ABSTRACT
In spite of the numerals sales promotion techniques available to
many organizations, it is important to note that many organizations have not
yet appreciated how to effectively and efficiently utilize these sales
promotion techniques in attempting to enhance their organization performance.
The objective of this project work is to
examine the impact of sales promotion in a business organizational with special
reference to Nigeria Bottling Company Plc.
The method used is survey approach which
gives room for primary data-questionnaire while the sampling technique adopted
is simple random sampling techniques in which all members of the population has
equal probability and independent chance of being selected. The chi-square
method is used to test the hypothesis and to examine the effect of sales
promotion on organizational performance. During the course of findings,
majority of the respondents accepted the fact that sales promotion affects
organizational performance and sales volume of the organization.
In conclusion, effective implementation of sales promotional
tools lead to increase in sales volume and invariably higher profits. It is
recommended that during festive period, organizations should take full
advantage by developing an effective and efficient sales promotion campaign
that can arouse the consumers awareness, thereby leading to greater purchase of
their products.
TABLE OF
CONTENTS
CHAPTER ONE
INTRODUCTION
1.1
Background
of the Study
1.2
Statement
of problem
1.3
Aim
and Objectives of the Study
1.4
Research
Questions
1.5
Statement
of Hypotheses
1.6
Research
Methodology
1.7
Scope/Limitation
of Study
1.8
Significance
of the Study
1.9
Historical
Background of the Study
1.10
Organisation
of the Study
1.11
Definition
of Terms
References
CHAPTER TWO
LITERATURE REVIEW
2.1
Introduction
2.2 Definition
of Sales Promotion
2.3 Theories
of Consumer Behavior Applied to Sales Promotions
2.4 Techniques
of Sales Promotion
2.4 Types
of Sales Promotion
2.5 Reason
for Sales Promotion
2.6 Impact of Sales Promotion on
Organizational Performance
References
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
3.1 Sources
of Data Collection
3.2 Population
of the Study
3.3 Sample
Size
3.4 Sampling
Techniques
3.5 Restatement
of Hypotheses
3.6 Method
of Data Analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1
Introduction
4.2 Personal Characteristics
Of The Respondent
4.3 Response
of Respondents to the Problem Areas
4.4 Testing and Interpretation of the
Hypotheses
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.0
Introduction
5.1 Summary
of Findings
5.2 Conclusion
5.3 Recommendations
References
Appendix
CHAPTER
ONE
INTRODUCTION
1.0
BACKGROUND OF THE STUDY
The
economic situation of the country in both the past and present year has affected
the financial and commercial activities of business organization as a whole,
which has resulted in decline level of sales and profitability. In view of this
facts, many business organization are therefore involved in different type of
measure such as sales promotion in order to increase their sales and also to
remain in business since there is doubt that without adequate sales promotion,
most of the business objective will not be reached.
During
the past decades or thereafter, business organizations know their environment
customers and market first hand. Reason being that the environment and the
business organization were small with the increasing complexity of the business
environment, and systematic approach to studying the increase problems of management,
it becomes all the more important that the environment need be studied.
It
is obvious that the principal function of management is to make decision and
without doubt marketing decision seems to be the most difficult and therefore,
its effect is felt throughout the business.
With
growing needs supply, individuals and organization needs and inevitably bridge
the gap between the producers and the customers or users of the product,
organizations equally need to research into the growing needs of these groups.
Also, since there is the greatest need for the organization to maintain market
share, there is the need to create awareness so as to increase their level of
sales and productivity. Due to this reason, there is the greatest need to
understand the impact of sales promotion in business organizations.
Due
to the increase acceptance of sales promotion by firms as a very important
element of the promotional mix and its expenditure also being on the rise, it
has become very import to examine whether sales promotion is actually making
any impact on the volume of sales. This paper specifically evaluates the effect
of sales promotion on the volume of sales of products with special reference to
Chi Group Limited.
1.2 STATEMENT OF THE PROBLEM
Inspite
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 associations 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 organisations in the country and they rarely promote their
sales to the fullest.
Many
firm pay little attention to sales promotion since they feel they can sell
their product with little or no promotional activities. Likewise, many firm
which could not afford the huge cost of the promotional programmes, would
entail and despite the effects 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 programmes are introduced at the wrong time, which will
therefore hinder the level of sales and profitability of the firm and thereby
render sales promotions less important in the community and the country as a
whole.
1.3 AIM AND OBJECTIVES OF STUDY
The
aim of this research work is to examine the impact of sales promotion in
business organizations with special reference to Nigerian Bottling Company Plc.
The objectives of the research work include:
·
To identify the combination of promotional
tools that should be adopted to enhance promotion.
·
To determine the usefulness of sales
promotion.
·
To
explore rationale behind sales promotion by examining consumer behaviour
·
To
pose challenges ahead sales promotion
·
Identify
conditions under which sales promotions influence purchase behavior
·
To determine how long the company has been
carrying out sales promotion.
·
To find out the media used by the company in
conveying sales promotion programmes.
1.4 RESEARCH QUESTION
This
study tends to investigate and provide answers to the following questions.
