ABSTRACT
This research work is set out to analyze the promotional mix on the profitability growth of breweries in Nigeria Guinness breweries Plc. Aba. The specific objectives of this study is to conduct and analyze the influence of promotional mix strategies on the profitability growth of breweries, to determine the influence of advertising on the profitability growth of breweries in Nigeria, determine the influence of sales promotion, public relations, personal selling and direct marketing on the profitability growth of breweries in Nigeria. The data were generated by individual interview using well structured questionnaire. This was supplemented by secondary data collected from different published and unpublished sources. The researcher adopted tables and percentages in presentation and analysis of data. Again the stated objectives were analyzed using simple regression and the SPSS version 20 and the hypothesis were tested at 0.05 level of significance. The result obtained from this analysis indicates that there is a great influence of advert using on the profitability growth of breweries in Nigeria as can be seen from the response of the respondents. The SPSS output indicates that there is a relationship between the influence of advertising and profitability growth of breweries in Nigeria. All the results obtained from the analysis indicates a close relationship among the variables. The result findings indicates that public relations as a promotional mix element contributes immensely to the profitability growth of breweries in Nigeria.
TABLE OF CONTENT
Title page i
Declaration ii
Dedication iii
Acknowledgment iv
Table of content v
List of tables vi
Abstract ix
CHAPTER ONE: 1
INTRODUCTION 1
1.1 Background to the Study 1
1.2 Research Problem 1
1.3 Research Objectives 2
1.4 Research Question 3
1.5 Research Hypotheses 4
1.6 Significance of the study 4
1.7 Scope/Limitation
Of The study 5
1.8 Assumption
of the study 6
1.9 Operational
Definition 6
CHAPTER TWO 8
LITERATURE REVIEW 8
2.1 Introduction 8
2.2 Concept
of promotion mix strategies 8
2.2.1 Advertising
8
2.2.2 Sales
Promotion 10
2.2.3 Public
Relation 11
2.2.4 Personal
selling 11
2.2.5 Direct
Marketing 13
2.3 Concept
of Promotional mix strategy 13
2.4 Marketing
Communication Foundation/Theory 14
2.4.1 Aid a
theory 14
2.4.2 Hierarchy
of Effects of Theory 16
2.5 Empirical
study 17
CHAPTER THREE 19
RESEARCH METHODOLOGY 19
3.0 introduction
19
3.1 Research
Design 19
3.2 Population 20
3.3 Sample
Size 20
3.4 Sampling
Technique 20
3.5 Research
Instrument 21
3.6 Psychometric
Properties of the Research Instrument 21
3.6.1 Validity
of the Research Instruments 21
3.6.2 Reliability
of Research Instruments 21
3.7 Administration
of Instrument 22
3.8 Measurement
of variables 22
3.9 Sources
of Data Collection 22
3.10 Method of
Data Analysis 23
CHAPTER
FOUR 25
DATA
PRESENTATION AND ANALYSIS 25
4.1 Analysis of general demographics of
respondents 25
4.2 Analysis
of research questions 25
4.2.1 Research question two 26
4.3. Research question three: 27
4.4 Research
question four 28
4.5 Research
question five 29
4.6 Test
of the stated research hypothesis 29
4.7 Research
hypothesis two 30
4.8 Research
hypothesis three 31
4.9 Research
hypothesis four 32
4.10 Discussion of major findings 33
CHAPTER FIVE 34
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATION. 34
5.1 Summary
of findings 34
5.2 Conclusion 34
5.3 Recommendations 35
5.5 Suggestion
for further studies 36
LIST OF
TABLES
Table 2.1 Performance
of promotional mix component. 18
Table
3.1: Study’s Clusters Region 20
Table
4.1: Respondents’ General Demographics 25
Table
4.2: Respondents Opinion on the
influence of advertising on the profitability growth of breweries in Nigeria 27
Table
4.3: Respondents’ opinion on the
influence of sales promotion on the profitability growth of breweries in
Nigeria. 27
Table
4.4: Respondents’ opinion on the
influence of public relations on the profitability growth of breweries in
Nigeria. 28
Table
4.5: Respondents’ opinion on the
influence of personal selling on the personality growth of breweries in
Nigeria. 28
Table
4.6: Can the influence of direct
marketing on the profitability growth of breweries in Nigeria be determined? 29
Table
4.7: SPSS OUTPUT: Regression Analysis
Result 29
Table
4.8: SPSS OUTPUT: Regression Analysis
result 30
Table
4.9: SPSS output: Regression Analysis
Result 31
Table
4.10: SPSS OUTPUT: Regression Analysis
Result 32
CHAPTER ONE:
INTRODUCTION
1.1 Background to the Study
Promotion
strategy is the direct way an organization tries to reach its publics.
