THE EFFICACY OF SALES PROMOTION IN THE MARKETING OF CONSUMER PRODUCT (A CASE STUDY OF NIGERIA BOLTING COMPANY PLC WARRI, DELTA STATE)
EFFICACY, SALES, PROMOTI MARKETING, CONSUMER, PRODUCT, CASE, STUDY, NIGERI BOLTING, COMPANY, PLC, WARRI DELT STATE
The Efficacy Of Sales Promotion In The Marketing Of Consumer Product (a Case Study Of Nigeria Bolting Company Plc Warri, Delta State), Abstract
Sales Promotion Is Much More Diverse Than Either Personal Selling Or
Advertisement Firms Defines It In ...
Sales promotion is much more diverse than either personal selling or
advertisement firms defines it in different ways depending on what they want to
Association of marketing, America defines it as those marketing activities
other than persons Sal selling that stimulates consumers purchasing power and
dealer effectiveness such as displays, shows, exhibition, demonstration and
various non-recurrent selling effort not in the ordinary routine.
The essence of this project work is therefore to review in broad terms the
different types of sales promotion campaign, and the efficacy and the efficacy
and the effectiveness of sales promotion in the achievement of organizational
In general, this study will be emphasizing on the efficiacy and effectiveness
of sales promotion on consumers product like Nigeria bottling company product.
for sales promotional programmes to be effective, the company should improve on
their budget allocation to sales department as well introduces other sales
promotional devices which they have not practiced like trade contest,
collateral sales materials, advertising specialties and slotting allowances
this will go along way to make sales promotion much effective and as much
increase turnover for the company.
In chapter two, related literature which the view of other authors were
reviewed whole chapter three which is research design and methodology, the
sampling techniques used was probability sampling techniques. The source of
data were primary and secondary source. The primary source include the use of
questionnaire, personal interview while newspaper, journals, textbooks
and business magazine were the secondary source.
In chapter four, the presentation of data were made by percentage method and
the hypothesis test used is chi- square (X2)
Based on the findings, the result reveals that the efficacy of sales
promotional campaign stimulates the consumers purchase of Nigeria
bottling company (NBC) product.
In addition, it is advised that adequate time planning and budget can be made
and allocation should be made to sales department of the firm so as to carry
out necessary arrangement for sales promotional programme in the right
TABLE OF CONTENT
1.1 Background of the study
1.2 Statement of problem
1.3 Objectives of the study
1.4 Hypothesis formulation
1.5 Significance of the study
1.6 Scope of the study
1.7 Definition of terms
Review related literature
2.1 What is sales promotion
2.2 Nature of sales promotion
2.3 Developing sales promotion programme
2.4 Measuring sales promotion
2.5 Sales promotion objectives
2.6 Demerits of scales promotion
3.1 Sources of data collection
3.2 Population of the study
3.3 Sample size determination
3.4 Allocation and administration questionnaire
3.5 Respondent instrument used
3.6 Data treatment and analysis
Presentation, analysis and interpretation of data
4.1 Presentation and analysis of data
4.2 Tests of hypothesis
Summary of findings, recommendations and conclusions
5.1 Summary of findings
Promotion is synonymous with marketing
communication. They are often used interchangeably, they are professioner terms
used to describe the aspect of marketing function which deals with information,
persuading and reminding the target audience about a firm’s product offering.
Thus promotion, comprises advertising, personal selling, sales promotion,
publicity, public relation and direct marketing.
It should be noted that promotion is one of the promotion tools of marketing
that move a product or service or idea in a channel of distribution to the
target market. Such promotion tool is the pates promotion which stimulates or
arouse the interest of the consumer to buy. The Nigeria bottling company (NBC)
producer of soft drink uses sales promotion tools which comprises the consumer
promotion, dealers, and sales force promotion. The company capilizes on more of
consumer promotion, in this we have the sampling and demonstrations, sweepstake
and others tools etc.
According to Philip Kotler in (2003:609) in marketing management defines sales
promotion as a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate quicker
or greater purchase of particular products or services by consumers or the
According to the American Marketing Association defined sales promotion as
activities other than personal selling, advertising designed to stimulates
sales dealer effectiveness which may take the form of displays demonstrations,
show and exhibition and various non-recurrent effort not in the ordinary
routine. It is used between producers and consumers to stimulate demand.
Sales promotion is short term investment of value offered to arouse interest
along the marketing route in buying goods and services. It may emulate from the
dealers to retailers and down to consumers, the occurs during period of stiff
competition or during deedline in sales so as to boast short term sales. Sales
promotion is a persuasive activity and could be either directed to the
consumers of channel of distribution.
1.1 BACKGROUND OF THE STUDY
The Nigeria Bottling company (NBC) is an off short of coca-cola
international which started in 1886 in Affanta Georgian in the United State of
America. The Nigeria bottling company NBC has faced with production constraint
which had been confronting its production plant in Wari Detta state. This is
due to the inefficiency of the plants used on its peretimum. It has also been
seen that some of its mechanics used has been antiquated which led to
inefficiency of production its processes.
According to the plant engineer, Y. A. Kareem he said that this
would soon be overcome. He was speaking agent the background of the recent
communicating of the plants additional line 11 which was moved from former
Warri plant and the linkage of the plant to the Asa dam. Likewise, the new
washer meant for line 1 is expected to be in place by August – end he said.
