EFFECTIVE PROMTIONAL STRATEGIES ON PROFITABILITY OF AVIATION INDUSTRY (A CASE STUDY OF ARIK AIRLINE, NIGERIA)


Content

ABSTRACT

The research study takes a look at effective promotional strategies on profitability of aviation industry a case study of Arik Airline, Nigeria.

However, the research study makes use of primary data of questionnaire analysis and the objectives of the study to evaluate the impacts of effective promotional strategies on the profitability of the Aviation industry, using Arik Airline, to examine whether effective marketing promotion plan is more of negative or positive impacts on a company's profitability, to establish measures that could be used to introduce effective promotion plans in a company that has no such plans and to make recommendations on what could be done in order for companies to take advantage of the gains resulting from effective marketing strategies and plans. Finally, the study conclude and recommend that marketing promotion strategy is a good method of making sure that the products reach the final consumers and to improve the profitability of Arik Airline, also consumers are more motivated to buy more, if the products are cheap and well distributed.

 


TABLE OF CONTENT

                                                                                                                                                                                         Pages

Title Page                                                                                 i

Certification                                                                             ii

Dedication                                                                               iii

Acknowledgments                                                                   iv

Abstract                                                                                  v

Table of Content                                                                     vi

 

CHAPTER ONE

INTRODUCTION

1.1     Background to the Study                                                1

1.2     Statement of the Problem                                               3

1.3     Research Questions                                                       3

1.4     Research Questions                                                       4

1.5     Research Hypotheses                                                     4

1.6     Justification of the Study                                                 5

1.7     Scope and Limitations of Study                                     6

1.8     Organization of the Study                                              6

1.9     Definition of Terms                                                       6

 

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1     Literature review                                                            9

2.2     Important of Interest Strategy in Marketing Promotion    15

2.3     Contents of the Marketing Promotion Plan and Strategy  19

2.4     Four Growth Strategies (ansoff’s matrix)                        21

2.5     Planning with the Product Life Cycle                                  25

2.6     Marketing Promotion and Consumer Purchase Behaviour     26

2.7     Marketing Promotional Factor for Consumers’ Choice        29

2.8     The concepts of marketing promotion and consumer perceptions                                                                       30

2.9     Market promotion process and cultural values                    31

2.10   Market promotion and segmentation                                   35

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.1     Introduction                                                                       50

3.2     Research Design                                                            50

3.3     Characteristics of the study population                         51

3.4     Sample Size and procedure                                            51

3.5     Data collection and Administration                               52

3.6     Nature of data analysis                                                  52

3.7     Sampling technique                                                       53

3.8     Chi-square technique                                                     53

 

CHAPTER FOUR

ANALYSIS AND INTERNATIONAL OF RESULT

4.1     Introduction                                                                   55

4.2     Presentation of data                                                       55

4.3     Research Hypotheses                                                     62

 

CHAPTER FIVE

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1     Summary of Findings                                                    66

5.2     Recommendations                                                          68

5.3     Conclusion                                                                     69

 

Bibliography                                                                          70

Appendix I                                                                              73

Appendix II                                                                             74

 



CHAPTER ONE

INTRODUCTION

 

1.1    BACKGROUND OF THE STUDY

Marketing and promotional strategies in the Aviation industry may differ depending on the unique situation of the individual business like Arik Airline.

However there are a number of ways of categorizing some generic marketing strategies. A brief description of the most common categorizing schemes by David J (2002) is presented below:

·        Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

o   Leader

o   Challenger

o   Follower

o   Nicher

 

The recent trend of company collapse in Airline businesses in Nigeria is becoming very alarming and needs urgent solution to nip the trend in the bud. Many companies in Nigeria are folding up; many of them are operating at relatively business competition in their various industries, sectors or brands.


 

Thus, any company that must survive the negative trend must put necessary business marketing strategies and plans of actions in place to enable it make ends meet, break even and equally make business gains/profits; effective marketing plan therefore comes into focus as a company's saving grace that adequately adopts it.

 

Promotional strategy is needed to meet short-term and long - term objectives of a company. At its most basic, short term planning is required simply in order to identify where the company is now, and where it will be next week, or next month or year.

 

According to Curry (1999), marketers who fail to conduct thorough marketing strategy and marketing research works run the risk of not achieving their marketing promotional goals and objectives. Catterall, (1988), notes that some marketing executives consider academic research as irrelevant to their marketing problems, while academics complain that marketing executives ignore their marketing research efforts marketing plan and marketing research is real, vital and costly process, without which marketing management decisions would be made.

 

According to mechanically Osuagwu, (2002).  Marketing promotional strategy is a very indispensable tool in marketing decisions and strategy formulation. Developing a very useful marketing plan would however depend on having a sound and reliable information data on the business/organization/company and on the market, the uncontrollable factors and these elements that make up the marketing mix in Arik Airline.

 

1.2    STATEMENT OF THE PROBLEM

The Nigerian business environment is a competitive business environment which is opened to all types and forms of business operators. For most of these businesses in the aviation industry, their survival lies on the patronage they receive from their customers and clients.