Promotion strategy has remained the only way firms gain competitive edge in the
market. Promotion strategy involves the five elements of the promotion mix i.e.
advertising, sales promotion, personal selling, public relations, and direct
marketing (Czinkota and Ronkainen, 2004). In order to keep up with the
competition and changing consumer needs and wants, firms are forced to adopt
effective promotional strategies to promote growth beyond boarders thus
creating awareness and increase usage rates of their products and services.
Promotional strategies enable firms to attract and retain customers thus
increased growth in terms of return on investments due to expanded client base (Kotler,
2007). The focus on promotional efforts and development of marketing strategies
has remained a challenge to many firms in Nigeria (Straughan, 2000). However,
due to the growth of the service sector, it is necessary for any organizations
to focus on promoting their services for them to survive in the dynamic
business environment (Kotler, 2007). Today marketing of organizations providing
brewing service has remained a big challenge in Nigeria. Since services cannot
be separated from the person performing or selling them, it is the
responsibility of both large and small organizations to adopt appropriate
promotional strategies in order to attract and retain customers (Nicolaud,
1989). Promoting healthcare services using a diversity of communication channels
promote attraction and retention of customers (Sanchez and Peinado, 2003).
According
to Miller and Straughan (2000), Healthcare organizations have been encountering numerous challenges during the
past two decades, including competition, recessions and image problems.
Additionally, many Healthcare organizations have been facing mature domestic
markets with limited future growth potential, which as a result, has led to
expansion of their services abroad. However, in the dynamic business
environment, healthcare organization have been forced to develop effective
promotional strategies in order to survive in the competitive business
environment hence achieve growth in all aspects of the organization (Quintana,
2003).
Promotion
is according to Brassington and Pettitt (2000) the direct way in which an
organization communicates the product or service to its target audiences.
Brassingtonh and Pettitt (2000) have categorized the promotional tools into
five main elements; advertising, sales promotion, public relations, personnel
selling, and direct marketing. Promotion is the direct way an organization
tries to reach its publics. This performed through the five elements of the
promotion mix which include; advertising, sales promotion, personal selling,
public relations, and direct marketing (Czinkota and Ronkainen, 2004). The role
of promotion has been redefined into managing long term relationships with
carefully selected customers, including construction of a learning relationship
where the marketer attains a dialogue with an individual customer (Dawes and
Brown 2000).
1.2 Research Problem
To
survive in the competitive marketing environment, both small and large
organizations need to adopt promotional mix strategies in order to attract and
retain customer hence long term relationships and growth in terms of
productivity (Reid et al, 2005). Increased revenue, increased client-base and
customer loyalty are measures of growth of any organization in the competitive
market (Marquardt, 1994). Most of the brewer marketing literatures have
concentrated on 4 marketing theory more than promotion practice. Unfortunately,
the issues of marketing are becoming more complicated as competition of
healthcare services continues to change in worldwide (Albers-Miller and Sraughan,
2000).
Promotion
strategies adopted by organizations providing laboratory services remain an
understudied area. Arising from the findings of the above study, it is evident
that, there are many areas about the influence of promotion mix strategies on
the growth of brewers that have not been investigated by previous research
studies. It is for this reason that the study seeks to establish the influence
of promotion mix strategies on the growth of brewers.
A
study carried out by Kiptugen (2003) looked at the strategic marketing
responses of medical companies to a changing competitive business environment
established that proactive rather than reactive promotional mix strategies are
the core drive of any competitive organization operating in the dynamic marketing
environment. However the study did not focus specifically on the effectiveness
of promotion on the growth of brewers. The study sought to answer the following
research question; what is the influence of promotion mix strategies on the
customer growth of brewers.
1.3
Research Objectives
The
main objective of this study is to conduct and analyze the influence of
promotional mix strategies on the profitability growth of Breweries in Nigeria.
The
specifics Objectives are to:
1. Determine the influence of advertising on
the profitability growth of Breweries in
Nigeria.
