IMPACT OF BRANDING ON CONSUMER BUYING BEHAVIOUR (A CASE STUDY OF MILO BEVERAGE)

CHAPTER ONE

INTRODUCTION

Background of the Study: The twenty first century age signifies significant shifts in the marketing strategies utilised by organisations and institutions to enhance their competitiveness and sustainability in the dynamic market they operate in. Today's consumers exist in a vast and ongoing marketplace for products and services (Rindell, 2008). Companies now rely heavily on the careful collection of consumer purchasing data for their survival and success. Companies are highly focused on developing robust brands that foster lasting customer relationships, as this is crucial for their survival in the market (Hess, Story and Danes, 2011). Companies invest significant resources and time in studying behavioural and sociological factors to gain valuable insights and understand consumer purchasing patterns. Brands are crucial assets for companies (Rindell, 2008). Branding has become an integral component of contemporary marketing strategies and is now recognised as a crucial organisational asset (Kotler, 2000).

Organisations that transition from a product or market perspective to a consumer or customer focus demonstrate the changing landscape of marketing. Companies are dedicating significant resources to comprehensively understand their consumers, focusing on the 4 p's (product, price, place, and promotion) and the additional 3 p's (people, process, and physical evidence) (Kotler, 1999). This shift in approach reflects a commitment to thorough analysis and insight into consumer behaviour. They delve into the connection between consumer spending and the various factors that influence consumer preferences, such as attitudes, cognition, perception, and learning. (Von Moos, 2005).The company is interested in understanding their customer base, including their thoughts, feelings, and purchasing behaviour when it comes to choosing a particular brand over others. Companies often hire a dedicated brands manager to oversee brand management. This serves as a connection between the company's brand and consumers. In today's dynamic market, where consumers have access to a wealth of information, simply raising your voice is not the answer to gaining visibility and recognition. Instead, developing a remarkable brand that resonates with consumers (Ahuvia, 2005).

This study seeks to gain insights into the influence of branding on the purchasing behaviour of Milo customers. In order to stay competitive in Nigeria's beverage industry, companies need to focus on improving their corporate performance. This includes not only increasing their subscriber base, but also implementing effective marketing strategies such as branding, promotion, and advertisements. The beverage industry has provided a platform for the exploration and exchange of knowledge for various purposes. Furthermore, families have been able to maintain communication. The Nigerian beverage industry underwent a significant transformation when the government deregulated the sector in 1994. This move aimed to attract investors and foster competition within the industry. As a result, there was a significant surge in the number of beverage owners in the country.

Research problem

While some companies excel in product quality, they may struggle to gain a competitive edge in the market due to ineffective branding efforts. Strong brands have the potential to cultivate long-term and loyal customers, ultimately resulting in future sales growth (Hess, Story, and Danes, 2011). The research aims to thoroughly evaluate the role and impact of branding in the consumer purchase decision-making process, considering the challenges involved in managing brands and their associated benefits.

Objectives of study

The aim is to:

1. Determine the impact of branding on Milo consumer buying decision in Yaba, Nigeria.

2. Determine whether there is a correlation between Milo consumer’s perception of a brand and purchases.

3. Present the key theories and concepts behind branding and consumer behavior, its values and usage in modern day marketing activities in the literature review.

Research Questions

1. What is the impact of branding on Milo consumer buying decision in Yaba, Nigeria?

2. Is there a correlation between Milo consumer’s perception of a brand and purchases?

3. What are the key theories and concepts behind branding and consumer behavior, its values and usage in modern day marketing activities?

Research methodology

For this study, a combination of primary and secondary data sources will be utilised in the research. The primary data will be gathered through a combination of quantitative and qualitative methods. Quantitative methods involve the use of questionnaires or instruments to collect data from the targeted respondents, while qualitative methods provide a deeper understanding of the subject through open-ended interviews or observations. The secondary data would also be derived from textbooks, electronic pages, articles, and journals. This section provides an analysis of the population in relation to the research. The text covers the population to be interviewed and the method that will be employed for conducting the interviews. Considering the subject matter and the characteristics of the participants, a non-probability sampling method will be employed, specifically convenience sampling. Based on the available information, it is difficult to determine the precise number of Milo consumers in the Yaba area. However, to gather data, a sample size of 50 will be used. Consumers play a crucial role in gathering customer feedback through answering questions.

Limitations of study

The research work will also explore the marketing or operational strategies implemented by the case company, Milo In Nigeria, there may be a hesitancy to disclose certain information such as market data, profitability, and strategies, as it is perceived as the company's confidential information. Additionally, the data gathering process is relatively time-efficient as it requires less time for establishing contact and receiving questionnaire responses. Additionally, it may be beneficial to expand the scope of the questionnaires to include both consumers and other relevant groups in future research. It may be beneficial to consider expanding the sample size to other regions of the country. Printed questionnaires will be used instead of electronic instruments due to the country's weak internet connection and the preference of the majority of respondents.

Structure of the study

This project is structured into three (3) chapters. In chapter one, the discussion covers the introduction, statement of problem, objectives of study, methodology, and limitations of study. In chapter two, you will find an in-depth exploration of the theoretical framework and concepts related to branding, consumer behaviour, and buyer decision making processes. In chapter three, we will provide a detailed overview of the research methodology, data sources, research approach, sampling plan, and research instrument or questionnaires. Chapter four provides a detailed examination of the field work, including the findings, analysis, and discussion of the data. Chapter five concludes the work by presenting the findings, conclusions, recommendations, and summary.