ABSTRACT
This study explores the impact of
sales promotion on profitability within the brewing industry, focusing on
Nigerian Brewery Plc. The research aims to understand how various sales
promotion techniques, such as gifts, coupons, price-offs, and refunds,
influence profitability and the overall financial performance of the company.
Enugu State, with its 17 local
government areas and a population size of 3,267,837, serves as the geographical
scope for this study. Through a probability sampling technique, a sample size
of 92 respondents was determined using Taro Yamane's method. Both primary data
collected through surveys and secondary data were analyzed using simple
percentages, Pearson’s product moment correlation (PPMC), and multiple
regression analysis.
Key findings from the study include: Gifts,
bonuses, and coupons significantly and positively affect profitability in the
brewing industry. Increased efforts in bonus schemes were found to enhance
profitability, consistent with previous research; Sales volume, market share,
and discounts also significantly and positively impact profitability. This
suggests that strategies aimed at increasing sales volume and market share
contribute to overall profitability within the brewing industry.
Based on these findings, several
conclusions and recommendations are drawn: Sales promotion practices positively
influence profitability in the brewing industry. Therefore, companies should
continue to implement these strategies to enhance financial performance; Specific
sales promotion tools like bonuses, coupons, and gifts should be carefully
utilized to maximize their impact on profitability; Regular evaluation of sales
volume and profitability is recommended to ensure effective performance
monitoring and strategy adjustment; Market segmentation, targeting, and sales
promotion research should be closely integrated into sales promotion activities
to enhance effectiveness and efficiency.
In conclusion, the adoption of sales
promotion techniques significantly contributes to the profitability and
financial performance of companies in the brewing industry. By leveraging these
strategies effectively and integrating them with broader marketing initiatives,
firms can enhance their market position, sales volume, and ultimately,
profitability.
TABLE OF CONTENTS
CHAPTER
ONE
INTRODUCTION
1.1
Background to the Study
1.2 Statement
of the Problem
1.3 Objectives
of the Study
1.4
Research Questions
1.5. Research Hypothesis
1.6 Significance
of the Study
1.7 Scope
of the study
1.8 Limitation
of the study
1.8 Definition
of Terms
CHAPTER
TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual
framework
2.2 History
of modern sales promotion
2.3 Theoretical
issues on profitability
2.4 Empirical
review of sales promotion
2.5 Objectives
of sales promotion
2.6 Categories
of sales promotion
2.6.1. Types
of Sales Promotion
2.6.2 Advantages
of Sales Promotion
2.6.3 Limitations
of sales promotion:
2.7 The
Purpose of Sales Promotion
2.8
Classification of Sales Promotion
2.10 Sales
Promotion Budgets and Appropriation
2.10.1 The Fixed Percentage of Sales
Method
2.10.2 Affordable Method
2.10.3 The Objectives and Task Method
2.10.4 Competitors Expenditure/ Parity
Method
2.11 Management
of Sales Promotion Program
2.11.1 Research
2.11.2 Sales Promotion Tools Selection
2.12
Implementation and Evaluation of Sales
Promotion Strategy
2.13 Tactical
Consideration in Sales Promotion Strategy in a Competitive Marketing
Environment.
2.14 Brief
History of Nigerian Brewery plc
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1 Research design
3.2 Area of Study
3.3 Population of the Study
3.4 Sampling techniques
3.5 Sample Size
3.6 Method
of Data Collection
3.7 Method of Data Analysis
3.7.1 Questionnaire
3.7.2 Primary
Data
3.7.3 Secondary
Data
3.8 Validity and Reliability
3.9 Data Analysis Techniques
CHAPTER
FOUR
RESULTS
AND DISCUSSIONS
4.1 Questionnaire
Distribution
4.2 Socio-Economic
Data
4.3 General
Data
4.4 Hypotheses
Testing
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Sales
promotion has become an effective marketing tool that assists organizations to
wax stronger in a global competitive environment. Oyedapo(2012) identified
sales promotion as a key ingredient in marketing campaigns which assist
organizations to achieve its objectives. The main aim of any organization is to
maximize profit, have largest market shares and to become leaders in a market
competitive environment. Okoli (2011) confirmed that the essence of setting up
a business organization is to make profit. Sales promotion simply exists to have
a direct impact on the behavior of the firm’s customers (Blatberg and Neslin,1990).
Aworemi (2008) in his research finding said that sales promotion plays a
significant effect on sales volume which helps in achieving the organizational
objectives. The role of sales promotion in achieving organizational stated
objectives cannot be underestimated.
Marketing
is a practical discipline that focuses on the customer and his profitable
satisfaction. Marketing is the arm of business that embraces the identification
of the consumer needs and profitable configuration and allocation of human and
material resources not only to satisfy the identified needs, but also to
achieve the profitable goals of the enterprise. To do this, goods are produced
and brought to the knowledge of the target market. It therefore becomes
imperative to advice some promotional strategies and harness some
communicational tools not only to motivate the responsive chord of the target
market but also to sustain their buying pattern, especially to attract
preference both to the company and its producers (Boniface et al, 2007, Ayanwu
2003, Inyanga, 2004).
