Full Project – THE EFFICACY OF SALES PROMOTION IN THE MARKETING OF CONSUMER PRODUCT

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CHAPTER ONE

INTRODUCTION

Promotion is synonymous with marketing communication. They are often used interchangeably, they are professioner terms used to describe the aspect of marketing function which deals with information, persuading and reminding the target audience about a firm’s product offering. Thus promotion, comprises advertising, personal selling, sales promotion, publicity, public relation and direct marketing.

It should be noted that promotion is one of the promotion tools of marketing that move a product or service or idea in a channel of distribution to the target market. Such promotion tool is the pates promotion which stimulates or arouse the interest of the consumer to buy. The Nigeria bottling company (NBC) producer of soft drink uses sales promotion tools which comprises the consumer promotion, dealers, and sales force promotion. The company capilizes on more of consumer promotion, in this we have the sampling and demonstrations, sweepstake and others tools etc.

According to Philip Kotler in (2003:609) in marketing management defines sales promotion as a key ingredient in marketing campaigns, consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

According to the American Marketing Association defined sales promotion as activities other than personal selling, advertising designed to stimulates sales dealer effectiveness which may take the form of displays demonstrations, show and exhibition and various non-recurrent effort not in the ordinary routine. It is used between producers and consumers to stimulate demand.

Sales promotion is short term investment of value offered to arouse interest along the marketing route in buying goods and services. It may emulate from the dealers to retailers and down to consumers, the occurs during period of stiff competition or during deedline in sales so as to boast short term sales. Sales promotion is a persuasive activity and could be either directed to the consumers of channel of distribution.

1.1              BACKGROUND OF THE STUDY

The Nigeria Bottling company (NBC) is an off short of coca-cola international which started in 1886 in Affanta Georgian in the United State of America. The Nigeria bottling company NBC has faced with production constraint which had been confronting its production plant in Wari Detta state. This is due to the inefficiency of the plants used on its peretimum. It has also been seen that some of its mechanics used has been antiquated which led to inefficiency of production its processes.

According to the plant engineer, Y. A. Kareem he said that this would soon be overcome. He was speaking agent the background of the recent communicating of the plants additional line 11 which was moved from former Warri plant and the linkage of the plant to the Asa dam. Likewise, the new washer meant for line 1 is expected to be in place by August – end he said.

This, he said would give a big boast to the plants production operation.

The Nigeria Bottling company started its operation in Nigeria in 1953 by holding franshize for coca-cola international. This means that the formulate for concentrate and receipt of the production has not been realized to the Nigeria bottling company but the formular and syrup of the mixture has been give to them to help to them bottle their product in Nigeria.

1.2              STATEMENT OF PROBLEM

Since sales promotion is a very vital tool of advertising of a firms offerings. Thee are many factors that hinder the efficiency of sales promotional activities. These include the internal and external factors.

In the case of the internal factors, these are the strength and weaknesses of the organisation in which it has encountered. In this, there has been an inefficiency of production which has affected the sales of their product and the impact of sales promotion in the marketing of sold drink in Warri Delta state.

In the case of the external factors, the Nigeria bottling company (NBC) Warri Delta state is faced with competition from various other manufacture of simulo soft drinks which each striving to have the greatest market share. This factors (external) are threats and opportunities to the company. When the JUP bottling company first introduced its 35cl in the soft drink industry, coca cola company almost driven out of the industry by overtaken its market share. This occurred in 1999. What coca cola did was to introduce 35cl in its offering, this was how the coca cola bottling company was able to vetain its position in the industry. Giving that period a lot of advertising was done in order to re-shape its position in the soft drink product industry.

The reason of this was that the company (NBC) was not able to keep abreast of its changing or dynamic environment. That is why as a marketer you have to keep cognizance of your external environment so that your competitor will not overtake you.

Lastly, there is a reported language barrier of effective communication which may in turn lead to reduction in profit. Some of these barriers to effective communication are:

1)      Linguistic problems and

2)      Cultural difference which affects its operation in the marketing of consumer products and also, the issue of rapid sales promotion which eventually reduces the companys image, because consumers may begin to perceive discounts and other price deals as a reduction in product quality which makes it difficult for firm (NBC) to seal its products without sales production.

