EFFECT OF EFFICIENT SALES MANAGEMENT ON THE PERFORMANCE OF FIRMS (A STUDY OF NIGERIAN BREWERIES PLC ENUGU)

 ABSTRACT

This research work is a very crucial study for the entire Nigeria and to the Nigeria Breweries Plc in particular. The study was motivated by the necessity to ascertain the effect of sales management on the performance of firm in Nigeria especially Nigeria Breweries Plc. It is aimed at identifying the extent of satisfaction their customers derive in the management of their sales and to give recommendation which will lead to the solution to the problems if any exist. Data collected from the company was analyzed using tables, frequencies, percentages and standard derivation where necessary to enable the reader make a long lasting satisfaction as a result of reading the manuscript. Based on the hypothesis formuated, the researcher studied the senior and the junior staff of the company who were relevant to the study. Descriptive statistical formular were adapted to determine the sample size and also test the hypothesis formulated. However after a critical analysis of the data collected through questionnaire and oral interview, it was discovered that sales management is the best method of positioning the company product in the market.   TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of Contents vi

List of Tables ix

Abstract x

CHAPTER ONE

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Brief History of the Company and Profile 4

1.3 Statement of the Problem 6

1.4 Objectives of the Study 9

1.5 Research Questions 9

1.6 Research Hypothesis 10

1.7 Significance of the Study 10

1.8 Scope and Limitations of the Study 11

1.9 Limitation of the Study 11

CHAPTER TWO

2.1 Review of Related Literature 13

2.2 Meaning and Definition of Sales Management 14

2.3 Importance of Sales Management to Organization 15

2.4 Role of Sales Management to Organization 16

2.5 Management of Sales Operations 16

2.5.1 Setting up the Sales Organization 17

2.5.2 Recruiting and Selecting Salesmen 17

2.5.3 Training and Development 18

2.5.4 Compensation Plans 18

2.5.5 Motivating Salesmen 19

2.5.6 Controlling and Evaluating Selling Performance 20

2.6 Qualities of a Good Sales Person 21

2.7 Performance Evaluation of Sales Forces 23

2.8 Factors Militating Against the

Growth of Sale Management in Nigeria 24

2.9 Need for Sales Management 25

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 The Design of the Study 28

3.2 Area of the Study 28

3.3 Sample Section 29

3.4 Methods of Data Collection 29

3.5 Sampling Techniques 30

3.6 Method of Data Analysis 31

3.7 Validity and Reliability 32

CHAPTER FOUR

4.0 Results and Discussion 33

4.1 Socio-economic Characteristics of the Respondents 33

4.2 Sales Management Strategies Adopted by Firm 34

4.3 The Level of Performance of Sales force in

Terms of Target Attainment 35

4.4 Effect of Sales Force Performance

on the Company’s Profit 36

CHAPTER FIVE

5.0 Summary, Recommendation and Conclusion 37

5.1 Summary of Findings 37

5.2 Recommendations 38

5.3 Conclusion 39

REFERENCES

APPENDIX

LIST OF TABLES

Table 4.1: Distribution of the Socio-economic Profile of the

Respondents 33 

Table 4.4: Relationship between Sales force Performance

and Company’s Profit 36

CHAPTER ONE

1.0     INTRODUCTION

1.1 Background of the Study

Sales management involves the planning, hiring, directing and controlling of a company’s sales force. According to Edoga (1997), sales management evaluates their firm’s competitive position, analyze market and set goals, train and motivate sales people to reach these goals and continually strive to improve the quality and productivity of the selling effort for which they are responsible.

Adirika (1996) explain sales management as the development and implementation of sales performance, monitoring and evaluation methods and analysis of associated behavioural patterns and costs. It is a process of implementation of sales strategy through selection, training, motivating ad supporting the sales force.

According to Kotler and Armstrong (2001), sales management is defined as the analysis, planning, implementation and control of sales force activities which encompass designing sales force strategy and structure, selecting, training, compensating, supervising and evaluating the sales people.

Therefore, the organization’s general well-being and the totality of their objective set up is dependent in the ability and general management of their sales forces in order to be a profit oriented firm.

According to Nwokeye (2000), sales force is a company’s sales representative in the field. They serve as ethical link between a company and its customers. There are many activities you will expect them to carryout for which they are important. These include:

Serving Existing Customers: The first priority for the sales force is to maintain good and profitable relationship with the company’s base of existing customers. This is done by contacting them on regular basis; generating foods and prospecting: as a sales representative or manager. Your performance will be based upon sales growth than main selling more product or service to existing customers or developing and following up on prospects that will lead to new sales. This calls for a well organized contact system that will ensure contact at each phase of a sales relationship, providing information: Customers appreciate a sales  representative who know their business and keep them informed of business situations and opportunities that might affect them.

A regular subject at sales meeting should cover market and industry development that can be passed on or discussed with customers;

Knowing Business Cycles: The knowledge of sales representative will know and understand the business and seasonal cycle that affect each customer. This is important in being sure that customers needs are anticipated and met with logic and timing to meet the demand of each specific customer in the area of your responsibilities. Study publication and websites that are relevant to your product or services.

Balancing Customer Coverage: Your customer and potential customer come in all types. Be certain that each customer receives a fair amount of sales attention. Resist the temptation to give more attention to big customers and forces the sales force on building and maintaining a balanced customer list.

Knowing Price, Quality and Service: You and every sales representative that reports to you should be aware of the representative that reports to you should be aware of the company competitors and how price, quality and services affect sales success.

