CHAPTER ONE

1.0   INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Over the years many organizations have been using brand positioning to differentiate and segment their brand (product) among competitive product categories.

Ovaltine was first introduced in the 1gth century in Birmingham United kingdom where it was produced before it was imported into Nigeria along side other malt beverage like pronto and malvota etc. The name Ovaltine was gotten first from the word Bornoille “Ville” meaning vitality hence the Ovaltine. Pre-1950s Ovaltine, pronto were imported into Nigeria from united kingdom that is during the colonial rule and in 1960-64, Ovaltine, pronto were imported into Nigeria from united kingdom and canned in Nigeria under the license of Cadbury Nigeria Plc. In 1965, Ovaltine and drinking chocolate were already produced locally, due to the civil war the ban an importation of cocoa beverages affected Ovaltine and gave way for Cadbury Nigeria Plc who took advantage of this to strengthen the position of Ovaltine.

Ovaltine enjoyed the market share until 1970 when the ban on cocoa importation was lifted and Ovaltine, Milo, vita cup etc re-remerged there by reducing Ovaltine market share. Ovaltine introduce the 9009 which stipulated growth again.

Ovaltine observed an increase competitive activity amongst key players, but still maintained its market leadership till the mid nineties. In the past years, the popularity of Ovaltine has been in question. Hence the researcher hereby attempt to find out the significance of brand positioning in marketing activities using Ovaltine as a case study.

1.2   STATEMENT OF RESEARCH PROBLEM

Most food drinks industries have not been successful because they lack understanding of consumer behaviour and the resultant effect is decline in their expected profit.

This is why several criticisms have been made against then. This research will be able to provide answers to the following questions.

1.     Do consumers prefer Ovaltine to other food drinks produced by Cad bury?

2.     Do consumers prefer other brands of beverage of other companies to Ovaltine?

3.     Is the price of Ovaltine reasonable as a factor for

purchase?

1.3   OBJECTIVES OF THE STUDY

The objectives are follows:

1.     Find out how the present positioning has enhanced Ovaltine market leadership among other food drinks.

2.     Find out the advantage that the present positioning has over other competitive products.

3.     Find out if the present positioning has enhanced more sales compared to other positioning.

4.     Find out consumers’ perception of Ovaltine in terms of awareness and profitability.

1.4   SCOPE OF THE STUDY

This study will be centered only on Delta State and among target group which are children of ages 2-15 years of classes A, B and C. It shall comprise both male and female. The schools selected for the study are:

1.     Bother plus school

2.     University preparatory Nursery and Primary School

1.5   SIGNIFICANCE OF STUDY

It is expected that selected cases like this will be a source of invaluable information and knowledge to manufacturer and Advertisers.

Brand positioning strategy for a competitive advantage cannot be over looked hence the need to use Delta State to determine whether the impact of Ovaltine is felt among the children here as it claims to be the “kiddies friendly brand” that is not focusing alone on the children in Delta State but recognize that the children have friends every where.

This study would enable marketers to take better decisions in production, distribution and promotion.

1.6   RESEARCH QUESTIONS/HYPOTHESES

H0: The present positioning does not have more advantages in terms of sales over other brand positioning.

HI:  The present positioning has more advantages in terms of sales over other brand positioning.

H0: The present positioning has not helped to offer competitive advantage.

HI: The present positioning has helped to offer competitive advantage.

H0: Brand positioning has not influence aggressive increase in patronage since its inception.

HI: Brand positioning has influence aggressive increase in patronage since its inception. H0:   Present positioning does not create awareness of Ovaltine among its targets group.

HI: Present positioning has created awareness of Ovaltine among its targets group.

1.7   OPERATIONAL DEFINITION OF TERMS

Reliant term not adequately defined under this heading is defined in the literature review where their definitions guide the collection of the literature of study.

Brand: A member of class of goods as being physically the same and serving the same purpose to the extent that they are seen as a direct substitution by consumers e.g. Ovaltine and Milo.

Positioning: Is a peculiar way that a product can be differentiated even when existing product have the same taste, look, content and ingredients.

Strategy: A plan designed for a particular purpose, the process of planning of the whole operation of a campaign in skillful way.

Competitive: Taking part in a contest, race or struggle against each other. Trying to win something by defeating others who are trying to do the same.

Advantage: Afavourable circumstance, a benefit.