ABSTRACT
The study is on the impact of sales promotion on organization effectiveness in Nigeria manufacturing industry a study of NESTLE Nigeria Plc. The specific objectives of this study are to; determine the socioeconomic/demographic characteristics of the respondents; determine sales promotion strategies adopted by beverage drink industries in Nigeria; determine the effect of sales promotional strategies on the effectiveness of NESTLE Food Plc. in Nigeria. Data for the study was collected from a primary source which was the use of a well-structured questionnaire, personal interview and observation also formed a critical means of data collection sample size was determined using simple random sampling technique therefore the sample size selected was 200. Data gathered from the study were analyzed using descriptive statistics such as frequency tables and percentages, the t-test analysis statistical tools was employed to test the hypothesis.. The results on the use of sales promotion by beverage drink industry in Nigeria showed that the mean difference was statistically significant at 0.05 level as the p-value is smaller than 0.05 (i.e. t = 1.648, P < 0.05), therefore, the null hypothesis that beverage drink industry do not use sales promotion strategies to achieve their set goals was rejected while the alternative hypothesis was accepted which suggests that beverage drink industry in Nigeria make use of sales promotion strategies to achieve their set goals also the t-test statistical analysis on the effect of promotional strategies adopted by nestle food ltd showed that the mean difference between was statistically significant at 0.05 level as the p-value is smaller than 0.05 (i.e. t = 2.028, P < 0.05), ttherefore, the null hypothesis that sales promotion strategies has no influence on organization effectiveness was rejected while the alternative hypothesis was accepted which suggests that sales promotion strategies has influence on organization effectiveness This indicates that there is an agreement that NESTLE Nigeria Plc as well as beverage drink industry in Nigeria make use of sales promotion strategies and that sales promotion strategies have a positive influence on the organizations effectiveness. The researcher therefore recommends that NESTLE Nigeria Plc. and all other manufacturing organizations in general, may engage always in more promotional mix strategies, and also tend to be creative to consumers; this in turn would enhance and boost sales revenue.
TABLE OF CONTENT
Title Page i
Declaration ii
Certification Page iii
Dedication iv
Acknowledgement v
Table of Content vi
List of Tables viii
Abstract ix
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study 1
1.2 Statement of the problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 3
1.6 Significance of the study 3
1.7 Scope of the study 4
1.8 Limitations of the Study 4
1.9 Definition of Terms 4
CHAPTER TWO
3.0 REVIEW OF RELATED LITERATURE
2.1 Introduction 6
2.2 The History and Growth of Sales Promotion. 7
2.3 Objectives of sales promotions. 8
2.4 Characteristics of Sales Promotion Tools 10
2.5 Types of sales promotion. 10
2.6 Main Classification of Sales Promotion: 12
2.7 Advantages of sales promotion 14
2.7.1 The Strength and Strategies of Sales Promotion 15
2.8 Problems of Sales Promotion 15
2.8.1 The Effectiveness of Sales Promotion 17
2.9 Organizational Effectiveness 17
2.9.1 Relationship between Sales Promotion and Organization Effectiveness 18
2.10 Theoretical framework 20
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Research Design 21
3.2 Area of Study 21
3.3 Method of Data Collection 21
3.4 Population of Study 21
3.5 Sample Size Determination 22
3.6 Methods of Data Analysis 22
3.7 Design and Administration of Questionnaire 23
3.8 Validity of the Instrument 23
3.8 Reliability of instrument 23
3.9 Model of Specification 23
CHAPTER FOUR
4.0 DATA PRESENTATION, INTERPRETATION AND ANALYSIS
4.1 Data Presentation 25
4.2 Analysis of Data 25
4.3 Hypothesis Testing 28
4.3.1 Hypothesis 1 28
4.3.2 Hypothesis 2 30
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Discussion of Findings 33
5.2 Conclusion 34
5.3 Recommendations 34
REFERENCES
APPENDIX
LIST OF TABLES
Table 1 Questionnaire Distributed and Completed. 25
Table 2 Distribution by Sex 26
Table 3 Distribution by Marital Status 26
Table 4 Educational Attainment. 26
Table 5 Working Experience with Nestle food. 27
Table 6 Respondents View On The Type Of Promotional Strategies Adopted
By Nestle Food Ltd. 27
Table 7 Respondents View Of Their Perception On The Influence Of Sales 28
Table 8: Type Of Promotional Strategies Adopted By Nestle Food Ltd.
