IMPACT OF TOP RANK HOTELS PROFITABILITY THROUGH ADVERTISING IN NTA ENUGU
IMPACT OF TOP RANK HOTELS PROFITABILITY THROUGH ADVERTISING IN NTA ENUGU
1.1 Background of the Study
The impact of advertising for businesses and brands in the 21st century has become imperatively permanent and therefore cannot be overemphasized.
Advertising, it is generally believed, dates back as old as man himself, and thus has been present in his economic and socio-political life before recorded civilization began.
Sapso (1975, p. 9) opined; “there is little doubt among trade men and merchants to make good their waves, has had on existence almost as long as the customs of buying and selling, and it is but natural to suppose that advertisement in some shape or form have existed not only from time immemorial, but almost for all time”.
Anyone living and working in any modern day society today is directly or indirectly under the influence of advertising, as businesses (domestic and trans-national) have tapped and ceaselessly benefited from the visibly roboust economic rewards that accrue, steady, sensible, communicative, persuasive and convincing advertising whether through the media (electronic and print) or through marketing drives from personal relations, the fundamental imitative has always been, getting goods, products and services through to the largest and smallest demography of consumers at optimum costs with maximum profitable benefits.
Unique products and service delivery alone this days as enterpreneually standard and convincing to customers as they might seem, has been proven not enough for the ever evolving “consumer service provider” traffic especially in advanced and developing countries like Nigeria, where radio and television viewership and listernership has astronomically enlarged respectively.
The hospitality industry, hotels to be precise, need not lag behind the blazing and beneficial trends of advertising.
The (Hotels) have employed intensive ways to get their product and services known to not only their steadfast local customers, but also to visitors and whomever is in need of such as the need arises. These string of advertising drives are geared towards appetizing the perchant of the consumers and are systematically funded by the company, depending on the strengthen of its financial muscle. Most often determined by the annual budget allocation to advertisement.
In Enugu, the Coal City, the hotel industry is undoubled by one of the most influencial non-civil service business employing over an average of 20 workers in the state with a population of less than 4 million people. Hotelling is a good and tangible employer of labour, fuelling up to a staggering 10% of the state economy, according to trade invest Nigeria (2011).
These figures point to the importance of this hospitality industry in the state, so getting across to the 4 million people through advertisement in the electronic media should have a chain or feedback effect on the financial figures of any good hotel in an ideal location, with an array of modern facilities and a good management.
Top Rank Hotels, a three block hotel, located at No 1 Hill View Independence Layout at the popular Enugu State Broadcasting Services (ESBS) Junction is a well finished edifice that stands conspicuously apart when it comes to Independence Layout. As a three star hotel, employing more than 50 staff, managers inclusive, it boasts of state of the art decor, contemporary style bedrooms, complimentary wireless high speed internet access. Fitness room, constant power supply, swimming pools with 216 well appointed and furnished rooms and suites, suitable of all tastes and budgets.
Conventionally a hotel generates profits from lodging budgets, hosting events in Halls like conferences, social gatherings food and beverage services and incurses expenses from maintenance work cost of running enquires for electricity due to the epileptic power supply.
The Nigeria television Authority, National network connecting Nigerians and popularly held as the larges television network in Africa, located a stone throw from the hotel is an added advantage, as advertising on the station will generally enhance the spread needed for greater patronage not only locally but across Nigeria. A business Oasis for any seven-eastern investment.
1.2 Statement of the Problem
The essence of this research project is to establish and examine the correlation between Top Rank Hotels profitability and the publicity given to the hotel from the Nigerian Television Authority (NTA channel, channel 8).
As a business organization in Enugu state, Top Rank Hotels Limited annual profit indices are supposed to be an outcome of many economic, social and human forces.
Advertising from the introduction has been proven to enhance patronage, so all things being equal; the problem here would be what impact does a standard level of publicity on N.T.A have on the general profitability of Top Rank Hotels, bearing in mind, the reach and customer base of the station.
Thus, the project work main challenge is to determine the impact of Top Rank Hotels profitability through advert in N.T.A. Enugu.
1.3 Objectives of the Study
The study have the following objectives:
1. To access the gain the hotel stands to obtain from aggressive advertising.
2. To find out how the hotel budget for advertisement
3. To find out how NTA Enugu charge for advertising.
1.4 Research Question
1. What is the overall gain to Top Rank Hotels from aggressive advertisement?
2. To what extent does the hotel budget for advertisement?
3. In what way does N.T.A Enugu charge for advertising?
1.5 Scope of the Study
This project research work is all about the market viability of product and services rendered by the organization Top Rank Hotels; the managerial prudence and administrative master strokes of budgeting for advertisement avoiding over expenditure on them nature and class of the advertisement, timing and on the end point. The impact of this advertisement is entirely of the business profitability and relevance.
The researcher domain stems from the use of advertising as a tool for publicity and passage of information from the hotel to its customers (old and new) who from the stretch of viewers on N.T.A Enugu channel 8.4. It also reflect on the effect of this information passed to customers at home and on the – go regarding patronage of the service and subsequently the attendant profitability there in.
1.6 Significance of the Study
It is a widely accepted notion that advertising in forms the consumers about the quality and availability of product and services offered and rendered by the organization, in this case Top Rank Hotels, this act of publicity has been either overated or underated, based on its after effect on such trends or brands and businesses. Thus this research tends to bring about a correct and more understandable dynamic between what is advertised who advertises, who views what is advertised and so on.
The research is expected to develop and enhance effectiveness in the advertising drives of privet companies especially hotels in the state and the nation in general.
It will be of immense benefit to both scholars and business operators by identifying the lapses inherent in the process of taking the news of a new service or product from the producer to the consumer.
1.7 Operational definition of Significant Terms
a. Advertising: This is the non-personal communication of a message from a producer to the customers, persuading, convincing about a product or service, usually through paid for commercial or billboards.
b. Tens-National: This refers to any business that has an effect across more than one country world famous brands like coca –cola.
c. Impact: A strong effect or impression
d. Apathy: A feeling of having no interest in something.
e. Profitability: Is the primary goal of all business ventures.
f. Hotels: A usually large house or building where travelers, holiday makers etc may receive food, lodging etc in return for payment.