SALES PROMOTION: A MARKETING STRATEGY FOR ACHIEVEMENT OF ORGANISATIONAL GOALS

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SALES PROMOTION: A MARKETING STRATEGY FOR ACHIEVEMENT OF ORGANISATIONAL GOALS

(A case study of 7Up Bottling Company Abuja Nigeria Plc.)

ABSTRACT

This research work titled “Sales promotion: A marketing strategy for achievement of organizational goals” is a study undertaken to examine how customers are been giving extra reward for their behaviour on purchasing.  The research is aimed at determining the extent to which sales promotion affects the achievement of organizational goals. The study used primary and secondary data collected from Seven-Up Bottling Company staffs with the use of structured questionnaires to collect data on sales promotion on marketing strategy for achieving organizational goals. Tables, pie chart and bar chart were used in analyzing the data collected in the course of the research. It is recommended that the firm must intensify the use of sales promotion as respondents have shown great interest and are highly influenced by sales promotion activities and appearance of sales person should be greatly enhanced.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The business environment has become very competitive in the 21^st century due to the growth in technology, infrastructure and access to information around the globe. This has made the environment very complex and consumer preferences keep changing because of the low switching cost in market. Due to this increasing demand of consumers in the market, management of business organizations have to increase their resources with attention focused more on attraction and retaining its customers (Kotler, 2003).

The ever increasing competition in the global market has prompted organizations to be determined and ensure satisfaction of customers’ needs and wants more efficiently and effectively than ones competitors (Kotler 1998). Sales promotion is an initiative undertaken by organizations to promote and increase sales, usage or trial of a product or services (Aderemi, 2003). Sales promotion refers to the provision of incentives to customers or to the distribution channel to stimulate demand for a product. It is an important component of an organizations overall marketing strategy along with advertising, public relations and personal selling. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over the other. It is particularly effective in spurring product trials and unplanned purchase (Aderemi, 2003).

Sales promotion is a marketing activity that adds to the basic value proposition behind a product (i.e. getting more for less) for a limited time in order to stimulate consumer purchasing, selling effectiveness or the effort of the sales force (Aderemi, 2003). This implies that, sales promotion may be directed either at end consumer or at selling intermediaries such as retailers or sales crews. Sales promotion can be an effective too, in a highly competitive market, when the objective is to convince retailers to carry a new product or influence consumers to select it over those of competitors.

More so, sales promotion tend to work best when it is applied to items whose features can be judged at the point of purchase, rather than more complex, expensive items than might require hands of demonstration (Kotler and Keller, 2006). Sells promotion includes communication activities that provide extra value or incentive to ultimate customers, wholesalers, retailers or other organizational customers, it is also stimulates sells product trial (Kotler and Keller, 2006).

However, according to Keller (2003) consumer buying behaviour is the process by which the individual search for, select, purchase, use and dispose of the goods and services, in satisfaction of their needs and wants. The consumer’s behaviour has a direct effect on the success of the firm and therefore must ensure that they create a marketing mix that satisfies consumers. The consumer mostly goes through about five steps in taking one purchase decision. These include problem recognition, information search, evaluating of alternatives, purchase decisions, purchase and post purchase evaluation. Actual purchasing is only one stage of the process and not all decision processes lead to a purchase. Also not all consumer decisions will include all the stages but will depend on the degree of complexity and risk involved.

There are however about five type of buying behavior that consumers exhibit, these include a routine response which needs very little search and use when purchasing frequently purchased items, limited decisions which is used when purchasing low priced brands in a familiar product category, extensive decision which has a high degree of economic, performance and psychological risk which demands lot of time in seeking information and deciding and impulse buying which is spontaneous and needs no conscious planning.

This study focuses on the effects of sales promotion on consumer buying behavior. The ultimate objectives of every business is to increase the sales of goods that i-t deals in several methods can be adopted for the achievement of this goal, some direct while others indirect. Sales promotion is one of them. Sales promotion is defined as a “diverse collection of incentive tools, mostly, short term designed to stimulate quicker and or greater purchase of particular products/services by consumers” (Kotler 1998).

