THE COMPARATIVE ANALYSIS OF CONSUMER PREFERENCE FOR THREE DIFFERENT BRANDS OF BEER IN LAGOS METROPOLIS (A CASE STUDY OF STAR, HARP AND 33 EXPORT).

CHAPTER ONE

INTRODUCTION

1.1.  Background Of The Study

Back in the earlier days emphasis was laid on the production of large qualities of product of their lower cost (ueagba 1995:21) it was then felt that all that the manufacturers needed to maximize profit that was to produce large qualities of these goods at the lowest possible cost. Since what the buyer needed was the availability of the goods of the lowest prices.

This concept production could have been appropriate where:

1. Demand exceeds supply and buyers are prepared to buy any product they can see and
2. Whose the cost of production and the prices goods are high and should be brought down to win more customers are increase profit.

These conditions were really prevalent in the pre-industrial era.

The production concept further assumes

1. That buyers are primarily interested in the availability of product at low price
2. That they know the price of competing brand and
3. That prices are only attributes important to buyers (Udeagba 1995:21)

The industrial revolution and the attendance mass production of cheap manufactured goods resulted in the proliferation of poor quality goods of all sorts. This in turn led to the rejection of these goods by consumers and the subsequent pilling up of large stock of inventory in shops and factory warehouse. the need to tackle these problems opened way for a new business philosophy the product concept emphasis is on high quality of goods technical excellence, reliability, durability are performance.

According to Kotler (1983 p. 16) the product concept hold that consumers will favour those products that after most quality, performance feature and therefore, the organisation should deviate its energy to marketing continous product improvements.

We can deduce that this concept is based on the following consumption.

1. That consumer’s pay for product rather than solution to their problem.
2. That they are primarily interested in the quality of these product.
3. The introduction of factory system of production, which widened the communication, gaps and service with the result that the farmers knowledge of the later drastically reduce or even disappeared. the marketing concept was a meant of bridging this gap and
4. Finally, the growth of an affluent society in Europe and north America that followed full employment in these nation’s at the end of second world war made the production of new and better products (better in the sense of being able to satisfy physiological as well as psychological needs) imperative the emphasis shifted to consumer oriented philosophy, marketing stars with research about the consumer in order to generate producer idea. it then goes through product planning and development product privacy promotion and distribution or replacement and ends only after is assurance that the consumer has been found satisfied with his or her purchase (Udeagha 1994:25).

According to staton (1981: p. 10) The consumer want satisfaction is the economic and social justification of a company existence. He went further in a complex and competitive business environment of today’s may.

Thus, it recognition of the above that products in the Nigeria market are being faced to the dance to the tune of the consumers by providing the products that best satisfy them at a competitive price with the right promotion and at the right place they are needed.

For the purpose of the investigation, we will restrict our horizon in the alcoholic beverage industry represented by the Nigeria breweries Plc, markets of Guiness  staut, Harp larger beer, Godons speak and consolidate breweries Plc makers of 33 export larger beer.

Star larger beer, harp beer and 33 export larger beer in Nigeria breweries, consolidate breweries respectively were considered.

The  recent modification are remodification, positioning are representing heavy promotional companies and event marketing of the chosen brand and their populate among the Lagos market are the reasons why these brand were selected among other brand in the market.

It is therefore a situation like this that calls for an in depth understanding of the consumers and their behavior when presented with the buying decision. it is only an adequate knowledge of consumers which this study will buttress, that will enable the producers, marketers of the alcoholic beverages develop product and services failure to the need of their target market. it might equally serve in the delimitation of the maker into segments and each segment / target served adequately with single but comprehensive product where at least all most of the required attributes we faced.

A consumers purchase decision and brand choice are unpredictable and erratic. This makes the job of a marketer more demanding. many factors should play significant role in consumer purchase decision. It would be very beneficial if marketers could trace the attributes of the product (beer in this circumstances) that attract consumers more in making brand choice when presented with two or more seemingly similar products.

It is pertinent, therefore that attention should be paid on identification of the major variable like product attributes, price distribution and promotional activities that exert greatest influence on consumer brand preference for beer using star, harp and 33 export brand.

1.2.  Statement Of The Problem

Over the years marketers have been faced with the difficulty of identifying those particular factors that motivate a consumer to prefer one brand of a product to another. the challenge is always more complex where the brands under consideration have very slight difference and yet consumers prefer one to another. prominent among the attributes generally put into consideration is brand choice determination for beer product are: quality, price, availability, alcoholic content, brand name, promotional impact and perceived benefit yet there are other salient factors that play role in brand choice determination.

