Monday, 13 June 2016

Product Differentiation As A Strategy For Marketing Consumer Goods

The purpose of this project is to know the importance of product  differentiation as a strategy for marketing of consumer goods with a special reference to Nestle foods plc as a case study in addition to this it’s useful to investigation on how product differentiation as a strategy for marketing of consumer goods.

This product differentiation is carrying out information from one department to another, it state clearly various types of product and marketing mix. Its faulty and how it can be measured for effectiveness of a company the product differentiation work has been able to explain what product differentiations is what management in an organization does in order to understands their potential customer. The study concluded that product differentiation of consumer industries has been a subject of concern and it involves a lot of capital to create different in consumer goods and service. The project also recommended what the consumer are intended for that product differentiation should be support by adequate sales promotion exercise.  

Title page                                                                               
Table of Contents                                                          

1.1       Introduction                                          
1.2   Background of the Study
1.3   Statement of the Problem                       
1.4   Aim and Objective of the Study                                               
1.5   Significance of the Study                                
1.6   Scope of the Study
1.7   Limitation and Constraints of the Study
1.8   Definition of key terms            

2.1   Literature Review
2.2   What is Marketing (Marketing Mix)                                 
2.3   Meaning of Product
2.4   The Concept of Product Differentiation
2.5   Product Differentiation variables
2.6   Bases of Product Differentiation
2.7   Importance of Product Differentiation
2.8   Product Differentiation as a Strategy for Marketing of Consumer Goods

3.0   Research Methodology                                            
3.1   Research Design
3.2   Data Collection Method/Technique
3.3   Population and sampling size                                 
3.4   Data Presentation and Analysis Techniques                   

4.1   Brief History of the Case Study               
4.2   Data Presentation                                   
4.3   Analysis and Testing of Hypothesis

5.1   Summary of findings                                                               
5.2   Conclusion                                             
5.3   Recommendation                                            

Conventional wisdom would suggest that prices should always be lower in large markets or long in firms enter and competition become more intense.

However empirical evidence using within country and cross country data suggest that process for among goods and services are in food higher in large market. Studies of consumer price data. Collected across geographic regions in the same country find those prices are higher in region with large population studies of firm level export to different countries find that firm sells of higher prices in countries with larger population. This evidence is at odds with all literature which generally predict that prices are lower in large market or that prices are unaffected by market size.
This clear disconnect between theory and evidence suggest that there are mechanisms of play that are not competition.

This paper provides an explanation for why price can be higher in large markets by assuming that firms can choose low much to differentiate their product the basis modal provides a simple tractable general equilibrium result with the prediction that product differentiation increase with market such large markets encourage product differentiation in the model because the “Love” of “variety” properly of the utility function.

Love of variety lead individual consumer to consumer more varieties and less of each variety in large market.

I show that these behaviors make them more sensitive to firms spending on product differentiation with the production that product one more differentiation and sell at higher process in larger market.
The theoretical model in this paper is based on monopolistic competition with endogenous technology choice. I assume that consumer utility function originating in Spence (1976).

The term product differentiation was develops by the chartered institution of Marketing (CIM). This came into existence in 1960’s when there are many producer of some produce and the potential buyer of each produces cannot be able to identify their choice of product. These leads to initiating of what will product differentiation whereby each producer of each product differentiate their product by using various marketing strategies (e.g.) packaging and or branding. Each manufacturer of each product has the way of packaging their product and have different brand name in order to distinguish it from competitors product.

Product differentiation can also be practiced using packaging and branding strategies packaging as are of product differentiation strategies used in attracting customer’s attention. Many packages of some firms are made appealingly different from those of other firms making similar product.

Therefore a firm has to make the packages of its product in such a way that when a consumer walls through a supermarket that contains several items of product from different companies. The package of the firm will around the customer’s attention and there by stimulate interaction between the consumer and the product.