According to Kotler (2003), sales promotion is a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools, mostly short term designed to stimulate quicker or greater purchase particular products or services by consumers. Sales promotions programmes are those activities other than stimulate consumers purchase.

Sales promotion is one of the four aspects of promotional mix which is an element of the four marketing mix, product, price, promotion, and distribution. It is normally considered as a tool consisting of short term incentives to encourage the purchase or sales of a product or service. Examples of sales promotion are found everywhere e.g. in the aisle display in the local supermarket that tempts impulse buyers with a wall of coke cartons, an executive who buys a new Compaq laptop computer gets a free carrying case. Sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger market response (Kolter 2003).

1. PROFILE OF 7UP BOTTLING COMPANY ABUJA, NIGERIA PLC.        

The case study is 7up Bottling company, found on 1^st October, 1960, the exact day our great country Nigeria won her independence, also saw the birth of a soft drink giant as the first bottle of 7up rolled out from its factory located in Ijora. The 7up Bottling company plc. Is now one of the largest independent manufacturers and distributors of well-known and widely consumed brands of soft drinks in Nigeria. The Pepsi, 7up Mirinda, Teem and Mountain Dew and Aqua Dana Table water brands are all produced in the company’s nine bottling plants with state of the art manufacturing facilities located strategically across the country.

7up Bottling Company has a well co-ordinated distribution network with an extensive network of over 200 distribution centers located across Nigeria. The company’s workforce is currently in the neighbourhoods of 3500 employees. The Nigeria head office is located along Moshood Abiola Way, Ijora, Apapa, Nigeria.

ABOUT 7UP BOTTLING COMPANY ABUJA, NIGERIA PLC

The Seven-Up BOTTLING Company Plc is one of the largest independent manufacture and distributors of the well-known and widely consumed brands in soft drink in Nigeria. Our brands are Pepsi, 7up, Mirinda, Teem and Mountain Dew which we produce and market in all our present manufacturing plant. We also market our products through our over 200 distribution centers that we also call depots spread over the nooks and crane of Nigeria.

Our workforce is currently in the neighborhood of 3500 employees.

A Lebanese Moh0ammed El-Khalil who came to Nigeria for the very first time in 1926 founded the company. Mohammed is the father of the company’s current chairman faysal-El-Khalil. The company metamorphosed from a very successful transport business (El-Khali Transport) in a bid to diversify the then largest transport company in the entire west of Africa. On October 1^st 1960, the exact day our great Nigerian won her independence, Nigerians also experienced the birth of 7up rolled out from our factory located in Ijora. Since then, the company continued to grow in the leap and the bound. In the late 80s, we established two more plants in Ibadan and Ikeja. In the early 1990s when Pepsi international took over 7up international, we again got great opportunities to introduce the Pepsi brand to the Nigeria People. As at today, the company has its headquarters in Beirut and operational base in three African countries, Tanzania, Nigerian and Ghana.

VISION

To become the most admired and innovative company in Nigeria.

MISSION

Inspire and refreshes youthful lifestyle.         

CORE VALUES

Commitment and ownership: Our people will describe the company as “Our company”, reflecting the entrepreneurial spirit and sense of ownership. “Caring and rewarding” as the people in the company experience a feeling of brotherliness and freshness in their relationship with one another to build the organization. In addition, achievement by people are recognized and rewarded appropriately.

Teamwork: Each of the employees recognizes the value of the skills, abilities and co-operation between relevant persons and the units toward delivering seamless and superior values.    

Integrity: Our people are reputed for unflinching uprightness and high ethical standards.

Trust: The management has confidence that employees will act in the best interest of the company.

Employees also believe that management will not harm them but will do everything possible to prevent and further their interest.

PORMOTION HISTORY OF 7-UP

This company has also made great impact in the sales promotion, advertising etc. the company is noted for its tremendous engagement in sales promotion.

Thus 1991: There was “EXPRESS” sales promotion:

January 1993: 7-up spell and win

June 1993: Wain maina

January 1994: 7-up spell and win

June 1996: High life

August 1995: 7-up spell and win

September 1996: 7-up spell and win

October 1998 till year 2001 January: Wining was based on 7-up high life, T-shirt Bonanza etc.

