study is on the impact of sales promotion on sales of soft drinks in Nigeria. A
case study of 7up Bottling Company Plc Aba Depot.
One of the major problems addressed was due to the low amount of
money invested by the company on sales promotion activity result to low sales
turnover was addressed which result to the increase in sales turnover.
The total population used is two hundred (200) made up of
production department, marketing/production and Administration department and
sample of 133 employees was randomly drawn from 7up bottling Company Plc Aba
The personal interview and questionnaire are as well analyses
The researcher used chi-square (X2)
statistics for testing hypotheses formulated. Findings show that inadequate
capital base is a major problem responsible for the low company’s sales
The researcher recommended that the marketing manager of 7up
Bottling Company Plc, Aba Depot should know that the use of sales promotion
activities is the only way to ensure consumers patronage and as such they
should maintain its product quality and price.
1.1 Background of the
1.1.1 PROFILE OF 7UP BOTTLING COMPANY Plc,
1.2 Statement of the
1.3 Objectives of the
1.6 Significance of the
1.7 Scope and Limitations of the study
1.8 Definition of terms.
2.2 The concept of
2.3 Promotional activity in
2.4 Elements of promotional
2.5 What is sales
2.6 Types of sales
2.7 Objective of sales promotion
2.8 Sale promotion
2.9 Developing the sales promotion program
2.10 Evaluating sales promotion
2.11 Comparison of promotional Element
2.12 The benefits of Sales
2.13 Problems of sales promotion.
2.14 Liability and limits of sales
2.15 What to consider in adopting sales
3.1 Design of the
3.2 Area of the
3.3 Population of the
3.4 Sample and sampling
3.5 Method of data
3.6 Method of data Analysis.
Presentation and analysis of data
4.1 Question by question analysis of the
investigation research questions
4.2 Testing of
4.3 Discussion of
Summary, conclusions and recommendations
5.1 Restatement of
5.5 Suggesting for further
OF THE STUDY
Marketing generally is aimed at profitable sales by offering want
satisfy goods and services to the market.
Every Business Organization be it manufacturing distributive
or service firm has the goal of its marketing efforts.
But purchase in sales and profitability of a firm cannot be
enhanced without promotion .
Advertising, personal selling, publicity and sales promotion are
the salient from a promotion available to most tools are suitable for
both industrial products and consumer items.
Most soft drinks companies usually employ advertising personal selling
and to some extent publicity and perhaps sales promotion in promoting
But the extent to which sales promotion impact
the consumption of soft drinks is yet to be ascertained.
It is in the light of the above that the research thought it is wise to
study the impact of sales promotion on the consumption of soft drinks ie
(7UP products) in a segment of Abia State Nigeria using 7 Up Bottling
Company ,Aba as a case study.
Sales promotion is one of the important promotion tools that have gained
a lot of popularity in recent time, perhaps because of increase in
competition in a depressed economy where disposable income
kept on decreasing over a period of time. The American marketing
Association (AMA) define sales promotion as activities other than personal
Advertising and Publicity designed to stimulate sales and dealers
effectiveness, which may take the form of display demonstrations shows
and exhibition and various non-recurrent effort not in the ordinary
Sales promotion is define by the author as that marketing function that seeks
to achieve a given marketing objective by adding something of extrinsic
value for the purpose of stimulating consumer and dealer effective
within a given period of time, usually 3-4 months.
Sales promotion objective could be spelt out as follows
to induce trial purchase, to induce repeat/multiple purchase, to increase our
market share, to attract competitors market share, to smother
season or demand for the product, and attract brand switcher to the product who
will generalize after the promotion.
All those three main segments of s ales promoted simultaneously.
Otherwise one of those participants may frustrate the other
by not passing down incentive to the final consumer.
PROFILE OF 7 UP BOTTLING COMPANY PLC
Seven Up is an International name is soft drinks business and was
developed under modest circumstance in the United states of America in early
1920’s by C/L GRIGG, who also suggested the name “Seven Up”.
There is over 900 factories spread over 176 countries of the world.
SEVEN UP IN NIGERIA
A Lebanese name MOHAMMED EL-KHALI settled in Nigeria in 1926, and
in 1956, he established a bottling company. Consequently in October 1, 1960 the
first bottle of seven Up green and white on 7 up bottle thus rolled it of
Ijora plant in Lagos. The colour green and white on 7up thus
signifies the independent Day of Nigeria.
It second plant was opened in 1980 (twenty years after the first plant was
opened) following by numerous depots opened all around the southern
part of the country.
By setting up a plant at Kano 1983 seven-up company
bought over Pepsi cola International and re-launched Pepsi in Nigeria in
1988 by so doing ,seven up became the number one brand in the Southern
parts of Nigeria and it won the international Bottler of soft drinks award for
the year 1989.
With this success, seven up opened Aba bottling plant and at
the same year acquired the assets of soft drink division of John Kolt
There are currently 7 plants in various parts of the
country-Nigeria-Aba, Benin, ILorin, Ikeja, Ibadan, kano and Kaduna, More
are yet to come.
