2.2 Factors that contributes
to sales promotion increase
2.3 Planning and Designing the
sales promotion programme
2.4 Pretesting and post
testing the sales programme
2.5 Budgeting for sales
2.6 Sales promotions activity
in Nigeria since independence
2.7 Sales promotion in Nigeria
in the late eighties
CHAPTER THREE: RESEARCH DESIGN AD
3.1 Research Design
3.2 Sources of Data
3.3 Location of the Study
3.4 Population of the Study
3.5 Determination of Sample
3.6 Sampling Techniques
3.7 Method of Data
3.8 Method of Data Analysis
3.9 Validity and Reliability
CHAPTER FOUR: DATA PRESENTATION ANALYSIS
4.1 Data Presentation
4.2 Analysis of Data
4.3 Testing of Hypothesis
4.4 Interpretation of Results
CHAPTER FIVE: SUMMARY OF FINDINGS,
5.1 Summary of Findings
5.4 Suggest for Further
distribution and return analysis
of sales promotion on the sales volume and profit of company
promotional effect on consumer demand
promotional as an effective tool of product promotion
possibility of sales promotion exercise to cause increase in line of
business set back
of percentage turnover
table were formed using question (18) of the questionnaire
1.1 BACKGROUND OF THE STUDY
Sales promotion is an indirect form of marketing promotion
intended to stimulate quick action. It is those promotional activities other
than personal selling, advertising and publicity that stimulate consumer
purchasing and dealers effectiveness such as displays, shows and exhibitions,
demonstration, coupons, contests, samples, premiums, trade allowance, point of
purchasing displays, price cent-off pack and dealer allowance and other known
routine selling efforts that are usually of short term activities.
According to Ebue (2000: 240) “sales promotion is that something
extra that can arouse interest, creating a buying desire, sparks an immediate
reaction from customers, middlemen or company sales force.
Sales promotion incentives are usually of short duration and the
aim is to move sales of a particular product or brand above the existing
level. Sales would increase if more customers are attracted to the shop, if
non-brand users are attracted and if brand users are encouraged to buy more.
According to Nnolim (1979: 142) sales promotions is intended to
aid both consumers pull and dealer push. They thus categorized sales promotions
techniques in term of their consumer and dealer focus.
Consumer-pull promotion techniques are much activities like
sampling, price incentives, refund or rebate, contest, premium like free
in-mail pack of non-pack, self liquidators while trade push promotions
techniques are such activities like merchandise allowance, money bonuses and
gift, management assistance like training, inventory control displays and
According to Kotler (2003: 453-54) sales promotion, a key
ingredient in marketing campaigns consists of a diverse collection of incentive
tools, mostly short term design to stimulate quicker or greater purchase of
particular products or services by consumers on the trade. Based on the sales
promotion impact, the researcher used product life cycled theory.
Sales promotion holds a middle ground between advertising and
personal selling. It is usually not directed as advertising but it is direct at
much large groups than a typical personal selling effort.
Before the sixties, sales promotions had not become popular, but
in recent years they had grown so rapidly between 1967 and 1976, and much more
in the late eighties, nineties and beyond. Their rapid increase therefore and
especially now that world economics like Nigeria are in down turns, have
promoted or called the attention of the researcher to research and find out its
“impact on soft drinks in Nigeria,” with particular emphasis on the Nigeria
Bottling Company Plc and product such as coke, spirit and fanta soft drinks and
Coca cola was found in 1886, and headquarters located in Atlanta
Georgia in United State of America. In the year 1953, Nigeria Bottling Company
started its operation in Nigeria by holding franchise for coca cola
international which means that the formulation of the concentrate and recipe of
the product have not been released to the Nigeria Bottling Company but the
formula and syrup of the mixture is given to them to help them bottle the
product in Nigeria.
However, coca cola is one of the world largest bottlers of coca
cola product. They operate in 28 countries, 16 of which are members of European
Union and serve a population of over millions consumers. Coca cola engages in
the manufacturing, distribution and marketing of non-alcoholic beverage
concentrate and syrups world wide, the company market its non-alcoholic
beverage under various brand names includes coke, diet coke, fanta, sprite and
also sell its finished beverage products primarily to distributors,
company sell its beverage concentrate and syrups to bottling and canning
operations. Distributors fountain wholesalers and fountain retailers.
The company is departmentalized as follows: marketing plant
production, administration, catering clinics, workshop, stores and security
department. Under administrative department, we have accounts section and
personnel the production or plant department, which is divided in two sections;
the carbon-dioxide section and product section. The carbon dioxide section undertakes
only in production of the carbondioxides, for the production of drinks. Product
section undertakes the mixing of syrup to bring the final products. A manager
who is subordinate to the plant manager heads each department.
