Effect Of Sales Promotion On The Marketing Of Consumer Goods

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Effect Of Sales Promotion On The Marketing Of Consumer Goods


Abstract


This research is on the effect of sales promotion on the marketing of consumer goods with reference on Nigerian bottling company Plc Enugu. The problem being investigated are as follows: the effect of sales promotion on consumer goods. The vates at which consumers demand increase/ decrease after sales promotion effects of sales promotion on sales and profit after campaign.

The method used in collecting data were primary and secondary.

Secondary data were collected form journals magazines newspaper and text books.

The analytical method was chi-square (x2) is reach significant testing conclusion on the effects of sales promotion on the marketing of consumer good in Nigeria sales promotion has been found to boost the profit margin of the industries.


Chapter One


Introduction

1.1 Background of the Study

Sales promotion is an indirect form of marketing promotion inserted to stimulate quick action. As competition between business organizations go up it became imperative to turn attention to consumer needs and wants which one naturally insatiable sales promotion arose to challenge all other marketing activities like personal selling advertising and publicity that stimulate consumer purchasing and dealer attentive ness such as show exhibition coupon contents samples premiums etc are usually short term in nature.

Several authors have stated that need for all business entities to adopt sales promotion until they driven to it by circumstance like sales decline slow growth changes of buying pattern by customer and in measuring competition since profit is a vital requirement of business it is conventional to regard it as first control purpose.

According to Kinner and Beehardt (1985) sales promotion is intended to aid both consumer pull and dealer push. They thus categorized common sales promotion techniques in terms of their consumer forces.

Consumer pull promotion techniques are such activities like sampling price incentive or deal sent off offer refund or rebate contest premium like freeze in pack free in mails self liquidator and resalable containers . while trade push promotions to cheques are such activities like money bonus gifts etc. sales promotion handles middle group between advertising and personal selling. It is usually not directed al large advice as advertising but it is directed at much larger effort.

In recent years sales promotion has grown so rapidly it is this rapid increase therefore that the world economic like Nigeria are in down-turns which has called the attention of the researcher to reach and found out it effects on marketing emphasis on the Nigerian bottling company Plc Enugu the brewer of coke sprite fanta and lemon.


1.2 Statement of Problem

  1. Coca-cola though world renowned multinational company with impressive advertisement profit however the product had not benefited the looks and economies of the Nigeria market.
  2. The quality of the product notwithstanding the competitors through personal selling had been improving in their share of the market.
  3. Nigeria bottling company had been giving free gifts to their customers for promotional purpose but consumer not withstanding still demand the soft drink of heaper prices.
  4. Nigeria bottling company paint the shops of the customers that not withstanding their competitors less impressive promotional efforts were able to self the products in the same shop.

1.3 Objectives of Study

The study is premised on the following specific objectives:

  1. To examine whether discounted prices lead to product sales
  2. To analyze whether product giveaways bring about product sales
  3. To determine if loyalty points create product sales
  4. To establish whether demos and sampling lead to product sales
  5. To assess if causes and charity activities create product sales

1.4 Research Questions

The research questions as derived from the research objectives are as follows:

  1. Do discounted prices lead to product sales?
  2. Do product giveaways bring about product sales?
  3. Do loyalty points create product sales?
  4. To what extent do demos and product samples lead to product sales?
  5. Do causes and charity activities create product sales?

1.5 Scope of the Study

The scope of this very wide if it has to be carried out in the entire Nigerian bottling company.

This study is therefore limited to Enugu the research work was carried out at the premises of the Nigerian bottling company Plc Enugu

The marketing manager who of course knows the work schedules took the researcher over to the sales manager who also sacrifices his working hours to lecture me on the activity of consumer good. This research work is based on the findings at Nigerian bottling company Plc Enugu department.


1.6 Significance of the Study

The researcher is of the opinion that this study on the effect of sales promotion on the marketing of good will be of immense benefit to the following.

  1. Manufacturing companies and the various arms of the intermediaries for instance the issue varied in the research work and recommendations made will assist the management of the manufacturing companies identify their respective problem areas and consequently measures to rectifying them
  2. Government this study will enable the appropriate government agency/ministry changed with overseeing company matters to make policies that will have for reaching impact on the activities of manufacturing company in Nigeria. This will ensure simplify in their operation and still uphold the ethics of the profession.
  3. Public having explained the activities of manufacturing company in sales promotion on marketing of consumer goods in the country and the inherent benefit of their services will motivate them to take advent age of the benefit provided by the company in the market.

1.7 Definition of Terms

Franchise:

It is formal permission given to a company that wants to sell to goods or services in a particular area.

Promotion:

A number of people or things taken from a larger group an used in test to provide information about the group.

Incentives:

Something that encourages somebody to do something.


1.8 Significance of the Study

The aim of this study is to look into the impacts of sales promotion strategies on product sales in Nigeria. The findings of the study should be able to help companies and organizations to come up with constructive and innovative sales promotional strategies. In addition, the study will also bridge the academic gap that exists when it comes to the impacts of sales promotional strategies on product sales.