2. Determine the influence of sales
promotion on the profitability growth of Breweries
in Nigeria.
3. Determine the influence of public
relations on the profitability growth of Breweries
in Nigeria.
4. Determine the influence of personal
selling on the profitability growth of Breweries
in Nigeria.
5. Determine the influence of direct
marketing on the profitability growth of Breweries
in Nigeria.
1.4
Research Question
1. Determine the influence of advertising on
the profitability growth of Breweries in
Nigeria.
2. Determine the influence of sales
promotion on the profitability growth of Breweries
in Nigeria.
3. Determine the influence of public relations
on the profitability growth of Breweries
in Nigeria.
4. Determine the influence of personal
selling on the profitability growth of Breweries
in Nigeria.
5. Determine the influence of direct
marketing on the profitability growth of Breweries
in Nigeria.
The
following questions were asked in course of this study:
1. Can the influence of advertising on the profitability
growth of Breweries in Nigeria be determined?
2. Can the influence of sales promotion on
the profitability growth of Breweries in Nigeria be determined?
3. Can the influence of public relations on
the profitability growth of Breweries
in Nigeria be determined?
4. Can the influence of personal selling on
the profitability growth of Breweries
in Nigeria be determined?
5. Can the influence of direct marketing on
the profitability growth of Breweries
in Nigeria be determined?
1.5 Research Hypotheses
The following hypothesis were stated in order to
give the study a direction
H01: There
is no relationship between the influence of advertising and profitability growth of Breweries in Nigeria.
H02: There
is no relationship between the influences of sales promotion and profitability growth of Breweries
in Nigeria.
H03: There
is no significant relation between the influence of public relations and the profitability growth of Breweries in Nigeria.
H04: There is no relationship between the influences
of personal selling and the profitability
growth of Breweries in Nigeria.
H05: There is no Association between the influence
of direct marketing and the profitability
growth of Breweries in Nigeria.
1.6 Significance of the study
This study on completion were be of importance’s to the Breweries in
Nigeria. It provide a limited analogy and assess as to whether the promotional
strategies it has adopted have been beneficial to them or not thus coming up
with appropriate promotional policies. The study will help the government understand how Breweries use
promotional strategies to gain competitive edge due to intense competition from
local and foreign local and foreign Breweries and hence their sustainability.
It is, thus, in a position to formulate policies that are aimed at increasing
productivity and safeguarding there interests based on envisaged profit margin. The development partners who are usually
interested at helping the Breweries to prosper can have an understanding of a
wide variety of factors that hinder them, hence sustainability and the extent
to which the identified factors affect their operations. The scholars and
researchers who would like to debate or carry out more studies on promotional
strategies used in the Breweries to enhance their growth in the profitability.
It will also help to come out with improve findings.
1.7 Scope/Limitation
Of The study
The
study focus on the analysis of the influence of Promotional mix on the
profitability Growth of Breweries in Nigeria with 2009-2014. It will analyze
the influence of advertising, Selling Promotion, Public relations, personal
selling and direct marketing have on the productivity and profitability of
Breweries. The study was limited to it scope based on the following:
1. The study is conducted in Aba and
all the questionnaire based analysis that is done are all from Aba professionals.
This research was exploratory and had a relatively small samples size
2. Another limitation of research is
that our findings on the breweries operations, achievements
with special reference to productivity and profitability are not detail carryout due to time and
financial constraints.
3.
Another primary limitation is
related to the generalization of the research result.
1.8 Assumption
of the study
1. The
research assumed in the course of this study that promotional mix strategies does not exert grate influence on the
productivity and profitability of the breweries
in Nigeria
2. The
research equally assumed that Guinness Breweries Plc. Aba will serve as a representative of other Breweries in Nigeria.
1.9 Operational
Definition
The
following terms will be explain in the research view point for clarity purposes
and ease understanding:
1. Promotional Mix strategy: These are all
activities and strategies put together to
ensure that product element are commmunited to the consumers.
2. Advertising: This is a paid non
personal communication technique used in presenting a product to the consumer
via a recognize media
3. This
is regarded as all selling and inducement effort in other to increase selling apart
from advertising and personal selling.
4. Direct marketing: This is the process
through which the manufacturer or producer deals direct with consumer.
5. Personal selling: This is the process
in which the marketing staff (Permanent or Adhoc) go to the marketing and sell
directly to the consumer using personal conviction
and word of mouth.
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