EFFECT OF SALE PROMOTION ON CUSTOMER BRAND LOYALTY. (A STUDY OF STARLINE NIGERIA LTD)

ABSTRACT

The study titled "Effect of Sales Promotion on Customer Brand Loyalty: A Study of Starline Nigeria Ltd, Aba, in Abia State" aims to evaluate the impact of sales promotion activities on brand patronage, customer retention, and brand preference among consumers of Starline products in Aba North. Using Taro Yamane’s formula, a sample size of 333 was determined. Employing sample percentage analysis and ANOVA, the study found that while sales promotions generate immediate sales increases, they do not necessarily convert deal-seeking consumers into long-term buyers. Competitive elements, gift items, and free samples were identified as effective tools for engaging customers, though loyal customers tend to stick to their preferred brands regardless of rival promotions. Personal selling, although less impactful in the short term, can be effectively supplemented by sales promotions. The study concludes that competitive sales promotions and sweepstakes are beneficial for achieving quick sales responses but are less effective in altering brand loyalty. Recommendations include utilizing engaging promotional techniques, supplementing sales promotions with personal selling and advertising, and extending the duration of promotions to ensure consumer awareness and maximize effectiveness.

TABLE OF CONTENTS

Title Page                                                                                                            i

Certification                                                                                                         ii

Dedication                                                                                                           iii

Acknowledgement                                                                                                iv

Abstract                                                                                                               v

Table of content                                                                                                   vi

CHAPTER ONE: INTRODUCTION

1.1      Background of the Study                                                                            1

1.2      Statement of the study                                                                                2

1.3      Objective of the study                                                                                2

1.4      Research Question formation                                                                      3

1.5      Research Hypothesis                                                                                  3

1.6      Significance of the study                                                                            3

1.7      Scope of the study                                                                                      3

1.8      Definition of terms                                                                                     3

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1      Historical Background of Starline Nigeria Limited                                      5

2.2      Meaning of sales promotion                                                                        6

2.3      The components of sales promotion                                                            7

2.3.1   Consumer sales promotion technique                                                          7

2.3.2   Trade Sales promotion technique                                                                9

2.4      Reasons for Growth of sales promotion                                                       9

2.4.1   Internal Factors                                                                                          9

2.4.2   External Factors                                                                                         10

2.5      Specific Marketing Problems that Sales promotion

Can help to solve                                                                                        10

2.6      Planning and designing the sales programmer                                              11

2.7      Objectives of sales promotion                                                                     12

2.7.1   Qualities of sales promotion                                                                       13

2.7.2   Purpose of sales promotion                                                                         13

2.8      Parameters for selecting a sale promotion Techniques                                  13

2.8.1   Factors to consider when designing sales promotion                                    15

2.8.2   Impact of sales promotion                                                                           16

2.8.3   Why should the Company have sales promotion

Heir marketing Strategy                                                                             16

2.9      Brand Loyalty                                                                                            16

2.9      Loyalty                                                                                                      16

2.9.2   Factors influencing brand loyalty                                                                16

CHAPTER THREE: RESEARCH METHODOLOGY

3.1      Introduction                                                                                               18

3.2      Restatement of Research Question and Hypothesis                                      18

3.2.2   Hypothesis                                                                                                 18

2.2      Research Design                                                                                        19

3.4      Sources of Data                                                                                          19

3.5      Sampling Plan                                                                                            19

3.5.1   Sampling Units                                                                                          19

3.5.2   Sampling Size                                                                                            20

3.5.3   Sampling Procedure                                                                                   20

3.5.4   Sample Method                                                                                          21

3.6      Allocation of Sampling Instrument                                                              21

3.7      Statistical Techniques                                                                                 21

3.8      Limitation of Study                                                                                    22

CHAPTER FOUR:          PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA

4.1      Introduction                                                                                               24

4.2      Data presentation and interpretation                                                            24

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATION

5.1      Summary of findings                                                                                  32

5.2      Conclusion                                                                                                33

5.3      Recommendation                                                                                       33

5.4      Areas for further studies                                                                             33

          Bibliography                                                                                              34

          Questionnaire                                                                                            35

CHAPTER ONE

INTRODUCTION

1.1          Background of the study

Every firm aims to make profit, it is generally agreed that one of the keys to making profit is boosting sales. To boost sales, a substantial number of consumers must choose one’s product over and above that of its competitors on a substantial number to occasions.

