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Full Project – THE EFFECT OF ADVERTISING ON CONSUMPTION OF FAST FOOD IN NIGERIA

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CHAPTER ONE

BACKGROUND TO THE STUDY

1.1 INTRODUCTION

The roles of advertising on the consumption of fast food cannot be over emphasized. Advertising is an important part of the promotional mix which is one of the strategic importance’s. It can play a vital complementary role through working alongside of other promotional mix element. It operates with objectives and strategies leading to various types of impact on consumer thoughts, feelings and actions. It is about creating a message and sending it to someone who will react in a certain way. In modern societies, advertising so pervades our daily lives. The average person is exposed to many advertising messages between the time he opens his eyes in the morning and clicks off his light at night.

According to Albert Lasker often referred to as the father of modern advertising defined advertising as salesmanship in print”. This definition holds true as at that time because it was before the advent of the electronic media. However, the development of advertising in the light of present state of social activities and the broader scope it has assumed makes it inadequate.

In the broadest terms advertising can be defined as the way in which the producer of a product communicates with its potential customers.

The American Marketing Association (AMA) has adopted the following as a definition of marketing, “as any form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Critical examination of this definition reveals that advertising is paid for, it is a commercial transaction. It is non-personal in the sense that advertising manager, visual spoken or written are directed to a mass audience and not directly by the individual, as in the case of personal selling.

Finally, advertisement is identifiable with their sponsors or originators. As seen from the above definition, the role or importance of advertising is most limited to goods but also to services rendering organization as its imperative for them to disseminate information to the public that requires their services.

Similarly, advertising is not restricted to profit making organizations as it also extends to non-profit organizations. However, this research project work is directed at exploring the roles advertising plays on the consumption of fast food in Nigeria. Fast foods are clearly an example of consumer goods, though the research work is limited to this area, which is to find the roles of advertising on the consumption of Mr. Biggs fast food in Asaba for the study.

1.2 HISTORICAL BACKGROUND OF MR. BIGGS

Mr. Biggs first operated in the 1960s as Kings Way mall lost competition to local market. Nigeria’s fast chain of fast food entertainment, which is owned by conglomerate United African Company of Nigeria Plc (UAC). There are currently about around one hundred and thirty (130) locations in Nigeria, including the first drive through restaurant in Nigeria, and four locations in Czhoma. The restaurant is styled after McDonald’s and is known for us red & white – colored restaurants meat pies. The chain charged its name from “Kings Way” to “Mr. Biggs” in 1986 and expanded quickly after becoming one of the first Nigerian companies to sell tranches to investors.

Mr. Biggs specialty food is the meat pie. A common lunch might also include scoteh eggs, sugared doughnut, chicken and soft drink. While western fare such as hamburgers are served, Nigeria delicious such as Jollof rice and moi-moi are more popular. Birthday cakes are also popular product and Mr. Biggs bakery is often one of the few places to buy them in some areas.

1.3 STATEMENT OF THE PROBLEM

In a bid to house a competitive edge over another in the fast food industry, competitors are applying different marketing strategies to win the marketing battle. Some develop their strategy by reducing the prices to have a greater share of the market while others develop their strategies on product quality and this has resulted into great problem facing the sector.

In the same vein, different types of governments, lines, federal, state and local government of the industry has significantly affected their operations and the burden of high taxes/levies on the operators falls back on the consumer who pay higher prices for the fast food consumers.

Furthermore, the rising cost of condiments in the preparation of fast food has a negative impact on the consumer who ahs to pay high prices in order to consume fast food.

In addition, rising cost of acquiring accommodation to start a fast food business ahs significantly affected the operators of this industry as increasing cost of accommodation are been paid for indirectly by the consumer of fast food. Finally, the huge financial resources expand on promotional activity of fast food has contributed to increase their cost of operation.

This study hopes to offer meaningful solution to these problem in later chapters. This is the essence of research report.

1.4 RESEARCH OBJECTIVES

The aim and objective of this study is to measure the extent to which advertising has influenced in the consumption of fast food. The following are the aims and objectives of the study.

1. To examine the service offered by fast food business operators.

2. To know the promotional tools or techniques adopted by the sector under study.

3. The effect of advertising on the consumption of fast food.

1.5 RESEARCH QUESTIONS

In order to provide a direction for this study, the following research questions have been formulated.

i. What service do fast food operators offer?

ii. What promotional tools element do fast food firms use?

iii. What is the effect of advertising on the consumption of fast food?

At the end of this work, possible answer must have been found for this. This is the essence of this research work.

1.6 RESEARCH HYPOTHESIS

For the purpose of this study, the following hypothesis has been formulated. Hence these sets of null and alternative hypothesis have been put up by the researcher in order to lest their validity or otherwise.

Ho: Advertising does not helps in informing and persuading customers to purchase fast food product.

Hi: Advertising helps in informing and persuading customers to purchase fast food product.

Hypothesis Two

Ho: Advertising does not help to increase sales volume and profitability of fast food product.

Hi: Advertising helps to increase sales volume and profitability of fast food product.

Hypothesis Three

Ho: There is no relationship between advertising expenditure and Mr. Biggs net profit.

Hi: There is a relationship between advertising expenditure and Mr. Biggs net profit.

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