ABSTRACT
This
study examines the influence of sales promotion on consumer brand loyalty for
alcoholic beverages in Rivers State, with a specific focus on Port Harcourt.
The primary objective is to assess how sales promotion affects consumer brand
loyalty. The research also aims to ascertain the effectiveness of sales
promotion in enhancing customer patronage, identify the most influential sales
promotion tools, and evaluate the extent to which sales promotion fosters brand
loyalty among consumers of alcoholic beverages in Port Harcourt.
This
research employs a descriptive survey design, which involves collecting data
from a sample of the population to make inferences about the larger group. The
population consists of all consumers of alcoholic beverages in Port Harcourt
metropolis. A pilot survey conducted at a 95% significance level and a 0.05
error margin resulted in a sample size of 264 respondents. This sample size
ensures a representative subset of the larger population, allowing for accurate
and reliable data collection.
The
collected data is presented using tables and percentages. The chi-square
statistical tool is employed to analyze the data and test the hypotheses.
The
research findings revealed sales promotion is highly effective in enhancing
consumer patronage of alcoholic beverages. Also, sales promotion significantly
aids in building brand loyalty among consumers of alcoholic beverages. The findings
showed sales promotion greatly enhances sales volume. And the majority of
alcoholic beverage consumers are youths aged 18-35 years, primarily consisting
of students and employed individuals.
Based
on these findings, the study concludes that organizations should leverage the
effectiveness of sales promotion to explore other areas within Rivers State,
particularly focusing on key players in the alcoholic beverage industry. The
study recommended that improve sales promotion campaigns targeting consumers of
alcoholic beverages in Port Harcourt, ensuring that pledges made to consumers
are consistently redeemed.
TABLE OF CONTENTS
CHAPTER
ONE
INTRODUCTION
1.1
Background of the study
1.2 Statement of the problem
1.3 Objective
of the Study
1.4 Research Question
1.5 Research Hypotheses
1.6 Significance
of the Study
1.7 Scope
of the Study
1.8 Limitations
of the Study
1.9 Definition
of Term
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1
Overview of Sales Promotion
2.1.2 Growth
of Sales Promotion
2.2
Objective of Sales Promotion
2.2.1
Objective for trade promotions
2.3
Sales promotion Techniques
2.4
Budgeting for Sales Promotion
2.4.1 Five
Techniques that are used to Determine/ Allocate Funds to Sales Promotion.
2.5
Sales Promotional Opportunities and
Limitations.
2.5.1
Limitations
2.6
Effects of High Degree of Brand
Loyalty.
2.7
Consequences of Sales Promotion in
Relations to Building Brand Loyalty.
CHAPTER
THREE
3.0 Research
Methodology
3.1
Research Design
3.2
Area of the Study
3.3 Population
of Port Harcourt
3.4 Sampling
Size
3.5 Source
of Data
3.5.1 Primary
Sources
3.5.2 Secondary
Sources
3.6 Instrument
for Data Collection
3.7 Method
of Data Presentation and Analysis
CHAPTER
FOUR
4.1 Data
Presentation
4.1.2 Sex
Distribution of respondents
4.1.3 Age
Distribution of Respondents
4.1.4 Marital
Status of Respondent
4.1.5 Respondents
Occupation
4.1.6 Education Qualifications of Respondents
4.1.7 Whether
Respondents Consume Alcoholic Beverages
4.1.8 Consumer
Alcoholic Beverages
4.1.9 Which
Category/Categories Of Alcoholic Beverages They Consume
4.1.10 Which
Brand Of Alcoholic Beverages That Respondents Consume
4.1.11 Whether
Respondents Are Loyal To Their Chosen Alcoholic Beverages Brand.
4.1.12 What
Factor Influence the Respondents Alcoholic Brand of Choice
4.1.13 Which
of the Sales Promotional Techniques Influences Respondents
4.1.14 Whether their Choice of Alcoholic
Beverage Company Engages On Sales Promotional Campaign.
4.1.15 Whether
Sales Promotion Were Very Effective on the Enhancement Of Consumer Patronage
and Loyalty of Alcoholic Beverages
4.1.16 Whether
Sales Promotion Aids, to a Large Extent in Building Brand Loyalty Among
Consumers of Alcoholic Beverages
4.1.17 Whether
Sales promotion Enhances Sales Volumes
4.2 Test
of Hypotheses
CHAPTER
FIVE
SUMMARY
OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of Findings
5.2.
