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Brand is a powerful tool to attract more consumers to buy particular products. Some may even

regard it as equity as it can add values to the products. This research work examines the impact

of branding on customers choice of a product in competitive market. In conducting this research

work, the four aspects of brand equity, notably brand awareness, perceived quality, brand loyalty

and brand association were all addressed.

In this research work, the marketing mix were also discussed in detail related to the case study,

price policy, product policy, distributed policy and place policy were critically discussed in this

project. Notwithstanding this, more emphasis should be placed on other marketing strategies

such as rewarding customer with the view to enhancing the sustainability of the Yemi water

industry. Yemi pure water industry also facing some problems which leads to the inadequate

sales, some of the problems are inadequate sales, lack of research and development, competive

weakness and other miscellaneous chanllenges.

1.1 Background of the Study
Branding plays an essential role in the success of a business, especially in a competitive

environment where survival of a business depends on the customers preferences (Kotler, 2000).

In the mobile telecommunication industry where consumers have many alternatives to choose

from importance of effective branding prevails (Hutch, M.J. & Shultz 2002). Current market

trends show that homogeneity of product and services has increased, meaning that few functional

differences between key competitors currently exist in most highly competitive markets (Levitt,


Pure water has gained more grand in Nigeria through establishing of pure water

industries. By so doing, government has also contributed to the development of [pure water

industry through the process of distributing chemical that will reduce the amount of germs in

water and also make it drinkable for people. (Garland, 2002; Anderson, Fornell & Lehmann,


Companies are anxious to differentiate themselves from their competitors in a unique

way; brands play an enormous role in achieving these objectives and are almost invariably

considered to be the most effective way to attain a strong position in the market. (Levit, 1983;

Kotler, 2000)

A brand has a value; this depends on the quality of its products in the market and the

satisfaction or content of the customer in its products and services. This provides the trust of the

customers in the brand. If customers trust a brand quality, it makes a positive connection to the

brand and customers will have a reason to become a loyal to the brand. Loyalty and trust of the
customers is very important for a company because it reduces the chance of attack from

competitors (Aaker, 1996). Brands play a very important role in the consumer decision making

processes. It is really important for companies to find out customers decision making process

and identify the conditions, which customers apply while making decision (Cravens and piercy,


Marketers are highly concerned to know how brand names influence the customer

purchase decision. Why customers purchase a particular brand also implies how customers

decide what to buy. Customers follow the sequence of steps in decision process to purchase a

specific product. They start realizing a requirement of product, get information, identify &

evaluate alternative products and finally decide to purchase a product from a specific brand.

When customers purchase particular brand frequently, he or she uses his or her past experience

about that brand product regarding performance, quality and aesthetic appeal (Keller,2008).

The path of branding in the pure water industry in Nigeria particularly in Ado-Ekiti has

seen a lot of interesting strategies to increase water industry. Six pure water industry as fierce

competitor which are: yemi pure water, Tolu Packard pure water, Pabrista water industry, tolu

pure water, Semlab pure water industry and Poly Piure water in the industry are therefore

struggling for increase marketing and survival. Creating customer friendly, receptive and

attractive image has become highly important and development of branding strategies has been a

vital issue in the industry. Effective Branding efforts are considered a transition to success,

which will continue to prevail on customer attitude towards the choice of brand in the industry.

According to Mooij (1998) brand is a name in every consumers mind and it is

characterized by a noticeable name or symbol which can differentiate the goods and services

from the rivals (Aaker, 1991; Keller, 1998). In addition to a specific brand name, a brand is also
composed of products, packaging, promotion, advertising, as well as its overall presentation

(Murphy, 1998).

From the consumers perspective, brand is a guarantor of reliability and quality in

consumer products (Roman et al., 2005). Added to this, consumers would like to buy and use

brand-name services with a view to highlight their personality in different situational contexts

(Aaker, 1999; Fennis and Pruyn, 2006).

1.2 Objectives of the Study

The general purpose of this study is to examine branding strategies on customers choice of

product in a competitive market (especially Yemi pure, sachet and table water) and its influence

on consumer preference. This research work is also designed to achieve the following specific


i. To examine the impact of product branding on customers priority of product choice.

ii. To assess the influence of brand elements (name, colours, logo, slogan, advertisement

mode) on consumers preference.

iii. To know the relationship between product branding and customer loyalty in a

manufacturing industry.

1.3 Scope of the Study

The study on the branding strategies and its influence on consumer choice of product

brand preference will be conducted only in the Ado-Ekiti with careful attention given to users of

Yemi pure water lines. A study of this nature should have covered the entire country for a

broader generalization but the researchers considered proximity, time and availability of funds.