While branding on the other hand is now decision made by a firm about making a product. The combination of marks colors names and other feature that will make the product to be distinct and attractive to the consumer is referred to as branding

Consumer perceives market situation and product that are similar in nature differently.
This, however will determine the success or failure of Nestle Foods Plc. in the market for any business to succeed in must have on in depth knowledge of the total market it is serving and must be able to develop strategies used as sales promotion advertising after sale services discount, product modification, product differentiation, product standardization, quality, colour packaging and branding.
Some product differentiation brings out the customer the actual product without confusing of the product in the market. The following questions have being through off to help clarity some issues
1. Is product differentiation really practiced in nestle food.
2. Is packaging and branding strategic decision for product differentiation
3.What effect has product differentiation on consumer purchase of a particular product or buying decision  process.
4.What effect has product differentiation on the profit margin of the company?
5.Is product differentiation of only significance Nestle Food Plc.
This study aimed at determines the significance from of product differentiation as a strategy in marketing consumer goods. It therefore includes the following objective:
i. To determine how product differentiation affect the profit margin of the company
ii. The role of product differentiation in nestle food Plc.
iii. To identify the future protect buyer to be derived on embarking on product differentiation as a strategy
iv.  To examine the packaging and branding as a strategic decision for product differentiation.
v.  To examine other strategies used in product differentiation by nestle food Plc.
The findings of the study will be immensely benefiting the following:
Case study: - it is significant to the case study chosen the industry into which the ease study belongs.
 i.  It will help them to decide on what strategy to use in order to stimulate sales.
 ii.  It will help the industry in correction of their product deficiency
 iii.  It will also assist them in setting advertising strategy decision and result evaluation decision
 iv.  It will also create an avenue for them to introduction their new product creating awareness of products differentiation.

- The study will contribute more to research knowledge and widen this scope on the subject matter through finding and sourcing for information.
    It will also serve as sources of information or reference for others researcher in the nearest future dealing with the same subject matter.

- The study will be a great valve for the public as a whole in encourage and educates them on various activities of the company.
The study will also enhance the knowledge of the public or society on the use and the mode of using of a product.

It will be useful to inform the public about different product in the market place and it provide information about marketing strategy (price change product improvement e.t.c.)

- The study will enable student to continuous program of product differentiation that would strengthen their ability in meeting enchanted in marked demand. It also provides information to the student that packaging of product in such way that when a consumer walk through a supermarket that contains several items of product from different companies and it help student to understand that brand of produced differentiation

The scope of the study will be written the framework of product differentiation in the consumer goods. The study examines the strategies adopted by Nestle Food Plc. in differentiating is product with other competitor product.

More emphasis was placed on how the product margin of the company can be incensed to product differentiation aid consumer in marketing a purchase the study was conducted with Ilorin Kwara State using the product of nestle foodiple in conjunction with GBO, MDS, CFAO, all under the division of UAC (United American Company) at the product include into (BEVERAGE) Corn Flask, Car claw, Nestle bottled water e.t.c.
In the process of the research work there various factors that are limiting the effectiveness of the research work. This is obviously served as limitation to the success of the study. Therefore the limitation to the success of the study. Therefore the limitation and constraint of the research work are time financial and reaction of the respondents.

Time Constraints: - The time schedule for the completion of the research work by the authority is not enough for the researcher to carryout intensive research on the project top likewise. I have to study books, attend lecture, do my assignment and search for some materials for project and before all those is done, the time is almost consumer I need to dead just the time I used in the days of the week i.e. from Monday to Friday is for lectures and Saturdays and some hours on Sunday is use for research project and I have only some hours on Sunday to rest.
Financial Constraint: - This study is limited by financial constraints, short time writing, and submission of the project and other assignment. As a student I still depend on my parent that cater for my needs I have to let parent know I will need some money for mu project work because is not added to my budged. Due to financial incapability than I would not be able to go a long distance and travel to different place in order to score for more information.

Respondent Constraints: - The general attitude of the respondent being given questionnaire full and those that I interviewed personality also constituted another constraint to the project. They are reluctant to disclose some vital information needed for the research study and which they are relevant to disclose some vital information needed for the research study and which they regarded as confidential matter.

No comments:

Post a Comment

Gain Admission To 200Level Without Jamb-UTME Through IJMB Program, Any University, Any Course. Forms Now On Sale. 08034801226, 08065101775.

Feel Free To Ask Your Questions Using The Below Comment Box.