Impact Of Sales Promotion On The Marketing Of Soft Drinks In Nigeria (A Study 7up Bottling Nigeria Plc, Aba)

ABSTRACT

This study is on the impact of sales promotion on sales of soft drinks in Nigeria. A case study of 7up Bottling Company Plc Aba. One of the major problems addressed was due to the low amount of money invested by the company on sales promotion activity result to low sales turnover was addressed which result to the increase in sales turnover. The total population used is two hundred (200) made up of production department, marketing/production and Administration department and sample of 135 employees was randomly drawn from 7up bottling Company Plc Aba depot. The personal interview and questionnaire are as well analyses accordingly. The researcher used the Taro Yemene formular for testing hypotheses formulated. Findings show that inadequate capital base is a major problem responsible for the low company’s sales turnover. The researcher recommended that the marketing manager of 7up Bottling Company Plc, Aba Depot should know that the use of sales promotion activities is the only way to ensure consumers patronage and as such they should maintain its product quality and price.  Base on the findings of the study, the following conclusions and recommendations were made: firstly,  that sales promotion has effect on the profits of a company, secondly, that customer buy more during a sales promotion customers are gain seekers and will seize any opportunity to obtain more value for less, thirdly, sales promotions remains a veritable tool to be used by a company to project its sales, market share and project and Sales promotions use should not be abused but used when the purchase of the product is likely to be high. Therefore, government through its agencies should regulate the sales promotions of companies and also ensure that their promises are delivered to the later, the company before embarking on a sales promotion, should first carry out a marketing research to ascertain whose its audience is in order to know the type of sales promotion to employ, finally,  organizations should not relay on the sales promotion only that should back it up with the other promo-tool in order to achieve higher result.

TABLE OF CONTENTS

Title ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of content ﾿ vi

List of tables ﾿ xi

Abstract ﾿ xii

CHAPTER ONE: INTRODUCTION

1.1 ﾿ Background of the study ﾿ 1

1.2 ﾿ Statement of problems ﾿ 4

1.3 ﾿ Objectives of the study ﾿ 5

1.4 ﾿ Research questions ﾿ 5

1.5 ﾿ Hypotheses ﾿ 6

1.6 ﾿ Significance of the study ﾿ 6

1.7 ﾿ Scope of the study ﾿ 9

1.8 ﾿ Definition of terms ﾿ 9

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0 ﾿ Conceptual frame work ﾿ 11

2.1 ﾿ Historical background of sales promotion ﾿ 12

2.1.1 Historical background of 7up bottling company PLC ﾿ 13

2.2 ﾿ Relevant models of the study ﾿ 14

2.3.1 Definition and types of consumer sales promotion ﾿ 16

2.3.2 Sweepstakes ﾿ 18

2.3.3 Premiums ﾿ 19

2.3.4 Coupons ﾿ 20

2.3.5 Games ﾿ 21

2.3.6 Trades show/exhibitions ﾿ 22

2.3.7 Product demonstrations ﾿ 24

2.4 ﾿ Reasons for sales promotion ﾿ 25

2.4.1 Profit generation ﾿ 26

2.5 ﾿ Benefits of sales promotion ﾿ 26

2.6 ﾿ Sales promotion tools ﾿ 28

2.6.1 Sales promotion directed to the consumers ﾿ 28

2.6.2 Sales promotion directed to the trade (i.e. Middleman) ﾿ 29

2.6.3 Sales promotion directed to the company’s sales force: ﾿ 29

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 ﾿ Research design ﾿ 31

3.2 ﾿ Population of the study ﾿ 31

3.3 ﾿ Sampling design ﾿ ﾿ 32

3.3.1 ﾿ Sample unit ﾿ 32

3.3.2 ﾿ Sample size ﾿ 33

3.3.3 ﾿ Sampling procedure ﾿ 34

3.3.4 Sampling method ﾿ 34

3.4 ﾿ Sources of data ﾿ 35

3.5 Validity and reliability of sampling instrument ﾿ 35

3.6 Data analysis technique ﾿ 36

3.6.1 Procedure for using ANOVA as a analysis method ﾿ 36

CHAPTER FOUR: PRESENTATION, ANALYSIS AND 

     INTERPRETATION OF DATA

4.1 Tests of hypotheses ﾿ 53

4.2 Test of hypothesis one ﾿         53

4.2.1 Test of hypothesis two ﾿ 56

4.2.2 Test of hypothesis three ﾿ 59

4.3 ﾿ Discussion of findings ﾿ 61

CHAPTER FIVE: SUMMARY, CONCLUSION AND 

                    RECOMMENDATIONS

5.1 ﾿ Summary of findings ﾿                 65

5.2   Conclusion                                                                       67

5.3 ﾿ Recommendations ﾿ 68

5.4 ﾿ Suggestion for further studies ﾿ 70

REFERENCES ﾿ 71

APPENDIX I ﾿ 73

APPENDIX II ﾿ 74