The time frame for conducting this study was between June 2014 and August 2015.
1.4 Significance of the Study

1. The study will help product manager to understand the relevant of product branding in

marketing of their product.

2. The study will also assist customers in the right choice of product so as to satisfy their


3. The study if well implemented will improve sales and profitability which will in turn

have positive influence on the economy of the nation.

1.5 Limitation of the Study

In the process of carrying out this research these are some of the basic problems that were

encountered. They included the following:

Time constraints: The research work and study as student, battling with office-work and class

work and at the same time carrying out a research project and other personal activities was really

a constraint to me.

Financial constraints: Another problem that research encountered here was finance, as the

amount required for serious work was not readily available considering the kind of economy we

have and inflationary trend does not help matter.

Insufficient materials: Another problem that researcher encountered here was the problem of

sourcing out information through the internet and from other relevant materials and text books

for the literature.

2.0 Introduction
The chapter two talks about the literature review from different perspective, also explain

what is meant by brand marketing theory, image priority, positioning priority, product priority.

Branding is also discussing fully in this chapter with the subtopic under branding.

2.1 The review of the development of the brand marketing theory

It is believed that branding or re-branding, with a new name or logo does not come cheap

and should therefore be handled with utmost care and precision lest it amounts to a total waste of

money and other resources. Lead, (2005) asserts, based on the result of its survey that the value

of a strong brand lies in the impression left with anyone who comes into contact with the


For another authority Kim and Chung (2007), a most effective branding, entails a

memorable name and a ubiquitous slogan combined with an instantly recognizable and unique

logo. It recommended a simple and straight forward logo or potentially, an elaborate design of a

simple idea, such as a silhouette of a person or an object. It further identified the brand name as

another crucial element of branding which should be both simply memorable and is particular to

a firm or product

Daye, VanAuken and Asacker, (2008), identified color as a critical element in

developing a branding strategy. They opined that a firm need to be wise in considering what they

called the psychology of color when designing their marketing materials. They asserted that

colors not only enhances the appearance of the item they also influence customer behavior. They

further said that the color of your brand may make or mar our branding strategy while pointing
out that effect of colors differs; from culture to culture. Roll, (2008) recommends that firms

should rather concentrate on having a brand portfolio which usually refers to the firms set of

related brands and/or products. According to him, the traditional logic behind having a portfolio

of brands rather than a single brand has been possible diversification and risk minimization. He

however advised that the days of a firm having one leading star brand and others of low quality

merely following have gone and that all brands in the portfolio must be made to compete for


In the words of Lindstrom, (2008), there are three pronged approaches to developing an

effective branding strategy namely, determine which audience to focus on, determine what

message your brand should convey and finally, determine what creates the brand. He further

opined that a brand must have a clear audience focus, value focus and tone-of-voice focus with

which to deliver its well-honed message.

Kim and Chung, (1997) researching on brand Popularity, Country Image and Market

Share believes is that competition among brands has become more complicated as the number

of brands originating from foreign countries increases. They identified two concepts (brand

popularity and country-of-origin-image) as being key variables for the long-term success of

brands or firms in global markets. They strongly believe that these two factors interact with

other marketing variables in influencing brand performance and by extension acceptance by

consumers. Suffice it to say here that what country-of-origin image does for brand performance

in the global market is what company-of-make-image does in the domestic market. Again, brand

popularity is an important factor in market performance both in the global and domestic market.

Okpara, (2007), studying brand popularity and company-of-make cognitions of major

consumer brands in the Nigerian youth market, had its main objective as finding the impact of
popularity and company-of-make on consumer choice. The research surveyed a total of 1200

respondents (students) chosen from universities in the southeast, Nigeria and came to the

conclusion that 100% of the respondents do not know all the manufacturers of even their favorite

brands, with females being more brand loyal than males. This research went further to observe

that majority of first choice brands in the market are from Multinational companies. On the

strength of this finding, the study recommended that corporate bodies should intensify

promotional campaigns on the company more than on the individual brands (institutional as

against brand advertising).

Adirika, Ebue & Nnolim, (2000) recorded the outcome of a study on branding carried out

on Taiwanese manufacturers who produce a great amount of the worlds clothing, consumer

electronics and computers but not under Taiwanese brand names. The result of the study showed

that marketing Power lies with the brand-name companies and not with actual manufacturers.

This is because brand name companies can replace their Taiwanese manufacturing sources with

cheaper sources in Malaysia and elsewhere and still retain their market shares. This study only

goes to portray the fact that consumers are more susceptible to brand names rather than quality.