1.3              OBJECTIVES OF THE STUDY

It is a matter of truth that no study goes without an objective. In view therefore, this study will not be an exception to the Nigeria Bottling company NBC Warri Delta state. It is in the height of the above that the researcher emaciate the following objectives enumerated below:-

1)                  To ascertain the effectiveness of sales promotion.

2)                  To stimulate the minds of the consumers

3)                  To know the impact of sales promotion

4)                  To introduce new product

5)                  To increase impulse buying

6)                  To encourage consumption during off –season

7)                  To build trials among non –users.

8)                  To attract switchers way from competitors products

9)                  To encourage purchasing of large size unit.

10)              To turn consumer into loyal brand users.

1.4              HYPOTHESES FORMULATED

1.         Ho:      Sales promotion does not stimulates the consumer purchase of NBC products.

Hi:       Sales promotion stimulates the consumer purchase of

NBC products.

2.         Ho:      Customer interactive good customer services during sales

promotion campaign.

.           Hi:       Customer interactive good customer services during sales

promotion campaign.

3.         Ho:      Sales promotion does not lead to repeat purchase of NBC

products.

Hi:       Sales promotion lead to repeat purchase of NBC

products.

4.         Ho:      Sales promotion does not have a positive effect on profit of

company’s products.

Hi:       Sales promotion have a positive effect on profit of

company’s products

1.5              SIGNIFICANCE OF THE STUDY

The study from all intent and purchase will serve as a basis for other researcher and the readers in business field particularly in the marketing field to carryout more intensive research in sales promotional activities in an organisation.

In this study, both the researchers and the readers will benefit reticently.

Firstly, it will enable the researcher to appreciate the impact of sales promotion in the marketing of consumer product of NBC Warri Delta State.

Again, it will also enable the researcher to appreciate the efficacy of sales promotion in the marketing of consumer product of NBC Warri Delta State.

In the readers, also through this study it will enable the reader to appreciate the importance of sales promotion in the marketing of soft drink by NBC Warri.

Furthermore, it will also enable the reader, to appraise and welcome sales promotion program in their organisation.

Above all it will help the readers to appraise the successful applications of the results of the findings, that may serve as an emergizing apparatus to managers in the marketing sectors and other business related organisation.

1.6              SCOPE OF THE STUDY

The study is limited to Nigeria Bottling company Plc (NBC) Warri compared to other bottling giants company like Seven (Up) which have been in existence for many years and have acquired a loot of experiences for many yeas on promotional activities.

In light of the above, the scope of the study is limited to areas comprising of sales promotion.

In addition, to discussing the scope of the research which basically centers on sales promotion which is an arm of marketing, we have to focus our attention to the fact that so long as the other functional department like finance, production research etc work in pari-pasu with marketing department. Sales promotion campaign will achieve a better profitability for the organisation. This will also enable Nigeria Bottling company Plc Warri to enjoy a kind of succession t hereby to facing the challenges of competition from other companies in the same line of business.

1.7              DEFINITION OF TERMS

The following terms used in this study should be taken to mean the following:

Sales promotion

Sales promotion is that something extra that can arouse interest, create a buying desire, spark an immediate reaction from customers, middlemen or company’s sales force sales promotion consists of short term incentives designed to stimulate buying action. Sales promotional activities are directed to consumers, middlemen or the firms own sales force.

Sales promotion tools

a)                  Consumer promotion : (Coupons premiums, samples money refund, price of, contest, demonstration)

b)                  Trade or dealer promotion: (Free goods, merchandise allowances, cooperative advertising buying allowances, dealer sales contest)

c)                  Sales force promotion: (sales contests, special bonus sales meetings).

Product

A product is something that is viewed as being capable of satisfying needs or wants.

The coco-coal company uses many product offering which consists, of the following fanta, fanta tonic, fanta, ale, clubsoda, coke, spirte etc to satisfy the needs and wants of its customer 

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