Project – Marketing strategies and consumer purchase behaviour of selected product. A study of Peak Milk, Nigeria.
CHAPTER ONE
INTRODUCTION
- Background to the Study
Peak Milk, a product of FrieslandCampina WAMCO, has been a leading brand in the dairy industry for several years. Its marketing strategies have significantly influenced consumer purchase behaviour. According to Aaker (2010), the company has employed a mix of demographic, geographic, and psychographic segmentation strategies to reach out to a broad customer base. The brand has also used a differentiated targeting strategy to cater to the needs of different customer segments.
One of the key marketing strategies of Peak Milk is its strong advertising and promotional activities. The brand has leveraged various media channels, including television, radio, print, and digital media, to create awareness and generate interest among consumers (Kotler & Armstrong, 2012). These promotional activities have not only helped in building a strong brand image but also in influencing the purchase decisions of consumers.
Another significant marketing strategy of Peak Milk is its focus on product quality and innovation. The brand has consistently emphasized its commitment to providing high-quality, nutritious milk products. This has been reflected in its various product offerings, such as Peak Full Cream Milk, Peak Evaporated Milk, and Peak Instant Full Cream Milk. According to Solomon (2014), such product differentiation strategies can significantly influence consumer purchase behaviour.
Furthermore, Peak Milk has also adopted a competitive pricing strategy. The brand has priced its products competitively to attract a broad range of customers. According to Monroe (2003), pricing strategies can significantly influence consumer purchase behaviour. In the case of Peak Milk, its competitive pricing strategy has helped in attracting price-sensitive customers.
The distribution strategy of Peak Milk is also worth mentioning. The brand has a wide distribution network that ensures the availability of its products in various retail outlets across the country. This has made it easy for consumers to purchase its products, thereby influencing their purchase behaviour (Kotler & Keller, 2016).
The marketing strategies of Peak Milk, including segmentation, advertising and promotion, product quality and innovation, pricing, and distribution, have significantly influenced consumer purchase behaviour. However, it is important for the brand to continuously monitor and adapt its marketing strategies to changing consumer preferences and market dynamics.
- Statement of the Problem
The problem statement for the study of marketing strategies and consumer purchase behaviour of Peak Milk in Nigeria is a complex one. The Nigerian dairy industry, with Peak Milk as a leading brand, is facing a myriad of challenges in terms of marketing strategies and consumer behaviour (Adeoye & Elegunde, 2012). The industry is characterized by intense competition, changing consumer preferences, and a lack of comprehensive data on consumer behaviour.
The first issue is the intense competition in the dairy industry. Peak Milk, despite being a leading brand, is constantly battling for market share with other brands (Adeoye & Elegunde, 2012). This competition necessitates the need for effective marketing strategies to maintain and increase market share. However, the effectiveness of these strategies is not well-documented, leading to a gap in the literature.
Secondly, consumer preferences in Nigeria are rapidly changing due to factors such as urbanization, increased income, and exposure to global trends (Olayemi, 2014). These changes have significant implications for the purchase behaviour of Peak Milk consumers. However, there is a lack of research on how these changing preferences are affecting the purchase behaviour of Peak Milk consumers.
Thirdly, there is a lack of comprehensive data on consumer behaviour in the Nigerian dairy industry. Most studies focus on general trends and do not provide specific data on brands like Peak Milk (Adeoye & Elegunde, 2012). This lack of data makes it difficult to develop effective marketing strategies and understand consumer purchase behaviour.
Furthermore, the impact of marketing strategies on consumer purchase behaviour is not well-understood. While some studies suggest that marketing strategies can influence consumer behaviour (Kotler & Armstrong, 2010), there is a lack of research specifically on Peak Milk in Nigeria.
Lastly, the role of cultural factors in consumer purchase behaviour is not well-documented. Nigeria is a culturally diverse country, and these cultural differences can significantly influence consumer behaviour (Olayemi, 2014). However, there is a lack of research on how these cultural factors affect the purchase behaviour of Peak Milk consumers.
