brand preference for soft drink beverages in Enugu metropolises; A case study of coke, sprite, fanta, pepsi cola, seven-up, merinda etc.

• Effect of competition on coke + sprite and Pepsi + seven-up.
• Effect of distribution on coke + sprite and Pepsi + seven-up loyalty.
• Effect of price in competitive marketing.
• Effect of promotion on brand preference of consumers.
• Impact of middlemen in positioning coke + sprite and Pepsi + sevenup.
• Effect of reference group on brand preference of consumers.

CHAPTER ONE

INTRODUCTORY OVERVIEW

INTRODUCTION

In our economy today, want satisfaction has generally replaced the necessity of fulfilling only basic physiological requirements. This, however, has in no small measure exposed Nigerian consumers who by the virtue of circumstances are becoming more aware and enlightened to numerous influences. This in effect propels them to develop or build a preference for a particular product.

Interestingly, studies have shown that the contemporary Nigeria consumers are also becoming more rational and speculative in their spending. Thus, they will only spend on products they believe will maximize their satisfaction. Consequently developing penchant or preference for those products they believe will maximize their utility.

Also, the crucial and controversial nature of competition and market interactions (especially in the soft drink beverage market) which portray both opportunities and threats for all the players is interesting. Interesting because consumers who hold the key to success or failure of any product are greatly influenced to decide either for or against a product. The role of middlemen in the distribution and generally logistics at different times have been shown to be a factor of great influence to the level of utility derived by consumers of soft drink beverage drinks. Thus, constant and or consistent availability in a competitive market is of great importance. This is because product availability creates an unquantifiable impact in the minds of the customers often constraining, motivating or persuading their preference of the product(s), their prices and or qualities most – times notwithstanding.

Statistics have shown that majority of Nigerian consumers are poor. This was associated with the nation’s present economic state, which as quoted by the International monetary fund {IMF} was in a state of quagmire (bog). Consequently, it would not be surprising if the poor consumers prefer products their purchasing power could afford. In other word, price to a certain degree influences the preference of a product by consumers. Nevertheless, it has been logically proved that taste and preference of a product are factors of the consumer’s individual tastes and idiosyncrasies.

Nevertheless, the topic of this research study stemmed from the researcher deep desire to personally investigate into the success of Nigerian Bottling Company Plc and Seven Up Bottling Company Plc with respect to the preference of their soft drinks (Coca cola, Sprite and Pepsi cola) by consumers. This desire, however, was reinforced when the researcher observed majority of soft drink consumers opting for Coke, Sprite or Pepsi cola against similar brands. The researcher’s imagination of the above will continue to hover until the root cause(s) is/are unraveled at the end of the investigation.

1.2 STATEMENT OF THE PROBLEM

The ever dynamic nature of Nigerian consumer market has abinitio both opportunities and threats to the producers of consumer goods. Unfortunately, Nigerian Bottling Company Plc and Seven up Bottling Plc the bottlers of Coke, Sprite and Pepsi cola respectively were no exceptions.

The deplorable economic state of Nigeria has been very instrumental in subjecting most Nigerian Consumers to live below poverty line. Although most companies, especially the ones under study have geared efforts towards revamping the economy in their respective small ways as well as embarking on a comprehensive consumer education for a purported positive effect on its marketing effort, nothing spectacular has thus far happened.

The roles of middlemen in constantly or consistently making the products available in the market for the consumers leave much to be desired.

This inconsistent availability of the products in the market has constituted a source of deterrent for the effective marketing of the products. Competition amongst soft drink producing companies in Enugu has been stiff. Consequently they sometime go outside their ways to make sure they keep the patronage of the customers.

The promotional messages of both companies (NBC Plc and SUBC Plc) with respect to the real or true nature of Coke, Sprite and Pepsi cola seem reliable and convincing. Although, they have not been able to achieve much in re-orientating the perceptions of the consumers with respect to the true nature of Coke, Sprite and Pepsi cola.

The variable factors responsible for the preference of Coke, Sprite and Pepsi cola against similar brands by Nigerian soft drink beverage consumers have nonetheless defied the reasoning of many consumers and producers alike. Hence, the need for this study.