Tijbm, BM2011-041
Tijbm, BM2011-041
Tijbm, BM2011-041
com
Abstract:
Brand awareness is a function of the brand related exposures to promotional mix based on individual customers’
experience of searching for the products of their choice. Beer is the most widely consumed alcoholic drinks in Nigeria and
it is the third most popular drink besides water and tea. The study determined the impact of promotional activities on
consumers’ patronage of alcoholic products and ascertained the joint relationship between promotional activities and
consumers’ patronage of alcoholic products in Ilesa, Osun State. The population of the study was 856,400 and simple
random sampling technique was adopted to have a proportional representation of 80 respondents from six Local
Government Areas of Ilesaand environs. The study anchored on the hierarchy of effects and planned behaviour theories.
Two hypotheses were tested: H1: Promotional activities have no significant impact on consumers’ patronage of alcoholic
products and H2: Promotional activities have no joint relationship with promotional activities and consumers’
patronage of alcoholic products. Data generated were analyzed using descriptive and inferential statistics at 0.05
significant levels. The result revealed that promotional activities have positive and significant impact on consumer
patronage (ᵝ = 0.128, t = 1.107) while promotional activities have joint relationship with consumer patronage of
alcoholic products (F, 74=1.073; R =.720; R2 =0.841; Adjusted R2=0.581; p<0.004). This study concluded that
promotional activities (advertising, sales promotion, personal selling, direct marketing) have significant impact on
consumers’ and joint relationship with promotional activities and consumers’ patronage on alcoholic drinks in Ilesa,
Osun State. It is therefore recommended that alcohol producers should engage in regular survey to monitor the
effectiveness of their existing promotional activities in the target market.
Keywords: Marketing mix, promotional activities, consumers’ patronage, sales promotion and advertising
1. Introduction
Promotion also called marketing communication is the means by which an organization informs, persuades and
reminds consumers directly or indirectly about its products and brands. Zekeri (2004, p.131) define promotion as any
technique that persuasively communicates favourable information about a seller’s product to potential buyers.
Promotional activities according to Kotler & Keller (2007, p.536) contributed to brand equity and image in many ways by
creating awareness of the brand. In today’s competitive market, the goal of an organization is to create brand awareness,
product loyalty, repeat purchase and corporate image. Promotional activities do change customer perception about a
brand. Prospects are informed and persuaded to buy the organization’s products and services while reassuring them of
the existing brands and their augmented benefits. Promotion includes advertising, sales promotion, personal selling,
direct marketing, public relations and publicity, events and experiences. It also included such promotional gimmicks such
as games, contests, posters, leaflets, coupons, sports, entertainment, seminars, exhibitions, lobbying, samples,
telemarketing and trade shows.
Marketing communication is a crucial part of the alcohol supply chains in Nigeria. Alcohol is a product category
that is heavily supported by advertising and sales promotional activities as a result of the international companies that are
involved. The contemporary marketing communications process and components used by producers of alcoholic products
in Nigeria are: public relations, corporate communication, television and radio advertising, social network media, cinema
advertising, billboards, consumer and trade promotion. Over the years, alcohol producers in Nigeria embarked upon
various promotional activities that increased the patronage of their customers and the share of the market. According to
Disu (2018, p.2), Nigerian alcohol producers spent ₦88 billion in 2017 out of which larger beer accounted for ₦3.26 billion
(3.7%) and spirits accounted for ₦1.4 billion (1.6%). Despite the high incidence of substance of alcohol abuse and religious
beliefs in Nigeria, marketing of alcohol products (beer, spirits and the locally brewed drinks) have been on the increase as
reported by Stanbic IBTC Bank analyst, Eigbe (2012), and cited in Vanguard (Monday, September 3, 2012, para.1).
Beer consumption is about 19.5 million hectoliters in 2012 and growing at about 8.9 % per year (Vanguard
Newspaper, (Monday, September 3, 2012). Owoeye (2018) reported that Africa was the fastest growing region for beer
consumption of which Nigeria however, leads the pack of ten biggest beer drinking countries on the continent. Beer
brands make up just 16% of alcohol consumption in Nigeria while other drinks (spirits and locally brewed drinks) make
up 84%. It was also reported that that there was high alcohol consumption among Nigerians who are now switching to
herbal-mixed alcohol drinks such as Aloma Bitters, and Origin alcohol, Star Herbal and others are available in sachets, cans
and small bottles. This was corroborated in the findings of Dumbili & Williams (2016, p.135) which showed that
promotional activities are common on campuses, off-campuses
campuses and leisure sites where students are exposed to diverse
sales promotion strategies. Vanguard Newspaper (Wednesday, October 14, 2020, para.3) reported that Guinness, one of
the leading producers of alcoholic drinks in Nigeria has worked out an initiative programme tagged ‘DrinkiQ Quiz’ through
the Ministry of Youths and Sports where youths between the ages of 18-3518 35 years will participate via the Nigeria Online
Youth Assembly Platform. The drinking quiz aimed at testing the knowledge of the youth as how much they know about
alcohol while educating them on responsible drinking, facts, causes and consequences surrounding under-age
under drinking.
