THE EFFECT OF SALES PROMOTION ON MARKETING OF COCA COLA BRAND OF SOFT DRINKS IN ENUGU METROPOLIS (A STUDY OF NBC PLC AT 9TH MILE ENUGU) - Project Topics & Materials - Gross Archive
THE EFFECT OF SALES PROMOTION ON MARKETING OF COCA COLA BRAND OF SOFT DRINKS IN ENUGU METROPOLIS
(A STUDY OF NBC PLC AT 9TH MILE ENUGU)
TABLE OF CONTENTS
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 The Scope of the Study
1.7 The Significance of the Study
1.8 Definition of Terms
2.0 REVIEW OF LITERATURE
2.1 What is Marketing
2.2 Overview of Marketing Mix
2.3 Overview of Marketing Promotion
2.4 Objectives of Promotion
2.5 Components of Marketing Promotion
2.5.2 Personal Selling
2.5.3 Sales Promotion
2.5.4 Public Relation/Publicity
2.5.5 Direct Marketing
2.5.6 Events Marketing
2.6 Overview of Sales Promotion
2.7 Types of Sales Promotion
2.7.1 Consumer Promotion
2.7.2 Trade Promotion
2.7.3 Sales Force Promotion
2.8 Sales promotional Techniques for Soft Drinks
2.9 Sales Promotional Strategy used by
(NBC) Plc in Enugu Metropolis
3.0 RESEARCH METHODOLOGY
3.1 Area of the Study
3.2 Sources of Data
3.3 Population of the Study
3.4 Sample Sized Determination
3.5 Sampling Techniques
3.6 Instruments for Data Collection
3.7 Validation of Research Instrument
3.8 Reliability of Research Instrument
3.9 Method of Data Collection
(Administration of Instruments)
3.10 Method of Data Analysis
3.11 Limitation of the Study
4.0 PRESENTATION, ANALYSIS AND
INTERPRETATION OF DATA
4.1 Data Presentation
4.2 Data Analysis
4.3 Testing of Hypothesis
5.0 DISCUSSION OF FINDINGS, CONCLUSION
5.1 Summary of Findings
5.2 Conclusion of the Study
5.4 Implication of the Findings
5.5 Suggestions for Further Study/Research
1.1 BACKGROUND OF THE STUDY
need to promote a product, service or idea cannot be over emphasized,
promotion is an important arm of the total marketing system. It is one
of the four major marketing mix, others include product, price and place
(distribution). Getting to know of the existence of a product, service
or idea is not automatic. No matter how good the product, how reliable
the service or how sensible the conceived idea; its existence will be
unknown unless there is a concerted effort to make the information
available to prospective and real customers who will reciprocate by
patronizing the business.
The main function of marketing
promotion/communication is to inform, remind, educate and persuade both
the prospective and real customers about a product, service or idea and
cause them to take a positive purchase decision and patronize the
organization. Promotion in a broad term consists of advertising,
personal selling, public relation/publicity and sales promotion. The
later supplements advertising and facilitate personal selling. Sales
promotion is one of the tools or techniques of marketing – hence this
Kotler and Armstrong (2002:468) Stated that sales promotion
consists of short term incentives designed to encourage immediate
purchase of a product, service or idea. The authors observed that,
whereas advertising provides the reasons to buy a product or service,
sales promotion offers reason to buy now. Therefore, the major function
of sales promotion is to supplement advertising and facilitate personal
selling by stimulating immediate purchase action.
Adirika, Ebue &
Nnolim (1996:142) Stated that sales promotion is something extra that
can arouse interest, create a buying desire, spark an immediate reaction
from customers, middlemen or company’s sales force. It is a name that
is applied to special kind of sales accelerating activities not
necessarily classed as advertising, personal selling or publicity. It is
a special selling effort that consists of short term incentives
designed to stimulate buying action.
Stanton, Etzel and Walker
(1994:518) Defined sales promotion as a demand stimulating device,
designed to supplement advertising and facilitate personal selling. They
gave example of major sales promotion tools to include:
Product Sampling and Demonstration: In this situation, the customer
either gets the product free or is allowed to use it free of charge for
period of time. Sampling is useful for attracting new users mostly when a
new product is introduced.
(ii) Price off (Price Reduction): This
provides a quick, defensive response to off-set competitors’ promotion.
