THE USE OF PUBLIC RELATIONS AND ADVERTISING AS A TOOL FOR THE REBRANDING AND RE-ESTABLISHING OF FAILING PRODUCTS IN NIGERIA. A CASE STUDY OF VITA FOAM. BY AWOBAMISE, AYODEJI OLALEKAN MATRICULATION NUMBER: 089083015 DECEMBER, 2009 THE USE OF PUBLIC RELATIONS AND ADVERTISING AS A TOOL FOR THE REBRANDING AND RE-ESTABLISHING OF FAILING PRODUCTS IN NIGERIA. A CASE STUDY OF VITA FOAM.
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DECEMBER, 2009THE USE OF PUBLIC RELATIONS AND ADVERTISING ASA TOOL FOR THE REBRANDING AND RE-ESTABLISHINGOF FAILING PRODUCTS IN NIGERIA. A CASE STUDY OF
Being professional project submitted to the Department ofMass Communication, in partial fulfilment of the
requirements for the award of Master of Science Degree(M.Sc.) in Mass Communication, School of Postgraduate
Studies, University of Lagos, Akoka.
DECEMBER, 2009
i
DECLARATION
I hereby declare that this study is an original work carried out by me with strict
adherence to the laid down procedures, I also declare that this study was not
copied from anywhere. And all materials used in this study were appropriated
acknowledged.
NAME: AWOBAMISE, Ayodeji Olalekan
SIGN: ____________________________
DATE: December, 2009.
ii
CERTIFICATION
This is to certify that this project titled: The use of public relations and
advertising as a tool for the rebranding and re-establishing of failing products
in Nigeria. A case study of Vitafoam Nig. Plc, was carried out by Awobamise,
Ayodeji Olalekan with matriculation number 089083015, and has been read and
approved as meeting part of the requirements for the award of a Master of
Sciences (M. Sc) degree in Mass Communication, University of Lagos,
Akoko-Yaba, Lagos.
_______________________ ______________
Dr. Innocent Okoye Date
(Supervisor)
________________________ _______________
Prof. Ralph A. Akinfeleye Date
(Head of Department)
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________________________ _______________
External Examiner Date
DEDICATION
I dedicate this project to the Almighty God for His infinite mercies throughout this
programme. I also dedicate this work to my lovely parents Chief and Chief (Mrs.)
A. O. Awobamise who have always been there for me financially and morally,
may the good Lord continually reward you endlessly for your ceaseless efforts.
God Bless you all.
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ACKNOWLEDGEMENT
Special thanks goes to my supervisor; Dr. Innocent Okoye who painstakingly wentthrough every word I wrote in my project and corrected me when needed, I thankhim for his thoroughness and timeliness in going through my project even with hisvery tight schedule.
I acknowledge the input of my family members, my parents; Chief and Chief(Mrs) Awobamise, my siblings for their support and encouragement.
I also want to acknowledge all other lecturers that made it possible for me to get tothis stage. Dr. Ogwezzi, Dr. Daramola, Dr. Aluma, Prof. Shobowale, Prof. RalphAkinfeleye, i really appreciate your teachings and pray that the good lord willstrengthen and take you to your desired destination in life.
A big thanks goes to all my course mates that made the year an enjoyable one.There are friends that I will cherish for the rest of my life. Lanre Adebanwo youare appreciated. My very lovely friend; Feyikemi Omotosho, I thank you for thesupport and encouragement you gave me during this study year. May Godcontinue to reward you according to your heart desires.
Thank you all for making this study a success, may God continue to reward youall. AMEN.
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ABSTRACT
In Nigeria, it is no longer surprising to hear that a company that everyone thoughtwas doing well is going out of the market, the same applies for products. Theprevailing financial crisis in Nigeria and the world over has not helped issues.Companies are folding up by the day.
The case of VITA FOAM is a very unique situation because the company was fastfailing and rapidly losing market share, and in a bid to curb this downward trenddid some public relations and advert campaigns that re-established them asmarket leaders.
Advertising can therefore be defined as the non-personal communication fromproducts, services, or ideas that is paid for by an identified sponsor for thepurpose of influencing an audience.
Public Relations on the other hand has been defined as the art and social scienceof analyzing trends, predicting their consequences, counselling organizations’leaders as well as implementing a planned program of action which serves boththe publics and the organization interest.
Vitafoam Nigeria Plc is presently Nigeria's leading manufacturer of flexible,reconstituted and rigid foam products. It has the largest foam manufacturing anddistribution network which facilitates just-in-time delivery of its productsthroughout Nigeria. Incorporated on 4th August, 1962 and listed on the floor ofthe Nigerian Stock Exchange in 1978. Vitafoam's successful brands remainhousehold names in the country.
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TABLE OF CONTENTPage
Declaration--------------------------------------------------------------------- iCertification-------------------------------------------------------------------- iiDedication-----------------------------------------------------------------------iiiAcknowledgement-------------------------------------------------------------ivAbstract------------------------------------------------------------------------- vTable of contents-------------------------------------------------------------- vi
Chapter one1.0 Introduction----------------------------------------------------------------- 11.1 Theoretical framework---------------------------------------------------- 21.2 Statement of the problem------------------------------------------------- 51.3 Significance of study------------------------------------------------------ 61.4 Study utility----------------------------------------------------------------- 61.5 scope of study---------------------------------------------------------------71.6 research questions----------------------------------------------------------71.7 Aims and objective of the research------------------------------------ 81.8 Definition of terms--------------------------------------------------------- 8
Chapter twoLiterature review
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2.0 Conceptual definitions ----------------------------------------------- 102.1 The history of advertising-------------------------------------------------- 112.2 Theoretical framework------------------------------------------------------ 192.3 Reasons why products fail------------------------------------------------- 272.4 The role of public relations in marketing a consumer brand.-------- 302.5 Roles of the pr practitioner in an organisation------------------------- 312.6 Branding---------------------------------------------------------------------- 342.7 Reputation and why it matters------------------------------------------- 362.8 How companies can restore trust---------------------------------------- 37
Chapter Three3.0 Research methodology---------------------------------------------------- 403.1 Data collection method--------------------------------------------------- 413.2 Choice of study object---------------------------------------------------- 423.3 Choice of organisation---------------------------------------------------- 433.4 Choice of customers/retail outlets-------------------------------------- 453.5 Processing of the results-------------------------------------------------- 463.6 Research questions-------------------------------------------------------- 46
CHAPTER FOUR4.0 Introduction------------------------------------------------------------------ 484.1 Data presentation-----------------------------------------------------------484.2 Analysis of presented data----------------------------------------------- 58
CHAPTER FIVESUMMARY, CONCLUSION AND RECOMMENDATIONS5.0 Introduction------------------------------------------------------------------ 645.1 Summary---------------------------------------------------------------------- 645.2 Conclusion-------------------------------------------------------------------- 655.3 Suggestion for further research-------------------------------------------665.4 recommendations------------------------------------------------------------ 67
LIST OF TABLES1. Age of respondents------------------------------------------------------- 532. Awareness of Vitafoam------------------------------------------------- 54
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3. Usage of Vitafoam products-------------------------------------------54
4. When did you start using Vitafoam---------------------------------- 545. Did you ever notice a period when it seemed other brands
were taking over the market------------------------------------------- 556. Reason Vitafoam lost market share---------------------------- 557. What gave you the idea that vita foam might not be faring well 568. In your opinion do you think vitafoam has made a comeback
into the market------------------------------------------------------------- 569. What made Vitafoam’s comeback possible------------------------- 5610.Have you ever seen or heard any vitafoam advert on any
local medium------------------------------------------------------------- 5711.Vitafoam advert rating------------------------------------------------- 5712.What informed your decision to start using vitafoam--- 5713.Most effective Vitafoam advert------------------------------- 58
FIGURES1. Dividend VS Earnings per share for Vitafoam------------------- 442. Profit after tax VS Shareholders funds----------------------------- 443. Profit after tax VS dividends----------------------------------------- 45
From the above statement by Glenn Moray, it can be deduced that customer
awareness and understanding is paramount to the success of any company or
product. When a company is in distress, tell shareholders and indeed all
stakeholders that full extent of the damage and what are in place to curb the
problem or mitigate the effect of the problem/distress.
2.4 THE ROLE OF PUBLIC RELATIONS IN MARKETING A CONSUMER
B R A N D .
According to Glenn Moray of the Moray Evans Advertising, The strategic role
of PR for consumer brands is critical to extending the impact and credibility of
advertising. The questions we so often ask from a PR effort are: (1) what are
you trying to achieve with your PR over the long run, and (2) how does it
integrate with your marketing and communications plan?
The most obvious strategic role for PR-a role that meets a communications
objective that is difficult for conventional advertising to address-is to create
community affinity while at the same time complementing consumer affinity
for the brand. PR is uniquely capable of building relationships with
communities (geographic, demographic, social, political, special interest, etc.)
through events, sampling, causes, in-kind support, and sponsorships, to name a
f e w .
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PR delivers messages not normally addressed in conventional advertising. For
example, good news about the client's business, new services or new level of
commitment to service, how well the client is measuring up within its
competitive set, the client's business heritage, or the client's involvement in the
community. These types of messages are critical to creating a positive selling
environment for our advertising. Equally important, it creates buzz for our
client as a company.
According to Leana Clark (2002), PR builds momentum into the launch of a
new ad campaign. This provides exposure between media flights and increases
frequency of brand exposures during the duration of the advertising period. In
the fight for brand awareness and top-of-mind consideration, there are few
substitutes for pure frequency.
And last, but certainly not least, we like to see PR reinforce, in the consumer's
mind, those moments when a company chooses to put a stake in the ground:
The launch of a new market, acquisition of another company, a new
partnership, a product release, relevant differentiation, or new leadership with a
new vision. All of which provide value to the consumer.
2.5 ROLES OF THE PR PRACTITIONER IN AN ORGANISATION
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According to Gwinavere Johnston, there are four principal roles for a
corporation’s chief public relations officer.
The first is to serve the corporation as a sensor of social change. He/she
perceives those societal rumblings that auger good or ill for the organization. In
a way, he/she is like the radar chief who gives the early warning. And after
pondering the yearnings and stirrings, he/she interprets the signals for the
management team.
Part of the job as corporate sensor is to keep management focused on those
external problems not usually considered part of managing a large business.
He/she is the one who says "you don't care for the likes of a Ralph Nader or a
Jesse Jackson, but you should never underestimate the power they wield over
people and problems that can damage our business.”
The second role is that of corporate conscience. I trust you -- and your
colleagues in management -- will not infer that only public relations executives
have a conscience -- or that public relations people are either more ethical or
more moral or have a greater commitment to serving the public interest than
executives with other titles. In fact, there may be others with more of these
qualities than the person with the public relations/ communications title. But the
fact is that being the corporate conscience is not in the job description of other
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executives. It is -- or should be -- in the job description of the chief public
relations officer.
The third role of the chief public relations/communications officer is that of
communicator. The tendency -- especially in recent times, as I referred to
earlier -- is to think that communications, mainly working with the media, print,
electronic and digital -- is his/her only role. Though communications is an
important part of the job that is hardly the case.
The global corporation has two distinct audiences; one external, the other
internal. Communications with both audiences move in two directions: what
the corporation says to its external stakeholders and what it says to its
employees, distribution and supply chains, and shareowners. Listening is as
important a part of the job as speaking -- and the chief public relations officer
should be equally adept at both. For both audiences, the "why" and "how" of an
action or policy is invariably as important, if not more so, than the "what" and
the "when." The goal of communications is more than to tell or inform; its
primary purpose is to bring about understanding.
No matter how effective the dissemination of information about a corporation,
it will not succeed unless it truthfully reflects the corporation's behaviour.
Above all, the corporation must always deliver on its promises, whether
guaranteeing the reliability of a product or achieving earnings goals. In the
words of the rapper, if you're gonna talk the talk, you gotta walk the walk.
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The fourth role is to serve as corporate monitor. Since the public relations/
communications department is the company's voice and also has so major a role
dealing with and commenting on public issues, there is a need for constant
monitoring of policies and programs to make sure they accord with both the
company's commitment and with public expectations. If they fall short, it's the
job of the chief public relations officer to agitate for new programs and
policies. Failing to do so means, simply, that he/she is not living up to the
requirements of the job.
To summarize, the chief public relations officer has four roles: corporate
sensor, corporate conscience, corporate communicator and corporate monitor.
As corporate sensor and corporate conscience, he/she contributes to and
participates in the decision making process. It is his/her job to anticipate
changes in the social environment and make sure the corporation's response is
in the public interest and accords with public expectations. In the roles as
corporate communicator and corporate monitor, he/she speaks for the
corporation both truthfully and timely and makes certain the corporation is
delivering on its promises.
2.6 BRANDING
A very famous proverb goes: What is in a name? A rose will still smell the
same, even if it is called by another name!
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However, with the advent of latest technology and changing trends, the time
has come when we need to do some rethinking. Today, everything is online and
virtual: virtual money, online business and so name or rather branding is the
most important facet for anything. Not just any business, but for any particular
entity, branding is the key word. A brand is the identity of an entity. Just think
of Marilyn Monroe and the first thing that comes in your mind is flying skirt.
When we talk about online business, the brand identity is the foundation for
building a relationship with your customer beyond product, distribution,
pricing, or location of your business. It plays an integral part behind the success
of any product. Brand is the relationship that secures future earnings by
securing customer loyalty.
Leana Clark (2002), states that, “Usually consumers have lot of choice of
products in the same market segment so brand loyalty plays a very important
role for your business growth. A company with high credibility and brand
loyalty succeeds in keeping consumers re-buying their product rather than
going to a competitor. Statistics tell that it takes five times as much money to
gain a customer as it does to retain one. Moreover a satisfied customer also
helps in generating word of mouth publicity which increases your potential
c u s t o m e r s ” .
Branding goes beyond marketing. All aspects of your business should reflect
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and support your intended brand to create a long term and fruitful relationship
with your customers.
According to Helen Katz in her book Advertising Principles, A lot of effort
goes in developing a brand. It involves more than just picking a catchy name.
The following steps may be followed to create a brand:
* Define your brand
* Determine the objective of your brand
* Identify your target audience
* Identify the barriers and crush them
* Package your brand then sell and market your brand
2.7 REPUTATION AND WHY IT MATTERS
The reputation of a company or product is what determines how a strong a
product is in the long run and how their customers perceive such a product. It
would be remembered that in 1986, Coca-Cola made a blunder by trying to
change the flavour of coke which reduced their sales drastically. This reduction
in sales was largely due to the perception customers have about coke. The taste
of a product ultimately defines the brand and is also part of what customers
perceive when they see the product. So when the taste changes, then of course
perception changes. Customers want to see their brands as reliable and
constant, and for a company to maintain its reputation, such a company must
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ensure that it gives it customers what they want. This statement was supported
by Gwinavere Johnston (2002), when he said, “Reputation can account for a
large portion of a company's market capitalization, and can be its most
important long-term asset. It impacts an organization in a myriad of ways,
including stock price, and the ability to attract and retain customers and
employees. Corporate reputation is based on factors such as
Quality of products or services,
Earnings and business performance,
Stability and fairness as an employer,
Level of integrity in business practices,
Degree of honesty and openness, and
Involvement in local communities.
Today, with distrust of the corporate world at an all-time high, corporate
credibility is an over-riding factor. Whether they like it or not, companies today
are at the mercy of public constituencies. That means there is growing
recognition of the need to foster a good reputation by developing positive
relationships with various publics.”
2.8 HOW COMPANIES CAN RESTORE TRUST
If business is to regain the trust it has lost due to questionable ethics and other
business practices, it must provide public relations with a seat at the executive
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level management table rather than just relying on public relations when a crisis
a r i s e s .
Consumer confidence is at its lowest point, as evidenced by ongoing studies in
2002, by Schenkein's research partner Roper ASW. Corporate wrongdoing,
stock market plunges, and layoffs were cited as reasons for the erosion in
corporate trust. Americans put the blame squarely on the shoulders of CEOs,
Nigerians also put the blame on those in power and CEOs of large organisation
and financial organisations such as banks, insurance companies, investment
firms and the likes, who according to Roper, won't be "let off the hook" easily.
Consumers view CEOs as the "bad guys," and blame their greed for the ensuing
crises that have elicited their anger. Clearly, we live in an environment where
every company is under the microscope and negative business stories appear
every day on the front page of our newspapers.
According to Jerry Donovan, “Quite literally, public relations is managing
relations with various publics, a role that grows in importance as reputation
becomes ever more critical to business success. Companies can restore trust in
a number of ways, many involving traditional PR strategies, such as:
Using integrity and fairness as criteria for all business decisions;
Maintaining an emphasis on quality of products or services;
Openly sharing truthful information with all publics;
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Actively seeking input from publics and being responsive to concerns;
Renewing a commitment to local communities; and
Creating forums to encourage dialogue with constituencies.
The bottom line is that companies must make it a priority to value the needs of
all publics, and to forge good relationships with them. The cornerstone of a
good relationship is trust, and trust is based on open and honest communication.
Effective public relations tell a company's story in a way that is accurate,
honest, and easy to understand, helping to establish a reputation for credibility.”
A good relationship also requires a willingness to listen, and true public
relations is a two-way process. PR professionals recognize that to manage
relationships, they must understand and respect public concerns and viewpoints.
They must also go a step further, to serve as the public's advocate within an
o r g a n i z a t i o n .
In effect, corporate public relations professionals frequently play the role of an
outsider. By questioning decisions and their impact on customers, the
community, employees, and others, public relation professionals bring the
public perspective to an organization, fostering its ability to be responsive to
public concerns.
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CHAPTER THREE
3.0 RESEARCH METHODOLOGY
According to Jacobsen (2002: pg 34) there are two ways to conduct scientific
research, one is the qualitative approach the other is the quantitative approach.
The qualitative approach is more appropriate for research that aims to get a
deeper knowledge about a certain subject, i.e. explorative. An explorative
research method aims to investigate a small number of units since it is used to
explore nuanced data (Jacobsen 2002: pg 38).
Researchers using a qualitative approach are more into finding how people
experience their lives and their goal is rather to come to an understanding rather
than to reach a static analysis (Bell, 1999).
A quantitative approach on the other hand is more appropriate when the
research is a broad spectrum of units since it is a theory testing research
method. A research like this has a goal of getting broader knowledge about a
certain subject (Jacobsen, 2002: pg 29). A researcher using this approach
collects data and then tries to analyse the relation between the different
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productions. The researcher measures and uses scientific techniques that can
give quantifiable and possible general conclusions.
Since Advertising and public relations is all about emotions and catching
people’s interest. Quantitative research used alone could lead to faulty
conclusions because it could give the researcher difficulties when trying to
understand attitudes and perceptions among the interviewees. But when used
alongside the qualitative approach, it gives the researcher a broader perspective
about the subject area.
The researcher shall therefore make use of the survey method and the
in-depth interviews (which is a combination of the qualitative and the
quantitative research methods).
3.1 DATA COLLECTION METHOD
CRITICAL ANALYSIS OF SOURCES
Critical analysis of sources is according to (Bell, 1999: pg 80) divided into two
examinations: Internal and external examination. The external examination is
used to investigate how genuine and correct the source is whereas the internal
examination is the one usually used when investigating smaller projects.
Internal examinations looks more into which type or source it is, under which
circumstances it devolved and if it has changed lately etcetera.
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The researcher for the purpose of this research would use in-depth interviews
and also the questionnaires/ survey method.
The in-depth interview would be directed towards owners of the shops and also
the account officer in charge of the Vita foam campaign in Tie
Communications. These interviews were conducted to get first hand
information on why Vita foam almost went out of the market and what the
company did to get back in business focusing on advertising and public
relations.
The questionnaire, would be used to gather the opinions of customers and
potential customers of Vita foam products
3.2 CHOICE OF STUDY OBJECT
The selection of Vitafoam PLC as the case study has been based on the fact that
they had experienced drop in sales, which fits the definition of a failing brand
by the researcher and as risen today to become one of the market leaders in
their product category. (A bar chart on the sales of Vita foam product since
2004-2008 by PeaceWaterCoopers House for Vita foam Nigeria Plc)
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The reason for using Mushin, Ikeja and Agege local government areas as my
sample population is because there is a high density of mattress sellers in these
areas. Another reason is that these areas are easily accessible.
Choice of interviewing officials of Tie Communications Ltd is based on the
fact that they were responsible for the rebranding campaign of Vitafoam in
2005/2006 that eventually brought them to their present position in the market.
3.3 CHOICE OF ORGANISATION
The organisation (VITAFOAM) selected for this study was used because the
researcher aims to explore the roles advertising and public relations play in
re-establishing a failing product into the market.
The case study was chosen based on the fact that it is today one of the leading
mattress brands in Nigeria and had in 2005 experienced a rapid decrease in
sales of their products. How they overcame this period and what they did to
achieve their present position in the market is what piqued my interest in them.
Below are bar charts showing the dividend and earnings of Vitafaom Nig. Plc
form the year 2004 to the year 2008.
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FIG 1: DIVIDEND VS EARNINGS PER SHARE FOR VITAFOAM
(extracted from the 2008 annual report compiled by PeaceWaterCoopers
House)
FIG 2: PROFIT AFTER TAX VS SHAREHOLDERS’ FUNDS
45
(extracted from the 2008 annual report compiled by PeaceWaterCoopers
House)
FIG 3: PROFIT AFTER TAX VS DIVIDENDS
46
(extracted from the 2008 annual report compiled by PeaceWaterCoopers
House)
3.4 CHOICE OF CUSTOMERS/RETAIL OUTLETS
In the selection of customers to be interviewed for this study, the researcher has
been looking for persons that have been exposed to advertising from the chosen
organisation and that have bought their products at least once, but not
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necessarily the product that have been promoted in the chosen advertising
campaign.
The researcher shall interview ten (ten customers) in three different retail
outlets from each of these local government areas; namely: Ikeja, Mushin and
Agege local government areas. Making it a total of 90 (ninety) customers to be
interviewed. The customers shall be selected randomly.
Also the researcher shall also be interviewing 5 shop owners from each of these
local government areas, making it a total of 15 shop owners that would be
interviewed. Also the account officer in charge of the advert campaign of
Vitafoam shall be interviewed.
3.5 PROCESSING OF THE RESULTS
In the work of analysing the findings found during the interviews the researcher
has chosen to record the interviews to make it easier to go back and go through
them again later on. The interviews have also been written down to paper from
the recordings to make it easier for the researcher to go through them and
compare them to points in the literature. By doing it this way it is easier for the
researcher to go back without missing out on something.
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3.6 RESEARCH QUESTIONS
1. What caused the decrease in sales of Vita foam products?
2. How did public relations and advertising help restore Vita foam into the
market?
3. How do we identify a failing product?
4. What strategies do public relations experts employ in re-establishing Vita
foam in the market?
5. What advertising strategies were employed in re-establishing Vita foam in
the market?
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CHAPTER FOUR
DATA PROCESSING, PRESENTATION AND ANALYSIS
4.0 INTRODUCTION
In this chapter the information gained in the interviews with the account officer
that handled the adverts for Vita foam in 2005/2006, shop owners around the
speculated local government areas in Lagos, and customers of Vita foam
products will be presented. The information will be presented by first retelling
the information gained in the interview with the interviewee from TIE
COMMUNICATIONS, and then shop owners around Lagos. Also information
gotten from the questionnaires distributed among customers of polymer
products generally would be presented in this chapter.
4.1 DATA PRESENTATION
SHOP OWNERS
From the interviews conducted by the researcher on shop owners in Ikeja,
Mushin and Agege local government areas, it was found out that, Vita foam
Nigeria has been a very popular brand since the 1990s. They all agreed that
around 2004, sales for the product had remarkably reduced and by 2005, Vita
foam product was hardly in demand.
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The interviewees said the reason for this decrease in sales can be attributed to
the fact that other brands where springing up and where willing to sell the same
or almost the same quality of products for a lesser price. They gave examples of
this price differences that might have caused this reductions in sales one of
which is; the queen size mattress (ordinary) was selling for Thirteen thousand
Naira in 2005 and Mouka foam was selling the same type of mattress with the
same quality for eleven thousand five hundred naira. The interviewees
speculated that even the less popular brands like Vono foam, Sarafoam etc
where producing good quality mattresses for a reduced price.
The interviewees said that Vitafoam’s greatest rival in the polymer market was
Mouka foam and Sarafoam, because these brands were not as expensive,
available and also of good quality.
It is the opinion of the interviewees that the adverts Vita foam did though were
not so popular; they left an impression in the mind of anyone that was exposed
to the advert. They are of the opinion that the rigorous Vita foam campaign
carried out from year 2005 though to 2006, helped boost the sales of the
product and helped re-establish their relevance in the market place.
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ACCOUNT OFFICER FROM TIE COMMUNICATIONS.
The interviewee asserted that the company was in charge of the Vita foam
account in the year 2005/2006 and were responsible for the PR and Advert
campaign carried out by Vita foam in the same year.
The interviewee said that the company was approached by the client (Vitafaom)
to help organise and advert and PR campaign to help boost sales and popularity
level of the brand. The interviewee went on to say that the client was troubled
about the constant decrease in sales of its product.
The interviewee said that the first thing they did when they got the account was
to carry out a research to find out why Vita foam is facing the problems there
are facing, also to get a clear picture as to how Vitafaom is faring in the
consumer market and to test the popularity of the brand. After which they came
back to brainstorm on the strategies to use to tackle the problems discovered in
the cause of the research.
It was discovered that the major cause of the problem was the fact that the
competition was giving the same quality for a reduced price and Vitafaom was
also losing its name as people hardly knew their name anymore as products like
Mouka foam was quickly taking over the market.
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So they (TIE COMMUNICATIONS) advised Vita foam to carry out a line
extension program to develop a product under Vita foam that would be the
same quality with Mouka foam but that would be cheaper than Mouka foam.
This brought about Rainbow foam which is a brand of Vitafaom and is
relatively cheaper than most of the other quality brands in the Nigerian market.
The company also proposed a 9 month advert and PR campaign for Vitafaom
products which would promote all the products Vitafaom is producing
including Rainbow foam. Also they made their presence felt in the Nigerian
market by organising scholarship and other social responsible programs in the
society. He asserted that in the world of advertising and Public relations it is
believed that out of sight is out of mind, so it is important that a product is
never out of sight for the consumers.
According to the interviewee, an evaluation was conducted at the end of the
campaign and it was the general c consensus then that the campaign was
successful. The interviewee went on to say that the evaluation was based on the
following criteria:
1. After campaign sales volume vis-a-vis sales volume before the campaign.
2. Popularity of the brand.
3. Current market share of Vita foam products.
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According to the interviewee, a product can fail when it stops satisfying a need,
when a competing brand is producing the same quality for lesser prices, when a
product is not readily available in the market, when adequate advertisements
and Public relations campaign and activities are not carried out, amongst others.
The interviewee explained that, though times were hard for Vita foam during
the period under review, what made them remain relevant simply was the fact
that they kept producing quality products, but ensured that they improve the
Public Relations and advertising activities. They started giving out
scholarships, giving Vitafoam products to orphanages, also sponsorship of
events and programmes were carried out to ensure that the brands image is
secure in the minds of the consumers/publics. Some of these events includes,
donations to professional bodies like ICAN, donations to clubs and associations
like Business Club, National Union of Chemical, Footwear Rubber, Leather
and Non Metallic, Standards Organisation of Nigeria, Federal road safety
Corps, donations to schools such as Jextoban Secondary school, Ketu, Lagos,
end of the year children party sponsored and also organised by the company,
sales promotion, price slash etc.
The interviewee went on to explain that media relations is an essential tool
when trying to win back the loyalty and trust of your consumers. He explained
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that Vitafoam organised series of facility tour for both media houses and also
the regulatory agencies such as Standard Organisation of Nigeria and
Manufacturer Association of Nigeria, Polymer Institute of Nigeria, Chemical
and Non-Metallic Products Employees Federation and National Union of
Chemical, Footwear Rubber, Leather and Non Metallic so as to get
endorsements and approval for the products and also for the media to promote
them in a positive light.
QUESTIONNAIRRE TO CUSTOMERS
Ninety questionnaires were distributed and ninety were returned. Based on the
data collected through the questionnaires, the following is the outcome of the
research.
TABLE 1: AGE OF RESPONDENTS
Variable No. Ofrespondents
Percentage
18-2021-3031-4041-5051-6060 and aboveTotal
52729169490
5.63032.218104.5100
TABLE 2: AWARENESS ABOUT VITAFAOM
55
VARIABLE NO. OF REPONDENTS PERCENTAGE %I AM AWAREI AM NOT AWARETOTAL
791190
87.812.2100
TABLE 3: USAGE OF VITAFOAM PRODUCTS
VARIABLE NO. OF REPONDENTS PERCENTAGE %YESNOTOTAL
484290
53.346.7100
TABLE 4: WHEN DID YOU START USING VITAFOAM?
VARIABLE NO. OF REPONDENTS PERCENTAGE %MORE THAN 20 YEARSAGOLESS THAN TEN YEARSLESS THAN 5 YEARSDO NOT USE ITTOTAL
523204290
5.625.522.246.7100
TABLE 5: DID YOU EVER NOTICE A PERIOD WHEN IT SEEMED
OTHER BRANDS WERE TAKING OVER THE MARKET
VARIABLE NO. OF REPONDENTS PERCENTAGE %YESNOTOTAL
652590
72.227.8100
TABLE 6: REASON VITAFOAM LOST MARKET SHARE
VARIABLE NO. OF REPONDENTS PERCENTAGE %Reduction in quality of theproduct
5
25
7.7
38.4
56
High price of the productBetter quality by competitionBetter price by the competitionLack of availability of theproductTOTAL
7
23
5
65
10.8
35.4
7.7
100
TABLE 7: WHAT GAVE YOU THE IDEA THAT VITA FOAM MIGHT
NOT BE FARING WELL
VARIABLE NO. OF REPONDENTS PERCENTAGE %
When it was no longer available for saleWhen I stopped seeing or hearing theiradvertsWhen other brands of mattresses becamevery prominentWhen friends and colleagues advised meto buy other productsTOTAL
04525
2090
05027.8
22.2100
TABLE 8: IN YOUR OPINION DO YOU THINK VITAFOAM HAS
MADE A COMEBACK INTO THE MARKET
VARIABLE NO. OF REPONDENTS PERCENTAGE %YESNOTOTAL
702090
77.822.2100
TABLE 9: WHAT MADE VITAFOAM’S COMEBACK POSSIBLE
VARIABLE NO. OFRESPONDENTS
PERCENTAGE%
Vigorous advert and PR campaignReduction in priceIncrease in quality
5073
55.67.83.3
57
Creating another competing brand totackle the competitionFriends and colleagues attesting to thequality of Vita foam and the good priceTOTAL
201090
22.211.1100
TABLE 10: HAVE YOU EVER SEEN OR HEARD ANY VITAFOAM
ADVERT ON ANY LOCAL MEDIUM
VARIABLE NO. OF REPONDENTS PERCENTAGE %YESNOTOTAL
801090
88.911.1100
TABLE 11: VITAFOAM ADVERT RATINGS
VARIABLE NO. OF REPONDENTS PERCENTAGE %VERY GOODGOODFAIRPOORVERY POORTOTAL
502055080
62.5256.256.250100
TABLE 12: WHAT INFORMED YOUR DECISION TO START USING
VITAFOAM
VARIABLE NO. OF REPONDENTS PERCENTAGE %
The new packagingThe adverts on TV and radioRecommendations from friendsAttractive priceSales promoInnovative additions to the productTOTAL
240201010890
2.244.422.211.111.18.9100
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TABLE 13: MOST EFFECTIVE VITAFOAM ADVERT
VARIABLE NO. OFREPONDENTS
PERCENTAGE %
The radio advertThe TV advertThe Billboard advertsPrint advertsRoad showsTOTAL
10152540090
11.116.727.844.40100
4.2 ANALYSIS OF PRESENTED DATA
Based on the data gotten from the interviews conducted and questionnaires
distributed, the researcher shall now attempt to answer the research questions
this research aimed to answer.
RESEARCH QUESTION 1: What caused the decrease in sales of Vita foam
products?
From the interviews conducted with the shop owners and the account officer in
charge of the Vita foam account in year 2005/2006, it is clear that the main
reasons for the drop in sales of Vita foam products are; stiff competition from
Mouka foam, who was producing a similar product with almost the same
quality, but was selling at a lower price. Another reason for the decrease in
sales of Vita foam products was lack of advertisement and Public Relations
59
activities on the part of the Vita foam Nig. Ltd; this reduced their popularity in
the market place.
From the responses gotten from the questionnaires distributed to the customers
in different retail outlet around Agege, Mushin and Ikeja local government it is
clear that price of the product played a major role in diminishing the sales of
the Vita foam products. 38.4% of the 90 respondents said that the high price of
Vita foam products caused the decrease, while 35.4% of the same respondents
said that better prices offered by competition might be the cause, 5% said Vita
foam products were not readily available, 7% said better quality offered by
competitors might be a cause for the reduction in sales of Vita foam products.
Form the above it is clear that the major reason for the decrease in sales of Vita
foam products can be attributed to high price and lack of advertisement and
Public Relations activities
RESEARCH QUESTION 2: How did public relations and advertising help
restore Vita foam into the market?
From the interviews conducted with the account officer in charge of the Vita
foam account in the year 2005/2006, it is clear that Public Relations and
advertisement played a major role in restoring Vita foam into the market. The
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interviewee pointed out that, through Public relations activities such as giving
scholarships, giving free Vita foam products to orphanages etc, the company
was able to register in the mind of the consumers as a socially conscious
organisation which helped in promoting their image. Also the advert campaign
proposed and executed by Tie Communications helped re-establish the Vita
foam presence in the polymer industry and also in the long run helped boost the
sales of the product. All of which helped restore Vitafaom back into the market
place.
Data gotten from the questionnaires distributes also asserts that advertising and
Public relations activities played a major role in restoring Vita foam into the
market place. 55.6% of the 90 respondents said that vigorous adverts and PR
campaign made the comeback for Vita foam possible. While 44.4% of the
respondents also claim that the adverts they saw informed their decision to buy
Vita foam products.
RESEARCH QUESTION 3: How do we identify a failing product?
Based on the questionnaires distributed and interviews conducted. A product
can be said to be failing if there is a sudden and constant decrease in sales. Also
about 50% of the 90 respondents that got the questionnaires said that they knew
Vitafoam was failing when they stopped hearing or seeing their adverts, 27.8%
of the respondents said that they noticed when other brands became very
61
prominent, while 22.2% of the respondent said they noticed when friends and
colleagues advised them to buy other products.
From the above statistics, a product can be said to be failing, if they is a
constant reduction in sales of the product, when adverts are suddenly not heard
or seen any more, when other brands become more popular, when friends
discourage you to buy the product.
RESEARCH QUESTION 4: What strategies do public relations experts employ
in re-establishing Vita foam in the market?
From the interviews conducted, it can be said that Public Relations played a
major role in re-establishing a failing products. The interviewee said that
scholarships and Cooperate Social Responsibility were carried out to ensure
that the brand name Vitafoam is registered in the minds of the consumers, also
sponsorship of important programmes and events were carried out to boost the
popularity of the brand. Media relations were also used, series of facility tour
for both media houses and also the regulatory agencies such as SON and MAN
were organised.
RESEARCH QUESTION 5: What advertising strategies were employed in
re-establishing Vita foam in the market?
62
From the research, the advertising strategy used to re-establish Vitafoam back
into the market was to create a nine month advert campaign that would run
through 2005 and parts of 2006 on radio, television and print media. 55.6% of
the respondents that filled the questionnaires distributed agree that the Vigorous
advert campaign embarked on by Vitafoam made it possible for vitafoam to
come back into the market, also 44.4% of the 90 respondents said that the print
adverts were most effective in making them buy Vitafoam products. 27.8% of
the respondents said that the billboards advert were most effective in making
them buy Vitafoam products, while 16.7% said it was television and 11.1% said
it was the radio adverts that got them to buy the product.
The strategies used were billboard adverts, radio, TV and print adverts that ran
over a period of nine months.
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CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 INTRODUCTION
In this chapter, the major findings of this study will be discussed and
summarized, recommendations will also be given.
5.1 SUMMARY
In this study, it was observed that public relations and advertising played a very
crucial role in re-establishing Vitafoam into the market after the company
experienced an alarming decrease in sales. It was also found out in the cause of
the research that through Public relations activities such as giving scholarships,
giving free Vita foam products to orphanages etc, the company was able to
register in the mind of the consumers as a socially conscious organisation. This
64
helped in promoting their image. Also the advert campaign embarked on by the
company helped re-establish the Vita foam presence in the polymer industry
and also in the long run helped boost the sales of the product. All of which
helped restore Vitafaom back into the market place.
It was found out in the cause of the research that a failing product can be
identified when;
The product is no longer available in the market
When other brands become more prominent
When the product no longer satisfy a need
When there is a sudden and constant decrease in sales.
When friends and colleagues discourage you to buy the product.
It was discovered that stiff competition from rival products, high price of
Vitafaom products, lack of advertisements and Public Relations activities were
the major factors that caused the failure if Vitafoam as a brand in 2005/2006.
It was also discovered that through Public Relations and advertisement,
Vitafoam Nig. Ltd was able to re-establish dominance in the polymer industry.
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5.2 CONCLUSION
This study has shown that advertising and public relations play a major role in
re-establishing and also maintain a product in the market. The study has shown
that high prices of products, availability of the product, lack of PR, advert and
other promotional activity might lead to a product failing.
The major findings of this study are summarized below:
Price, availability of the Vitafoam products, lack of adverts and public
relations, and competition, caused the failure of the Vitafoam brand in the
market place.
Advertising and public relations helped restore consumer trust and helped
restore Vitafoam back into the market.
A product can be said to be failing if there is a sudden and constant decrease
in sales, when adverts are suddenly not seen or heard anymore by the
consumers, when friends and colleagues advised them to buy other
products.
5.3 SUGGESTION FOR FURTHER RESEARCH
Due to the time limit and the level of this study the outcome has been limited.
For future research within this area it could be interesting to investigate this in a
deeper study. The use of various products can give a better perception on the
66
roles Public Relations and advertising plays in re-establishing a failing product
into the market.
Also a study can be carried out to find out how advertising and public relations
if not done properly could lead to a product’s extinction. This study could help
advert and PR practitioners understand the value of advertising and public
relations and know the dangers they stand to face if they are not done properly.
5.04 RECOMMENDATIONS
Looking at the outcome of this study, it is suggested that organisations in the
Polymer industry should not look down on adverts and public relations as they
can make the difference between a successful company and a failing company.
Organisations should ensure that their products and services are constantly in
the mind of the consumers because they are the most important factor in the
growth of the company.
Brand colours and logos of companies in this industry should be used in every
retail outlet, as this could attract customers to buy and also tell the public that
they are available. Also Public Relations activities that covers a wide
geographical area should be embarked on by companies on this industry ion a
regular basis, because it boost the goodwill of the organisation and helps
maintains consumer/customer loyalty.
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BIBLIOGRAPHY
Barry. T, Howard. D, (1990) A review and Critique of the Hierarchy of Effects in
Advertising, International Journal of Advertising, Vol.9, Iss.2, P. 121
Kirk & Miller (1986) Reliability and validity in qualitative research, Sage
Publications, USA: Beverly Hills
Lavidge. R. J, Steiner. G. A., (1961) A model of predictive measurement of advertising
effectiveness, Journal of Marketing, 52, p. 59-62
Lavidge. R. J, Steiner. G. A., (1961) A model of predictive measurement of advertising
effectiveness, Journal of Marketing, 52, p. 59-62
Mackay. A., (2005) The practice of Advertising, 5th Ed, Elsevier
Butterworth-Heinemann, Sydney: Australia
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APPENDIX AABOUT VITAFOAM
Vitafoam Nigeria Plc is the Nigeria's leading manufacturer of flexible, reconstituted and rigidfoam products. It has the largest foam manufacturing and distribution network whichfacilitates just-in-time delivery of its products throughout Nigeria. Incorporated on 4thAugust, 1962 and listed on the floor of the Nigerian Stock Exchange in 1978. Vitafoam'ssuccessful brands remain household names in the country. The company's vision to be the Foam Manufacturer of first choice is being achieved throughits mission of continuously improving the products quality and providing world class aftersales service. Its commitment to quality has earned it several quality awards including the NISGold Certificate Award for most of its products.The company is consolidating its core business by the introduction of innovative value addedproducts and services. It is exploiting polyurethane technology in the more profitabletechnical/ industrial and construction business. It has become a full range solutions providerfor polyurethane products and bedding/ cushion products. Its Comfort Centers provide a onestop shop for discerning consumers of its products. In addition, Vitafoam is striving to be amajor player in the Oil and Gas industry by providing insulation solutions to Oil companies. Vitafoam was the first Foam Manufacturing Company in Nigeria to subject its quality systemto the Quality Management System championed by the Standards Organization of Nigeria(SON). The NIS 1SO 9002 Certificate was obtained in 2001 and upgraded to NIS ISO9001:2000 in 2004.The Company has carved a niche for itself in the industry by its offer of a vast array of highand superior quality products that present the customers multiple choices. Mattresses ofvaried resilience and hardness are available nationwide. By use of contours cuttingequipment, Vitafoam designs and constructs custom-made mattresses and pillows. Inaddition, a range of profile products that are versatile in use are offered to the market - Mats(Vitarest, Leisuremats etc) and Foam sitting chairs (Vitasolid). The needs of nursing mothersare addressed by the offering of a number of foam based baby products (Changing mat, Babycot mattresses, pillows etc). Rigid polyurethane foam manufactured by Vitafoam is founduseful in the oil industry, refrigeration, conditioners, poultry enclosure and office partitioning.