2. Literature Review
The various mixes of promotions are exhibited on Figure 1 which comprised advertising, sales promotion, public
relations and publicity, personal selling, direct marketing, events and experiences. Promotional activities are important to
change customer perception
eption about a brand. Promotion of alcoholic products aimed at identifying, informing, persuading
and retaining customers for profitability. Alcohol products in Nigeria are heavily supported by advertising and sales
promotional activities such as television,
n, radio, cinema, sales promotion and social media networking on internet. Over
the years, the producers of alcoholic products in Nigeria embarked on various promotional activities to create awareness,
increase the patronage of their brands and increase market
ma shares.
2.2.1. Advertising
Kotler & Keller (2007, p.536) define advertising as any paid form of non-personal presentation and promotion of
ideas, goods or services by an identified sponsor. Advertising serves three main functions of informing, persuading and
reminding customers of a particular good or service. Advertising objectives describe the effect sought by advertisers on a
specified target market which may either be to inform, increase sales or change attitude.
Table 1 revealed that in 2015, total advertising expenditure was ₦97.9 billion while in 2016, it was ₦91 billion
which was a decrease of 7% and ₦88.1 billion in 2017, a decrease of 3% compared to 2016 figure. The decline in the
advertising expenditure was as a result of recession in Nigeria during these periods (2015-2017). The advertising
expenditures for the three years was ₦277.0 billion out of which television advertising share was ₦104 billion (37.55%);
Radio ₦40.1 billion (14.48%); Outdoor advertising ₦73.5 (26.53%) and Press advertising ₦59.4 (21.44%). Television
advertising ranked the highest advertising expenditure followed by Outdoor advertising while Press and Radio
advertising came third and fourth respectively.
Table 2 showed top producers of beer in Nigeria. Nigerian Breweries Plc (NB Plc) and Guinness Nigeria are the
two giants in the alcohol industry in Nigeria that were established in 1946 and 1962 respectively. They are also the two
largest capitalized companies in Nigerian Stock Exchange market (Obot & Ibanga, p.1). Nigeria Breweries Plcis the pioneer
largest brewery company in Nigeria that serves the Nigerian market and other West African countries. It is owned by
Heineken Brouwerijen BV (37.73%), Distilled Trading International BV (16.36%), Stanbic Nominees Nigeria Ltd.
(15.53%), individuals and institutions (30.35%). (NB Plc) acquired a controlling interest in Sona Groups in 2011 and also
merged with Consolidated Breweries Plc.
Guinness Nigeria is the second largest brewery company with its popular premium drink ‘Guinness Stout’. It is
owned by Diageo Plc of the United Kingdom. It acquired the right to distribute McDonell’s, a mainstream spirits brand of
United Spirits Limited in Nigeria and introduced Origin brand with alcohol and none alcohol contents into the Nigerian
market. In 2017, Anheuser-Busch InterBev, the world’s largest brewer acquired 72.17% of SABMiller shares in
International Breweries Plc, Ilesa and has controlling interests in the company. A merger arrangement was later
consummated with International Breweries Plc and two other local brewers: Intafact Beverage Ltd. Onitsha, the maker of
Hero larger beer and Pabod Breweries Ltd., Port-Harcourt, the maker of Grand larger beer. This made International
Breweries Plc the third largest brewery company in Nigeria with its popular brand ‘Trophy’ and ‘Budweiser’.
The World Health Organization (2014) reported that Nigeria consumed an average of 23.1 liters of pure alcohol
annually while 50.1g of pure alcohol is consumed daily by drinkers between the ages of fifteen years and above.
Competitions among alcoholic companies in Nigeria are so fierce that they are all fighting to be the industry leader. In
order to remain number one in the industry, alcohol producers maintained heavy promotional budget to increase their
brand awareness, images and relationships with customers. For instance, International Brewery Ilesa introduced a new
drink called ‘Budweiser’ and pitched its tent on media side by sponsoring exclusive broadcast rights for the FIFA world
cup in Russia 2018 with DSTV, Nigeria largest pay television platform in an attempt to strategize its new product. Nigeria
Breweries Plcresponded with their own massive media support by launching the ‘Stella Brand’ to compete directly with
Budweiser. As if this was not enough, another leader in the industry, Guinness also doubled on their popular Origin drinks
by launching these products in new pet bottles (Owoeye, 2018).
3. Theoretical Framework
This study is anchored on two theories: The theory of hierarchy of effects and the theory of planned behaviour.
These two theories formed the theoretical foundation on which the promotional activities and consumer patronage was
anchored.
Shallu & Gupta (2013, p.1) conducted a research on the impact of promotion activities on consumer buying behaviour and
found that promotional activities have positive effect on consumers’ purchasing behaviour or brand choice in cosmetic
industry. Enitilo, Ajayi & Famuagun (2017, p.414) conducted a research on influence of promotional activities on
consumers’ patronage of insurance business in Ado Ekiti metropolis, Nigeria and confirmed the importance of marketing
communication mix elements in the services of insurance organizations. Their result also showed that there is a strong
and positive significant relationship between direct marketing and consumers’ patronage of insurance businesses. In the
same manner, Pembi, Fudamu & Adamu (2017, p.31) carried out a research on the impact of sales promotional strategies
on organizational performance in Nigeria and found that sales promotion has significant impact on organizational
performance.