1.9 Scope of the Study

It is not the interest of this study to discuss the extensive subject of sales promotion strategies, because it is a very wide concept, the focus was only limited to the impact of sales promotion strategies on product sales in Nigerian bottling company in Enugu, Nigeria.


1.10 Organization of the Study

This study is organized into five chapters. Chapter one looks at the background to the problem, encompassing the research problem, objectives, research questions, significance, among other issues. Chapter two basically looks at literature review. Chapter three covers the methodological approach to be used by the study, chapter four looks at the study findings while chapter five winds up with the study conclusions and recommendations.


Chapter Five


Summary, Conclusions and Recommendations

5.2 Summary of the Major Findings

From the onset, the study based on finding out the impacts of sales promotion strategies on product sales with reference to Nigerian bottling company in Enugu. The study further structured along five specific objectives which sought to see how these promotional activities of discounted prices, product giveaways, loyalty points, demos and sampling, causes and charity activities promoted product sales. The study was further anchored on the push theory, the pull theory, the combination theory, and the sales promotion theory, all of which to show that depending on the effectiveness of sales promotions strategies, there is always a high likelihood of increased product sales.

The study adopted questionnaires method, where questionnaire were in use among hardware sellers. This was all backed up by rigorous documentary review of literature related to sales promotion strategies and product sales. The study later showed that, indeed, all the promotional activities, that is, discounted prices, product giveaways, loyalty points, demos and sampling, and causes and charity activities all lead to increased product sales. This is accordingly illustrated as majority of the respondents have indicated that discounted prices (50%), product giveaways (55%), loyalty points (68%), Demos and product samples (67%), and causes and charity (75%) as modes of promotions do lead to sales of the products, such as Nigerian bottling company.


5.3 Implications of the Findings

The study has shown that once there are effective promotional activities, there is likelihood of huge impact on product sales. Moreover, this is also backed by various studies such as Shewan (2016), Misbah and Wayne (2012). What matters is that there be need to remove some of the challenges that are attendant on various promotional strategies.

This study henceforth can be said to wide-ranging implications on many business persons in Nigeria, who, especially still lag behind their Kenyan counterparts when it comes to promoting their products especially Nigerian bottling company. The findings of this study should therefore be seized by the hardware business persons in Nigeria, so as to undertake extensive promotional drives with a view of promoting their products. This would avoid the challenges that many business people in Nigeria normally experience, where, instead of taking a step to promote their products, they start complaining against the government for lack of clients to buy their products. Moreover, some of these promotional activities shown in this study they are neither difficult to implement, nor are they in anyway expensive.


5.4 Conclusion

The study has highlighted that once promotional strategies such as discounted prices, demos and product samples, causes and charity activities, product giveaways and loyalty points are well implemented, the products are likely to get more sales from the prospective customers, who can henceforth come and buy those products. Moreover, this has been backed by a number of studies that have shown that it is important to ensure better promotional strategies for product sales. What matters is that inherent challenges are dealt with in time. It is therefore important to note that while this study is conclusive enough, it has shed light on the promotional strategies with respect to Nigerian bottling company. These strategies can still be used by all types and size of businesses—whether small or big.


5.5 Recommendations

In light of the findings of the study, below are the two types of findings: policy and practice related.

5.5.1 Recommendation for Policy

In terms of policy, the government of Nigeria needs to create a conducive environment for traders and other business persons within which to exercise the already mentioned promotional strategies. At a policy level, the government could look into taxes or levies that might be hindering these promotional activities. In addition, the government needs to improve its infrastructure such as roads, railways and communications infrastructure so as to enable these business people and paint companies access and supply their products all over Nigeria without any hindrances.

5.5.2 Recommendation for Practice

As for practice purposes, there is need for these business people and manufacturers to undertake extra courses that can help them equip with enough skills to undertake most of these promotional strategies. It is important to note that while these promotional activities are important for the growth of the business, they need patience and mastery of skills for effective implementation. In this line of thinking, there should be seminars for small traders, where manufactures train their clients or sellers on how to undertake and embrace various types of promotional activities.


5.6 Limitations of the Study

The topic looks interesting and quite relevant at a time when Nigeria is looking for more investments especially in the small and medium enterprises sector. However, the big problem has been to ensure that most of these businesses are able to sustain their operations for longer. Despite the importance of this study, the time and scope has not been enough to consider a wider sample so as to get more views about what they think, in practical senses is kept to ensuring product sales, other than product promotions. Moreover, owing limited time, not much literature has been discussed especially from other developed countries to lean from best practices.

Owing to limited sample the findings of this study should be generalized with caution, largely owing to the nature of convenience and purposive sampling procedure which was adopted. Moreover, the sample used is quite small and cannot generally be used to project a wider picture on a wider scale. However, this method of sampling seemed pragmatic for the situation due to time and availability of resources. Therefore, it would be imperative to have this study scaled up on a wider scale, such as by using a scientifically representative sample that covers the whole country. This kind of study would be interesting as it would offer us new insights about the real situation in other parts of the country, especially with regard to how the business sector can effectively utilize various promotional activities for product sales.


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