research project is a very crucial study for the Guinness Nig. Plc. The study
was motivated by the necessity to establish the extent of promotion as a
strategic instrument in the sales of any manufactured products.
Nig. Plc was made use of by the researcher as a case of study because of the
level and precision this study intends to attain. This study was
also expected to:
i) Examine the effectiveness of promotion
techniques been employed by Guinness Nig Plc.
ii) Determine to which extent this organization have
successfully operated its business with the current promotion of its products.
iii) Device ways such that promotion could be used as
a strategic instrument in enhancing increase in sales. This
research work. Is therefore significant in the sense that it has
endeavored to suggest workable and acceptable guidelines which companies may
find useful in handling organizational problems, particularly those having to
do with promotion.
The research hypothesis were formulation to ward deviation from
the subject itimer study. Both primary and secondary sources were
used in collection of data. The research instrument used in
collecting the data were questionnaires and oral interview.
In organizing and presenting data collected, tables, frequencies
and percentages was used to present the raw data in a meaningful manner, thereafter,
the various hypothesis were tested using chi-square at a degree of 0.05 level
The following hypothesis were accepted after the test.
i) Malta Guinness is preferred to other competing
malt drinks because of its superiority.
ii) The price of the product hinges heavily on the
goodwill of Guinness trade name.
iii) The price of the product has influenced its
share of the market.
Based on the findings the researcher opinion in duteils. Some
recommendations which hopefully will be useful to the company under studied in
particular and other firms in the industry in general. Moreso, the
conclusion of the study states that promotion of the product is not only the
yardstick to measure the performance of a product in the market. It
holds that product superiority; goodwill and other factors normally contribute
Nevertheless, the promotion is the most strategic instrument not
only for promoting the sales of a product but also for booting and projecting
the overall corporate objectives of a firm.
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Historical Background (Guinness Nig. Plc)
1.3 Statement of the Problem
1.4 Objective of the Study
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Need for the Study
1.9 Definition of Terms.
CHAPTER TWO: LITERATURE REVIEW
2.1 The Promotools
2.2 Promotion Objectives and its Economic Importance
2.3 Promotion Policy/Strategies
2.4 Promotion Mix Strategies
2.5 Setting the Total Promotion budget and Mix
2.6 Integrating the Promotion Mix
2.7 Promoting Procedures
2.8 Promotional Pricing
2.9 Factors Influencing Promotion Decision.
THREE: RESEARCH METHODOLOGY
3.1 Probability Sample
3.2 Pilot Survey
3.3 Sources of Data
3.4 Population of Study
3.5 Questionnaire Administration
3.6 Limitation of Study
CHAPTER FOUR: PRESENTATION, ANALYSIS AND
INTERPRETATION OF DATA
CHAPTER FIVE: SUMMARY OF
FINDINGS, RECOMMENDATION AND CONCLUSION.
5.1 Summary of Findings
1.1 BACKGROUND OF THE
purpose of promotion is not to recover cost but to capture the value of the
product in the minds of the customers. Promotion consist of co-coordinated
sellers-initiated effort to establish channels of information and persuasion to
forecaster the sales of goods and services. Promotion means every
means of communication a product or service to the buyer or final
consumer. It should be recalled that each of the marketing mix
communicating means proper integration of the marketing mix variables and the
promotional mix in the right proportion to achieve the market goals of the
organization. In other words Wibur Schram says that promotion as a
communication tools is the process of establishing commonness or oneness of
thought between the seller and the buyer. The brighter understanding and
knowledge of the product help to keep moving the product forward.
promotion pushes the product along different stages of response depending on
the stage of the product on the product life cycle or the particular response
demanded by the marketers. The response can be awareness, liking,
knowledge, preference, conviction and or purchase.
