1. BACKGROUND TO THE STUDY
Several years ago, it wasn’t uncommon to see private and public enterprises close down on a daily basis in the country. There were several reasons attributed to this phenomenon. They ranged from poor implementation of economic policies on the part of the ruling government, poor managerial skills and techniques, lack of proper marketing strategies. But more importantly, it was due to part or complete neglect of the customers’ wants and needs in terms of quality. The customers’ needs weren’t paramount in the scheme of things; only their money was. However, this was to change in the late eighties and early nineties and indeed is still undergoing change. There was a steady awakening of customers to their rights as they were asking for their money’s worth. Quality became the keyword, not only on the lips of consumers but also chief executives and management as a whole.
These companies worked not only towards a continuous improvement of quality of products but also towards better marketing and sales strategies to improve corporate productivity.
TQM requires unwavering organizational commitment, substantial time and effort, and drastic changes in the organizational culture and business practices, it is important for companies to clearly understand what it takes to succeed and achieve high performance.
This research intends to show how total quality management and improved marketing strategy affected Benue Brewery Ltd. Makurdi in terms of its corporate productivity.
1.2STATEMENT OF THE PROBLEM
This research was carried out because of the high cost of operations, excessive waste of resources, low morale of employee, low quality of goods and services that characterize most enterprises in Nigeria. Benue Brewery in its initial years, had as emphasis quality of its product, ‘‘More Lager Beer’’. The total amount cost of production was low but the economies of scale were hardly achieved due to its small size. In order to take a large chunk of the marketing segment from Benue State and the surrounding states.
Benue Brewery Ltd. made emphasis on quality and competitive pricing as well as strategic marketing which ensured that the product was delivered at the door steps of the consumers. Feedback showed that the customers were satisfied. So what went wrong? Why did the company dip and what steps were taken to remedy the situation? This research will consider:
a.The initial management of the company and how well it was managed. b.What its productivity level was
c.What marketing strategy it adopted
d.What problems it encountered
e.What its future is.
These and other questions will be addressed in subsequent chapters.
The major objective of the study is to enclose the total quality management practices in Benue Brewery. The specific objectives are to:
i.To determine the level of application of TQM approach in the operations of Benue Brewery Ltd. Makurdi. ii.To determine the effectiveness and flexibility of the company to the yearnings and needs of the consumer, whether the company is consumer focused. iii.To determine the type of marketing strategy used by Benue Brewery Ltd for the marketing of their product, ‘‘More Lager Beer’’.
i.Is TQM approach an important factor to the success of Benue Brewery? ii.Is the quality of ‘‘More Lager Beer’’ determined by the desires of the consumer? iii.Is corporate productivity enhanced by the marketing strategy aadopted by Benue Brewery Ltd.
1.5STATEMENT OF HYPOTHESES
To achieve the objectives of this study, the following hypothesis shall be tested.
i.Ho1: The use of total quality management approach is not an important factor in the success of Benue Brewery Ltd. H1: The quality of the product, ‘‘‘More Lager Beer’’’ is not determined by the desires of its consumers. ii.Ho2: The quality of the product, ‘‘More Lager Beer’’ is not determined by...