Effect of Sales Promotion on the Consumption of Soft Drinks (a Case Study of Coca-cola Bottling Company)
CHAPTER ONE
Objectives of Study
This research work is carried out in order to achieve the following:
- To know the cost effectiveness of sales promotion consumption of soft drinks.
- To know how consumers view sales promotion in line with other promo tools in the area of trial and adoption of Coca-Cola as a soft drink.
- To know the necessary factors to be considered before and after the application of sales promotion on the consumption of soft drink.
Chapter Two
Review of Related Literature
Meaning of Sales Promotion
According to Adirika (2007) defined sales promotion as something extra that can arouse interest, cerate a buying desire, spark an immediate reaction from customers, middlemen company’s sales force. He further explain that sales promotion is a name that is applied to special kinds of sales accelerating, personal selling or publicity. It is considered as a special selling effort. It consist or short terms incentives designed to stimulate buying action.
While according to S. M. Momoh (2010) explained that sales promotion is different from promotion for sales. He further explained that promotion for sales involves all promotional efforts including advertising, personal selling and publicity while on the other hands defined sales promotion as those marketing activities other than advertising, personal selling and publicity that are designed to stimulated consumers purchasing and dealers effectiveness such as demonstration context premium discount and offer various non current selling efforts.
Objectives of Sales Promotion
The objective of sales promotion is to encourage purchase by improving the value of a brand. An organization may hunts for the need for sales promotion option in order to achieve certain objectives these objectives are as follows:
- Regain Buyer/Consumer Attention: In spite of the fact that a lot of awareness has earlier been created through the use of advertising, part of his awareness use may at the maturity stage be declining in terms of achieving sales.
- To Achieve Quick Sales: Sales promotion as incentives backed techniques is sometimes aimed at quick sales, especially during a given period in the business calendar (semiannually or annually by way of clearing goods in stores in order to simplify inventory taking and restocking).
- New Product Introduction: A successful launch of a new product may not be achieved through advertising alone seeing is believing. This is why certain products must be given a during product introduction as free sample.
Chapter Three
Research Methodology
Research Design
This research work was carried out using survey method. Survey was chosen so that the result can be used to generalize the effect of sales promotion on the consumption of soft drinks.
Population of Study
The population of comprises the consumers and staff of Coca-Cola product in Benin City and its environs.
Chapter Four
Data Presentation and Interpretation
Presentation of Data
The method employed by the researcher for analyzing and interpreting of data include the tabular interpreting of data and the use of simple percentages.
Chapter Five
Summary of Findings, Conclusion and Recommendations
Limitation of Study
In carrying out this project work, the researcher encountered several constraints and limitations. They are poor cooperations of respondents. Another major constraints was limited finance.
Summary of Findings
Based on the analysis, it was observed from Hypothesis I question 9 in the questionnaires that majority of the respondents accepted that adequate sales promotion resulted in high sales volume. It was also found from Hypothesis II in question 8 of questionnaire that 15 responding representing 75% of the total population feels that sales promotions help to motivate consumers more, 4 respondents making up 20% recorded small extent. While it was also discovered that 1 respondent representing 5% of the total population recorded that sales promotion motivate consumer.
It was observed from the questionnaire administered that out of the total population, the majority of the respondent agreed that sales promotion has a positive impact on the sales of Coca-Cola products.
Conclusion
The research study showed that sales promotion produces a high sales responses shown by the significant difference between the level of consumption before and during the promotion as shown when chi-square techniques is used on the sales figures in hypothesis II.
The study also showed that high response to sales promotion is not maintained at the expiration of the promotions.
There is no significant differences in the level of consumption before and after any of the sales promotion as shown by the data analysis.
Recommendations
The company should embark on sales promotion as one of the promo tools to achieve its cooperate goals.
The company should improve on the quality of its products to differentiate it from other products of the competitors and used sales promotion to enhance its competitive advantage and to increase its profitability.
The study also suggests that sales promotion should be done at the appropriate time with regards to availability of products and funds.
Areas for Further Study
Since the research work was restricted to few towns in the state, it is the researcher’s opinion that the same research on the same topic should be carried out in another different state entirely.
Bibliography
- Adirika, C. O. (2007). Principles and Practices of Marketing (Marson Published Limited Enugu).
- Brown R. (1974). Sales Response to Promotion and Advertising (Journals of Advertising Research).
- Coulson, T. (1979). Marketing Communication (Heinemann London).
- Donald, R. M. (2005). 15 Tips for more Effective Sales Promotion (Business Management vol. 40).
- Kotler, P. (2000). Principle of Marketing, Darling Kindersley, India Private Limited.
- Momoh, S. M. (2001). “Marketing Communication” (Matko Published Limited).
