THE IMPACT OF SALES PROMOTION ON THE MARKETING OF SOFT DRINKS IN KOGI STATE

THE IMPACT OF SALES PROMOTION ON THE MARKETING OF SOFT DRINKS IN KOGI STATE

(A CASE STUDY OF COCA-COLA BOTTLING COMPANY PLC, LOKOJA DEPOT)

ABSTRACT

This research work examines the effect of sales promotion on the marketing soft drinks. In Nigeria using Nigeria Bottlign Company, Lokoja as a case study. The unique characteristics of sales promotion and it tools are highlighted so also are the problems associated with the promotional programme. Data were sourced from both primary and secondary sources. They were analyzed by use of percentage and chi-square. From the analysis, it was discovered that, sales promotion influence consumers buying decision positively, results in brand loyalty which are in conformity with the view of famous authors on the subject. It was recommended that for the management of the company to boost their sales and ensure customer loyalty, there is need for aggressive promotion of its products.  

CHAPTER ONE

INTRODUCTION

1.1  Background to the study

Over the years, sales promotion has become a necessary evil that every company tries embark upon in order to complete favourably in the ever dynamic business environment. It also helps business organizations to gain more profits.

Sales promotion has helped a lot of companies such as coca-cola bottling company Plc. As it is means of creating awareness of the existing of a product or services and its benefit as well as communicating those benefits to consumers with the aim of persuading them to buy or use the products or services.

However, sales promotion has brought a lot of benefit to business organizations by improving their level of competition which by extension has improved the quality of products and services that is been offered to the customer/consumers thus increasing sales volume positively.

However, sales promotion is one of the four (4) promotional mix element that business enterprises use in promoting business in a rapidly changing and competitive market environment like Nigeria which requires the company’s innovate by developing new product and implementing strategies to increase sales of existing products.

The awareness of new existing product to consumer enable him to know much about the product and this motivates them to buy the product. Therefore, lead to increase  in the sales volume.

The impact of sales promotion on company volume which in is to persuade customers to stick to a company product to increase and improve the sales volume

1.2  Statement of the problem

Most industries whether services or manufacturing are concerned when consumers are exhibiting various activities towards sales promotion.

This is because presently consumers income is very low due to the present economy hardship and economy meltdown facing them; consumers prefer to spend their scarce resources on the essential goods like foods, cloths and other material things that are required immediately. On the other hand, most organization usually encounter management problem such start from lack of managerial knowledge or theoretical knowledge into practical use.

As a result, most sales promotion carried out by numbers of organization are badly organized. Moreover some organizations suffer political problems. The political system of our country create a  kind of undue influence for some businesses and these are thrown into a critical corner after product schedule.

Also, some organizations suffers societal problem. This depends on the relationship between the society and the business. This possess enough problem as many organization neglect their social responsibilities which results to strong obstruction to the execution work. The problem need urgent attention and solution when ever the problem or a circumstances arises.

1.3  Objectives of the study

The broad objectives of this study is to evaluate the impact of sales promotion on the marketing of soft drinks in Lokoja Kogi State. Other objectives are to:

i.            Reveal whether coca-cola bottling company Plc have the highest loyalty of customers than any other soft drinks company

ii.           Investigate whether sales promotion appeal to consumer purchasing decision

iii.         Examine whether or not the sales volume of the company is the outcome of its sales promotion.

iv.         Discover whether the sales promotion of the company have effect on the consumption habit of the consumer.

1.4  Research hypothesis

v.          In line with the chosen approach and based on the above assumptions, the following hypothesis are made.

vi.        HYPOTHESIS I

vii.       Ho:  Coca-cola bottling company Plc does not have the highest loyalty of customers than any other

viii.     Hi:   Coca-cola bottling company Plc have the highest loyalty among customers than any other

ix.       HYPOTHESIS II

x.          Ho:  Sales promotion does not appeal to consumer purchasing decisions

xi.         Hi:   Sales promotion appeals to consumer purchasing decision

xii.     HYPOTHESIS III

xiii.     Ho:  The sales volume of coca-cola bottling company Plc is not the outcome of its sales promotion

xiv.     Hi:   The sales volume of coca-cola bottling company Plc is the outcome of its sales promotion.

xv.      HYPOTHESES IV

xvi.     Ho:  Sales promotion has no effect on the consumption habit of the consumers

xvii.   Hi:   Sales promotion has effect on the consumption habit of the consumers.

1.5  Significance of the study  

Coca-cola bottling company plc will benefit from  this research because this work will assist the management of the company in making the right decisions about their customers.

It will also serve as future reference to students who will want to carryout research in this field of study.

Finally, the general public will find the work useful.

1.6  Scope of the study

This study intends to look at the impact of each of the sales promotion schemes used by coca-cola bottling company Plc in the marketing of soft drinks in the past two years. Each of the areas to be covered by the study therefore has either direct or indirect bearing on the subject matter. To further facilitate the write up, the areas to be covered are broken down under the following headings.

-      Relationship between sales and marketing department of coca-cola bottling company Plc.

-      Sales areas of the company

-      Research and development (R & D) of coca-cola bottling company Plc

-      Review of business/sales of the company

-      Sales force of the company

-      Distributors of the company’s goods

-      Sales promotion scheme used by coca-cola bottling company Plc

-      Objectives of the sales promotion scheme

-      Disadvantage of the promotion scheme

-      General problem of the company.

From the above breakdown, it becomes evident that the study intends to cover all the major areas concerning the impact (effectiveness or otherwise) of the sales promotion used by coca-cola bottling company Plc in the marketing of its consumer goods. This includes sales promotional problem identified in the course of the study and some suggestions as to how to go about solving them.

1.7  Limitations and constraints of the study

The study as could be expected has gone through quite a few constraints. In the event that some of the findings of this research do not happen to be accurate. The reason should therefore be attributed to some or all of these constraints. Efforts have been made or so far towards making the research findings (impacts of sales promotion in the marketing of consumers goods) as authentic as any other research in the same field.

There was a little delay from the manager of coca-cola bottling company Plc, Lokoja regional sales office in sorting out all the relevant documents from which to extract and give the data required.

Similarly, most of the company’s consumers kept shifting interview as provisions schedules. The common reason for this problem was actually not unconnected with other commercial engagements by the respondents  (coca-cola bottling company Plc distributors) with either some of their numerous suppliers or other business associates. The research as a result of financial and other constraints was limited to only Lokoja, Kogi State.

1.1     Definition of key terms

Promotion: Promotion refer to the entire set of activities which communicate the product brand or services to the user.

Publicity: It is the movement of information with the effect of increasing public awareness of a subject, goods and services.

Sales promotion: It is a set of marketing activities undertaken to boost sales a product or services.

Cash discount: It is an incentive that a  seller offers to a buyer in return for paying a bill owed before the scheduled due date.

Trade discount: Trade discount is a reduction from the list price of a product.