It is also
said that a company can have the best quality produce which price is considered
reasonable, but without letting people know that such product exist and can be
found at a particular place such product cannot get market patronage because it
is suffering from major marketing problem of no promotion. On the same
vein, a product that doest not receive proper integration of the promotional
mix at the optional level is equivalent to no promotion at all.
promotional mix are advertising, sales promotion, personal selling, public
relation and direct marketing. Advertising: is any paid
form of non-personal presentation and promotion of ideas, goods or services by
an identified sponsor. It involves the use of mass medium they are
Radio, Television, newspaper etc. Advertising could be carried out for
different purposes; in that case there are competitive advertising (aimed at
fighting competition), informative advertising (announcing the existence of a
new product or service or a modification of existing brands), institutional
advertising (to build up the company name, image and goodwill). Advertising has
some distinct qualifies:
a) Mass communication: The message is transmitted
simultaneously to a large number of people through a media.
b) Controlled: The contents, time and
direction of an advertising message are controlled by the advertiser.
c) Impersonal: advertising is a
d) Dramatization: advertising is characterized by
sound, colour, and the use of prints. This makes the message
interesting and sometimes dramatizes the company and its products. Personal
selling: Personal presentation by the firm’s sales force for the purpose of
making sales and building customers relationships. It is an
effective tool for building up building up buyer’s preference, convictions and
distinct features are:
Personal selling involves close personal interaction between sellers and buyer.
Immediate feedback: It is a
dialogue it permits the prospect to raise objection, ask question or place
Sales promotion: Short term incentives to encourage the
purchase or sales of a product or service. Sales promotion includes a
wide assortment of tools like coupons, contest, lent-off deal premiums and
other all of which have many unique qualities. It attracts quick
responses where as advertising says “buy our product” sales promotion says “buy
it now”, sales promotion can be classified into consumer promotion (Sampling
premium offer, price off etc.), trade promotions (dealer contests, free goods,
merchandising allowance etc.) and sales force promotion (sales force contest,
a) Attention getting: They produce direct and
immediate concession and inducement to gain attention of the buyer and lead the
buyer to the product.
b) Product or image damaging: A
too-frequent use of sales promotion tools may convey the notion that the
products being pushed are either inferior, ill-designed or even over priced.
Public Relation: Building good relations with
the company various publics by obtaining favourable publicity, building up a
good corporate image and handling or heading off unfavourable rumours, stories
and events. Publicity appears in different ways they are press
relation (placing news. Worthy item in the news media), product
publicity (launching a new product) lobbying (fighting undesirable government
policies and supporting the desirable policies) corporate promotion (internal
and external message to improve the understanding of the institution).
distinct features are:
High Credibility: The news stories and messages are
not sponsored by the sellers so readers see it to be trustworthy and authentic.
Off-Guard: Messages that appear as news are not paid for in
the sense that the firm is not billed for the space or time.
Direct Marketing: Direct connections with carefully targeted
individual consumers to both obtain an immediate responses and cultivate
lasting customer relationships. It is a non-public and its message
is directed to a specific person. It is immediate and customized
and interactive. Direct marketing is done through the use of telephone,
mail, fax, email, internet etc.
is one of the elements in marketing mix that represent cost.
Therefore any study or the subject would have to be stream lined in order to
arrive at an acceptable and profitable policy. In the liger
of this, this project is set to determine promotion as an instrument in sales
of malt drink with a special emphasis on Malta Guinness brewed by Guinness
Nigeria Plc. In other words, viewing promotion from the sales angle that
is using sales as a parameter to measure the effect of promotion both on
consumer, competitors, quantity demanded.
Nigeria Plc was incorporated in Nigeria in 1950 to import and distribute
Guinness from Dublin for sales in Nigeria.
the great success of the product in Nigeria, a decision to build a Brewery in
the country was taken in 1960 and the stout brewery in Ikeja was constructed in
1962, hence, the new enterprise (Ikeja brewery) eventually became the third
Guinness brewery in the world producing Guinness stout apart from Public and
Loudon. With the increased demand for their high quality product the
brewery was expanded as a result they entered into the lager beer market with
the construction of Harp brewery in Benin in 1974. To meet the even
growing demand for Guinness stout, the third brewery was also built to cater
for the huge market demand in the Eastern Zone. The contribution of
Guinness Nigeria Plc to the national economy lies not only in providing direct
employment to over 5,000 (five thousand) employees, but also in the indirect
employment it generate four thousand of other Nigerians engaged in the production
of bottles, crow cocks, crates, cantons, labels and also transporters of their
supplies and finished goods as well as contractor who service their
breweries. The firm also generates considerable internal revenue
for government through the payment of Excise Duties, import Duties and company
tax, which in a normal year amounts to an average of 14 million per month
excise duty alone. The first Nigeria to heed the firm was appointed
in 1975, in person of Chief (Dr.) A. K. Ubeku. On 1st September,
1986 the company was formally reorganized into three main divisions – Brewery
division, Guinness firm division and Guinness processing division.
