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 cheaper prices.

4. Nigeria bottling company paint the shops of the customers that notwithstanding their competitors less impressive promotional efforts were able to sell the products in the same shop.

1.3 Objectives of Study

The study is premised on the following specific objectives:

i.To examine whether discounted prices lead to product sales

ii.To analyze whether product giveaways bring about product sales

iii.To determine if loyalty points create product sales

iv.To establish whether demos and sampling lead to product sales

v.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:

i.Do discounted prices lead to product sales?

ii.Do product giveaways bring about product sales?

iii.Do loyalty points create product sales?

iv.To what extent do demos and product samples lead to product sales?

v.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.

a. 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
b. 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.

c. 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.

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