·
Does Sales Promotion have significant effect
on organizational performance?
·
Does sales promotion influence consumer
purchase behaviour?
·
Do consumers really benefit in sales
promotion?
·
What are the implications of defective sales
promotion in an
organization?
·
What are the main factors that affect sales
promotion?
1.5 STATEMENT OF HYPOTHESIS
To
provide answer to the research questions arising from this study, the following
hypotheses are postulated.
HYPOTHESIS
ONE
H0: There is no significant relationship between
sales promotion and organizational performance.
H1: There is a significant relationship between
sales promotion and organizational performance.
HYPOTHESIS
TWO
H0: Sales promotion does not influences consumer
purchase behavour.
H1: Sales promotion influences
consumer purchase behavour
1.6 RESEARCH METHODOLOGY
Research
methodology deals with the procedure used by the researcher to conduct the
study. It contains the different activities performed and methods employed by
the researcher in the study. For the purpose of collecting necessary data for
this research work, primary and secondary data collection method will be used.
The primary data collection method will be through the following:
1. Structured questionnaire
2. Personal unstructured interview
3. Observation
The
secondary data will be collected from reports and documents from the company.
Also, reports outside the company and from library and desk research
literatures will be used.
In
this study, descriptive method will be used to analyze data and also in testing
hypothesis, chi-square (X2) will be employed. Findings from this
research study will be discussed in the light of the research problem
hypothesis, purpose research questions, literatures of the research and other
relevant issues conclusions will be drawn and recommendations and suggestions
also will be made.
1.7 SCOPE AND LIMITATION OF THE STUDY
This
study covers investigating the efficacy of the sales promotional tools adopted
by Nigerian Bottling Company, Alausa, Lagos.
In the course of conducting this
research work it is expected that the following will constitute impediments to
the effective conduct of the study
a) Time
constraint within which the study must be completed.
b) Financial
constraint
c) Inaccessible
and inadequate data
d) Also, combining project work with several
other activities is another stressful task that may not allow me to cover
research materials extensively.
Nevertheless, I believe the above
limitations will in no way affect the reliability and validity of the research
study.
1.8 SIGNIFICANCE OF THE STUDY
It
is a fact that sales promotion has a great impact in business organization.
This study therefore intends to determine to a great extent the impact of sales
promotion 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 set up their own business in future to carry out their
business in an effective way.
1.9 HISTORICAL BACKGROUND TO THE STUDY
Nigerian
Bottling Company Plc is a marketing company engaging in the brewing of soft
drinks of which Coca-cola takes a paramount position among its product line.
Nigerian
Bottling Company was incorporated in Nigeria in the year 1951 by the
reverend Chief A.G. Leventis. From humble beginning in 1951 and under high
inspired leadership, the company has grown to become the largest soft drinks
bottler in Nigeria and one of the largest employers in the country, operating
about 20 production plants as well as 65 sales depot throughout the Federation
of' Nigeria with its Administrative head office at Oyingbo, Lagos State,
formerly at Iddo, Lagos State.
The
Nigerian Bottling Company is a noticeable giant among first class Bottling
Companies and is also reputed as having the same status in all the state of the
country. Because of its excellent performance over years, there is no doubt
that its features of operation will provide good presentative information in
other similar organizations.
Suffice
is to say that the company provides range of employment opportunities to school
leavers and professional in the field of commerce and marketing. In view of the
fact that sales promotion programmes are just being newly developed in Nigeria and its
view are only being embraced by larger scale ventures, Nigerian Bottling
Company- Coca-cola to be specific has been noted for their involvement in
promotional activities, which has been increasing their level of sales and
profitability.
There
is no doubt, however, that the company tinder consideration with its distinct
features and give a good highlight of. the impact of sales promotion in
business organization both in the short and long run.
1.10 ORGANIZATION OF THE STUDY
This
product will be divided into four chapters.
Chapter
one will take cognizance of introduction, background of the study, problem,
purpose & objectives, scope and limitation of the study, significance of
the study, research question hypothesis and as well organization of the study.
Chapter
two will cover the literature review. Subheading in areas to be reviewed,
appraisal, or related literature and research questions.
Chapter
three deals with details of the methodology used in carrying out the research
work.
Chapter
four critically examines the result of the findings, while chapter five deals
with the discussion on the finding, summary, conclusion, recommendation finally
the bibliography and appendixes
1.11 DEFINITION OF THE BASIC TERMS
The
terms to be given operational definitions to are:
SALES
PROMOTION: Sales promotion can be defined as a broad
label that applies special kinds of sales accelerating activity not necessarily
classed as advertising and direct selling.
BUSINESS:
Business
can simply be defined as the totality of all economic activities that are
undertaken in the process of producing and distributing goods and services for
the purpose of making profit.
ORGANIZATION:
Organization
is defined by Robine (1987) said an organization is a consciously coordinated
social entity with a relatively identifiable boundary, that function on a
relatively continuous basis to achieve a common goal or 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 ideal about a product,
service or a cry that is not paid by an identified sponsor.
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