THE CONSUMER RESPONSE TO SALES PROMOTIONAL STRATEGIES IN A FAST FOOD FIRM

THE CONSUMER RESPONSE TO SALES PROMOTIONAL STRATEGIES IN A FAST FOOD FIRM

A CASE STUDY OF MR. BIGG’S

ABSTRACT

In this research study, effort has been channeled towards consumer response to sales promotional strategies in a fast food chain. Fast food firms exist in a competitive environment and there is battle for consumer response and loyalty to repeat purchase so as to remain in business. Leaders want to keep their leading position and sales promotion have been increasingly used as a solution to the fundamental marketing problems from consumer structural adjustment of consumption patterns as response to the changes on the economy. Sales promotion is one of the elements of promotion. It is an attempt by the sales to change the consumer view of the price relationship for the product or services. The focus on the impact of sales promotion on consumer and their response to fast food firms in Kogi State, thirty sixe (36) questionnaires were administered to respondents. This was followed up by personal interview across the fast food firm. Also, related materials were consulted. The data analysis shows that sales promotion can be used to perform different functions like increase of sales volume, profit, improve image to attract new customers, market share and introduce new product, point of purchase was the mostly used sales promotion strategy, sales promotion has helped customers to remain loyal to product and their responses depend on the benefit derived from the product. Customers will always continue to response to a product for the incentive or benefit gotten from it.

CHAPTER ONE

1.0  INTRODUCTION

It is virtually difficult to cast retrospective look out Mr. Bigg’s food outfit without taking a brief look at its mother company UACN of Nigeria Plc. UAC group of companies is one of the oldest enduring Nigerian conglomerate business that have been able through its strategic positioning to widen economic and political storms that is imminent in Nigeria society over the years.

The company was initially founded in the 50’s by foreign expatriate merchandize firm principally established to operate in West African sub-regions thereby, ploughing back the body to the Europe based benefactors. However, with indigenization policy, the company becomes a fully owned Nigerian Public company and one of the largest diversify business in the private sector.

1.1  BACKGROUND OF THE STUDY

The main aim of establishing any profit oriented organization is to maximize profit and fast foods are no exemption. Maximization of profit brought about among other things by the proper combination of the four P.S. of marketing otherwise called the marketing mix.

Strategies are formulated by companies based on effective manipulation of the four elements of the marketing mix and consequently higher sales volumes are achieved. In recent time, considerable changes have taken place in the nature and the amount of food expenditure by Nigerian consumers. These changes have affected all forms of retailers of food operators, in the past the food outlets were not as many as they are now as more people eat outside their homes due to some of the following reasons:

1. The changes in the status of women from house wives to more educated, career women in the society who is now picking up highly challenging jobs outside their homes.
2. Rural to urban migration also increase the number of people that eat outside their homes
3. More time spent outside the home due to long working hours and long distances between work place and home
4. People get bored of eating some food and might wants a change.

Fast foods are food items that have been prepared already for sales. They are referred to as snacks and they are faster to prepare than other meals. Examples are meant pie, biscuits, cakes etc. the image of fast food stores have changed over the years from small stores to big stores.

Rapidly growing fast food outlets in Lokoja include; Mr. Bigg’s, Sizzler’s, G.T Plaza, J.B Food craft, Miss T., Vincent Fast food, Treasures fast food, 4 Season, Nasa food Planet etc. then as people tends to move from one place to another to find what meet their needs, how can these retailers of fast food operators compete effectively among themselves in a saturated trading area, if all are usually alike in pricing, varieties of merchandise, display of service and efficiency in operation?

The fast food operator makes people aware of its products and one of the ways of doing it is by promotion.

According to Transified (1991), promotion is the business of communication with customers. Promotion is the 4^th element of marketing mix. Some writer hold the view that, promotion is made up of advertisement, sales promotion, personal selling, publicity and public relations (Achumba 1994-Alulka 1987).

Promotional efforts are either personal or non personal with the objective of attracting attention, arousing interest, creating desires and motivating actions.

Sales promotion is the promotional method that examined in this study as a marketing tools used in expanding sales volumes, increasing profit and bringing about consumer loyalty to fast food products.

An important characteristics of sales promotion is an inducement to action. Sales promotion consists of immediate incentives to purchase with cash. Its roles is to achieve a specific number of new additional purchases over a limited period, it has only a temporary and short term duration.

1.2  STATEMENT OF THE PROBLEM

Fast food firms exist in a competitive environment and battle for consumer loyalty or response to purchase so as to remain in business.

Leaders want to keep their leading position and sales promotion have been increasingly used as solution to the marketing problems arising from the consumers and for the companies who are also realizing that losing a single sales means losing the entire stream of purchases the consumer would make over a life time of patronage.

1.3  OBJECTIVES OF THE STUDY

To determine the sales promotion elements that are commonly used in fast food firms.

To determine the types of relationship that exist between sales promotion strategies and the consumers.

To know how the consumer react to the sales promotional strategies in fast food industries.

To show the tangible result and benefit that can accrue to business organization who applies sales promotion procedures to their operation.

To make recommendations based on the findings of the study which will enable Mr. Bigg’s and the fast food industries at large to operate in a more effective and profitable ways.

1.4  SIGNIFICANCE OF THE STUDY

In this area of marketing ‘’concept’’ where the consumers are recognized as kings and Queens in the palace of marketing, firms, activities must be aimed at retaining customers on a long term basis in order to make more profit and remain in business.

This study will be of great significance to Mr. Bigg’s fast food through the study and findings, recommendations shall be made on information provided on how to improve and maintain consumers responses to sales promotion in fast food firms. This research will also be beneficial to other researchers who will want to do further work on the topic and would serve as a source of information to such researchers. It will be in particular be useful to department of business administration and management studies where it would be kept for reference for other students of the department.

1.5  RESEARCH HYPOTHESIS

The research hypothesis of the study were deduced from the statement of the problems, thus;

Ho:  The income level of the consumers has no significant influence on their level of patronage

Hi:   The income level of the consumers has significant influence on their level of patronage.

Ho:  Frequent purchase of product is not as a result of the advertisement and other promotional strategies

Hi:   Frequent purchase of product is as a result of the advertisement and other promotional strategies.

1.6  SCOPE OR DELIMITATION OF THE STUDY

This study does not attempt to focus on and analyze the entire marketing system within an organization, but the subsystem of sales promotion.

In looking at sales promotion, the study shall focus on how it can positively or otherwise influence the consumer behaviour towards repeat purchase or response to fast food products.

1.7  LIMITATIONS AND CONSTRAINTS OF THE STUDY

This study is limited to fast food firms, and in the process of carrying out the findings on this work, a lot of problems were encountered out of which are:

1. There are some vital information which needs to be known, but the manager considered them as confidential and not meant for the public, hence, those information could not be reached.
2. The attitude of some of the workers were part of the barriers, while some do not even attended to me because they felt that the research is irrelevant to them and has no impact on their work.
3. Finally, time factor was another problem encountered as most of their staffs were complaining that they are very busy to attend to me as a result of the awaiting customers.

1.8  DEFINITION OF KEY CONCEPTS

Promotions are activities which are designed to bring a company product and or services to the favourable attention of the customers.

SALES PROMOTION: Refers to specifications activities such as point of purchase, displays, shows and exhibitions, demonstrations and various non recurrent selling effort not in the ordinary routine.

RESPONSE: In the reaction of feeling of the customers towards an offer with interest. It also refers to feeling or interest for a company’s product which is measured by a customers share of purchase.

FAST FOOD: This refers to food items that have already been prepared and or packaged ready for sales.