In Nigeria, there has been rapid expansion in the alcoholic beverage industry. a large proportion of the youths and old alive are getting more interested in the consumption of the beer products, equally the multiplicity  of restaurant in many cities has made it easier for people to take it at their convenient time.

There has been a great scrambling by manufacturers of beer for consumers in the recent time and  each company struggle to get the largest share of the market. in order to achieve this, the knowledge of the consumers needs and  want serving than better than other competitors became very prominent efforts should, therefore be made to identify the attractions a consumer has on a producer’s product and improvement made upon them.

To probe what makes a consumer prefer one out of two or more competing product requires a study of consumer preference for different brand of a product and not the other. In view of the fact that there are different competing brands of beers in the market and each has a share of the market makes this study complex but interesting as to know why we brand of beer is preferred to other in the face of almost similar brand attributes of other product in question viz: Star, Harp and 33 export larger beer.

The researcher would as much went to determine if export from quality price and availability of the products the concept of individual differences “such as personality, perception, learning and attitude” packaging promotional activities have major influence in the consumer purchase pattern and hence the building of brand loyalty.

1.3.  Objective Of The Study

The main objective of this study is the analyse consumer preferences for three different brand of Beer Harp, Star and 33 exports.

The specific objectives are:

1. To find out the classification of beer drinker (sex, income, age)
2. To find out the most preferred beer attributed by the consumer.
3. To determine the most preferred beer harp, Star and 33 exports larger beer.
4. To determine whether price high or low affect brand choice decision.
5. To determine the influence of sales promotion on brand choice decision.

1.4.  Research Questions

1. What are the classification of beer drink (sex, income, larger beer)
2. What is the most preferred beer Harp, star and 33 larger beer?
3. What is the most preferred beer attributed by consumers
4. Does price high or low affect brand choice decision?
5. Does sales promotion on brand choice decision

1.5.  Significance Of The Study

A consumers want satisfaction is the economic justification of a company’s existence situation, No doubt the building of brand loyalty through brand preference is the goal of every manufacturer since consumers patronage and repeat purchase ensure profitability and eventual growth of the organisation.

in this regard, it is hoped that the findings of these study will benefit many organisation speciality those in the beer brewery industry but most importantly the product of star, harp and 33 export larger beer knowledge of the factor that influence consumers to prefer on brand of beer to another will from the bulk or the marketing programmes of the concerned producer to order to satisfy their consumers betters.

The study will equally stand a marketing, information which when effectively used, places a company in a competitive adequate over other.

The study, in addition will serve as a guide exposing negative aspects of each firms offering and make some recommendation that will be of benefit to both the consumers and the firms the consumers will get value for their money and the producer, loyalty profit and growth.

1.6.  Scope Of The Study

This study is limited to Lagos metropolis for a number of reasons.

Firstly, Lagos is a city that harbours people from different socio-cultural, economic and religious background in addition, all the economic classes are represented adequately. it is therefore an opinion of the researcher that a study conducted in this environment will give a relevant data for the study.

Secondly, all the companies under study either have the plants in Lagos island, Ikayi, Ebute meta festac town, Apapa, Surulere, Mushin, Okota Ojelegba, Agege, Egbede-Akunwanjo and Oshodi

1.7.  Limitation Of The Study

In the course of this study, a lot of limiting factor constrained the researcher to limit the study to Lagos metropolis instead of a wider area of study.

First among these constraints was finance: A large sum of money is required for a wider coverage area of study.’

Secondly, Time hugely affected the executive and completion of this study. time for the distribution and collection of the questionnaire was enamour

these limitations notwithstanding, the study will at the end achieve its purpose study why consumers prefer one brand of beer to another

1.8.  Definition Of Terms

The term used in this study, which have unique meaning that could be subjected to different interpretation by different reader of this project report are defined as follows:

PREFERENCES: A greater liking for one alternative over another or others.

BRAND: A type of product manufactured by a company under a particular name

QUALITY: It is the standard of something as measured against other things of a similar kind.

Availability: Process of having the goods and service

DEMAND: It is the desire of purchase for a particular goods or service

ATTRIBUTE: Things consumers see in a particular product that make them prefer it than another of the same product e.g quality, price, package etc

Brand Loyalty: It shows the consumers loyal to a brand of product and not the other.

PACKAGING: It shows how the goods is being wrapped or packed for sales

PURCHASE PATTERN: The way in which consumer purchase the product e.g festive period, raining season.

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