In a journal interview, with the company Chairman Adedeji (1975)
that Nigeria Bottling Plc is the largest producer of soft drinks in the
country. According to one estimate by this company makes about 60% of such
drinks consumed in Nigeria. as not to put all their heads in one basket
according to Adedeji (1985) Nigeria Bottling Company has branched out to
non-soft drinks branches mostly agriculture. He also reported that the company
now has 60% of the “Agricultural Seeds Limited” based in Zaria and 40% of those
of “Kupa farms limited based in Kwara State”.
It decided during the last trading periods in (1985) to increase
its shares in Delta Glass Company and acquire a controlling interest of 51%.
The Nigeria Bottling Company turnover has been growing from 14.3
Billion, 14.9 Billion, and 15.9 Billion as at 2004, 2005, and 2006
respectively. And the corresponding expenditure on sales promotion has grown
also increased in 2004 to 2006 from 48 million in 2004 to 65 million in 2006.
It is suspected that this increase in turnover might have come about partly as
a result of high promotion activities.
1.2 STATEMENT OF PROBLEM
In the course of this study, it is observed that companies
(especially consumer goods producing/marketing companies – coca cola inclusive
spend a lot of time, energy and money in designing and running promotion. But
it seems that the impact to the company’s sales volume and profit are not still
commensurate to the money spent.
So considering the enormous cost, it became necessary to evaluate
this action to determine the cost effectiveness. Spending so much on sales
promotion, the company may not really be getting the anticipated sales volume
and profit margin.
1.3 PURPOSE OF THE STUDY
As sales promotions activities of soft drinks in Nigeria have
expended rapidly in recent times, the researcher aims at carrying out a study
on the Nigeria Bottling Company Plc with a view of finding out what impact
sales promotion activities have on their sales volume and consequently the
profit before promotions. During promotions and after promotions. The following
are objectives of this study:
find out the effect of sales promotions on sales volume and profit of
industrial, with emphasis on the Nigeria Bottling Company Plc.
find out the effect of sales promotions on demand of the consumers
acceptability of sales promotion as a marketing strategy by the consumer.
1.4 SIGNIFICANCE OF THE STUDY
The result of this study will be of importance to;
The managers: It will help the managers in decision making
Academics: Also helps to bring positive statistical data to
academics thereby contributing to the existing boy of knowledge.
Business: It will help the business in evaluating the rightful
balance of expenditure vis-à-vis market share growth.
1.5 RESEARCH QUESTIONS/HYPOTHESIS FORMULATION
The research stud seeks to provide answers to the following:
are the effects of sales promotion on the sales volume and profit of companies?
are the effects of sales promotion on consumer demand?
sales promotion an effective means of product promotion?
sales promotion bring any increase when there is a set back on business?
It is in consideration of the problems stated above and the
objectives of the study enumerated that the researcher put forward the
Ho: Sales promotion does not have
positive effect on the sales volume and profit of industries.
Ho: Sales promotion has a positive effect
on the sales volume and profit of industries.
THEORETICAL FOUNDATION OF THE STUDY
The theories upon which this research work is founded existed to
reason the concrete facts and data put forward in critical examination of the
issue in discourse. The established theory of sales promotion as an indirect
form of marketing promotion which intends to stimulate quick action is
subjected to scholarly reasoning of vital authors like Ebue (2000:240).
In his book titled “marketing communication”. Narrated the subject
matter to be something extra which can arouse interest to create a
purchasing desire as regards consumer’s behaviour. This postulation stand
factual over time as it set the basis for new entrants, already existing
over ones and scholars to this establishment reasoning.
Furthermore, the work of “Nnolim (1979: 144) in principles and
practice of marketing 11 also address the subject matter as being intended to
help both consumers pull and dealer focus. This foundational idea that is
dependable for its logical position smoothens the path way for all shade of
opinion on this topic, to base their considerations to the relevance of
Summarily, to adapt by accurate data and historical balancing, the
theories of these academicians had done a great deal of exposure in sharing
area of the topic. Therefore, the theory upon which this study is based agrees
with their postulation that relationship above between sales promotion and
sales volume/profit of an industry.
SCOPE OF THE STUDY
This research work is limited only to Port Harcourt metropolis
which constituted Port Harcourt local government of Rivers State and Obio-Akpo
Local Government. It is a survey study limited only to consumers, wholesalers
(SSD & HVS0, conventional outlets, managers, staff and the case study
Nigeria Bottling Company Plc in Port Harcourt.
DEFINITION OF TERMS
1. Sales promotion:
This is an indirect form of marketing project
intended to stimulate quick action.
2. Consumer promotion:
These type of promotion are targeted
ultimate user’s of the product.
3. Trade promotion:
These are buying allowance introduced to
stimulate middlemen to increase sales effort.
4. Sales force
promotion: These sales force
promotion activities are
intended to motivate sales people to increase over all
TERMS AND CONDITIONS APPLY
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