Okpara, (2008) studying the Attitudinal Dimensions to Home brands of shoes as

compared to foreign brands discovered the presence of what he termed Consumption Complex

Syndrome (CCS) as being responsible for local consumers preference for foreign branded shoes

over the local branded counterparts. Okparas model suggests that once consumers are exposed

to the awareness and knowledge of a brand of product, they either like or dislike it. Allusion to

Consumption Complex Syndrome suggests that when a consumer asserts preference for a

particular brand of shoe (foreign) and cannot in a blind brand experiment clearly pick out that

brand, then he possesses the syndrome. This simply suggests that what consumers buy most
times is name and not quality. This, one believes may equally be true of consumers of regulated

bottled water who cannot determine in a blind brand experiment their choice brand

Brand marketing belongs to the category of marketing. The research of brand marketing theory

began in the 1950s. Up until now, the brand marketing theory has been spanned four times:

Product priority

Early in the 1950 s, the market is in constant competition while the market is lack of the

varieties of products. Competition in the market is usually realized through the nature of the

product itself characteristic difference caused by functional interests. Restricted by productivity

development and consumption level, the consumers pay strong attention to the pragmatic use of

the products. Unique selling proposition theory was quite fit for the characteristics of this era,

and became the mainstream marketing theories at that time.

Under the instruction of this theory, the main task of the enterprise is to spare no effort to find

out the unique selling proposition. Therefore, ads even exaggerate product features and

functionality. At the end of the 1950s, with the fast development of the technology, the

differences between products are getting smaller and smaller, homogeneity of product is

increasing day by day, and looking for USP change is already overstretched for the company.

Image priority

In the era of image generation, differences between the products were narrowing, the

similar and homogeneous products were flooding into the market, and it was very difficult T to

distinguish through product features. With the improvement of living standards, the consumption

conception of the customers was also changed; they began to pay more attention to the

psychological satisfaction. To the 1960s, brand image theory was widely accepted and adopted

Under the instruction of the brand image theory, the companies planned the Rolls Royce

and Hathway shirt and so many classic brands. However, despite the emergence of the image

theory makes the corporate continuously carry out the design of image of the corporate and

pursue an ideal image fancied by the public, the result of competition makes enterprises lost the

unique image in the customer's mind (Aaker, 1992, pp.56-58). It gradually became the

competition of the stereotypes.

Positioning priority

Rees and Trout declared the coming of the era of the positioning, and they thought

creativity was no longer the key factor to success. The discoveries or the inventions of the great

things are no longer as important as it was before, but the company should convey the concept of

the product into the potential customer's mind as a priority. Under this thought, they proposed the

positioning theory; the purpose of positioning is to set up a place that is irreplaceable in the mind

of the customers. Once they have some kinds of needs, they will open the memory door to think

of the brand (Reast, 2001, pp. 4-13).

Value priority

In the 1980s, Professor Kotler proposed the customer value theory, opened the era of

brand value (Harris & Chernatony, 2001, pp. 441-456). The theory thought that the customer was

always in the pursuit of the maximization of balance part of the "total customer value and the of

total customer cost, that is the maximization of the customer delivered cost. It has a decisive

meaning for the company to formulate strategy, especially brand strategy. Under the instruction

of the customer value theory, the company gradually realizes that customer value is the core of

brand marketing.
The positioning of the brand should reflect enterprise's the positioning of the target

customer. But the most important thing is that in should reflect the customer value set of the

corporate, take the customer value chain as the mainstream, carry out the brand positioning and

marketing activities which goes from the easy to the difficult. Its purpose is to deliver and create

more value for the customers, so as to improve customer satisfaction, maintain the customer's

loyalty of the brand. The direction of the brand marketing also goes through simple positioning

to the pursuit of the core customer value. It can be seen that the era of value priority brings

innovation for the development of brand marketing once again.

2.1 Branding:

Branding is creating a perception in the customers mind to visualize when the particular

name comes up (Boyle, 2001). In other words, branding is what customers think of a product or

service. Although the name brand has been originated from Old Norwegian, the meaning of

that word is not same as it is for the marketing scholars (in the Old Norwegian meaning branding

is to mark a sign often in numeric figures to confirm ownership of cattle (Clifton et al., 2003).

Later on brands have been used by the marketers to help identify specific products which are

similar in the core product design and layout (Akin & Moirts, 2009).

In the modern marketing era, brand is a symbol of value developed over the years by a

specific product or service as recognition of superior value creation for the customers (Christie

and Frank, 2011). Brands can be a single product line, a corporate brand under which a number

of products are being offered or it can be the goodwill of a business that makes customers to feel

better about (Abbott, 2010).

