CHAPTER ONE

1.0  INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Branding has been described as a very important aspect of every products strategy of a business organization be it a large or small scale or a marketing or manufacturing business.

 An effective brand strategy allows for an organization to survive in the market in the face of competition. Consumers tend to demand for a product that has a registered image, and which satisfy their demand (www.googleresearch.com).

Branding refers to the imaginative process of creating a unique, relevant and harmonious name, term, sign, symbol or its combination in order to identify a company”s product and differentiate it from those of competitors. (Anyanwu 2000:160) The subject matter of branding and trademark has been an old phenomenon in both the manufacturing and marketing organization. A brand is a personality that triggers a deep emotional response within the winds of customers of stakeholder. Anyanwu A. (2000).

Trademark is a patent right over the use of a name or a sign as a mark of identification which has legal backing and protects the owner of the name or sign from unauthorized user(s) (www.googlesearch.com).

A brand is a distinguishing name and/or symbol (such as logo, trademark, or package design) intended to identify the goods or services of either one seller or a group of sellers and to differentiate those goods or services from those of competitors. A brand thus signals to the customer the sources of the product and protects both the customer and producer from competitors who would attempt to provide products that appear to be identical. Aaker (1991)

From the customer point of view a brand can be defined as the total accumulation of all his/her experience, and is built at all points of contact with the customers Kapferer, (2004).

According to Chematony and McDonald, 1998 a successful brand is an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant unique added values which match their needs most closely.

Branding and trademark have numerous importance in the success of marketing and purchasing of a manufacturing company such as the Nigerian bottling company (NBC) Owerri. Branding and trademark tends to improve brand identity of a product and the brand identity is based on the thorough understanding of the firm”s customers, competitors and business environment. The brand identify needs to reflect the business strategy and the firms willingness to invest in the programs needed for the band to live up to its promise to the customers (Aaker and Joachimsthaler 2000) it also needs to on points of differentiation that offer sustainable competitive advantage to the firm.

Branding and trademark in the soft drink industry in Imo state is an important area in marketing due to the competitive nature of soft drinks as a consumer product. Hence, the need for Nigerian bottling company (NBC) to apply branding as the art and cornerstone of marketing its product as it helps in product differentiation and is an aid to securing a larger market for its product in relation to that of its competitors.

However, it is important note that all trademarks are brands but not all brands are trademarks.

Nigeria bottling company also known as NBC started production in 1953 at the basement facilities Group producing coke licensed from Coca Cola Company. In 1960, NBC introduces fanta Orange Drink into the market and later Spirit Lemon Drink. The firm NBC

has eleven(11) Bottling facilities in Nigeria which provide supplies to various deposits for onward distribution to wholesalers or dealers. Over the years, NBC has established or acquired factories producing raw materials in it”s supply chain it established a maize farm at Agenebode, Edo State to produce fructose syrup, acquired interest in crown cork facilities in Ijebu Ode and a glass making factory in Delta State.

Nigeria Bottling Company Plc (NBC) is a greek own company with branches in more than 180 countries all over the world including Nigeria.

Nigeria Bottling Company Plc which is part of Coca – Cola was incorporated in Nigeria in November, 1951 to bottle and sell carbonated non alcoholic beverages.

The Company has the sole franchise too bottle Coca-Cola products in Nigeria.

It has its bottling facilities around the country and it uses 82 distributions outlets with the Head Quarter at Ebutemetta, Lagos State.

            In Nigeria today, Coca-cola is number one bottler of soft drinks, selling more than 20million bottles per day, this is a figure which is still growing with the continuing expansion of the existing 18 plants in various parts of the country, Coca-cola is bottled in Lagos , Ibadan, Owerri, Port-harcourt Anambra, Plateau and  kwere State.

            The corporate Objectives of Nigeria Bottling Company Plc (NBC) includes the followings:

1). Product such as coco-Cola, Start upp to a certain capacity as located to each of the beverage

ii). Transfer of the technology inn beverage production to Nigeria creation of employment opportunities to Nigerian.

iii). Generation of considerable internal revenue for government through the payment of excise duties, import duties and company taxation.

