THE EFFECT OF BRANDING AND TRADEMARK ON SALES VOLUME OF COCA-COLA DRINKS (A STUDY OF NIGERIA BOTTLING COMPANY, OWERRI)

ABSTRACT

Product branding and trademark has become one of the major tools for enhancing efficient marketing in the present competitive market.  This study, therefore delved into the investigation of the effects of branding and trademark on sales volume of coca-cola products in Owerri, Imo State.  The major objective of the study was designed to evaluate the effect of socio-economic variables of the respondents, and how these and promotional strategies can influence the buying decisions of the target market.  In the research process, a sample size of 133 was adopted from the population of 200, using Yaro Yamen’s method.  Data were collected with questionnaire, analyzed with simple percentages and presented in tables.  The study hypotheses, were that socio-economic characteristics, pricing, promoting strategies and sales volume were not affected by branding and trademark.  However, these hypotheses were tested using multiple regression and chi-square.  It was concluded, after the analysis, that product branding and trademark affects the company sales volume and profitability.  Thus, the study recommends that contemporary firms should adopt product branding and trade mark.  This is because it does not only have positive effect on sales volume and profitability, but also in gaining competitive advantage. 

TABLE OF CONTENTS

Title page ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ i

Declaration ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ ii

Certification ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ iii

Dedication ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ iv

Acknowledgement ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ v

Table of Contents ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ vi

List of Tables ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ viii

Abstract  ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ x

CHAPTER ONE

INTRODUCTION

1.1 ﾿ Background of the Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 1

1.2 ﾿ Statement of Problems ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 2

1.3 ﾿ Research questions ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 3

1.4 ﾿ Objectives of Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 3

1.5 ﾿ Research Hypothesis ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 4

1.6 ﾿ Significance of Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 4

1.7 ﾿ Scope of Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 5

1.8 ﾿ Limitation of the Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 6 ﾿

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 ﾿ Theories Relevant to the Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 7

2.2 ﾿ Brand Management ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 9

2.3 ﾿ Brand Name Decisions ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 14

2.4 ﾿ Fundamental Requirements in Selecting a Brand 

name and Trademark ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 16

2.5 ﾿ Benefits of Application of Product Branding Trademark ﾿ 17 ﾿

2.6 ﾿ Environmental and Social Challenges of Branding 

on the Consumer Behavior ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 19

2.7 ﾿ The Role of a Product as an Effect of Branding ﾿ 19

2.8 ﾿ Promotional Advantages of Branding through 

Utilitarian Appeal ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿   20

2.9 ﾿ The Role of Price in Brand Evaluation and Management ﾿   21

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 ﾿ Research Design ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 23 ﾿

3.2 ﾿ Area of Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 23 ﾿

3.3 ﾿ Data Sources ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 26

3.3 ﾿ Population of the Study ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 26 ﾿

3.4 ﾿ Sampling Plan ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 27

3.5 ﾿ Sample Size ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 27

3.6 ﾿ Administration of Instrument ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 28

3.6.1 ﾿ Questionnaires ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 28

3.7 ﾿ Validity and Reliability ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 29

3.8 ﾿ Data Presentation and Analysis Percentages ﾿ - ﾿ 29

3.9 ﾿ Description of Data Analysis Instrument ﾿ - ﾿ - ﾿ 29

3.10 ﾿ Data Analysis and Hypotheses Testing ﾿ - ﾿ -  ﾿ 30

CHAPTER FOUR

DATA ANALYSIS AND HYPOTHESIS TESTING

4.1 ﾿ Questionnaire Administration ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 32

4.2 ﾿ Socio-economic Characteristics of Respondents ﾿ - ﾿ 33

4.3 ﾿ General Data Gender ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 35

4.3 ﾿ Hypothesis Testing ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 44

4.3.1 ﾿ Hypothesis One ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 44

4.3.2 ﾿ Hypothesis Two ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 46

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 ﾿ Summary ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 50

5.2 ﾿ Conclusion ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 51

5.3 ﾿ Recommendations ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 52

References ﾿

Glossary ﾿

Questionnaire

LIST OF TABLES

Table 4.1: Questionnaire Administration ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 32

Table 4.2: Qn.1: ﾿ Sex of respondents ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 33

Table 4.3:Qn. 2: ﾿ Age of respondents ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 33

Table 4.4: Qn. 5: Educational Qualification ﾿ - ﾿ - ﾿ - ﾿ 34

Table 4.5: Qn.6: ﾿ Household size ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 34

Table 4.6: Qn.1: ﾿ The products of your company ﾿ - ﾿ - ﾿ - ﾿ 35

Table 4.7: Qn 2: ﾿ Whether your products have Trade Marks ﾿ - ﾿ 35

Table 4.8: Qn. 3: Whether your company applies branding ﾿ - ﾿ 36

Table 4.9: Qn. 4. The brand names of your products ﾿ ﾿ - ﾿ - ﾿ 36

Table 4.10: Qn. 5:Whether your company encounters ﾿

any problem as a result of product branding ﾿ - ﾿ 37

Table  4.11:Qn:6: Whether your company apply market segmentation  

in the marketing of your products ﾿ - ﾿ - ﾿ - ﾿ 37

Table 4.12: Qn 7: Identify the bases used ﾿ - ﾿ - ﾿ - ﾿ 38

Table 4.13: Qns 8 and 9: Problems encountered as a result of 

market segmentation ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 38

Table 4.14: Qns 11 and 12: The adoption of product differentiation 

and product feature used ﾿ - ﾿ - ﾿ - ﾿ 39

Table 4.15: Qn 13: Whether product differentiation is a competitive 

tool in the marketing of coca-cola products ﾿ - ﾿ 39

Table 4.16: Qn 14: The strongest influence in choosing the 

(product) brand of your choice ﾿ - ﾿ - ﾿ - ﾿ 40

Table 4.17: Qn 15: Any positive relationship between product 

branding and customer loyalty ﾿ - ﾿ - ﾿ 41

Table 4.18: Qn 16: Does it increase sales ﾿ - ﾿ - ﾿ - ﾿ 41

Table 4.19: Qn 17: Monthly turnover ﾿ - ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 42

Table 4.20: Qn 18: Initial capital invested ﾿ - ﾿ - ﾿ - ﾿ 42

Table 4.21: Qn 19: Whether product branding increases                 profitability and the rate ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 43

Table 4.4.1: ﾿ Estimate of monthly Marketing Expenditure ﾿ - ﾿ 43

Table 4.4.2: ﾿ Summary table of regression results of product branding and relative factors that influence              monthly sales (turnover) and profitability in the cosmetics manufacturing firms ﾿ - ﾿ - ﾿ 45

Table 4.4.2 ﾿ Observation frequency ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 47

Table 4.3.3 ﾿ Expected Frequency ﾿ - ﾿ - ﾿ - ﾿ - ﾿ 48

Table 4.3.4 ﾿ Contingency Table ﾿ - ﾿ - ﾿ - ﾿