The
essence of sales promotion is to achieve a positive shift of the “market demand
curve of the enterprise from left to right (Njoku, 2002). And one of the
promotional tools to use, especially with reference to Nigeria Brewery Plc is
sales promotion, more importantly when personal selling and advertising have
performed their roles are “promotional forerunners” in the marketing
environment (Boniface et al, 2007).
The
essence of the use of sales promotion in an organization is to facilitate its
complementary role in the functioning of the other promotional elements namely
personal selling, advertising, publicity, public relation, direct and data base
marketing among others. This is because it is extremely difficult to measure
the categorical (individual) impact of a single promotional tool like sales
promotion in the company’s promotional strategy in actualizing both
communication effects, and sales effects due to the reason of ‘’Communication
carry over and promotional spillovers in the competitive market (Inyanga,
2004).Be it as it may, the interest of this research is to investigate into the
roles of sales promotion on the profitability of an organization.
This
can be achieved through the strategic adoption of some or all of the sales
promotion techniques namely sampling, premiums, coupon, and point of purchase,
which gulp a substantial marketing and promotional cost of an enterprise
(Anyanwu, 2003).
Sales
promotion in a nutshell is one of the most powerful weapon available to
transform and liberate an industrial dealer from customer dissatisfaction, and
also to attain rapid growth and progress in the marketing environment where
acute competition is the language of business ( Anyanwu, 2003).
1.2 Statement of the Problem
In
spite of the tight definition of sales promotion as an essential means of
creating awareness of the product existence and characteristics and also the
positive, psychological association that can enhance the buyer satisfaction
which add to the real value of the company’s offering, little attention is
being given to it by many business organizations in the country and they rarely
promote their sales to the fullest.
Many
firms pay little attention to sales promotion since they feel they can sell
their product with little or no promotional activities. Likewise, many firms
which could not afford the huge cost of the promotional program would entail
and despite the effect of sales promotion, there had been insufficient research
and decision modeling devoted to it. In addition, there is an established
negative perception of many firms as regards the cost of business promotion
especially those whose benefits are not early and immediately reached.
Also,
adequate records of sales and promotional cost are always neglected and some
sales promotion programs are introduced at the wrong time, which will therefore
hinder the level of sales and profitability of the firm and thereby render
sales promotion less important in the community and the country as a whole.
1.3 Objectives of the Study
The
main objective of this work is to examine the effect of sales promotion on profitability
in the brewing industry with special reference to Nigerian Brewery plc. The specific
objectives are to:
i. ascertain the effect of gifts in
enhancing profitability in the enterprise;
ii. ascertain
the effect of coupon on the sales growth of the firm;
iii. ascertain the effect of price- off on
customer patronage;
iv. ascertain
the effect of refund on customer retention in the enterprise;
v. ascertain
the relationship between sales promotion techniques and corporate profits.
1.4 Research Questions
This
study tends to investigate and provide answers to the following questions.
i. What
is the effect of gifts in enhancing profitability in the enterprise?
ii. What
is the effect of coupon on the sales growth of the firm?
iii. What
is the effect of price- off on customer patronage?
iv. What
is the effect of refund on customer retention in the enterprise?
v. What
is the relationship between sales promotion techniques and corporate profits?
1.6.
Research Hypothesis
To
provide answers to the questions arising from this study, the following
hypothesis are postulated:
Ho1: Gifts has no significant effect on
profitability of the enterprise
Ho2: Coupons has no significant effect on the
sales growth of the firm
Ho3: Price- off has no
significant effect on customer patronage
Ho4: Refunds has no significant
effect on customer retention in the enterprise
Ho5: There is no significant
relationship between sales promotion techniques and corporate profits
1.6 Significance
of the Study
It
is a fact that sales promotion has a great impact on business organization.
This study therefore intends to determine to a great extent the effect of sales
promotion on profitability in the brewing industry in business organization.
Because of the important role of sales promotion, this study will therefore
make a useful improvement upon the performance of business and how their level
of sales and profitability can be improved.
This
project will be of immense value to future researcher who might intend to carry
out a research on this particular topic. It will also help to highlight how
individual who may setup their own business in future to carry out their
business in an effective way. This study concentrated in the effect of sales
promotion and the profitability in the brewing industry but emphases was heard
on Nigeria Brewery Plc.
1.7 Scope of the study
This
study concentrated on the effect of sales promotion in the brewing industry but
emphasis was held on Nigerian Brewery plc.
1.8 Limitation of the study
There are many limitation been encountered by the
researcher during the period of getting information and that has affected this
work adversely. The first difficult task
was how to combine the writing of this work and preparation of my exams.
Secondly, lack of finance and resources also
restricted this research work to an extent.
The writer inspite of the account on the difficulty encountered, returns
all glory to God.
1.8 Definition of Terms
The
terms to be given operational definitions are:
Sales Promotion
Sales
promotion is defined as a broad label that applies special kinds of sales
accelerating activity not necessarily classed as advertising and direct
selling.
Organization
Organization
is defined by Robine (1987) as a consciously coordinated social entity with a
relatively identifiable boundary that function in a relatively continuous basis
to achieve a common goal or a set of goals.
Advertisement
Advertisement
is any paid form of non- personnel presentation and production of ideas, goods
or services by identified sponsor.
Pricing
Price
means the amount of money paid by the buyer to the seller of the product or
service.
Publicity
This
is a non- personal communication or presentation of idea about a product,
services, or a cry that is not paid by an identified sponsor.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment