Marketing Mix Optimization in Nigeria’s Brewing Industry: A Regression and Geometric Programming Approach (Case Study of Nigerian Breweries PLC) — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
Marketing Mix Optimization in Nigeria’s Brewing Industry: A Regression and Geometric Programming Approach (Case Study of Nigerian Breweries PLC)
Department of Statistic, Federal University of Technology Owerri, Owerri, Nigeria
,
Department of Statistic, Federal University of Technology Owerri, Owerri, Nigeria
,
Department of Entrepreneurship and Innovation Technology, Federal University of Technology Owerri, Owerri, Nigeria
,
Department of Maritime Technology and Logistics, Federal University of Technology Owerri, Owerri, Nigeria
1 Department of Statistic, Federal University of Technology Owerri, Owerri, Nigeria
2 Department of Statistic, Federal University of Technology Owerri, Owerri, Nigeria
3 Department of Entrepreneurship and Innovation Technology, Federal University of Technology Owerri, Owerri, Nigeria
4 Department of Maritime Technology and Logistics, Federal University of Technology Owerri, Owerri, Nigeria
This study investigates the impact of marketing mix elements—Product, Price, Promotion, and Place (4Ps)—on the revenue and profit of Nigerian Breweries Plc (NBL) from 2013 to 2022, using secondary data. Regression analysis was employed to assess the relationship between the 4Ps and revenue, while geometric programming optimized the marketing mix for profit maximization. Results indicate that Product and Promotion positively influence revenue, whereas Price has a negative effect. Geometric programming revealed the optimal contributions to profit: Product (99.80%), Price (0.09%), Promotion (0.06%), and Place (0.05%). These findings highlight the importance of balancing revenue-driven and profit-oriented strategies, emphasizing that distribution capacity plays a key role in maximizing the effectiveness of other marketing mix elements. Distribution limitations can hinder the impact of production, promotion, and pricing. Therefore, NBL and similar industries should align production with distribution capabilities, tailor promotions to specific distribution channels, and factor distribution costs into pricing strategies. This study contributes to marketing literature by providing empirical evidence on optimizing the marketing mix to enhance revenue and profitability in Nigeria’s brewing industry.
Nigerian Breweries Plc (2022) Annual Report and Accounts.
Adekunle, S.A. and Olokundun, M.A. (2017) Branding and Consumer Loyalty in the Nigerian Brewing Industry. Journal of Business and Management , 19, 1-12.
Ogunsiji, A.S. and Olokundun, M.A. (2018) Pricing Strategies and Sales Volume in Nigerian Beer Market. Journal of Business and Management , 20, 13-26.
Nwaizugbo, I.C. and Chinwuba, O.F. (2020) Digital Marketing and Brand Performance in Nigerian Brewing Industry. Journal of Marketing and Consumer Research , 34, 1-11.
Ayele, B.T. and Tesfaye, T. (2020) Marketing Mix and Customer Satisfaction in Ethiopian Brewing Industry. Journal of Marketing and Management , 11, 1-14.
Rao, V.R., Kartik, S. and Kumar, V. (2016) Optimization of Marketing Mix Using Geometric Programming: A Case Study of a Beverage Company. Journal of Business Research , 69, 4331-4338.
Harrison, O.A., Christy, C.N., Bridget, N.O., Immaculata, O.O. and Sylvester, A.I. (2023) Approximating Linear Programming by Geometric Programming and Its Application to Urban Planning. African Journal of Mathematics and Statistics Studies , 6, 115-127. https://doi.org/10.52589/ajmss-rx6k6m0k
Kotler, P. and Armstrong, G. (2010) Principles of Marketing. Pearson.
Blocher, J. (2009) Marketing Management: A Strategic Approach, South Western Cengage Learning.
Levitt, T. (1980) Marketing Success through Differentiation of Anything. Havard Business Review , 58, 83-91.
Kaul, R.N. and Rao, V.R. (1995) Research in Marketing: A Geometric Programming Approach. Journal of Marketing Research , 32, 139-154.
Adeleke, O. (2018) Marketing Mix and Consumer Patronage of Brewery Products in Nigeria. International Journal of Business and Management , 13, 147-157.
Olaleke, O.J., Oladele, O.O. and Ogunyemi, A.O. (2016) Marketing Mix Strategies and Performance of Breweries in Nigeria. Journal of Marketing and Management , 11, 1-13.
Coughlan, A.T., Anderson, E., Stern, L.W. and El-Ansary, A.I. (2006) Marketing Channels. Prentice Hall.
Oyedijo, A. (2018) Impact of Marketing Mix on Consumer Buying Decision in the Brewery Industry. European Journal of Business and Management , 10, 114-125.
Adeniyi, M.A., Oyebanjo, B.O. and Adewale, O.A. (2020) Logistics Management and Supply Chain Performance in the Manufacturing Industry in Nigeria. Journal of Management and Organization , 16, 1-18.
Nagel, T.T. and Holden, R.K. (2002) The Strategy and Tactics of Pricing. Prentice Hall.
Anderson, J.C. and Narus, J.A. (1998) Business Market Management. Journal of Marketing , 62, 1-18.
Ojo, O. (2017) Marketing Mix and Customer Loyalty in the Nigerian Brewery In-dustry. International Journal of Marketing Studies , 9, 142-153.
Adeyemi, S.A., Akinbamide, A.J. and Oyinlola, R.O. (2019) Marketing Mix and Sales Performance of Brewery Firms in Nigeria. Journal of Business and Economic Management , 18, 537-548.
American Marketing Association (AMA) (2017) Dictionary of Marketing Terms. American Marketing Association.
Belch, G.E. and Belch, M.A. (2015) Advertising and Promotion. McGraw-Hill.
Rogers, E.M. (2003) Diffusion of Innovations. Free Press.
Adebayo, B.O., Olokundun, M.A. and Adebisi, S.A. (2019) Marketing Mix Strategies and Firm Performance in the Nigerian Brewery Industry. Journal of Management and Organization , 15, 1-14.
Ogunnaike, O.O., Oladele, O.O. and Ogunyemi, A.O. (2020) Marketing Mix Optimization and Performance of Brewery Firms in Nigeria. Journal of Marketing Research and Case Studies , 2020, 1-12.
Ugwuanyim, G.U. (2003) Investigation into the S-Shape of Sales-Response Curve. The Nigerian Journal of Management Research , 3, 74-86.
Mpinganjira, M. and Duh, H. (2017) Distribution Channels and Beer Sales in South Africa. Journal of Business and Economic Studies , 23, 1-12.
Kariuki, J.N. and Mwangi, M. (2019) Promotional Activities and Consumer Behavior in Kenya’s Beer Market. International Journal of Business and Management , 14, 108-123.
Amuji, H.O., Ugwuanyim, G.U., Onwuegbuchunam, D.E., Nwachi, C.C. and Oju-talayo, J.F. (2023) Signomial-Geometric Programming Model for Marketing Mix Problem. Quest Journal of Research in Applied Mathematics , 9, 11-22. https://www.questjournals.org
Fox, J. (2016) Applied Regression Analysis and Generalized Linear Models. 3rd Edition, Sage Publications.
Hastie, T., Tibshirani, R. and Freedman, J. (2009) The Elements of Statistical Learning: Data Mining, Inference, and Prediction. 2nd Edition, Springer.
Wooldridge (2016) Introductory Econometrics: A Modern Approach. 6th Edition, Cengage Learning.
Shapiro, S.S. and Wilk, M.B. (1965) An Analysis of Variance Test for Normality (Complete Samples). Biometrika , 52, 591-611. https://doi.org/10.1093/biomet/52.3-4.591
Gujarati, D.N. (2003) Basic Econometrics. 4th Edition, MacGraw-Hill Inc.
Torres-Reyna, O. (n.d.) Getting Started in Data Analysis Using Stata (ver. 4.6). Prinston University. http://dss.princeton.edu/training/
Ugwuanyim, G.U. (2000) Optimal Advertising Media Selection and the Multicollinearity Problem. Development Studies Review , 5, 168-180.
Obite, C.P., Olewuezi, N.P., Ugwuanyim, U.G. and Bartholomew, C.D. (2020) Multicollinearity Effect in Regression Analysis: A Feed Forward Artificial Neural Network Approach. Asian Journal of Probability and Statistics , 6, 22-33. https://doi.org/10.9734/ajpas/2020/v6i130151
Ramsey, J.B. (1969) Tests for Specification Errors in Classical Linear Least-Squares Regression Analysis. Journal of the Royal Statistical Society Series B : Statistical Methodology , 31, 350-371. https://doi.org/10.1111/j.2517-6161.1969.tb00796.x
Pregibon, D. (1980) Goodness of Link Tests for Generalized Linear Models. Applied Statistics , 29, 15-23. https://doi.org/10.2307/2346405
Balachandran, V. and Gensch, D.H. (1974) Solving the “Marketing Mix” Problem Using Geometric Programming. Management Science , 21, 160-171. https://doi.org/10.1287/mnsc.21.2.160
Corstjens, M. and Doyle, P. (1985) The Application of Geometric Programming to Marketing Problems. Journal of Marketing , 49, 137-144. https://doi.org/10.1177/002224298504900113
Avriel, M. and Williams, A.C. (1970) Complementary Geometric Programming. SIAM Journal on Applied Mathematics , 19, 125-141. https://doi.org/10.1137/0119011
Ben-Israel, A. (1968) Geometric Programming—Theory and Application (R.J. Duffin, E.L. Peterson and C. Zener). SIAM Review , 10, 235-236. https://doi.org/10.1137/1010047
Kamaei, S., Kamaei, S. and Saraj, M. (2019) Solving a Posynomial Geometric Programming Problem with Fully Fuzzy Approach. Yugoslav Journal of Operations Research , 29, 203-220. https://doi.org/10.2298/yjor181115005k
Amuji, H.O., Ugwuanyim, G.U. and Nwosu, C.O. (2021) A Solution to Geometric Programming Problems with Negative Degrees of Difficulty. Advances and Applications in Discrete Mathematics , 26, 221-230. https://doi.org/10.17654/dm026020221
Amuji, H.O., Ugwuowo, F.I., Chukwu, W.I.E. and Uche, P.I. (2020) A Modified Generalised Inverse Method for Solving Geometric Programming Problems with Extended Degrees of Difficulties (K ≥ 0). International Journal of Operational Research , 38, 19-30. https://doi.org/10.1504/ijor.2020.106358
Amuji, H.O., Ugwuowo, F.I., Nwachi, C.C., Okechukwu, B.N. and Okeoma, I.O. (2024) On Exact Optimal Solution to Geometric Programming Problems. Advances and Applications in Discrete Mathematics , 41, 429-439. https://doi.org/10.17654/0974165824029
Abrams, R. and Bunting, M. (1974) Reducing Reversed Posynomial Programs. SIAM Journal on Applied Mathematics , 27, 629-640. https://doi.org/10.1137/0127053
Economic Advisory Group (1967) Economics of Advertising. Hutchinson Brenham Ltd.