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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