One of the surest way of ensuring this happens is to cultivates brand loyalty consumers are more likely to choose their preferred products/service over its competition on a consistent basis.

With these, one watching the television on recent time listen to radio through the days newspaper or magazine is invariable dawn to those commercial scoffer which are either adverting old or new broods or production or informing public about a sales promotion competition going on already or the releases of winners and price out door advertisement like signbo5 billboards banners etc. usually placed on Since walk of the express was for Prevailing business of sales promotion One may certainly be too Wrong to say that advertising industry has never had it so good ‘in terms
of profound Patronage brought about by “sales promotion”. This is traced precisely to the depression of Nigeria economy culminating on the adoption of the structural adjustment programme (SAP) which was initiated.

For an organization therefore broadening in 1986 and deepening base of brand loyally Consumes is a key objective in fashioning out any marketing strategy for the brand. Some people to have the impression that Constant, highly facilitating and beautifying packaged sales, promotion exercise, usually allow Customers to increase their tract of those brand, products or services. Indeed brand loyalty has been proclaimed by some as the ultimate goal of marketing Reicheld and Sasser (2000) Reducing Customers loss can dramatically improve business growth and brand loyalty which leads to consistent and even greater sales Since the ‘same brand is purchased repeatedly,

This study therefore emanated from the desire to find out which is the correct position of the effect and of sales promotion on the Consumer brand 1oyalty using starling Nigeria product as a case study.

1.2            Statement of the study

It is true that consumers of both industrial and consumers of goods exhibit various attitudes and behaviour towards the products and services offered and rendered toward them. There are some specific problems that temper the effect of sales promotion on Consumer brand loyalty, these problems will be addressed in this study.

Therefore, this study wants to inquire the effects that encourage consumers to repeatedly buy these starline. Nigeria limited product and how to differentiate their brand from that of their competition which unavailable lead to loyalty of their brand of this nature should all be embracing Covering all the starline products Consumed or used in Aba.

The type of study require questionnaire or Personality interview but the problem is that respondent may provide only information are ailing to provide which may not be very valid. In spite of these limitations the researcher will utilize the reference from our survey and results would come to a final decision to meet the purpose of the study.

1.3          Research objectives

i.               To determine the influence of sales promotion activities on the patronage of a brand of Starline production.

ii.             To determine the influence of sales promotion activities on customer retention of starline Nigeria Limited Aba.

iii.           To determine the influence of sales promotion activities on customer brand preference of Starline Nigeria Limited products

1.4          Research questions

(i)            How do sales promotion activities influence the sales patronage of starline Nigeria Limited products?

(ii)          What is the level of influence of sales promotion activities on the retention of customers of starline Nigeria Limited?

(iii)         How do sales promotion activities influence customer brand preference of starline Nigeria Limited products?

1.5          Hypothesis

Ho₁:   Sales promotion activities have no influence on customer retention of starline Nigeria Limited

Ho₂:   Sales promotion activities have no influence on customer brand preference of starline products.

1.6          Significance of the study

This research is of significance to the domain of sales promoting as it extends to consumer brand loyalty. It is very important to marketers and manufacturers since it makes way for the increase understanding, prediction and appreciation for appropriate sales promotional techniques that appears to bed effective in mobilizing and securing customers indulgence or participation and interest in sales promotion. The finding will benefit the firm, other firms, potential investors in that area the research and government.

1.7          Scope of the study

This research study the Starline Nigeria Limited products Aba, the study was demarcated to the effects of sales promotion on customer brand loyalty and these by focuses attention on the types of sales promotional techniques to reach the consumers of the product.

1.8          Definition of terms

i)              Advertising: The process of articulating the commercial messages (advertisements) and making them public through various medias (advertise) by an identified sponsor. Anyanwu (2003 pg 60).

ii)             Brand: The intangible sum of a product attributer, its name, packaging and price, its history, its reputation and the way its advertise David Oglivery.

iii)           Promotion: Is communicating with the public in an attempt to influence them towards buying your products/ services ward (2014).

iv)           Sales Promotion: Is a short term incentive designed to stimulate the interest of the target audience in the goods or service Anyanwu (2003).

v)             Brand Loyalty: The extent or the faithfulness of consumers to a particular brand expressed through their repeat purchase irrespective of the marketing pressure generated by the competing brand. Dictionary.com)

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