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ABSTRACT
This research on the impact of increasing sales promotion activities
of consumer goods in Nigeria, using Nigerian bottling company as a case
study is aimed at knowing exactly what impact sales promotion activities
have on their profit, sales of consumer goods in Nigeria.
In the
study, an attempt was made to review related literature which explains
factors that used to sales promotions increase and the patterns of
designing and managing sales promotion activities to determine its sales
and cost effectiveness. In these factors, it was pointed out that it
has internal and external factors.
Internal, in that, top management
uses it as effective mean to stimulate sales and external in that the
number of brands have increased with more competitors becoming promotion
minded.
Questionnaires were administered to customers, distributors
and staff of N.B.C Plc testing of how sales promotion has a positive
effect on the profit and sales of industries, test the tentative
assertion and those who disclosed the effect of sales promotion were
analyzed. Also, the extent of sales promotions on consumer goods was
analyzed. This gave way to recommendations by the researcher.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
The success
of any marketing depends largely on the understanding of the consumer
and the way he consumers a particular product. In the past, when goods
were scarce and economic activities were low. There were usually little
or no need to promote products or services since consumers were willing
to make efforts to seek for the products that they need.
Today, all
these urge changed by increased economic activities and production
technology has made it possible to produce goods on a large scale and
availability of so many businesses in almost every aspect of modern
commerce.
Marketing philosophy has unfolded the secrets of consumer
goodwill and patronage as the satisfaction of their needs and wants with
the right product, a reasonable price, effective promotion and a good
distribution system, for the consumers to be well informed and
stimulated to patronize a product or service, they have to be aware of
its existence quality, price and availability.
When little or no
competition exist, advertising and personal felling is usually relied
upon to bring in the buyers, but with the existence of many sellers in
the market, other innovation promotion are called for and sales
promotion is resorted to.
The efforts made in sales promotion are
directed toward encouraging prompt buying activities by giving
attractive and appealing incentives to the prospective buyers.
The
study will evaluate customers’ satisfaction, repeat purchase, favorable
sales promotion, increase sales volume, market share as well as
organization profitability and goodwill.
Nigerian Bottling Company
plc started its operation in Nigeria in 1953 by holding franchise for
coco-cola international. This means that the formula of the concentrate
and recipe of the products 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 products. The Nigerian bottling company
started with one flavor “coke” as a major product, now has May flavors. A
journal interview with the company chairman Mr. H.S Adedeji (1975)
showed that the company is the largest produces of soft drinks. Nigerian
bottling company has branches. It has about 36 or more products plants
chart. It spreads its products all over the country like Owerri, Aba,
Afikpo, Onitsha, Kaduna, Benin, Lagos, Uyo and Port-Harcourt. The
company makes about 70 percent of soft drinks consumed in Nigeria and
has branched out to non-soft drink businesses mostly agriculture.
1.2 DEFINITION O THE PROBLEM
The
Nigerian bottling company is influenced by seasonal fluctuation and
climate change coupled with depression in the economy. This phenomenon
influences the consumption pattern of coca-cola drinks. Markets often
lead to sales decline, erosion of market square, low capacity
utilization, reduction in overall industrial output and colossal loss of
profit
Despite the magnitude and relative importance of sales
promotion, critics of sales promotion activities do not capture new
long-term buyers, instead leads to attract customers. Many view it as
money consuming and wasteful venture. So the question is could sales
promotion it adopted as one of the problem solving behaviour help
organization to achieve their sales objective?
It is in the light of
this question that the researcher was motivated to conduct a study on
sales promotion with reference to the Nigeria Bottling Company Plc.
1.3 A STATEMENT OF OBJECTIVES
As sales
promotion activities of consumer goods in Nigeria have expanded rapidly
in recent times, a research is carried out on the Nigeria Bottling
Company Plc with view to finding out what impact sales promotion
activities have on the sale of consumer goods.
The objectives of the study are as followed:
a. To determine the role sales promotion play on the sale of consumer goods
b. To find out the effects sales promotion have on the demand of consumers
c.
To find out how sales promotion can increase the sales of products
(mineral soft drinks) especially those period when normal sales are
sluggish.
1.4 STATEMENT OF HYPOTHESIS
The following hypothesis is to be tested
1. Hypothesis I
Ho: Sales promotion has a negative impact in organization.
H1: Sales promotion has a positive impact in organization
Hypothesis 2
H1: Sales promotion does not encourage customers
Ho: Sales promotion encourages customers.
Hypothesis 3
Ho: Sales promotion reduces the profit of the distributors of N.B. C Plc
H1: Sales promotion improves the profit of the distributors of N.B.C Plc
1.5 SIGNIFICANCE OF THE STUDY
The study
seeks to identify the role sales promotion plays in marketing strategies
and achievement of organization goals. It signifies to provide a basis
for Nigeria bottling company on the type of sales promotion activities
to adopt. The study is relevant in the sense that it will serve as
reference connected with the present research problems. It will also
benefit the investors in their area of business. Scholars, government
etc will equally benefit from this study. It will furnish information
which serves as reference point for organization that carries out sales
promotion in motivating and gathering channel supports and consumer
patronage.
1.6 LIMITATIONS OF THE STUDY
The problem
encountered in this study includes, insufficient fund, inadequate
contact with some respondents, illiteracy level and prejudice etc.
Marketing
research generally involves cost in terms of survey, administration
production and collection of concluded research work. As a student with
limited financial resources, those costs become more glaring and
difficult to settle and therefore stretched the financial position of
the researcher.
Some respondents never completed the questionnaire as
they continue to postpone attention to them and even when completed,
misplace them.
With high rate of illiteracy in this part of the
world, some respondents never understood what was required of them and
why the research was being carried out. They therefore never answered
any of the questions.
Another limitation of the study is time. In the
collection of questionnaire, several repeal calls were made and
sometimes the respondents never actually answered the questions.
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