- Aim and Objectives of the Study
The aim of the study is to examine the marketing strategies and consumer purchase behaviour of Peak Milk.
- To examine the marketing strategies employed by Peak Milk in Nigeria.
- To analyze the impact of Peak Milk’s marketing strategies on consumer purchase behaviour.
- To identify the key factors influencing consumer purchase behaviour towards Peak Milk.
- To evaluate the effectiveness of Peak Milk’s marketing strategies in terms of consumer satisfaction and loyalty.
- Research Questions
The research questions are buttressed below:
- What are the marketing strategies employed by Peak Milk in Nigeria?
- How do Peak Milk’s marketing strategies impact consumer purchase behaviour?
- What are the key factors influencing consumer purchase behaviour towards Peak Milk?
- How effective are Peak Milk’s marketing strategies in terms of consumer satisfaction and loyalty?
- Research Hypothesis
The hypothetical statement of the study is buttressed below:
Ho: Peak Milk’s marketing strategies has no significant impact on consumer purchase behaviour
H1: Peak Milk’s marketing strategies has significant impact on consumer purchase behaviour
- Significance of the Study
The study of marketing strategies and consumer purchase behaviour of Peak Milk in Nigeria holds significant value in several ways. Firstly, it provides an in-depth understanding of the marketing strategies employed by Peak Milk, a leading dairy product company in Nigeria. This knowledge can be beneficial for other businesses in the dairy industry or even in other sectors, as they can learn and adapt these strategies to suit their own marketing needs.
Secondly, by analyzing the impact of Peak Milk’s marketing strategies on consumer purchase behaviour, this study can offer valuable insights into the effectiveness of these strategies. It can help determine whether the marketing efforts of the company are translating into actual sales and customer loyalty. This information can be instrumental for Peak Milk in refining their marketing strategies to better align with consumer behaviour and preferences.
Thirdly, the study can identify the key factors influencing consumer purchase behaviour towards Peak Milk. This can help the company to understand what drives their customers to choose their products over others in the market. Such insights can be used to further tailor their marketing strategies and product offerings to meet the needs and preferences of their customers.
Fourthly, the study can evaluate the effectiveness of Peak Milk’s marketing strategies in terms of consumer satisfaction and loyalty. This can provide the company with a clear picture of how well their marketing strategies are working in retaining customers and fostering loyalty. If there are gaps in this area, the company can take necessary steps to address them and improve customer satisfaction and loyalty.
Fifthly, the findings of this study can contribute to the existing body of knowledge in the field of marketing and consumer behaviour. It can provide empirical evidence on the relationship between marketing strategies and consumer purchase behaviour in the context of the dairy industry in Nigeria, which can be useful for future research in this area.
Lastly, the study can have policy implications as well. If the study finds that certain marketing practices are particularly effective in influencing consumer purchase behaviour, these practices can be encouraged and promoted by policy makers to boost the dairy industry in Nigeria.
- Scope of the Study
The study examines marketing strategies and consumer purchase behaviour of selected product. A study of Peak Milk, Nigeria.
- Operational Definition of Terms
Marketing Strategies: These are the tactical methods employed by businesses to promote their products or services. They encompass a range of activities including advertising, sales promotions, public relations, product placement, branding, and market segmentation, among others. The ultimate goal of marketing strategies is to reach consumers and persuade them to purchase the company’s product or service.
Consumer: A consumer is an individual or group who is the final user of a product or service. The consumer is the one who pays to consume the goods and services produced. As such, consumers play a crucial role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers.
Purchase Behaviour: This refers to the process consumers go through when deciding what they want to buy, using a product or service, and the ultimate disposal of that product or service. It involves stages like recognition of needs, searching for information, evaluating alternatives, making the purchase decision, and post-purchase evaluation.
Product: A product is anything that can be offered to a market that might satisfy a want or need. In retail, products are called merchandise. In manufacturing, products are bought as raw materials and sold as finished goods. A product can be a physical object, service, event, person, place, organization, or even an idea or thought.