EFFECT OF SALES PROMOTION ON CONSUMERS LOYALTY TO THE BREWERY PRODUCT IN NIGERIA (A CASE STUDY OF STAR PRODUCT OF NIGERIA BREWERY) ENUGU STATE

ABSTRACT

This study was on the “Effect of Sales Promotion on Consumer’s Loyalty to the Brewery Product in Nigeria”. The study looked at evaluated the role and significance of sales promotion marketing strategy in performance of the beer industry and to ascertain whether the sales promotion activities used by the firm have any effect on the customer behavior and also to determine whether beer manufacturers profit depends on the efficient and effective sales promotion marketing strategy and to examine the effects of sales promotion and to give  hones recommendation based on marketing principles, that will help the firms to some extent in solving their problems. Data collection was from questionnaire and oral interview, 134 respondents were selected for the study. The data collected was analyzed and presented in tables, objectives 1 to 3 was achieved using simply percentage while objective 4 and 5 was achieved using multiple regression. The result shows that majority of the respondents were customers and staff. The response from customer’s respondents signifies that they will purchase more of Nigerian Breweries product (Star) base on it sales promotion.

TABLE OF CONTENTS

Declaration i

Certification ii

Dedication iii

Acknowledgement iv

Table of Contents v

List of Tables vii

Abstract viii

CHAPTER ONE

1.0        INTRODUCTION

1.1  Background Of The Study 1

1.2 Statement of Problems ` 2

1.3 Objectives of the Study 3

1.4 Researches Question 3

1.5 Research Hypothesis 4

1.6 Significance of the Study 5

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Sale Promotion Examined 6

2.2  Factors That Contribute To Sales Promotion Increase 7

2.3  Sales Promotion: Nigerian Content 9

2.4 Designing And Managing Sales Promotion 10

2.5  Selecting The Sales Promotion Tools 11

2.6 Developing Sales Promotion Programme 13

2.7 Implementing The Sales Promotion Programme 14

2.8 Evaluation Of The Sales Promotion Results 15

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Research Design 17

3.2 Areas of Study 17

3.3 Study Population 17

3.4 Sample Size 18

3.5 Source of Data 19

3.6  Data Analysis 20

CHAPTER FOUR

4.0 DATA ANALYSIS AND PRESENTATION

4.1 Questionnaire Administration 21

4.2 Analysis of Data for Customer 22

4.3 Analysis Of Data For Producers, Staff And Distributors 25

4.4  Hypothesis Testing 29

CHAPTER FIVE

5.0 SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1  Summary of Findings 34

5.2 Conclusion 35

5.3 Recommendations 36

5.4 Suggestion for Further Studies 37

REFERENCES

LIST OF TABLES

Table 4.1 Questionnaire Administration 21

Table 4.2  Response on Consumers Sex 22

Table 4.3 Response on Martial Status of the Customer 22

Table 4.4 Response on Age of the Customer 23

Table 4.5 Response On The Educational Qualification Of Customer 23

Table 4.6 Customers Reasons for the Patronage of NBL Products 23

Table 4.7 Response On The Reason For Patronage During Sales Promotion24

Table 4.8 Response On The Consumer Still Patronize To Company

After Sales Promotion. 24

Table 4.9 Response On The Awareness Of Star 25

Table 4.10 Response On Reason For Adopting Sales Promotion 26

Table 4.11  Response on the Type of sales promotion activities used 26

Table 4.12 Response Of The Effect Of Sales On Profit And Sales 27

Table 4.13 Response On The Type Of Cost Investment In Sales Promotion 27

Table 4.14  Response on Most Efficient Promotional Element 28

Table 4.15: Response On The Impressions Of The Public Against Sales Promotions Activities. 28

Table 4.16  Determinants Of Customer Preference And Loyalty In The

 Beer Market And Profitability 29

Table 4.17: Summary of Simple regression results of the correlation

between fall in sales promotion cost and cost of other promotional

 tools. (Between 2006 and 2012) 30

CHAPTER ONE

1.0                       INTRODUCTION

1.1  Background Of The Study

The major tasks of marketers are to produce the right goods, charge the correct price, gives the product exposure through distribution and to induce the consumers to purchase the product. All these marketing skills will be a waste of effort if consumer fails to become aware of the existence of a product or services.

