Effect of customer co creation on performance of carbonated soft drinks companies in Nigeria.
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Date
2019-10-20
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Ilorin journal of marketing. Published by University of Ilorin journal of marketing.
Abstract
Seven Up Bottling Company Nigeria Limited is concerned about the effect of intense competition
on her performance. Consequently, it is seeking solutions to issues that can enhance its
competitive advantage, sustainability, and potential growth through customer-driven strategies.
Hence, the study examined the impact of customer driven strategies on the performance of Seven
Up Bottling Company Ltd. in southern Nigeria. The specific objectives of the study were to;
examine the effect of product differentiation as a customer-driven strategy on profitability of
Seven Up Bottling Company Ltd.; examine the extent to which value preposition as a customerdriven strategy of Seven Up Bottling Company Ltd. affects market shares; assess the effect of
consumer co-creation as a customer-driven strategy on the sales growth of Seven Up Bottling
Company Ltd; and to determine the effect of customer benefit segmentation strategy on the
productivity of Seven Up Bottling Company Ltd. The study used both primary and secondary
data to achieve the objectives. The primary data were drawn through in-depth interview of ten
top distributors in the region and four hundred copies of structured questionnaire which were
administered on distributors using systematic random sampling technique across the five plants
in southern Nigeria. The secondary data consisted of the annual profit, market share and sale
figures of the organisation obtained from the annual account between 2013 to 2017. The primary
data and secondary data were analyzed using multiple regression and Dickey-Fuller Test
respectively. The study found that the adjusted R square of 0.517, 0.488 and 0.537 signified the
impact of customer-driven strategies have on profitability, market shares and sales growth. This
was corroborated by Dickey Fuller test which revealed P value of 0.01, 0.01097 and 0.01782.
Based on findings from the study, customer driven strategy is central to organisational
performance. The study recommended that Seven Up Bottling Company Ltd should ensure it
continue adopting and using appropriate customer-driven marketing strategy, so that various
segments of its target market are provided with specific brands that would meet the needs and
requirements of each segment of its consumers’ market. This would ensure that the company has
in its possession a good weapon for gaining and sustaining customers’ loyalty, which would
ensure that market share of the company continues to grow and is efficiently sustained. There
should be constant re-orientation of the distributors of carbonated companies operating in
Nigeria, with focus on selling the importance and benefits of customer-driven marketing
strategies to the company. This would help future product planning and appeal to and gain
customer commitment to their respective network services. The management of Seven Up
Bottling Company Ltd. and other organisations in the carbonatated soft drink industry need to
integrate customer-driven marketing strategy into their marketing strategy. This would serve as
a tool for obtaining and communicating relevant information from and to the target market and
for integrating different types of customers into their overall strategy.The management of Seven
Up Bottling Company Ltd should continue to improving product attributes such as packaging
and product availability, by investing more on customer forum, feedback mechanisms and offer
products across the various segments.