Effect Of Market Segmentation On Performance Of Brewery Indsutry
[A CASE STUDY OF GUINNESS NIGERIA PLC AND NIGERIA BREWERY PLC.)]

INTRODUCTION

1.0 BACKGROUND TO THE STUDY 

The impact and effect of market segmentation with the view of globalization throughout the world be it developing or developed economy, the supremacy being accord the free market system cannot be over emphasized, that is achieving economic efficiency which ultimately leads to economic growth is free competitive market system otherwise refer to as the capitalist system. 

Market segmentation is one of the steps into defining and target specific market.  It is the process of dividing a market into distinct groups of buyer that require different products or marketing mixes. 

A key factors to success in today's market place is finding subtle differences to give a business the marketing edge. 

Business that target specially market will promotes us products and services more effectively than a business aiming at the "average" customer. 

Segmentation is so important that Kotler (2004) described the heart of modern strategic marketing as segmenting, targeting and positioning (STP). Since no marketer can satisfactorily satisfy the whole market or industry, it is therefore imperative that the market is segmented. Segmentation is also precipitated by the fact that the market is heterogeneous-made up of different consumers with different needs and want. 

He also viewed market segmentation as an act of identifying and profiling distinct groups of buyers who might require different products and/or marketing mix. 

Opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. 

Market can be segmented or targeted using a variety segmenting consumers markets include: 

• Demographical bases (age, family size, life cycle) 

• Geographical bases (state, regions, countries) 

• Behavior bases (product knowledge, usage attitude, response) 

• Psycho graphical bases (life style, values, personality) 

Today, it could be generally agreed that almost all the manufacturing industries especially breweries, practice market segmentation due to tremendous benefit derived from it.

1.1 STATEMENT OF THE PROBLEM 

Today, it has been noted that many organization in our country are declining for the fact that, Nigerian business environment is unstable, couple with price fluctuations in the business cycle as a result of market homogeneity and this necessitated the concept of market segmentation. This can be simplified through the following points.

(a) Problem arising out of price fluctuations, low market and even closure of some firms. 

(b) Monotony in production arouse: from manufacturer engaging in the mass production and mass distribution of single brand of product which do not enhance profit maximization. 

(c) Poor visionary management team or marketing personnel failure to identify segmentation variables. For example how to identify customer want, standard and acceptable quality. (Market variations). 

(d) Failure to identify marketing mix (price, product, promotion and place) and targeting market.

(e) Inconsistency in production output and decline in product delivery. 

1.2 OBJECTIVE OF THE STUDY 

This study is carried out with the aim: 

i. To identify how a marketer can effectively apply segmentation techniques in brewing industry with a view to achieving consumer satisfaction and maximizing profit. 

ii. To identify the basis for segmentation the market.

iii. To examine among other things the benefit and difficulties of market segmentation. 

iv. To identify the market targeting strategies adopted 

v. To evaluate we attractiveness of each segment. 

1.3  RESEARCH QUESTIONS 

The following research questions will be asked in the study.

(a) Is there any significant relationship between market segmentation and organization performance? 

(b) What would be a strategy put in place in order to achieve marketing mix such as, price, product, promotion and place in an organization? 

(c ) How prepared is marketing personnel or management to identify the segmentation variables such as to identify customer want standard and acceptability quality? 

(d) Is there a reasonable industrial polices put in place to stimulate production output and regularity in product delivery 

(e) Are there being any stimulus put in place by market segmentation to enhance the production and distribution of all kinds of products that promote profit maximization in the economy?