The company has being aligned with government policy on impart substitution and
at the same time committed to the maintenance of high quality products, while
at the same time, it has been a good corporate citizen by building and
maintaining age hospitals and as well as supporting the development of sports
throughout the federation.
success story of Brewing in the country, the firm added yet another line of
product to its existing one in 1990 and Nnamed it Malta Guinness.
Purposely to capture the segment of the market that does not drink alcoholic
product. It is of importance to mention here that till the date of
writing. This product, Malta Guinness is doing fine among its
competing brands in the market.
proper direction of the Board of Directors, their technical partners’ support
the hard work of the management and staff couple with customers’ continuous
patronage, the company’s turnover has risen from N286 million in
1986. The headquarters of the firm is located in Ikeja and is
responsible for overall planning, co-ordination and control of the whole
1.3 STATEMENT OF THE
Nigeria Plc was incorporated in Nigeria in 1950. With the success story
of the brewing in the country, the firm added yet another line of product to
its existing line in 1990 and Named it Malta Guinness. Guinness
Nigeria Plc is the leader in the Malta drinks industry in Enugu
Metropolis. The company has other products like Guinness stout and
harp, both of them are alcoholic.
Guinness has been selling well in Nigeria for many years and the performance of
the product in the market has been satisfactory. Most consumers prefer the
product to other competing brands of malts.
Why do consumers prefer it to other competing brand upon the fact
that the price is higher when compared with other Malta drinks?
Why has Malta Guinness been so successful in the market: Is
the success as a result of the product quality, taste, company’s trademark or
name, pricing system or promotional system.
1.4 OBJECTIVE OF THE
is one of the controllable mix in marketing and its importance cannot be over
emphasized because it is one of the revenue generating mix. The
management therefore has to be more stringent in planning this mix.
Therefore the objective of the study are:
· To find out whether the company’s promotional
mix strategies affects the sales volume of the product.
· To identify how competitors promotion system is
affecting the company sales volume.
· To know whether promotion decision really
constitute a complex web in business organization.
· To suggest ways of improving the promotional mix
strategies in order to improve the overall objective of the firm.
1.5 RESEARCH HYPOTHESIS
the statement of problem developed at the early parts of this work, this study
will be tested on the following hypothesis.
1) That Malta Guinness is preferred to other
competing malt drinks because of its superiority.
2) That the promotion of the product hinges largely
on the goodwill of Guinness trade name.
3) That the promotion of the product has influenced
its share of the market.
1.6 SIGNIFICANCE OF THE
of this study will be useful to Guinness Nigeria Plc and other malt drinks in
using promotion strategy as a yardstick to enhance the sales of their products
in the country.
is also aimed at determining the best promotion method/strategy to be adopted
in sales of malt drinks.
will try to solve the problems encountered by the management in its product
Furthermore, this project will be helpful to any student who wishes to carryout
similar study in future.
1.7 SCOPE OF THE STUDY
order to make this work a perfect on base on time constraint, the work will be
restricted within Enugu Metropolis.
1.8 NEED FOR THE STUDY
topic promotion as a strategic instrument in the sales of malt drinks has been
chosen in order to identify if there is any uniqueness in the promotion of
Malta Guinness, in relation to some other malt drinks in the
country. Promotion of Malta Guinness will be regarded unique if
there is a distinct characteristic that cannot be compared to other malt drinks
being a new product.
like to find out as well whether Guinness Nigeria Plc promote this product
putting into consideration the promotion of other competing malt drinks in the
market or it is promoted in custom with the company age long goodwill.
1.9 DEFINITION OF TERMS
Means activities that communicate the merits of the products and
persuade target customer to buy it.
The proportion of a market which preferred to buy a company’s product (usually
This is the effective combination of the components of the promotional tools to
achieve the promotional objectives.
OPTIMAL PROMOTION STRATEGY:
The combination of different promotion tools such that maximum benefits or
returns is achieved.
PRODUCT LIFE CYCLE:
This is different stage a product pass through during it’s life time.
The end or actual users of a product or service.
This is the Chief or capital city of a state or country or
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