2.2 Brand Awareness and Equity:

The knowledge of a brand is consisted of two parts; one is the image of the brand and the

other is the brand awareness (Keller, 2008). Brand awareness in effect comes from the

recognition of a product as a brand by the customers as they perceive it and the repeated uses of

a same product resulting in a brand recall (ibid.). The perception of brand as an image in the

minds of the customers can vary greatly from market to market (Boyle, 2001).

The more appalling brands are capable of leveraging encouraging brand equity and can

generate possible benefits for the marketers, such as higher customer loyalty (Akin & Moirts,

2009), a reduced amount of exposure to internal and external market competition and image

crisis, better margins, positive response with regards to price volatility, and improved marketing

interaction effectiveness (Keller, 2001).

However, Keller (2008) included the service market in the branding and presented new

definition to the branding. Later on the importance of branding is pointed out by Berry (2000) as

being an intangible product offering and thus the customers are actually purchasing something

invisible in nature and with the development of branding the frequency of these invisible

purchases tend to increase to reflect positive customer responses (Boyle, 2001). However, the

evaluation of branding differs significantly for the service offerings than the product offerings as

the products are tangible and being more present than the services offerings (Christie and Frank,

2011). That why scholars argue that the branding techniques for the services should be different

corresponding to the need than being similar to the products (Berry 2000, Keller 2008).
2.3 Branding and Customer Loyalty:

The academic works have showed that the brand image is critical to the service marketing

and is considered as an important feature of a service (Chernatony & Segal, 2003; Berry, 2000;

Keller, 2008; Kimpakorn & Tocquer, 2010). The service experience is reinforced through the

establishment of the branding of that particular service. According to Chernatony & Segal (2003)

the services rendered by a business is the combination of the individual interaction of the

particular benefit with its stakeholders. With the use of appropriate marketing tools such as the

communication techniques can develop a successful brand which can exert a very strong appeal

to its target market (Christie and Frank, 2011).

How a brand is created for the service market. The answer is that the service experience

which is communicated to the customer from the marketer makes a unique experience that can

later be regarded as implied in the development of a brand (Collins. 2008). Similarly, the

negative customer experience is counterproductive as that would lead to the deterioration of the

brand value in the minds of the customers (Dahler-Larsen, 2011). Winning service brands are

based on the practice of building strong core values with the intention of being nurtured and

nourished within the business organization (Chernatony & Segal, 2003).

Moolla and Bisschoff (2012) tried to identify the effectiveness of brand loyalty for an

industry. As it appeared there is a strong role of equity of a brand which is related to the concept

of brand loyalty. Consumer awareness and preference create the brand equity which in effect

influences the loyalty for a brand (Barrington, 2011). Factors such as trust for a brand,

customers responses and feedback, relevance of the brand, repeated purchase sensitivity of the

relationship, commitment of the customers, involvement in negotiation, cost of switching from

one product to another and the brand affect. In analyzing these factors the researchers clarified
that the customer loyalty may prevail for an individual product out of relationship marketing but

the customers can still lack in commitment to repeat purchase (Bagozzi et al, 1989).

Brand performance is related to the functional needs of the product or service. According

to Keller (2008) the success of a brand is dependent on the design and the delivery of product or

service which can accomplish the needs of the needs of the customers (Collins. 2008). There are

five core aspects of it which are reliability of a product, durability of the product, the

serviceability of the designed product, efficiency, empathy and effectiveness of the service,

innovativeness of the product or service and lastly the cost or price of the product or service

(Banyai, 2012).

2.4 From marketing concept to brand awareness

In the reviewed of the development of the marketing concept, it goes through a change

from the seller's market to buyer's market, from the concept of production to the concept of

social marketing. The concept of marketing is gradually taking the market as the guidance, the

needs of the customers as the mainstream. Enhancing customer value (especially customer

perceived value) becomes the centered attention of many marketers.

When the demand level of the customers go to a higher spiritual value and additional

value level, the enterprise's marketing concept also inevitably needs to be reconsidered from a

strategic vision and sets up a new concept of integration and brand marketing (Delgado &

Munuera, 2001, pp. 1238-1258 ). At the meanwhile, with the development of the theory of the

brand marketing, it is gradually permeated into the concept of enterprise marketing activities,

strategies and tactics. They are integrated with each other; constantly promote the development

of marketing theory.
With the deepening degree of the economic integration, many people put forward the idea that

the company should put the marketing focus on the brand image, thus the idea of brand becomes

the mainstream of marketing concept under the background this kind of market gradually

(Baldinger & Rubinson, 1996). The so-called brand consciousness is referred to basic idea of

enterprise for brand and brand construction. It is a comprehensive reflection of enterprise's brand

values, outlook on brand, brand equity, brand competition, brand development, brand strategy

and brand construction (Aaker, 1992).