4. Methodology
The study adopted a survey research design. Data were gathered through self-administered questionnaire. The
questionnaire consisted of three sections: Sections A, B and C which contained demographic information about
respondents; promotional activities used by alcoholic companies and response of consumer behaviour toward alcoholic
patronage respectively. The respondents of this study are consumers of alcoholic products in all the six local government
areas in Ilesa and its environs. Ilesa was chosen because International Brewery is located in Ilesa Township with its
popular brand ‘Trophy larger beer’ that served the adjoining local government areas that has common culture and
dialects. The population of the study was 856,400 respondents and sample size of 400 out of which 80 respondents were
chosen on random basis. Questionnaire was administered by the researcher to respondents in various hotels, restaurants
and beer parlours/shops in all the six local government areas in Ijesa land. Data gathered were sorted, coded and analyzed
using descriptive and inferential statistics.
Table 3 showed that the population of the study was made up of 856, 400 people of the six local government
councils in Ijesa land according to the National Population of 2006. Simple random technique was used to reach 80
respondents at the bar, hotels, restaurants and beer parlour shops in Ijesa land. 19 respondents were randomly chosen at
Oriade with the highest population while14 respondents each were chosen from Ilesa local governments East and West
whose population were very close while Obokun has 15 respondents and 10 and 8 respondents each from Atakumosa East
and West respectively.
n = 856,400
1+856,400(0.05)2
n = 400
4.3.1. Hypothesis 1
• Ho: Promotional activities have no significant impact on consumers’ patronage of alcoholic products in Ilesa, Osun
State.
• H1: Promotional activities have significant impact on consumers’ patronage of alcoholic products in Ilesa, Osun
State.
Table 4 showedthat promotional activities (ᵝ = 0.128, t = 1.107) have significant effect on consumers’ patronage of
alcoholic products in Ilesa, Osun State and are statistically significant at 0.05 level. Therefore, the null hypothesis is
rejected while alternative hypothesis is accepted. It shows that there is significant contribution of promotional activities
on consumers’ patronage of alcoholic products in Ilesa, Osun State, Nigeria. This finding was in agreement with the
findings of Adeolu, Taiwo& Matthew (2005), Ibrahim (2009) and Shallu* Gupta (2013).
4.3.2. Hypothesis 2
• Ho: Promotional activities have no joint relationship with consumers’ patronage on alcoholic products in Ilesa,
Osun State.
• H1: Promotional activities have joint relationship with consumers’ patronage on alcoholic products in Ilesa, Osun
State.
Table 5and 6 showed that the overall significance was tested with the help of ANOVA and regression analysis. The
entire model as measured by the F-statistic demonstrated that the calculated F-stat. which is 1.073 is statistically
significant at 0.01. The estimated value of R2 value of 0.841 signifies that about 84.1% of the variation in consumer’s
patronage of alcoholic products in Ilesa, Osun State was accounted for by the promotional activities (advertising, sales
promotion, personal selling and billboards) used by the alcohol producers. The adjusted R-square in the table also showed
that the dependent variable (consumerpatronage) was affected by 58.1% by independent variables.This result indicated
that promotional activities are good predictors of consumes’ patronage of alcoholic products in Ilesa, Osun State.
Therefore, the null hypothesis is rejected while alternative hypothesis is accepted. This show that promotional activities
do jointly predict consumers’ patronage on alcoholic products in Ilesa, Osun State, Nigeria. The finding is in agreement
with the research conducted by Enitilo, Ajayi & Famuwagun (2017) & Pembi, Fudamu & Adamu (2017) that promotional
activities are good predictors of consumes’ patronage in insurance business and organizational performance.
6. Conclusion
A number of studies have underscored promotional roles in the marketing of goods and services. Advertising
when combined with personal selling and other promotional tools increase sales. It is on record that most of the
marketing activities of the alcohol industry in Nigeria seem to be diverted at youths and young adults (Obot & Ibanga,
2017, p.10). Based on the findings of the investigation, it was concluded that promotional activities (television, radio,
billboards, personal selling and sales promotion) have strong impact on consumers’ patronage of alcoholic products in
Ilesa, Osun State, Nigeria. The findings also predicted that there is joint relationship of promotional activities and
consumers’ patronage on alcoholic products in Ilesa, Osun State Nigeria.
7. Recommendations
The following recommendations are made to producers of alcoholic products:
• Companies at all-time should plan, organize, direct and control sales promotional activities/strategies in order to
be effective and efficient to achieve the organizational objectives.
• Emphasis should be placed on advertising messages and slogans that will increase consumers ‘patronage and
change attitude of consumers to their brands.
• Effective advertising messages should be produced on the newly developed herbal products that will change
attitudes of consumers toward the consumption of the herbal products that have no alcoholic content as a result of
religious beliefs.
• Regular survey should be conducted regarding the effectiveness of the existing promotional activities in the target
market.
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