Price off is a “markdown” in the retail price of the product. It
enables consumers to buy more and also enable more consumers buy the
(iii) Point of Purchase Promotion: These are incentives
displayed at the point of purchase. Manufacturers provide advertising
allowance and display allowance to middlemen to enable them display
their merchandise attractively and encourage them to carry the
(iv) Give-aways: These are special gift
items to customers. The purpose is to remain and reinforce a product or
company message. Give-way items are relatively cheep items, such as wall
clock, diary, calendar, pen, pencil, stickers, T-shirt etc. These gifts
usually carry the company logo or name stamped on them.
Deal: These are incentive given to the dealers by the manufacturers,
aimed at getting their cooperation in handling and pushing their
products. The items usually given to dealers and retailers include
creates, bottles fridges etc, in the case of a bottling company.
Direct Incentives: These are incentives given to the sales force to
spur them to higher sales performance. This incentive is usually inform
of sales bonuses, contests and gifts, and they are given bases on
selling of a specified number of the company’s products.
Smith (2000:276) Identified three categories of sales promotion as:
(i) Customer promotion
(ii) Trader or dealer promotion and
(iii) Sales force promotion.
the whole, sales promotion be it the customer promotion, trade or
dealer promotion or the sales force promotion is a technique for
stimulating consumer’s immediate purchase or augmenting the middlemen
effectiveness. The technique is however employed to complement personal
selling and facilitate advertising to ensure a synergistic result (2 + 2
The Nigerian Bottling Company Plc (NBC) with the license to
bottle and sell Coca-Cola non alcoholic drinks in Nigeria, had over the
years invested heavily on sales promotion for Coca-Coal soft drinks in
Enugu metropolis. They had used several sales promotion tools trying to
achieve the objectives of the company. The tools used include:
Sweepstake, contest and games: This tool is aimed at attracting high
customer interest and involvement. The contestants are qualified by
sending in, an entry in a special stipulated format determined by the
promoters, the entry may be by sending a specified stamped bottle cork,
and the person is automatically qualified for the game.
Give Aways: Another promo tool used by the (NBC) Plc is the give away
items. Upon purchase of a specified quantity of soft drink, certain
items are usually given away free to customers, these items normally
include – wall clocks, pen, diaries, calendars, stickers, free drink
(iii) Shop Display: The manner and aesthetic nature of
Coca-cola soft drink display in cold fridges with glass doors found in
retail shops is also a strong driving force for a purchase decision. The
(NBC) Plc is the best on this technique in the whole country. The
fridges are given free to the dealers and retailers with the instruction
that only the Coca-Cola products will be loaded in the fridges.
result of the huge amount of money so far invested on sales promotion
for Coca-Cola soft drinks in Enugu metropolis, the researcher chose to
investigate and determine the effect of sales promotion on the marketing
of Coca-Cola brand of soft drinks in Enugu metropolis.
1.2 STATEMENT OF THE PROBLEM
research is triggered by the researcher’s desire to evaluate the effect
of sales promotion in the marketing of Coca-Cola brand of soft drinks
in Enugu metropolis. Much money has been sunk into marketing promotion
generally since nearly two decades, and out of these staggering sums,
sales promotion accounts for more than a half. There has been a concern
within the practitioners of marketing whether sales promotion is that
all effectiveness in terms of increase in profitable sales volume, it
becomes a concern for most firms to check what comes out of the huge
spending in promotional techniques in general and sales promotion in
The following specific problems will be addressed.
1. Do the increase competitive use of sales promotion given rise to what marketers called promotion clutter?
2. Has sales promotion on the Coca-Cola brands made consumers to be less triggered for an immediate purchase?
3. What impact has the sales promotion in attracting new customers for the company?
4. What is the effect of sales promotion on achieving the overall marketing objectives of the Coca-Cola company?
5. What is the impact of sales promotion in awareness creation for Coca-Cola brand of soft drinks?
1.3 OBJECTIVES OF THE STUDY
general objectives of this study is to examine the effect of sales
promotion in marketing of Coca-Cola brand of soft drinks in Enugu
metropolis and specifically:
1. To determine if the increased use of sales promotion created what the marketers called promotion clutter.
2. To know if promotion on the Coca-Cola brands cause customers to be less triggered for an immediate purchase or not.
3. To know the actual impact of sales promotion in attracting new-customers for the Coca-Cola company.
To determine the effect of sales-promotion in awareness creation and
overall achievement of the company’s marketing objectives.