Pepsi cola is the best seller among them in East other
products, 7up, Mirinda, orange Team, Cemonade, Mirinda Soda Water,
Mirinda Tonic, Mirinda Ginger, Mirinda pineapples, Pepsi spice etc.
Seven up has made a remarkable impact on the economy of Nigeria, they
create employment to unemployed Nigerian, render saturated
amenities to communities and contributed to the nations economic growth
way of generating fund, which is circulating in the economy.
They have engaged in a backward vertical integration with
sun-glass Kaduna as the sources of some of their raw material.
Seven –Up gives people the right of choice and was able to force competitors
drawn I price.
It is also gathered that the company has not suffered any shut
down since in business and this is a credit to the company.
PROMOTION HISTORY OF 7-UP
This company has also made great impact in the sales
promotion, advertising etc. The company is noted for its tremendous engagement
Thus 1991- There was “EXPRESS” sale promotion.
January 1993 – 7up spell and Win
June 1993 – Wain mania
January 1994 – 7 Up spell and win
June 1996 high life
August 1995 – 7 up spell and win
September 1996 – 7 up high life
October 1998 till year 2001 January – winning was based on
7up high life, T-shirt Bonanza etc
There are slogans that create lasting impression such as:
1.7 up difference is clear
2.Pepsi the choice of the generation
The sales promotion techniques adopted 7up bottling company
to beat the drawn about its product include:
5.Demonstration through road signs
These techniques are designed to reach a diversity of target
audience and to achieve a wide range of objective such as
2.Increase per capital consumption.
4.To maintain brand loyalty
5.Create awareness of grass root level among
To this end all things being equal, seven up products really have
prospect in the country and the marketing mix should and for better
1.2 STATEMENT OF THE PROBLEM.
The major problem addressed was the low amount of money invested
by the company sales promotion that always result to low sales, turnover was
addressed due to the that fact huge amount of money was invested and
their sales turnover becomes high which gave them the edge to become
market leader in the soft drinks industry in Nigeria.
Sales promotion is essential in every company or business
organization that want to achieve it stated or set objectives. The researcher
identifies the following problems. The improper research carried out on
sales promotional activity on how it influence consumer purchases has
result to low increase sales of 7up product. The difficulty in
convincing consumers to believe in the fantastic star prices of sales
promotion has affected the sales volume of 7up product. The improper use of
different sales promotional tools to promote their products has resulted to low
This research work therefore aim at addressing the problem of sales promotion
for effective performance
1.Lack of training and development in the soft
2.Lack of facilities in the sales of soft drink
industry that will help the company to increase profitability.
3.Low level of awareness in manufacturing of soft
4.Poor sales turnover and low mentality,, also
hinder the profitability in the soft drink Industry.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study were:
1.To find out the effect of how persuasive sales
promotion on consumer purchase.
2.To determine the extent to which sales promotion
affects sales of soft drinks in Nigeria.
3.To find out the problem associated with the
marketing of sift drinks using the various promotional tools.
4.To suggest and recommend appropriate techniques
and innovation in enhancing efficiency and effectiveness using sales promotion
as one of the promotional tools.
1.4 RESEARCH QUESTIONS
The following major research questions were considered
in the study.
1.Do consumers believe in the
fantastic star prizes offer in the soft drinks industry?
3.Do sales promotional activities create awareness
and brand loyalty among consumers?
4.Do soft drink companies make more sales turnover
1.5 RESEARCH HYPOTHESES.
The following hypotheses were posited and tested
in the study.
Improper research carried out on sales promotional activity on
purchasing does not result to low increase
is sales of soft drinks.
Improper research carried out on sales promotional activities
on how it
has result to low increase is sales
of soft drinks.
Difficulty in convincing consumer fantastic star prizes of
sales promotion does not affect purchasing
of soft drinks.
Difficulty in convincing consumer to believe in the fantastic start prizes of
sales promotion has
of soft drinks.
Improper use of difficulty sales promotional tools to promote
product does not affect their profitability.
Improper use of different sales promotional tools to promote
product does not affect their profitability.
The low amount of money invested by the company on sales
promotional activity has
resulted to low sales turnover.
low amount of money invested by the company on sales
promotion activity does not bring
1.6 SIGNIFICANCE OF THE STUDY
Some management decisions to carry out promotional activities in
many large organization are not guided by clear cut strategies.
However, luck may bring success for sharply defined purpose,
improper initialization of resources may set in.
Against, this background and also with the back of empirical
data on the relationship between promotional expenditure and sales,
the success of those in this study would be of tremendous importance
to those in these areas.
These studies would be tremendous helpful to both present and potential
sales promotion manager to know the impact of promoting and using the
right promotional tools.
The study will also necessitate a more impact coordination of the
different promotional techniques of enhancing product patronage.
b. This study will help to fetch out the promotional problems
facing 7up Bottling Company Plc Aba.
c. It will give the researcher and other users of the study an
insight in to the promotional activities used by the business or large
d. It would enable the 7up Bottling Company Plc Aba to give
prominence attention some of the sales promotion tools
e. This study would enable the company achieve its objectives with
the firms in applying some of sales promotional tools.