Handling Complaints and Problems: Sales representative are the front line in deciding with customer problems and complaints. Never put off handling a complaint because time usually makes matters worse. A reasonable amount of sales time should be devoted to monitoring and anticipating possible supply and quality problem before they occur (Nwokeye).

1.2 Brief History of the Company and Profile

  Nigeria Breweries Plc, the pioneer and largest brewing company in Nigeria, was incorporated in 1946. The recorded a landmark when the first bottle of star lager beer rolled off the bottling lines in its Lagos Brewery in June 1949. This brewery has undertaken several optimization processes and as at today boasts one of the most modern brew house in the country. Over the next decades, Nigerian Breweries Plc, commissioned breweries across the breath of Nigeria, Aba Brewery in 1957, Kaduna brewery in 1963 and Ibadan Brewery 1982.

In 1993, the company acquired its fifth brewery in Enugu in October 2003, a sixth brewery sited at Amaeke in Enugu State was commissioned and christened Ama brewery. Ama brewery is today one of the biggest and most modern breweries in Africa.

In October 2011, Nigeria breweries acquired majority equity interests in Sona Systems Associates Business Management Limited (Sona Systems) and life breweries limited from Heineken HV. This followed Heineken’s acquisition of controlling interests in price breweries in Nigeria from Sona Group in January 2011. Sona Systems two breweries in Ota and Kaduna and Life Breweries in Onitsha have now become part of Nigeria Breweries Plc, together with three brands; Goldbery Lager, Malta Gold and Life Continental Lager.

Brand portfolio, Nigeria breweries Plc has a rich portfolio of high quality brands; star lager beer, the first in its portfolio was launched in 1949, this was followed by Gulder Lager Beer in 1970, Maltina, the nourishing Malt drink, was introduced in 1976, followed by Legend Extra Stout in 1992 Amstel Malt was launched in 1994 while Heineken Lager Beer was re-launched into the Nigeria market in 1998.

In 2007, the company introduced star, Heineken and Amstel malt in cans. In 2011, the company sold a total of 29 Stock Keeping Units (SKUs) including Gulder Can, Legend Can, Maltina Can, Fayrouz Can, Climax Energy Drink as well as Goldbery Lager, Malta Gold and Life Continental Lager which become part of the family in October 2011.

Corporate social responsibility, Nigeria breweries plc is a socially responsible corporate organization with a good trace record of corporate social initiative in identified ad strategic areas. The company’s corporate social responsibility is driven by a vision to always “win with Nigeria”. Over the years, Nigeria breweries plc has been very active in supporting our national development aspirations in line with our commitment to “winning with Nigeria”.

1.3 Statement of the Problem

Lack of supervision of sales force activities leads to low productivity and as such sales force do not make reasonable turnover at the end of the month or specific time, the stipulated their targets, market share reduced. Supervision is an extremely vital part in the workplace that is intended to maximize the potentials of the sales force. Lack of supervision in a workplace is among the primary obstacles to achieving potential success by a firm. Sales force must have the proper supervision and training to ensure that they are doing the jobs correctly towards achieving the company’s goals. Lack of supervision removes a very important part of the sales force support process, eliminating the opportunity for reference, learning and safety. Its being about poor performance on the part of sales force; opens the door for unethical behaviour within a company. With lack of supervision, sales force commonly feels that their work is not valued by the company and loyalty is difficult to form. Some firm do not train their sales force or employment.

Lack of training of sales force leads to poor sales and brings about reduced market share for the firms. Training programme should first and foremost impact sound knowledge about the product or service. Nothing can be more embarrassing than for a salesman to be unable to answer the prospects questions about the product.

Reasons for Training

According to Nwokeye (2000), training can improve business performance, profit and staff morale. Training your staff can result in better customer service, better work safety practices and productivity improvement.

Training is one of the chief methods of maintaining and improving intellectual capital, so the quality of an organization’s training affects its value. Training affects employee retention and is a valuable commodity that is viewed as an investment rather than as expense can produce high returns.

Training is organizational effort aimed at helping employees to acquire the basic skills required for the efficient execution of the functions for which they are hired. Staying up with new technology and using the most innovated tools is the best way to keep your business on top and one way to make that happen is to make sure you train your employees, when your employees know how to use the latest technology and the tools you offer and they do it correctly, your business will not only run more efficiently, but you won’t have problems with them doing things wrong.

Training helps to achieve the following, increase productivity, decrease need for supervision, increase ability to incorporate new technologies, enhance company image, and innovation is increase, bringing new strength to strategies, products and the company’s capacity to adopt new technology and methods. This is part of staff development which is a conscious programme for moving company personnel up the organizational ladder as far as their ability, motivation and hard work can carry them.

1.4 Objectives of the Study

The broad objective of this research work is to determine the effect of efficient sales management on the performance of firms in Enugu Nigeria.

The specific objectives are as follows:

i. Socio-economic profile of the sales force

ii. To ascertain the sales management strategy adopted by the firms.

iii. To determine the level of performance of sales force in terms of their target attainment.

iv. Ascertain the effect of sales force performance on company turnover and profits.

1.5 Research Questions

This research work will enable the researcher to come up with answers top the following research questions:

1. What are the effects of sales force performance on the sales and profit?

2. What is the level of sales management performance?

3. What sales management strategies are adopted by NBL?

4. What is the level of profit, turnover of NBL?

1.6 Research Hypothesis

The following hypothesis shall be tested in this course of this study:

Hypothesis I

H0₁: There is no significant relationship between effective

sales management and performance of sales force in the company.