Conclusions
5.3
Recommendations
REFERENCES
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Business
managers in Nigeria organization today are preoccupied with the problem of
coping with the failing demand and large inventory build-ups occasioned by the
recessive state of the economy which, to a large extent, has adversely affected
the purchasing power and have reduced the discretionary income of the
customers. Saddled with these multi-dimensional problems, series of measures
aimed at stimulating product demand and profitability levels has been devised,
e.g. the use of sales promotion programs.
Nigeria’s
contemporary marketing scene has continued to witness increase use of sales
promotion campaigns by many companies to facilitate the sale of their products.
Even though sale promotion gained prominence as promotional tool in Nigeria as
far back as early 1960s it was only 1990s, that its use became very widespread
in the country (ugbaja 1999). Organization ranging from local industries or
firm to multi-national corporations now resorts to these veritable weapons as
the only viable option for staying afloat in the volatile business environment
in which they operate. Although the success of these tactic programs remains to
be ascertained in strategic horizon, however, its revenue cannot be
overemphasized.
As
a component of the promotional mix in the communication process intended to
create product awareness and stimulate the desire to buy sales promotion is the
consumer to the product (Kotler, 2006). Sales promotion is a form of “incentive
marketing” or a “direct inducement” that offers an extra value or incentive for
the product to the sale force, distributors or ultimate consumers with the
primary objective of creating an immediate sale. It involves some types of
inducement that provides an extra incentive to buy (Hornby, 2008). This
incentive is usually the key element in a promotional program; it may be a
coupon or price reduction, the opportunity to enter a contest or sweep-stakes,
money-back refund or rebate or an extra amount of a product.
Sale
promotion can also provide an inducement for marketing intermediaries such as
wholesalers and retailers. A trade allowance or discount gives retailers
financial incentive to stock and promotes a manufacture’s products. A trade
contest directed towards wholesalers or retailers gives them extra incentive to
perform certain tasks or meet up with set out goals. (Busch, 2003). Sees sales
process and maximize sales volume it motivates consumers to purchase a large
quantity of a brand.
(Gardens
and Hoffman, 2008) opine that brand loyalty is the ultimate goal of a company
sets for a branded product. Brand loyalty is the consumer’s preference to buy a
particular brand in a product category. It occurs when then consumers perceived
that the brands offered the right features, image or level of quality at the
right price. This perception becomes the foundation for a new buying habit.
Basically, consumers initially, will make a trial purchase of the brand and
after, satisfaction tends to form habit to continue purchasing the same brand
because the consumers are now familiar and safe with it. Brand loyalty is the
strongest measure of brand’s value. It can be demonstrated not only by repeat
buying or purchase of the product or service even with the availability of
other alternatives. This study therefore seeks to find out how sales promotion
influences consumes brand loyalty amongst consumers of alcoholic beverages in
Port Harcourt.
1.2 statement of the
problem
In
the struggle to make profit and effective sales, manufacturing companies,
organizations and marketers must employ promotional tools and techniques, not
just to make sales and profit but to check ones that is going out of market
demand. It is promotional tools employed that has made away for effective sales
and awareness of product quality and uses to the customers, thereby inducing
the customers to buy or continue to use the firm’s product.
Great efforts
have been made by firms in using sales promotion to achieve sales, but certain
constraints have hampered its effectiveness. The amongst other are:
i.
Consumer are very
sensitive to products that are promoted using sales promotion as its
promotional tools, rather than advertising, personal selling, publicity etc,
because they sense that sometimes, the gifts promised for purchasing the
product may never get to them.
ii. The
different sales promotional techniques offer different incentives. While some
consumers may prefer coupons, money refunds etc. other may be attracted to the
product if the marketer is using price-off, premium etc.
iii. Sale
promotion is only a short term promotional tool that induces purchase and
product brand loyalty for the period of time that the promotion lasted. All
these and more have brought about the need for this study “Assessing the
influence of sales promotion on port Harcourt consumers brand loyalty to
alcoholic beverages”.