F. The suggestion of the elimination of the problem would be
g. The company through this research material would know the
type of persuading in information attracting confidence and trust in
H. Finally the study would help the researcher who might
want to use it for further study as source of reference.
The following terms used in the study are defined as
ADVERTISING : Any paid form of non-personal
presentation and promotion of ideas, goods or service by an identified sponsor,
Includes the uses of such media as television set, Radio, Newspaper and
Magazine etc (Mccarthy and Parauth 1987).
ADVERTISEMENT AGENCY: It is an independent company s et up
to render specialized service of advertising in particular and of
marketing in general (,Stanton 1985).
CONSUMER: A consumer is one whose goods/product in an exchange
process (Scheme 1987)
CONSUMER GOODS: Are those goods and services destined for the
ultimate consumers (McCarthy 1975).
CASH REFUND OFFERS (REBATES): Officer to refund part of the
purchase price of a product to consumer who send a proof of purchase to the
manufactures or it provide a price reduction after purchase rather than at the
retail shop consumer send a specified proof of purchase” to the manufacturers
who refund’ part of the purchase price by mail (Baker 1999 601)
COUPONS: Is the certificates that gives buyers a savings when they
purchase a specified product of mailed, endorsed in other products or them, or
inserted in magazine and newspapers. It is effective in stimulating sales of a
mature brand and inducing early trail of anew brand (Michael Baker 1999
DEALER LOADER: A dealer loader is a gift that is given to
retailer who purchase a specified quantity of merchandize often dealer loader
are use in an attempt to obtain special display part of premium (Ferred 1985).
DEALER LISTING: A dealer listing is a gift that is an
advertisement that promotes a products and identifies the name of the
participating dealers (Ibid).
Exhibitions: Are used as a form of sales promotion in both
consumer and industrial goods market modern (1989-467) list five advantages of
exhibitions as creations of awareness and recalled.
FREE MERCHANDIZE: It is sometimes offered to resellers who
purchase a stated quantity of the same or different products.
Occasionally, free merchandise is used a payment for
allowance provided through others sales promotion. It is usually
accomplished by reducing the invoice to avoid handling and book keeping
FREE CONRAIL: Inviting prospective purchasers to try
the product without cost in the hope that will buy the products (Philip Kotler
FREQUENCY: this is the number of time an a advertisement is
show/placed in a particular period of time (smith PR 1994-129
MARKET: Is a group of potential customers with similar needs
who are willing to exchange something of value with sellers offering, various
goods and/or services that is ways of satisfying those needs (William.MC
MARKETING: Is a societal process by which individuals
and groups obtained what they wants and needs through creating offering and
freely exchanging products and services of values other (Philip
Kotler Pg 8200)
MARKETING MIX: Is the controllable variables that the
company puts together to satisfy a target group (William 1967)
PERSONAL SELLING: According to Philip Kotler 1987, 461 say it is a
personal presentation by the firm sales force for the purpose of marketing
sales and building customers.
PRICES: price is what the buyer gives up in exchange for
something that provides satisfaction (Scheme 1987 vii).
PROMOTION: It involves communicating information between
sellers and potential buyers or others in the changed to influence attitudes
and behaviour (Willaims/McCarthy,1996:10)
PATRONAGE REWARD: Cash or other awards for the regular use
of a certain company’s products, or company services (Philip Kotler 1998).
PRICE PACKS (CENT- OF DEALS): It is offers
to consumer of savings off the regular price of a products, flagged
on the label or package (Michael Barker 1999).
POINT OF PURCHASE (POP) DISPLAY AND DEMONSTRATIONS:
It take place at the point of purchase or sales many retailers do
not like to handle hundreds of display sign and posters their receive
form manufactories. Manufacturers are creating better Pop material trying
them in with television of print message and offering to set them up (Philip
Kotler 200p 602).
Publicity: is an activities to promote a company or its product by
planting news about it in media not paid for by the sponsor (Philip
Kkotler 1997 518).
PROMOTIONAL MIX: It is a specific mix of advertising
personal selling promotional and public relations a company uses to
pursue its advertising and marketing objective (Philip Kotler
PRODUCT: Product is anything that can be offer to a market for
attention, acquisition, use or need. It include physical objective services,
places organization, ideas and people (Philip Kotler
PREMIUMS: A premium is a reward that offer free or at
encourage an exchange. it is a products offered free or at less than the
regular price in order to induce the consumer to buy on the product
Sales promotion: Consist of a diverse collection of
incentive tools mostly, stout them, designed to stimulate quicker
of greater purchase of particular products or services by consumer
or the trade (Philip Kotler 2000 597).
SALES POTENTIAL: Share of a market that a company believe is
achievable when its plans and strategies have been fully implemented (closing
of marketing terms RBC 1983).
SAMPLING: Mea giving away of a product to consumer s
about features of the product that cannot be conveyed adequately through
It put the products directly into the hand of the
consumer (scheme 1990)
SALES CONTESTS: Aim at inducing the
sales fore or dealer to increase their sales that sales
results over stated period with prices going to those who succeed (Philip
Kotler 2000 630).
TERMS AND CONDITIONS APPLY
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