There are slogans that create lasting impression such as

1. 7-up difference is clear
2. Pepsi the choice of the generation

The sales promotion techniques adopted by 7-up bottling company to beat the drawn about its product include:

1. Contents
2. Dealer leader
3. Sponsorship
4. Dealer listing
5. Demonstration through road signs sweepstakes
6. Exhibitions

These techniques are designed to reach a diversity of target audience and to achieve a wide range of objective such as.

1.  Increase sales
2. Increase per capital consumption
3. Market expansion
4. To maintain brand loyalty
5. Create awareness of grassroots level among others.

To this end all things being equal, seven up products really have prospect in the country and the marketing mix should and for better marketing strategies.

1.2   STATEMENT OF THE PROBLEM

The major problem addressed was the low amount of money invested by the company on sales promotion which always result to low sales and turnover was addressed.

Sales promotion is essential in every company or business organization that wants to achieve its set objectives. The researcher identified the following problems, the improper research carried out on sales promotional activity and how it had less influences on the consumers. The difficulty in the convincing consumers to believe in the fantastic star pri0ce of sales promotion has also affected the sales volume of 7-up product. The improper use of different sales promotional tools to promote their products has without doubt resulted to low profitability.   

This research work is therefore, aimed at addressing the problem of sales promotion for effective performance towards achieving organizational goals.

1. Lack of training and development.
2. Lack of facilities in the sales of 7-up product that will help the company to increase profitability.
3. Poor approach those results to slow sales turnover.

1.3   OBJECTIVES OF THE STUDY

1. To find out how persuasive sales promotion is on consumer purchase.
2. To determine the extent to which sales promotion affects the achievement of organizational goals.
3. To find out the problem associated with the marketing of 7-up products using the various promotional tools.
4. To suggest and recommend appropriate techniques and innovation in enhancing efficiency and effectiveness towards achieving organizational goals using sales promotion as one of the promotional tools.

1.4   RESEARCH QUESTIONS

        The following are the research questions:

        RQ1:

What are the promotional strategies adopted by 7-up bottling company, Nigeria?

RRQ2:

What are the influences of sales promotion strategies adopted by 7-up bottling company on organizational effectiveness?

RQ3:

Do sales promotional activities influence consumer purchase?

RQ4:

Do sales promotional activities create awareness and brand loyalty among consumers?

1.5   SIGNIFICANCE OF THE STUDY

The research will have significance to the following different parties.

1.5.1        THE RESEARCHER

Academically, the study will enlighten the researcher more on the influence of sales promotion on consumer buying behaviours towards achieving organizational goal, thus being a good marketer. 

1.5.2        FEDERAL POLYTECHNIC NASARWA

The research will be ideal to Federal Polytechnic Nasarawa since the students of the in situation who are intending to do research on sales promotion will access  required information.

1.5.3        7-UP BOTTLING COMPANY

This intensive research will highlight on promotion tools and techniques and also recommend on the ideal techniques to be employed by the company. The company can also use this research to know the merits and demerits of each promotional technique and unify these in order to achieve their goals.

1.6   SCOPE OF THE STUDY

The study was carried out at 7up bottling company’s office in Abuja, Nigeria to study the sales promotion. A marketing strategy for achievement of organizational goals, for the purpose of this study, the organization’s employees was divided into four different departments.

1.7   LIMITATIONS OF THE STUDY

The following are the limitations that the researcher encountered while carrying out the study.

1.7.1        TIME CONSTRAINT

Time allocated for this study was not adequate at best stressful. This is because the researcher had seven other units to handle. A full job, family and social commitments. This limitation was, however, overcome by proper planning. The lecturers, especially my project supervisor was also very supportive and understanding and this made it easier to manage everything.

1.7.2        CONFIDENTIALITY

There were some respondents who feared sharing out information for fear of being reprimanded by their managers for giving out information that they may have considered confidential. However, the researcher assured the respondents of the confidentiality of the information that they provided. [the researcher also obtained permission from the management of 7-up bottling company to undertake the research in the company.

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