Promotion Strategies On Organizational Effectiveness Nestle Food Ltd. 29
Table 9: Showing the difference in means of the type of promotional strategies
adopted by Nestle food Ltd 30
Table 10: Type Of Promotional Strategies Adopted By Nestle Food Ltd. 31
Table11: Showing the difference in means of the type of promotional strategies
adopted by Nestle food Ltd 32
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the study
Sales promotion, a key ingredient in marketing campaigns; the need to promote a product, service or an idea cannot be over emphasized. Obi (2002) described sales promotion consists of the related promotional activities that are necessary to supplement personal selling. Some of these include distribution of sample products to customers, exhibitions, or demonstration of products at stores or trade fairs or shows and preparation of printed materials used by sales people or for point-of-sale displays. A combination of the above variables defines a firm’s promotional programme that hopes to influence consumers to patronize and become loyal to the organizations offering (Banabo and Koroy, 2011). Hence, promotion in marketing represents those tools that companies used to persuade their prospective consumers to buy their product or service. Organization effectiveness is a totality of organization goodness, a sum of such elements as production, cost performance, turnover, quality of output, profitability, efficiency and the like (Katz and Kahn, 1966). It is the ability of an organization to achieve its objectives and meet the needs of its various stakeholders (Khandwalla, 1995). Sales promotion can promote organization effectiveness through increase in profitability from higher sales. Okoli (2011) explains that the “essence of setting up a business organization is to make profit. Without profit, a business is bound to fail”. Loudon and Bitta (2002) said that sales promotion plays a significant effect on decisions which help in achieving the organizational objectives. It has been established in literature that only consumers with repeat purchases are profitable (Nagar, 2009). It is not every repeat purchase that is connected to consumer’s commitment of a brand. However, consumer’s commitment is important for a repeat purchase. Therefore, business operators need to develop marketing program that will not only reinforce customer’s commitment but also encourage repeat purchases. A part of the functions of sales promotion is not only to reinforce commitment of consumers but to encourage repeat purchase. Sales promotion has effects on various aspects of consumer’s purchase decisions such as brand choice, purchase time, quantity, and brand switching (Nijs, et al., 2001). Thus, sales promotion becomes an integral part of the marketing strategy for reaching the target market and it is the responsibility of marketing managers to combine elements of promotional strategies, which is promotional mix into coordinated plans. Sales promotion efforts are directed at final consumers and designed to motivate, persuade, and remind them of the goods and receives that are offered. Sales promotion which is a major force in marketing is widely adopted by beverage drink industries in Nigeria, but as Nigeria is witnessing an economic down turn, there is increase in prices of consumer goods that also lead to an increase in beverage drinks prices (NESTLE Food Fact book, 2010; Bamiduro, 2001). The importance of the excessive promotion in a competitive market environment has generated a lot of interest in marketers and firms to develop numerous and comprehensive promotional approaches (Adaramola, 2010). The objective of this study therefore is to survey the extent to which sales promotional strategies affect the effectiveness of NESTLE Food Plc.
1.2 Statement of the problem
This era of business competition ushered most business organization to adopt the most effective promotional tools in marketing their products. The Nigeria Bottling Company has tied to adopt sales promotion, and other promotional activities in the sales of their products. Though sales promotion have been the most effective tools used of the sales force, producer and product. Sales promotion offer incentive of buying their product like giving free products, and other prices that could be won during their promotion period. They have been large sales of NESTEL Food product due to product performance and sales promotion; they gain competitive advantage over their competitors. Lastly, the problem of the study is to examine how effective sales promotion is in marketing and sales of NESTEL Food products and its impact on the organization effectiveness. If they continue to adopt sales promotion, will it increase brand awareness, attract new users or buyers of their product, stimulate repeat purchase of their products?
1.3 Objectives of the Study
The broad objective of the study is to determine the impact of sales promotion on organizational effectiveness in Nigeria Manufacturing Industries.
The specific objectives of this study include the following to;
1. Determine the socioeconomic/demographic characteristics of the respondents.
2. Determine sales promotion strategies adopted by beverage drink industries in Nigeria.
3. Determine the effect of sales promotional strategies on the effectiveness of NESTLE Food Plc. in Nigeria.
1.4 Research Questions
The following research questions formulated for the study:
1. What are the socioeconomic/demographic characteristics of the respondents?
2. What are the sales promotion strategies adopted by the beverage drink industries in Nigeria?
3. What are the effects of sales promotional strategies on the effectiveness of NESTLE Food Plc. in Nigeria?
1.5 Research Hypotheses
The following hypotheses were set to be tested in the study.
H01 The beverage drink industry does not use sales promotion strategies to achieve their set goals.
H02 Sales promotion strategies has no significant influence on the effectiveness of beverage drink industry.
1.6 Significance of the study
The study is significant because, it contributes to new knowledge by filling and reducing the gap that exist in the understanding of sales promotion by management and other stakeholders in the manufacturing sector. Also those that may be interested in carrying out further study on the impact of sales promotions on organization effectiveness in the manufacturing industries has a very reliable reference base.
1.7 Scope of the study
As the research topic would suggest at a glance, the scope of this is essentially focused on the organizational effectiveness of sales promotion in NESTEL Food Ltd from responses of the managements and staffs as a general overview sample study of the organizational effectiveness of sales promotion in Nigerian manufacturing industries. Therefore, the study will look into the nature of promotional strategies of manufacturing industries.
1.8 Limitations of the Study
Attitude of Respondents: Some respondents may find it difficult to give information about them while others may give wrong information about themselves.
Time: The research work is only limited to a semester, hence the problem of time is even more amplified when considered that the researcher had to attend to other aspects of his study order than the research work since both academic studies and research work run concurrently.
Fund: Again lack of sufficient fund to conduct an extensive study was another handicap.
This were part of the reason why I had to limit my work to fewer staffs than was earlier planned, but I relied heavily on the goodwill of the research supervisor so as to make this study a success.
1.9 Definition of Terms
Sales Promotion: Sales promotion consist of any consumer or trade programs that add tangible value to brand of that consumer or trade program in order to stimulate sales and create more awareness of such program.
Organizational Effectiveness: The efficiency with which an association or an organization is able to meet its objectives.
Sales: The activities involve in giving a product to a buyer for exchange of price paid on that product.
Marketing: Marketing is the management process responsible for the identifying, anticipating and satisfying customers wants profitably.
Product: A product is anything tangible and intangible that is offer to the market for attention, acquisition, use or consumption that might satisfy a want or need.
Consumer: A consumer is a person that buys goods from the producers, wholesaler and retailers for final consumption.
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