1.4 RESEARCH QUESTIONS
To ensure emergence of a credible result at the completion of this study, the following research questions were used:
Does the frequent use of sales- promotion by the Coca-Cola company
creates promotion clutter for Coca-Cola soft drinks in Enugu metropolis?
2. Does sales promotion for Coca-Cola brands cause their customers to be less triggered for an immediate purchase or not?
3. What is the effect of sales promotion in attracting new customers for the Coca-Cola company (NBC)?
4. What is the effect of sales promotion in awareness creation and achievement of the overall objectives of the company?
1.5 RESEARCH HYPOTHESIS
In order to give focus to the study, the following hypotheses were formulated:
Ho: Increased competitive use of sales-promotion for Coca-Cola brand does not cause promotion clutter for the products.
Hi: Increased competitive use of sales-promotion for Coca-Cola brands causes promotion clutter for the products.
Ho: Sales promotion on the Coca-Cola brands of soft drinks does not triggers consumer’s immediate purchase action.
H2: Sales promotion for the Coca-Cola brands of soft drinks triggers consumers’ immediate purchase action.
Ho: The impact of sales promotion on Coca-Cola brands is not enough to attract new customers for the Coca-Cola company.
H3: The impact of sales promotion on the Coca-Cola brands attracts new customers for the Coca-Cola company.
Sales promotion on Coca-Cola brands of soft drinks does not create
awareness of the products nor cause the achievement of the overall
marketing objectives of the company.
H4: Sales promotion on
Coca-Cola brands of soft drinks creates awareness of the products and
causes the achievement of the overall marketing objectives of the
company (NBC) in Enugu metropolis.
1.6 SCOPE OF THE STUDY
study is intended to investigate the effect of sales promotion on
marketing of Coca-Cola soft drinks in Enugu metropolis. However, due to
financial, time and other constraints, the entire population of Enugu
metropolis could not be covered, so samples from different parts of
Enugu metropolis were used to represent the entire population.
1.7 SIGNIFICANCE OF THE STUDY
the years, the frequency and levels of sales promotion activities
embarked upon by the Nigerian Bottling Company Plc (NBC) for Coca-Cola
soft drinks had been on the increase. This study is of significance due
to the following reasons:
1. The findings of this study will be benefitial to the company for solving their marketing promotion problems
2. It will serve as a guide for future sales promotion of the company in Enugu.
3. The findings will provide a base for future research work on similar problems.
4. The researcher and other readers will equally benefit from this study as it will widen the scope of their knowledge.
1.8 DEFINITION OF TERMS
Marketing: The American Marketing Association in Kotler and Keller
(2006:5) defined marketing as an organizational function and a set of
processes for creating, communicating and delivering value to customers
in ways that benefit the organization and its stake holders.
to Adirika: (1990:3) Marketing is the all important set of creative
human activities aimed at identifying, anticipating and satisfying human
needs and wants through exchange as efficiently and effectively as
possible. He believed that marketing is simultaneously an old and a new
profession. It is old in the sense that since the beginning of man,
exchange or trade has been in existence. It has always been through the
instrumentality of market that consumers satisfaction was ensured prior
to the introduction of barter system.
2. Sales Promotion: Adirika,
Ebue and Nnolim (1996:142) Stated that sales promotion is something
extra that can arouse interest, create a buying desire, spark an
immediate reaction from customers, middlemen or company sales force. It
consists of short term incentives designed to stimulate buying action.
Sales promotional activities are directed to consumers, middlemen or the
firm’s sales force.
Kotler (2006:543) Saw sales promotion as a key
ingredient in marketing companies, it consists of a collection of
incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of a particular product or service by consumers or the
Stanton, Etzel and Walker (1994:518) Defined sales promotion
as demand stimulating device designed to supplement advertising and
facilitate personal selling.
3. Product: A product is goods,
service or idea consisting of a bundle of tangible or intangible
attributes that satisfies consumers needs, and it is received in
exchange for money or some other unit of value (Adirika 2007:9)
4. Brand: A brand is a name, logo slogan or design scheme associated with a particular product or service (Adirika 2007:165).
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