Generally, sales promotion has two main objective which could be categorized into broad objective and specific objectives. The broad objectives of any sales promotion  will include product exposure, attention acquisition and comprehension of sales promotion, attitude change and behavior while in a specific objective the target consumer are specific as well as the intended effect of the promotion upon the target market Engle et al.,(1973).

Finally, sales promotion has takes a strong position in marketing, this is as a result the increasing back log of products which manufacture cannot sell as a result of high cost charged and diminishing purchasing power of the consumers. Another major reason of an increase in the level of competition among manufacturers brought about the increased entrepreneurship. Sales promotion helps increasing sales volume. It is also contributes to the building of a product and company image and assists in determining correct price for it product or service.

1.2 Statement of Problems

Improving performance of firm especially the beer  industry depends on efficient, effective and prompt effect of sales promotion marketing strategy. Majority of firms sees marketing especially sales promotion marketing strategy as a waste of efforts and of resources, since they  believed that they have already created image for themselves and as much do not need to involve marketing activities (sales promotion) in order to boost or improve their performance.

Another problem is lack of knowledge of what marketing strategy especially sales promotion is all about. This has in small measure affected the effort made and has resulted in low level of marketing activities and development, as well as low performance of producers in Beer industry.

Another problem that has eaten deep the bones and marrows of the firms are lack of proper training and professional experience. Lack of necessary training and profession exposure by the beer manufacturer’s industry workers on the tenet and dictates of modern technology, constitute a major log in the wheel of progress. This study is pointed to investigate these problems and find solutions.

1.3 Objectives of The Study

The general objective of the study is to investigate into the effect of sales promotion on consumer loyalty to Brewery product in Nigeria. Also the specific objectives:

i. To evaluate the role and significance of sales promotion marketing strategy in performance of the beer industry.

ii. To ascertain whether the sales promotional activities used by the firms have any effect on the customers behavior.

iii. To examine whether the product (Star Beer) satisfy their customers.

iv. To examine the effect of sales promotion and to give honest recommendation based on marketing principles; this will help the firms to some extent in solving these problems.

v. To determine the effect of sales promotion in achieving increase in sales volume and profitability

1.4 Researches Question

In an attempt to ensure proper and logical solution to the problem of sales promotion marketing strategy in the beer industry and achieve the objective of the study, we shall be guided by the following questions:

i. Does profit of Beer industry depends on effectives and efficient sales promotion (marketing) strategy?

ii. Does lack of knowledge of sales promotion leads to low performance?

iii. Has effort been made to address the problems of low engagement of service marketing in the Beer industry?

iv. Can effect of sales promotion help as means to stop the loss of old and bring back lost customers?

v. Can increase in sales promotion cost reduce the total cost of cost of marketing communication?

1.5 Research Hypothesis

The following research hypotheses are here presented for testing for the confirmation and actualization of research objectives.

Hypothesis One

Sales promotion does not improve the customer preference and loyalty in the Beer market.

Hypothesis Two

Sales promotion is not significant in the sale reduction of total promotion cost, increase sales and profitability of star product in the Beer market.

1.6 Significance of the Study

The study was purposeful to the following groups:

· The Manufacturers: This study will afford the beer manufacturers the opportunity of re-evaluating their perception of sales promotion towards a positive direction.

· The General Society: Besides, it helps the perspective on how to put the proper role of marketing and effect of sales promotion in developing economy.

· The Individual Marketers: The individual marketers and the general public are not prohibited (left out) from benefiting in this study of mine. However, the work will serve as readily reference material to train those who may wish to join in the task of educating people who because of lack of proper information on sales promotion become discouraged.

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