When the managers of an certain enterprise clearly knows his enterprises influence of

his products and services provided by and among consumers in the market, and the cognitive

processes of life caused by the influence, they create its own brand awareness in a certain sense.

Brand awareness provides a solid foundation to develop brand strategy for the enterprise,

becomes a modern economic strategic consciousness of the leading enterprises to win in the

competition. Product is also like a man, it should have its own image (Berg, 1989).

Brand Equity

This is the relationship between consumers and the specific brand resulting in future

profits. It is tedious to determine brand equity but a strong brand denotes high brand equity

which is important in attaining high brand loyalty, strong brand association and name awareness.

Customer loyalty and brand awareness are some of the main advantaged of brand equity

resulting in reduced market costs. Strategies should be adopted to ensure brand awareness is

improved and maintained since brand is a significant equity (Kotler, Armstrong, Saubers, &

Wong, 1999). Brand equity can be measured from two different angles. The first angle is the

financial evaluation perspective and the second angle is the consumer based point of view.
The financial evaluation perspective is linked to the brands monetary value. On the other

hand, the consumer based point of view focuses on the consumer value. Brand equity can also be

viewed as profit built up to be realized at a later date. Brand equity is very important since it

requires the need for comparative research to authenticate the importance of the stipulated

methods of brand evaluating (Baldinger & Rubinson, 1996). This importance has been enhanced

by the current trend of merger and acquisition. Brands have moved from being means of

differentiation and competition to accumulated annuities (Delgado-Ballester & Munuera-

Alemn, 2001).

A stronger brand always has a clear understanding of customer preferences and needs.

Therefore, strong brands increase the effectiveness of marketing programs. For the last decade,

brand equity has attracted new market fragments and it has matched with brand extension. There

is a joint link between brand extension and brand equity. This is because brand equity has the

capability to affect the success of extensions (Berger, 2000).

Extensions on the other hand have the capability of positively impacting brand equity.

Consequently, the high valued brand extensions succeed making customers to prefer them

simply because they have strong brand equity. The result of this is brand loyalty making it

difficult for consumers to buy from competitors. Nokia, Apple and Kodaks brand position

strongly depends on the positive image of its brands (Chandler, 1990). A successful brand allows

Nokia, Apple and Kodak to demand a higher price for the specified brand. This is a barrier that

makes it hard for customers to move to other brand thus promoting brand loyalty (Bilkey & Nes,

3.1 Historical Background of Yemi Pure Water

The Yemi water industry was located beside, our Saviours Anglican Church Irona, Oke

Bola Street, Ado-Ekiti, Ekiti State is owned and directed by a sole proprietor named Mr.Bernard

Rufus is a native of Ado-Ekiti, he went to saint Thomas Catholic Primary School, Ado-Ekiti in

the year 1966 and later went to Christ Boys School, Ado-Ekiti for another six years.

Before the company was established, Mr Bernard Rufus was involves in the production

of Cassava processing namely (Gari) and the industry was name, Rufus and sons Ltd. He later

ventured into the production of pure water by raising fund from personal saving and load from


Mr. Bernard Rufus gained the experience of how to produces pyre water by

understanding three month training from Dele pure water in the year 1999, after having gained

the experience , he determined to established his own pure water company when be source of

money. In year 2000, he started a pure water industry with the service of three casual labours.

Mr. Bernard Rufus, purchased some needed equipments for the production of pure water

which are see first sinking bore holes, purchase of generating set, overhead tank, ceiling

machine, chemicals like aluminum and chlorine, nylon , pumping machine etc.

Due to the nature of the business and the starting capital the proprietor was able to have his own

motor vehicle (pick-up) to transport its finished products to his customers. He opted for hiring a

pick-up to distribute his product to his numerous customers.

Finally, the industry registered with the Ministry of Commerce and industry in this state

and also registered with Federal Source, NAFDAC Reg. NO 01-1092L.



The strongest asset for the promotion of Yemi products is the product itself. The products

are tasty and people like it. Thus, a pull is created directly by the product. However, today, no

company can exist without promotions and advertising. Same is in the case of Yemi Pure Water

as well. However, the advertising spends for Yemi are controlled because of the brand equity of

Yemi products and the presence of the brand for almost Ekiti State.

