THE EFFECTS OF ADVERTISING ON COMPANY’S PROFITABILITY [A CASE STUDY OF YINKA OBA FOAM AND PAINTS ILESHA]

CHAPTER ONE

INTRODUCTION

1. BACKGROUND TO THE STUDY

It is mandatory to know the effects of advertising on company’s profitability and to introduce advertising as the means or tools of creating awareness for successful operation in a company or an organization is the main objective of writing this project work.

Advertising in Yinka Oba Foam and Paints Ilesha has been observed as an essential idea or vital concept that every manufacturing companies must introduce for successful business operation and put in practice due to competition of goods and services in commodity market. It has been observed that most companies still standard adamant to advertised their products for their customers to identify their goods and services and even failed in making use of media to advertise their product to create more awareness of their goods to their eligible customers.

Yinka Oba Foam and Paints Ilesha, is a private establishment or organization. Also, one man business, the company (Yinka Oba Foam and paints Ilesha) focused on producing or manufacturing modern foam and different type of paints in different colours for the use of masses to paint houses, plank etc.

Furthermore, Yinka Oba Foam and paints Ilesha, operates various departments in the company that made them produced good and standard foam and paints such department are:

1. Administrative department

1. Labour department

1. Production department

1. Engineering department

1. Accounting department

1. Marketing department

This various departments help Yinka Oba Foam and Paints Ilesha to have smooth and successful operation in producing their various products.

Finally on these study we embark on the effectiveness of advertising on Yinka Oba Foam and Paints Ilesha products and services that is Yinka Oba Foam and Paints Ilesha product that is coming out of the company.

1. RESEARCH QUESTION

1. 1. What are the advertising strategies being used by Yinka Oba Foam and Paints Ilesha for successful sales of products?

1. 1. To what extent does advertising influence the public to patronize Yinka Oba Foam and Paints Ilesha?

1. 1. Does advertising really make any effect on awareness and successful marketing in Yinka Oba Foam and Paints Ilesha.

1. 1. What type of media is used in Yinka Oba Foam and Paints Ilesha for advertising to make sales and profit on their products.

1. OBJECTIVE OF THE STUDY

The primary objectives of this study is to determine the role played by advertising in creating awareness and increase in sales level and its effects while establishing good image in a consumer manufacturing firm.

Basically there are two objectives of advertising:

1. To inform the consumer about the product and services

1. To create or stimulate demand for the product or services through

persuasion.

Based on the above objectives, this research work will definitely investigate whether advertising as a tool for marketing goals can successful inform the consumers and stimulate demand of Yinka Oba Foam and Paints Ltd product.

More also, it’s an objective of this study or its reasons to:

1. 1. Analysis and conclusion whether advertising has positive effect on sales on Yinka Oba foam.

1. 1. To maintain information on how people choose their brand and what factors influence consumer choice and to see how advertising create awareness for consumer choice.

1. SIGNIFICANT OF THE STUDY

The purpose of this research work is to take a critical look at how advertising

could be effective to the goals and profit to a company with a view to provide necessary findings, recommendation to various advertising problems on marketing. In view of this study is important just as it reveal various strategies of advertising in creating an avenue for sale of goods and services. The study will also reveal

various critics level against advertising can successfully create awareness for the sale product.

Finally, the study also look into various problems and prospect of marketing in making goods or products available for final users or consumer through the aid of advertising.

1. SCOPE OF THE STUDY

This study covers the literature review of source authors who define advertising product, marketing and consumer. Also the vital role advertising plays in marketing activities of business organization and its impact on the company’s sales level and the image of the organization.

Emphasis will be placed on the effect of advertising on a product life cide also on how advertising is an effective tools for achieving or making profits and advantages of advertising to consumers will be examined.

Therefore, the study hereby places special emphasis on Yinka Oba Foam and Paints Ilesha. Where the research was conducted along side with the consumer of the company’s product.

There is no limitation placed on this research, just as the state are covered such as Osun, Oyo, Ondo, Ekiti which is believed to be central commercial activities of the company’s product with six level government randomly selected to represent Osun metropolis and other state mentioned above.

1. DEFINITION OF TERMS

Advertising: This is any paid form of non-personal presentation of products, ideas or serves through mass media by an identified sponsor.

Product: A product may be defined as a unit of a material obtained naturally or manufactured and which the ability to satisfy a specific needs.

Consumer: Consumers are set of people who provide the market for goods and services produced by firms.

Production: This is a tactic used increase sales ever a given to or period by using activities other than personal sell in, advertising and publicity, it is called selling in and selling out.

Sample: This is predisposed products to the some one like it. Even before they try it and it is an excellent way of lauding a product.

Marketing: “Marketing is a way of gathering of goods at the right quantities and qualities to the right people in right places and at the prices which consumer are able and willing to pay which will yield profit to the seller” Kottler (1980).

Budget: This is refers to the proposal plan on how money available to an organization would be spent yearly.

1. HISTORICAL BACKGROUND AND ORGANIZATION STRUCTURE

Yinka Oba Foam and maker of Oba Paints (Nig) Limited was found 1979, after a survey revealed the type of from people wanted and quantity from that combined durability with comfort are that agorous and hectic life of Nigerians. The company was established based on the fact that foam (product) had to be affordable for the users / buyers.

Meanwhile, armed with this the company started production and within only few years. Yinka Oba Foam quickly established its self and the peoples foam in every product class especially in the Western and Northern State of Nigeria.

Since 1979, Yinka Oba Foam Ltd has remained the first choice of both first time have furnishes and respect layers alike. The hospitality industry (hospitals clinics) the main stream furniture and interior decoration industry the growing local artisan furniture industry and fashion industry.

Yinka Oba Paints and Foam Ltd. Maintain its superiority in the market place by keeping abreaction international research and development on foam manufacturing technology material and processes and by incorporating.

These in its manufacturing operations.