70
Vitafoam is a responsible corporate citizen and it adopts best practices in all its operations.The code of good corporate governance has been well implemented by the company and it iscommitted to the continuous improvement of its operations. It also won the prestigiousNigerian Stock Exchange 31st Annual Merit Award in the enlarged Industrial/ChemicalProducts Sector, which made it the eleventh consecutive time of winning the award. The Company's policy is determined by a competent and dynamic Board, a mix of executiveand non executive directors who are experts in their own fields. The Board is supported by arobust management team.The reason for choosing Vitafoam as a case study in this research stemmed from the fact thatthere has been a sudden increase in sales even in the face of stiff competition form moukafoam and the likes.Since 2006, the share capital of Vitafoam Nigeria Plc had stood at N409.5 million fromN227.6 million in 2005 while shareholders’ funds grew by 35 per cent in 2008 to N1.9 billionover the value of N.4 billion in 2005. Total assets of the company grew by 18.2 per cent in the period under review. The valuewhich was N1.0 billion in 2007 added N85.9 million in 2008 to stand at N1.1 billion. The current assets which were N2.8 billion in 2007 grew by 17 per cent or N467.6 million tobecome N3.2 billion in 2008. Its fixed assets in 2005 were N345 million and in 2007 hadincreased to N629.9 million, it grew by grew by 114 per cent in 2008 or some N715.9 millionat the end of the year closed at N1.3 billion.
The company’s turnover which was N6.1 billion in 2007 and N3.5 billion in 2005, addedN2.02 billion in 2008 or some 33 per cent to stand at N8.2 billion at the end of the accountingy e a r . Cost of sales in 2008 went up by N1.301 billion or 29 per cent over the value of 2007 whichwas N4.5 billion. Gross profit grew by N721.4 million which translates to 43 per centincrease to stand at N2.4 billion in 2008. Interest expenses and similar charges was N95.4million in 2008 against N29.6 million in 2007, which represents 222 per cent growth. Itspre-tax profit in 2007 was N652.3 million but grew to N1.01 billion in 2008, a difference ofN361.4 million or 55 per cent growth. Profit after taxation grew by N258.9 million to N689.3million from N439.3 million which is a 59 per cent growth.This consistent growth since 2006 was what made me interested in the case study. What didthey do that gave them the edge the presently enjoy in the mattress business even ascompetition grows.DIDTRIBUTION OF VITAFOAM PRODUCTSVitafoam has its head office and factory in Lagos. Other factories and offices of Vitafoamare: Aba, Kano, Sapele, Jos, Maiduguri, Abuja, and in Nigeria Vitafoam nIg.ltd presently hasninety three major distributors registered with them covering about 23 states nationwide andabout 200 retailers selling their products with presence in all the states in Nigeria.
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APPENDIX B
72
73
74
75
76
APPENDIX C
77
78
QUESTIONNAIRRE
RESEARCH TOPIC: THE USE OF PUBLIC RELATIONS AND ADVERTISING AS ATOOL FOR THE REBRANDING AND RE-ESTABLISHING OF FAILINGPRODUCTS IN NIGERIA. A CASE STUDY OF VITAFOAM MATTRESS.I Awobamise Ayodeji, a post graduate student of mass communication, am carrying outthis research project as a part fulfilment for the award of M.Sc in Mass Communicationfrom the University of Lagos, Akoka.I hereby ask that you please answer the following questions truthfully and promise thatthe information provided shall be used for the purpose of this research only and allinformation gotten shall be treated as confidential.Thank you.
SECTION ONE1. Name (optional)..................................................................................................2. Age: (a) 18-20
3. Sex: (a) male (b) Female 4. Marital status: (a) single (b) Married (c) Divorced (d) Widow(er) 5. Educational background: (a) Post graduate (b) B. Sc/HND (c) SSCE/NECO (d) Primary school (e) OND/NCE (f) Not educated
SECTION TWOPlease tick as appropriate
1. Are you aware of a product called vitafoama. I am awareb. I am not aware
2. If you are aware of a product called Vitafoam mattress, do you use ita. yes
79
b. no
3. When did you start using vitafoama. More than 20 years agob. Less than 10 yearsc. Less than 5 yearsd. Less than one yeare. Do not use it
4. Did you ever notice a period where it seemed other brands of mattresses wheretaking over the market.a. yesb. no
5. If you noticed that vitafoam was losing part of its market to competition, why doyou think it happened?a. Reduction in quality of the productb. High increase in price of the productc. Better quality by the competitiond. Better price by the competitione. Lack of availability of the product
6. What gave you the idea that vitafoam might not be faring as well?a. when it was no longer available for saleb. when I stopped seeing or hearing their adverts anywayc. when other brands of mattresses became very prominentd. when friends and colleagues advised me to by other brand
7. in your opinion do you think vitafoam has made a comeback in to the marketa. yesb. no
8. If you think vitafoam has made a comeback into the market, what do you thinkmade the comeback possible?a. Vigorous advert and PR campaignb. Reduction in pricec. Increase in qualityd. Creating another competing brand to tackle the completione. Friend and colleagues attesting to the quality of vitafoam and the good price
9. Have you ever seen or heard any Vitafoam advertisement on any local medium
80
a. Yesb. No
10. If you have heard or seen any vitafoam advertisement on any local medium, howwould you rate the advertsa. Very goodb. Goodc. Faird. Poore. Very poor
11. What informed your decision start using vitafoam againa. The new packagingb. The advertisements on TV and Radioc. Recommendations from friendsd. Attractive pricee. Sales promof. Innovative additions to the product
12. In your opinion which of the adverts was most effective in making you opt forvitafoama. The radio advertb. The TV advertc. The billboards advertd. Road shows