1.3 Objective of the Study
The
main objective of the study is, Assessing influence of sales promotion on
consumer brand loyalty of alcoholic beverages in Nigeria (a study of Port
Harcourt metropolis) while the other objectives are;
i.
to ascertain the
effectiveness of sales promotion in enhancing customers patronage of alcoholic
beverages in Port Harcourt
ii. to
determine the sales promotion tools that most influences consumers of alcoholic
beverage in Port Harcourt
iii. to evaluate the extent to which sales
promotion builds brand loyalty among consumers of alcoholic beverages in Port
Harcourt.
1.4 Research Question
The
research questions stated in the course of carrying out this study are;
i.
how effective is sales
promotion in enhancing customer’s patronage of alcoholic beverages in Port
Harcourt metropolis.
ii.
which sales
promotional tools most influences alcoholic beverage consumer in Port Harcourt
metropolis.
iii.
to what extent does
sale promotion helps in building brand loyalty among consumer of alcoholic
beverages in Port Harcourt metropolis.
1.5 Research
Hypotheses
The
researcher in the course of this study formulated the following hypotheses to
guide the study.
H01:
Sales promotion does not enhance customers patronage of alcoholic beverages.
H02
sale promotion tools do not influence consumers of alcoholic beverages in Port
Harcourt.
H03
sales promotion does not help in building brand loyalty among consumers of
alcoholic beverages in Port Harcourt.
1.6 Significance of
the Study
In
the age of spiraling inflation and its attendance effect on the disposable
income of the consumers, revealed in contracting demand and how sales turnover
for organization,
it is apparent that a forward looking executive manager or practitioner in the
field of marketing must understand the effect of a well structured or
well-articulated sales promotional program will have on the buying pattern of
potential and realized consumers in the market place, it will enable marketers
to understand how they would ensure appropriate design, implementation, control
and evaluation of sales promotional campaigns.
Moreover,
criticisms are mounting on the authenticity of claims made by campaigns and the
spill-over effect it has on organization with credible promotion drives. A
study of this nature will enable promotional strategies or markers plane
effectively and compete favorably in the market place for the time, energy and
money of the consumers.
In
increase sales, sales promotion helps create employment opportunities in the
society, thereby, boosting the Nigeria economy. In addition, this study will
equip marketers with the technical knowhow on consumer’s behavior as it related
to brand loyalty and the appropriate application of sales promotional habits.
Finally, the finding of this research will aid future researches, as it well
serve as literature for them.
1.7 Scope of the Study
The
research work has covered all aspect of the marketing activity that pertains
specially to sales promotion. It shall also look at the concept of brand
loyalty in its entirety and how sales promotion influences it in achieving
consumers in Port Harcourt metropolis.
In
view of this, the study has covered those variables that can easily be
recognized as sales promotion strategies in the marketing activities.
1.8 Limitations of the
Study
This
research work is intended to be exhaustive and comprehensive. However, limitations are envisaged in the area of:
a) Time Constraints:
Since the researcher has carried out this research simultaneously with other
academic activities, one major limitation was time. The period within which to
complete and submit the project for assessment is very short.
b) Financial Constraint:
The researcher would have expanded the scope of this study but the finance
necessary to do this is limited.
c) Poor responses:
Most research works are characterized by poor responses from respondents. They
often lack the willingness to give out information. There is also uncertainty
about getting back all the questionnaires distributed and unbiased information.
It should be noted that these limitations will not affect the validity of the
analysis carried out in this study and the recommendations to be given.
1.9 Definition of Term
a) Sales Promotion: According to
American Marketing Association. Sale promotion are those marketing activities
other than advert, personal selling and publicity that stimulate instant demand
(Kotler,2007).
b) Brand: Refers to a name, phase,
design, symbol, or the combination of these, that a firm or an individual uses
to differentiate its products from that of competing products (Nwaizugbo 2004).
c)
Brand Loyalty: This is the level of
communication that consumers have for a specific brand.
d)
Alcoholic beverage: An alcoholic
beverage is a drink containing the alcohol which is commonly referred to as
ethanol e.g beers, wines and spirit (or distilled beverage).
e)
A consumer is a person or group of
people who are the final user of products and services generated within a
social system. They acquire goods and services for direct use or ownership
rather than for resale or use in production and manufacturing.
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