1.2 STATEMENT OF THE PROBLEM

Even though branding is a welcome innovation in the soft drink industry there are some problems related to it.

1.         Branding as a promotional strategy which tends to create awareness and building customer loyalty can be at huge cost if not properly handled.

2.         Risk of profit or loss from one brand as a result of failure or success of the whole brand of the firm especially when generic branding strategy is adopted.

3.         Cost of handling different brands as in the case of Nigerian bottling company (NBC) can lead to running cost greater than revenue.

It is the light of the above the researcher was provoked to conduct this research work.

1.3 OBJECTIVE OF THE STUDY

?          Identify the different branding strategies of Nigerian bottling company (NBC).

?          Identify how NBC carry out their branding strategy

?          Ascertain the cost implication of branding in the marketing of NBC products

?          Determine how branding and trademark can be used to achieve increased market share of the NBC product

?          Based on the findings the researcher recommend appropriate branding strategies to the company to remain afloat in the market.

1.4 RESEARCH QUESTIONS/HYPOTHESIS FORMULATION

Research questions

1.         What are the different strategies of the Nigerian Bottling company?

2.         Does branding /trade mark encourage the introduction of new products by the firm?

3.         Does branding /trade mark have any influence on the choice of product by consumers?

4.         Can branding/trade mark help in the identification of products?

5.         Is the present branding/trade market strategy of Nigeria Bottling Company Plc effective?

6.         Branding and trade mark does not contribute to market share and profitability.

1.4 HYPOTHESIS FORMULATION

Ho1: Nigeria Bottling Company Plc has no branding/trade mark strategy in Place.

Ho2: Branding and trade mark does not encourage the introduction of New Product

Ho3: Branding and trade mark had no significant influence on the choice of product by consumers.

H04: Branding /trade mark has no significant influence in the identification of product.

H05: The present branding/trade mark strategy of Nigerian Bottling Company Plc is not effective

H06:  Branding/trade Mark has no significant influence on the sales volume of Nigerian Bottling Company Plc.

1.5 SIGNIFICANCE OF THE STUDY

The significance of the study derives from the usefulness of the following;

(a) It will enable Nigeria bottling company to understand and have an insight about consumer”s loyalty of its products.

(b) In this finding they will know the method of carrying out their branding strategy.

(c) The study will also enable the Nigerian bottling company to know the impact of branding and trademark on sales volume and increase market share they will also see in this study, the problems they will encounter in carrying out their branding strategy.

(d) This study will also be useful for academic purpose. It will also serve as a database for anybody who wants to carry out a related research in the future.

(e) The authorities of Nigerian bottling company (NBC) and marketing managers will benefits from the study they will also see in this study the appropriate branding strategy that will enable them to withstand competition in a competitive environment.

1.6 SCOPE OF THE STUDY

The research study is carried out to identify and investigate the effect of branding arid trademark as a tool for achieving increased market share in the soft drink industry. This research operation is limited to Owerri as a particular area of interest. It is hopeful that all these will make it applicable in the branding and trademark of soft drink.

1.7 DEFINITION OF TERMS

BRANDING: Anyanwu (2003)“Branding has been defined a the use of a name, term, symbol, design or combination of those to identify a product. It also includes the use of brand name, brand mark and trademark

TRADEMARK: Anyanwu (2000) A trademark is a brand or part of a brand that is given legal protection because it is assigned exclusively to the company.

MARKET SHARE: (www.businessdictionary.com) A percentage of total sales volume in a market captured by a brand product for company.

INDUSTRY: (www.businessdictionary.com) An industry is a group of manufacturers or businesses that produce a particular kind of goods or service.

SOFT DRINK: (www.cocacampany.com) Non-alcoholic carbonated beverages containing flavorings, sweeteners and other ingredients.