The Industry uses most of the usual methods of advertising, including billboards,

magazines, TV ads and point of purchase advertising. In November 2012, Yemi Pure Water

industry hired Ogundele Kehinde to endorse its pure water products. Yemi Pure water industry

has high advertising spends for products like Juice, Table Water which are available in all forms.

However, the investment for marketing of water products is minimal because a lot of expenses

have to be done for the distribution of the products. Yemi Pure Water has enough brand and

clout in the market, because of its constant presence in the last few decades, that its product

receives a natural pull from the market.

1. Relies more on pull than push

2. Has amazing brand equity due to presence in the market for last many years.

3. Concentrates on promoting bread product.

Some specialists considers that the role of the promotion policy in the retail business is to

attract potential consumers (creating traffic in store) to convert visitors into consumers and to

retain buyers. Whatever the nature of the promotional activities, the homogeneity or

heterogeneity of techniques, their action in time, the economic effects entailed etc., modern retail
companies must always bear in mind their complementarity; an active and efficient market

policy supposes their inclusion in a coherent and operational promotional policy.

The most used variables of a retailers promotional mix are: advertising, public relations,

personal selling and sales promotion. Next, we will analyses only personal sales as part of the

promotional mix, but also as a possible approach of this element, as the 7th variable of the

marketing mix specific to retail companies. Personal selling can be defined as a form of

communication from one person to another, in which a seller tries to convince potential

customers to purchase the companys products and services.

It is therefore a process in which salesmen try to inform and persuade customers to

purchase a product or service. Personal sales are the most expensive component of the

promotional mix and the most effective one, as it provides entrepreneurs the freedom of action to

adjust a message to satisfy the customers needs for information. So, it gives the fastest feedback

of all promotional activities due to direct communication.

Personal sales promotion success lies in the ability of staff to adapt to different situations

that may occur, these situations requiring a certain degree of flexibility and adaptability.

However, the behaviour of the sales staff must generate credibility. Because the sales force is

the largest expense for marketing communications, it needs proper management and it should

have a different type of management than the other areas of promotion. This argument leads to

the idea that personal selling can be treated separately, as the 7th variable of the marketing mix

specific to retail companies.


Competitive pricing is the sole pricing strategy which Yemi Pure Water uses. Pabrista is

one of the major competitors of Yemi Pure water and in that, yemi has remained unbeatable for

years. In pure water, in table Water, you will find local competition as well as Pabrista who has

their own line of products. To stay above all of them, Yemi pure water adopts a competitive

pricing strategy. Thus, Yemi products are much better in quality and are good in price as well.

The pricing strategy along with distribution has been so strong, that people buy these products.

A price strategy should reflect the company's own objectives and be related to the sales and

profit. The goals to be achieved can be established as income and / or volume units.

a) Market penetration pricing strategy is used when the retailer wishes to acquire revenue

by setting a low price and selling a large number of product units. Profit per unit is small but the

total profit is higher if the desired goal has been achieved. This strategy is favourable for cost-

sensitive customers and if the cost does not increase much.

b) High price strategy is used by the company to attract customers who are not concerned

about the price, but the service and prestige. Usually the strategy does not maximize sales, but

brings great profit per unit.

c) Cost-oriented pricing strategy - The retailer sets the price, adding the operating expenses

and desired profit to the cost per unit. The difference between the merchandise cost and the

selling price is the trade margin. With a variable margin policy, retailers adjust the margins on

merchandise categories. One way of planning the variable margin is the direct profitability of

products, a technique that allows each retailer to find any category of merchandise profits

calculating marginal costs and direct costs of products for storage, transport, handling and sales.

After this, the margin is established according to each category. This technique is used by
supermarkets, discount stores and other retailers. The main problem is the complexity of cost


Cost oriented prices are often used by retailers. It is simple because a retailer can apply a

standard margin for some product categories much easier than estimating the demand for

different products at different prices. When retailers have established similar margins, pricing

competition is reduced.

d) The strategy of prices adjustment to market conditions. The retailer may adjust prices

according to the demand or market segment. The best example of adapting the retailer prices

from Nigeria to the market demand are represented by some food prices (oil, sugar, flour) and

durable goods prices (electronics, appliances, cars) in 2008, until the financial and economic

crisis (end of 2008) and the beginning of 2009. So, 2009 started with significant discounts on

many products. In our opinion, cooking oil was even 40 - 50% cheaper, and cars had an average

reduction of 10-30%. The conclusion is clear, namely, many retailers have chosen to adopt this

strategy of adaptation to the market conditions.

e) Competition-oriented price strategy - A retailer can use competition prices as a guide. A

company may not modify prices if there have been changes in demand or costs, if they are not

modified by competition. Similarly, a firm may change its prices if the competition changes

them, even if there have not been changes in demand or costs. A firm with a good location,

superior service, favourable image and exclusive brands can set higher prices than competitors.