 

Airline Organizations in Nigeria have not really benefited from marketing strategies and plans because of the wrong notion about the concept of marketing. Some people believe that marketing is only meant for the financial institutions like banks and other financial institutions or Telecom firms. Because of this they rarely practice marketing in their business firms.

 

Another problem about the Nigerian business environment In relation to the concept of effective marketing strategy is the wrong approach to marketing promotions by most organizations. However, most organizations in Nigeria use marketing as a way of de-marketing other organizations. They use the medium to disseminate negative information about other rival business firms and organization.

 

Consequently, the problem of unethical standards and uncontrolled disseminations of information by organizations when marketing through advertising and other electronic means is becoming unbearable for the business environment.

Finally the overhead cost incurred on promotions by organizations affects the turnover and profitability of the business.

 

Therefore, this study is aimed at considering the potential effects of the above factors on the company and the society at large, thus, the impact of effective marketing plan on the profitability of a company with particular reference to Arik Airline.

 

1.3    OBJECTIVES OF THE STUDY

The objectives of this study include the following;

1.       To evaluate the impacts of effective promotional strategies on the profitability of the Aviation industry, using Arik Airline, as a case study.

2.       To examine whether effective marketing promotion plan is more of negative or positive impacts on a company's profitability.

3.       To establish measures that could be used to introduce effective promotion plans in a company that has no such plans.

4.       To make recommendations on what could be done in order for companies to take advantage of the gains resulting from effective marketing strategies and plans.

 

1.4    SIGNIFICANCE OF THE STUDY

The significance of the research work shall:

1.       To enable Nigerian managers, marketing executives in Arik Airline and even the general public to see clearly the gains and losses of having effective marketing plan in a company.

2.       It will reveal immediate solutions to proffer to the disadvantages culminating from unimplemented marketing promotion strategies.

3.       To enable business organizations take advantage of the gains of effective marketing promotion plans to the profitability of the company.

4.       It will equally contribute to the wealth of knowledge and literature available on the subject/topic of study for future references.

 

1.5    RESEARCH QUESTIONS

It is the intention of this researcher that questions such as are stated below are answered in the course of this research:-

i)       What constitute marketing promotion strategies?

ii)      What are the objectives of this strategies and plans in Arik Airline?

iii)     What are the challenges facing the implementation of this strategies?

iv)     How effective are the instrument used in the implementation of these  promotion strategies?

v)      Does it actually lead to increase in the profitability of the company?

 

1.6    STATEMENT OF HYPOTHESES

The following null hypotheses are proposed and tested in the course of this study. Hypothesis one

Ho:      Effective Marketing promotion strategy does not have any impact on the

profits of Arik Airline

H1:   Effective Marketing promotion strategy has impact on the profits of Arik Airline.

 

Hypothesis two

Ho:     Effective market promotion cannot improve on the turnover of Arik Airline.

H1:    Effective Market promotion can improve on the turnover of Arik Airline

 

1.7    THE SCOPE OF STUDY

The scope of this Research work IS limited to the Aviation industry in Lagos State. References made to other organisations and areas are for comparative purpose only. The company selected for the study is Arik Airline.

 

1.8     LIMITATIONS OF THE STUDY

Time and cost of conducting the survey on market promotions and strategies in the aviation industry, are the main limiting factor for the study. These are responsible for the scope of the study to be limited to Arik Airline in Lagos areas of main Land and Island only. Also the assumption that respondents will honestly and accurately answer the Questionnaires is another limiting factor.

 

 

 

 

1.9    ORGANIZATION OF THE STUDY

Chapter one is the introduction while chapter two is the literature review and theoretical framework and chapter three is the research methodology. However, chapter four is the analysis and interpretation of the result while chapter five is the summary, recommendation and conclusion.

 

1.10    DEFINITION OF TERMS

Marketing: the whole activities in an organisation aimed at producing goods and services and making the products available to the consumers.

Marketer:   Any person who sells goods and services.

Advertising: All the techniques channels through which goods and services are brought to the knowledge of the consumers.

Advertising practitioner: Any person who engages in the practice of Advertising.

Advertising code: All the standards to be observed by advertising practitioners.

Purchase behaviour: The way the consumers react to advertised goods and services

 


REFERENCES

Kotler P. (1985): Marketing Management, Prentice Hall, New York.

Osuagwu L (2002), "Marketing Principles and Management", Lagos Grey Resources Ltd. 2nd Edition

W. Edwards (1992): "The role of Advertising In the market" Pitman publication London (1992).

G. Gile (1982) "Marketing" Low price Edition London (I 982).

CURRY, J. E (1999). "International Marketing", California: World Trade Press.

CATTERALL, M. (1988). "Academics, Practitioners and Qualitative Market Research". Qualitative Market Research: An International Journal (Volt, Issue 2) online.

LANCESTER, G and MASSINGHAM, L (1993). "Essential of Marketing London: McGraw Hill Book Company.


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