This, he said would give a big boast to the plants production
The Nigeria Bottling company started its operation in Nigeria in
1953 by holding franshize for coca-cola international. This means that the
formulate for concentrate and receipt of the production has not been realized
to the Nigeria bottling company but the formular and syrup of the mixture has
been give to them to help to them bottle their product in Nigeria.
1.2 STATEMENT OF PROBLEM
Since sales promotion is a very vital tool of advertising of a
firms offerings. Thee are many factors that hinder the efficiency of sales
promotional activities. These include the internal and external factors.
In the case of the internal factors, these are the strength and
weaknesses of the organisation in which it has encountered. In this, there has
been an inefficiency of production which has affected the sales of their
product and the impact of sales promotion in the marketing of sold drink in
Warri Delta state.
In the case of the external factors, the Nigeria bottling company
(NBC) Warri Delta state is faced with competition from various other
manufacture of simulo soft drinks which each striving to have the greatest
market share. This factors (external) are threats and opportunities to the
company. When the JUP bottling company first introduced its 35cl in the soft
drink industry, coca cola company almost driven out of the industry by
overtaken its market share. This occurred in 1999. What coca cola did was to
introduce 35cl in its offering, this was how the coca cola bottling company was
able to vetain its position in the industry. Giving that period a lot of
advertising was done in order to re-shape its position in the soft drink
The reason of this was that the company (NBC) was not able to keep
abreast of its changing or dynamic environment. That is why as a marketer you
have to keep cognizance of your external environment so that your competitor
will not overtake you.
Lastly, there is a reported language barrier of effective
communication which may in turn lead to reduction in profit. Some of these
barriers to effective communication are:
1) Linguistic problems and
2) Cultural difference which affects its operation
in the marketing of consumer products and also, the issue of rapid sales
promotion which eventually reduces the companys image, because consumers may
begin to perceive discounts and other price deals as a reduction in product
quality which makes it difficult for firm (NBC) to seal its products without
1.3 OBJECTIVES OF THE STUDY
It is a matter of truth that no study goes without an objective.
In view therefore, this study will not be an exception to the Nigeria Bottling
company NBC Warri Delta state. It is in the height of the above that the
researcher emaciate the following objectives enumerated below:-
1) To ascertain the effectiveness of sales
2) To stimulate the minds of the consumers
3) To know the impact of sales promotion
4) To introduce new product
5) To increase impulse buying
6) To encourage consumption during off –season
7) To build trials among non –users.
8) To attract switchers way from competitors
9) To encourage purchasing of large size unit.
10) To turn consumer into loyal brand users.
1.4 HYPOTHESES FORMULATED
Ho: Sales promotion does not stimulates the
consumer purchase of NBC products.
Hi: Sales promotion stimulates
the consumer purchase of
Ho: Customer interactive good customer services
Hi: Customer interactive good customer
services during sales
Sales promotion does not lead to repeat purchase of NBC
Hi: Sales promotion lead to repeat purchase of
Ho: Sales promotion does not have a positive
effect on profit of
Hi: Sales promotion have a positive effect
on profit of
1.5 SIGNIFICANCE OF THE STUDY
The study from all intent and purchase will serve as a basis for
other researcher and the readers in business field particularly in the
marketing field to carryout more intensive research in sales promotional
activities in an organisation.
In this study, both the researchers and the readers will benefit
Firstly, it will enable the researcher to appreciate the impact of
sales promotion in the marketing of consumer product of NBC Warri Delta State.
Again, it will also enable the researcher to appreciate the
efficacy of sales promotion in the marketing of consumer product of NBC Warri
In the readers, also through this study it will enable the reader
to appreciate the importance of sales promotion in the marketing of soft drink
by NBC Warri.
Furthermore, it will also enable the reader, to appraise and
welcome sales promotion program in their organisation.
Above all it will help the readers to appraise the successful
applications of the results of the findings, that may serve as an emergizing
apparatus to managers in the marketing sectors and other business related
1.6 SCOPE OF THE STUDY
The study is limited to Nigeria Bottling company Plc (NBC) Warri
compared to other bottling giants company like Seven (Up) which have been in
existence for many years and have acquired a loot of experiences for many yeas
on promotional activities.
In light of the above, the scope of the study is limited to areas
comprising of sales promotion.
In addition, to discussing the scope of the research which
basically centers on sales promotion which is an arm of marketing, we have to
focus our attention to the fact that so long as the other functional department
like finance, production research etc work in pari-pasu with marketing
department. Sales promotion campaign will achieve a better profitability for
the organisation. This will also enable Nigeria Bottling company Plc Warri to
enjoy a kind of succession t hereby to facing the challenges of competition
from other companies in the same line of business.
1.7 DEFINITION OF TERMS
The following terms used in this study should be taken to mean the
Sales promotion is that something extra that can
arouse interest, create a buying desire, spark an immediate reaction from
customers, middlemen or company’s sales force sales promotion consists of short
term incentives designed to stimulate buying action. Sales promotional activities
are directed to consumers, middlemen or the firms own sales force.
b) Trade or dealer promotion: (Free goods,
merchandise allowances, cooperative advertising buying allowances, dealer sales
c) Sales force promotion: (sales contests, special
bonus sales meetings).
A product is something that is viewed as being capable of
satisfying needs or wants.
coco-coal company uses many product offering which consists, of the following
fanta, fanta tonic, fanta, ale, clubsoda, coke, spirte etc to satisfy the needs
and wants of its customer in Warri metropolis Delta State.
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