CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Brand means the symbol, sign and name of the product. In the changing world brands have become more important for the purchasing. Brand selection is critical decision for the customers. Companies try to enhance the image of the brand and this image increase the loyalty of the brand.

Brand name is the creation of an image or the development of a brand identity. The development of a brand name is an essential part of the production process since the name is the basis of a brand’s image (Thakor, 2006).

Brand name is important for the firm to attract customers to purchase the product and influence repeat purchasing behaviour. Consumers tend to perceive the products from an overall perspective, associating with the brand name all the attributes and satisfaction experienced by the purchase and use of the product.

A company’s success can be measured depending on its capability to attract consumers towards its brands. This can be achieved by identifying customer needs and requirements and meeting those needs in a better way than their competitors.

The globalization of competition, saturation of markets and development of information technology have enhanced customer awareness and created a situation where long term success is no longer achieved through optimized product price and qualities.

Instead company’s build their success on a long term customer relationship. This long term customer relationship depicts customer loyalty to a particular brand. The brand loyal consumer does not attempt any kind of attribute evaluation but simply chooses the familiar brand on the basis of some overall positive feelings towards it. This overall positive evaluation stems from past experience with the particular brand under consideration.

Sales promotion has become an effective marketing tool that assists organizations to wax stronger in a global competitive environment. (Oyedapo et al, 2012) identify sales promotion as a key ingredient in marketing campaigns which assist organization to achieve its objectives.

Dimensions of sales promotion which are identified by (Blattberg & Neslin, 1990) are following: Bonus packs, coupons, free samples, price promotion and premium.

According to various authors sales promotion can be defined as: -“Sales promotion means any step that are taken for the purpose of obtaining an increased sales” By, A. H. R. Delens, “Sales promotion as a tool of market promotion gives rise to increase in production usage as well as expansion of market for a product or introduction of a new product” By, John. L. Luickkandand William Lee Ziegler.

Sales Volume is used to measure the amount, usually in cartoons/crates, etc, of the product being sold at a given point in time. This is commonly used as well with products but it could be as used within a service company.

1. STATEMENT OF THE PROBLEM

Increasing global competition has made many companies to devise more innovative ways of selling their goods and services with an action of motivational inducement. The main aim of any business is to earn maximum profit and this is possible only through maximum sales. Trust is considered by customers as a critical element of the brand, it is the main factor influencing decision process and determining brand choice and usage. More so, it is observed that personal relationship with the customers which is an important part that might help in creating their brand association and increase the customer attitude towards their product is not embraced. Finally, several research has been carried out on the factors affecting brand equity a study of select international luxury apparel brands in india but not even a single research has been carried out on branding as a tool for increasing sales volume of three crowns milk among residents of agbado oke-odo local council development area of Lagos state.

1. AIM AND OBJECTIVES OF THE STUDY

The main aim and objectives of the study is examine branding as a tool for increasing sales volume of three crown’s milk among resident. Other specific objectives of the study include:

1.  to determine the effect of branding on increase of sales volume of three crowns milk.
2. to determine the factors affecting branding and its effect on sales volume of three crown’s milk among residents of agbado oke-ode local council development area of Lagos.
3. to determine the extent to which branding affects sales volume of three crowns milk.
4. to proffer possible solutions to the problems.
   1. RESEARCH QUESTIONS

1.     What is the effect of branding on increase of sales volume of three crowns milk?

2.     What are the factors affecting branding and its effect on sales volume of three crown’s milk among residents of agbado oke-ode local council development area of Lagos?

3.     What is the extent to which branding affects sales volume of three crowns milk?

4.     What are the possible solutions to the problems?

1. RESEARCH HYPOTHESIS

Ho:  Branding has no significant effect on increase sales volume of three crown’s milk.

Hi:   Branding has a significant effect on increase sales volume of three crown’s milk.

1. SIGNIFICANCE OF THE STUDY

The study on the branding as a tool for increasing sales volume of three crown’s milk will be of immense benefit to the entire residents of agbado oke-ado local council development area of Lagos state in the sense that it will encourage brand switching amongst deal prone consumers through innovative gifts. It will also induce trial of new products of the company by leveraging on the existing brand and its equity. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1. SCOPE OF THE STUDY

The study on branding as a tool for increasing sales volume of three crown’s milk among residents is limited to Agbado oke-odo local council development area of Lagos state.

1. LIMITATION OF THE STUDY

Time Constraints: One the challenges experienced by the researcher is the issue of time; the research will simultaneously engage in departmental activities like seminars and attendance to lectures. But the researcher was able to meet up with the deadline for the submission of the project.

Financial Constraints: Every research work needs funding; however lack of adequate funds might affect the speed of the researcher in getting materials for completion of the project.

1. DEFINITION OF TERMS

Branding:                A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Increasing:      Becoming greater in size, amount, or degree; growing.

Sales Volume: Sales volume is the number of units sold within a reporting period.

Residents:       A person who lives somewhere permanently or on a long-term basis.