However, prices above the market average do not go with a store that has an inappropriate

location, rely on self-service, is not innovative and does not offer separate products. Competition

oriented prices do not require calculation of demand curves and price elasticity. The average

market price is assumed to be correct for both the buyer and the seller.
f) Promotional price strategy- In some circumstances, companies will temporarily fix a

price below wholesale price, sometimes even below goods cost. According to Kotler,

promotional prices can be found in the following forms:

Loss Sales - supermarkets reduce the price of goods belonging to famous brands to boost

their sales. But usually, producers do not agree with their brands being subject to such operations

because it can lead to worsening the brand image or to discontent among retailers that practice

wholesale price of the supplier. Therefore, producers have tried to force intermediaries to

renounce these practices, imposing the maintenance of the retail price by law, but the laws were


Special pricing Retailers use special pricing at certain times of the year, in order to attract

more customers. Thus, every year, in January, the prices of certain products fall, with a view to

attracting more consumers who seek for bargains and in such conditions do more shopping.

Discount for immediate payment It is used to stimulate consumers to purchase a product

in a given period of time. They stimulate their sales without requiring large expenditures, as

if the price was reduced.

Low interest credit purchases - Instead of lowering the price, the company can offer the

financing of their own purchases at a low interest. To attract customers, traders generally

announce that low interest loans are granted for purchases. It seems that this is a very well

accepted method by buyers, because many of them use it when they want to buy a good.

Thus, many retailers have developed partnerships with financial institutions so that together

they can offer various loans adapted to customer requirements.

Warranties and service contracts the company can promote sales by offering free

assistance and service. Instead of charging fees for assistance or service contracts, it offers its

customers these facilities for free or at a reduced price, which is another way to reduce the price.

Psychological discounts - they involve artificial setting of a high price for a product at the

beginning and selling it later at a much lower price. Therefore, in the US, the Federal Trade

Commission and Business Improvement Agencies were established against illegal tactics to

reduce prices. On the other hand, price reductions are considered normal practices used for

promoting sales.

g) Value-oriented pricing strategy - During the recession recorded in the 90s, when the

growth was low, many companies adjusted prices to the economic conditions and fundamental

changes subsequently occurred in the consumers attitude about quality and value. Increasingly

more marketers adopted value oriented prices - offering the most advantageous combination of

quality and prompt service at the best prices. In many cases, this has involved the introduction of

cheaper versions of famous brands. In other cases, the value oriented prices involved redesigning

existing brands to offer better quality at a fixed price or identical quality for low prices


Yemi pure water offers a wide variety of pure and table water. Yemi pure water setup

some offices around Ado-Ekiti ensured a constant supply of table and pure water and as the

company began distributing biscuits from other smaller companies it had taken over, they started

to manufacture and release their own biscuits. Their main products include pure water, table

water, and juice. They have continued to release a steady flow of products over the years, for

example, fruit bread, or the dairy product Half/Half. 90% of their revenue, however, comes from

water industry. Their combined factory capacity is some 433,000 tonnes per year. In 2006, the
Yemi pure water industry of the company achieved total sales of N30 million. BILs present

annual revenue is around Rs 22 billion, nine tenths of which is generated through biscuit sales.


Yemi pure water industry has been one of the market share holder for many years in

Ekiti. It has also concluded some internal deals, such as working with Peek which is a successful

Nigeria Yemi pure industry, and also completed takeovers in 2006 which enabled the industry to

distribute its goods to more people. Yemi Pure water industry currently has an estimated 38% of

the market share.

The industry has also invested in its juice products, and in 2007 announced a joint

venture with the Ekiti State, allowing it to produce juice and table water amongst other things.

The industry distributes its goods up and down the length and breadth of Ekiti State the

Company has been voted one of Nigerias 100 most trusted industries, as listed in the Brands

Trust Report.

For distribution Yemi Pure Water Industry follows the FMCG channel of distribution

wherein it appoints distributors at select locations. These distributors are then responsible for

handling dealers and retail. The distribution channel follows breaking the bulk where in large

amounts are transferred from factory to C&F, from C&F to distributor and then forward to

retailers and dealers. The distribution in urban areas is fantastic with Yemi Pure Water being

present almost everywhere. However, the rural penetration of the industry is still less because of

the challenges of distribution in rural area.

a) FMCG distribution model

b) Breaking the bulk is applied

c) Strong distribution in the State

d) Rural distribution needs to be stronger


The problems facing Yemi Water Industry are as follows:

Inadequate sales:

For Yemi Water Industry is discover a niche but without investigation to ensure that, it

has potential for growth. The plunge into it. After the initial funfair the business stagnated for

lack of potentials for growth.

