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The Impact of Branding in Enhancing Profitability in Manufacturing Sector, a case study of Nigerian Bottling Company

 

ABSTRACT

This paper examined the impact of organisational structure of Nigeria Bottling Company (NBC) Kaduna Marketing Activities. An organisation cannot exist without a definite structure. The purpose of organisational structure is the division of work among members of the organisation, and the co-ordination of their activities so they are directed towards the goals and objectives of the organisation. Data for the study was collected from both primary and secondary sources. Table was used to present the data and percentage was used to analyze the data. The findings revealed that organisational structure has an effect on Nigeria Bottling Company. Therefore, it was recommended that organisations should endeavor to have a well-defined structure in place in order to achieve the set objectives


CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND TO THE STUDY

The existence of a business organisation is to achieve goals and objectives. The goals and objectives business organisations set to achieve determines how they managers allocate tasks to employees. The allocated jobs are usually grouped into departments. Nelson & Quick [1991] posit that departments in organisations can be categorized into various units such as manufacturing. Sales, marketing, advertising, and so on. They added that departments are connected to shape the organisational structure. Quangyen & Yezhuang [1992] argued that structure of an organisation gives it the shape to carry out its purpose in the business environment.

Nelson & Quick [1991] posit that the organisation’s structure is meaningless unless supported by appropriate systems and a well—conceived culture. Martinelli [1993] argued that the type of organisational structure adopted by a firm will depend of the nature of the particular organization in question. In addition, the form which the organisational structure takes may be represented periodically by an organisational chart. Based on time significance of the organisation structure the study investigated more of the impact of organisational structure on organisational performance. Furthermore, this study should draw more attention of future researchers towards this important field. This is an interesting field for research because it determines the success of business organisations.

The next section will start by defining organisation, performance and organisational structure. The concept and variables to measure organisational performance will be explored. It will also review the literature investigating the effect of organisational structure on organisational performance.

Nigerian Bottling Company Plc is one of the few multinational organizations that had its beginning in Nigeria. From a small family owned operation at inception, it has grown to become the predominant butler of alchohol-free beverages in Nigeria responsible for the manufacture and sale of thirty-three (33) different Coca-cola brands. The company was incorporated in November, 1951 as a subsidiary of the A.G. Leventis group with the franchise to bottle and sell Coca-cola products in Nigeria and currently the company is part of the Coca-cola bottling company operating in 28 countries and serving more than 560 million consumers. Some of the ubiquitous and best known brands of the company includes: coca-cola, fanta, sprite, Schweppes, Eva water, five alive just to mention a few.

However, the importance of money in enhancing organizational activities cannot be overemphasized. This suggests that the level of success to be attained by any organization is largely determined by the amount of liquid cash available for their operations. Modern business organizations were set up with definite goals which must align with their corporate mission of meeting consumer’s needs and while the organization in return makes profits. Hence, to adequately and effectively meet their aspirations, various marketing concepts, systems and process of product branding must be utilized to reflect the company’s short and long term goals.

Organizational structure is an effective tool in marketing strategy to promote goods and services for optimum turnover and profitability of industrial and household products. Therefore, the organizational branding of goods and services calls for product differentiation in the market which originality is traceable with trademark to their respective producers. Branding also determines the survival of organization products in the competitive business environment.

In any business organization, the choice of a brand is a very critical decision as the name affects customers‟ image and attitude towards the product and the firm. Thus, it is a contributing factor in making it a winner or loser in the competitive market. This suggests that organizations should consider a number of factors when selecting a brand name, which is one of the most difficult tasks in marketing operations. The organizational structure should therefore, improve the company’s image, boost sales and increase profits. It could therefore result into a strong and healthy relationship between the introduction of new brands and increase on return and investments.

This study primarily focuses on organizational structure’s branding and increased profitability and based its premises on manufacturing industries.

This study examined the impact of branding in enhancing profitability in manufacturing industries. This is with a view to highlighting the various organizational strategies put in place by organizations to build, sustain and enhance profitability as well as assessing its impact on the firm.

 

1.2     STATEMENT OF PROBLEM

This research work believes that organizational structure is the main roof of effective workflow in any organization. Hence the researcher’s concern is that organizations can be frustrated or sabotaged by the problem of improper definition of duties for top management and their subordinates most especially the workers in Nigeria. Also poor relationship between superior and subordinate were identified as an impediment to effective market activities.

 

1.3     OBJECTIVE OF THE STUDY

The broad objective of the study is to examine the effect of organizational structure of Nigeria Bottling Company Kaduna manufacturing industry. The studies also have the following specific objectives:

i.        To find out the extent to which manufacturers engages in sales promotional activities.

ii.       To evaluate the different marketing strategies adopted by management of Nigerian bottling company.

iii.      To identify the extent that product marketing has led to increase in profitability and return on investment in the company.

iv.      To find out the extent to which market name has influence on consumers purchase decisions.

1.4     RESEARCH HYPOTHESIS

H0:    Organizational structure has no significant effect on the profitability of Nigerian bottling company.

H1:    Organizational structure has a significant effect on the profitability of Nigerian bottling company.

1.5     SIGNIFICANCE OF STUDY

This study by its substantive examination of past literature has contributed to the richness of the past studies. Furthermore, it has reinforced some past knowledge, updated information in studies relating to marketing and how it enhances organizational structure in Nigeria Bottling Company (NBC). However, it does not pretend to be a new breakthrough in the frontier of knowledge. This work can be retrieved for use by other researchers and writers particularly in related fields such as the social science and psychology. For these stated reasons, it is hoped that the effort and time expended on this study has been worthwhile.

 

1.6     SCOPE OF STUDY

The study limits its scope on the manufacturing sector of Nigeria only and precisely on how organizational structure of Nigeria Bottling Company effect marketing activities. Here, attempts are made to look at concept of organizational structure, marketing strategy, effects of product branding or their significant contribution on organizational profitability.

 

1.7     LIMITATIONS OF STUDY

A study of this nature cannot be effectively carried out without certain constraints. However, these constraints do not have any prejudice on the result of the findings in the course of the study.

The major limitations of this study include inadequate resources; the unwillingness of some respondents to give all necessary information required. This work is not conclusive on its own; it is still open to further research studies.

1.8     DEFINITIONS OF KEY TERMS

Profit: this is the money made in business or by selling things especially after paying the cost involved. It could also be seen as inflow of assets into the firm as a result of sales of goods and or service by such firm.

Brand: brand is defined as the totality of product features such as a name, term, symbol, colour, design, mark or combination of things that  distinguish it from other products or a means by which the firm identifies it to consumers.

NBC: Nigerian bottling company.

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Pages: 57

Format: MS-Word

Chapters: 1-5 (Complete)




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