Lack of Research and Development

Technological process is very low in Yemi Water Industry as the proprietor cannot afford

the heavy capital outlay of engaging in research work. Since it is this that increases efficiency

and market share etc.

Lack of Machineries and Equipment

The machines and equipments which Yemi Water Industry core using for their operation

is not enough for the industry. This is even made worse because of the ban on the importation of

certain materials into the country and this made some of the machine to be out of use.

Competitive Weakness

This can be shown itself in many ways the small business operator, if in competition with

bigger firm may operate at a higher average cost than the competitor. Another aspect is inability

to get prime locations changes in environment are fast and a businessman need to change with

changing time. Any business that does not recognize and adapts to changes will definitely be a

Poor Management Skill

This is biggest and most frequent cause of business failure. This may be due to lack of

experience from the management. A business is to have failed if available capital is insufficient

to pay all the obligations of a business.

Bad Debt

Business dependent on rotation of capital, if business is to pay its bill promptly, it should

receive payment of sales. Some small businessman got into trouble because they extended too

much bad credits sometime to friends and relations.

Attitude of the people:

Psychological behavior of supposition of some employee to customer is not very warm.

And this brings reduction in the Number of customers that patronizing the business of Yemi

Water Industry.

Inventory Imbalance

This is the overstocking of particular items considered a good offer, so he up to tied up capital.

This research project has continuously tried to emphasize the fundamental essence of

enhancing customer choice of product through product branding in a competitive market in

Nigeria. In the course of this study, Yemi Pure and table water was adopted as the case study

with the aim of trying to analyze its product brand in enhancing profit and increase in sales. The

study findings clearly indicates that branding of Yemi pure water industry product is one of the

determinates of sales and continuous increase in return on investment and among the industrys

product, pure water, table water, juice etc.

In chapter one, the research topic was thoroughly introduced giving an insight into the nature of

the study. Chapter two contains reviewed literature and text written by scholars and researchers

relating to the study. The historical background of Yemi pure water industry in Nigeria Chapter

three focused on marketing mix of yemi industry. For this work, the exploitation of 5Ps of

marketing mix was discussed fully with respect to the case study. From the marketing research,

price policy, place or distribution policy, product policy and also promotional policy were

revealed from the yemi pure water industry.


From the research, it is evident that principles of enhancing profitability tools and

techniques are quite applicable and have been used in Yemi industry in Ekiti State like any other

industry that deals with tangible and intangible products. Market has been segmented so also the

customers and products were differentiated to the target markets that results into different brands

both heavy customers and light customers with the aim of increasing profit among industries.
Yemi pure water Industry has been able to retain and motivate its channel members thereby

increasing the market position of the organization. The industry management has been able to

improve its knowledge of the needs of its consumers and fine turning its strategies to quickly

adjust to changes in the environment. To a large extent the industry has been in a fairly good

position to withstand the threats of competitors within the industry like Pabrista water industry,

Tolu packad water industry and others to mention a few.

1. The industry should refrain from loading the distributors with excessive inventories but

providing adequate sales potential, monitoring distributors profits to ensure that their channels

remain financially viable.

2. The industry should embrace the marketing strategies of constantly innovating and improving

their products to increase consumers satisfaction

3. A strong intelligence network should be maintained to enable the industry monitor the

activities of competitors in the industry on regular basis

4. The management of the industry should explore every opportunity possible to create

innovation which motivates its distributors and consumers of its products with a view of having

competitive advantage


Based on the researchers findings, branding is one of the determinants of sales in Yemi

water industry. Because of this, competitors may want to imitate the brand of Yemi Pure water

industry in order to:

1. To forestall the occurrence of competitors imitating the brand of Yemi industry. The branding

should be done in such a way that it cannot be imitated.

2. The researcher also observed that the problem of improper financing, planning, poor branding

and insufficient sales can be revered. This can be achieved through proper allocation and use of

funds and accurate planning and forecasting techniques to be used by management.

3. Good branding strategies should be adopted to enhance profitability and sales volume.

4. Finally, employees loyalty should be maintained by adequate monetary and nonmonetary

rewards. The company should keep abreast of developments in the labor market as a means of

ensuring rewards viz-a-viz other industries. This is because, equipment no matter how

sophisticated they are must be operated by people and finally frustrated employees are a threat to

a companys profit enhancement.


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