PROMOTION STRATEGY PRACTICE IN THE CASE OF ET-HOLYDAYS

LUNAR INTERNATIONAL COLLEGE

School of Graduate Students

Masters of Business Administration (MBA)
By: ID No
1. BETHLHEM FIKIRE 0288/12
2. LEMLEM ESHETU 0311/12
3. HAILELEUL TESHOME 0305/12
4. DESALEGN BULA 0296/12
5. LIELTL ABREHA 0313/12
6. MESERET HAYMANOT 0315/12
7. HANA GEBRU 0306/12

SUBMITTED TO: - Dinkisa K.

(PHD, Assistant Professor)
MARCH, 2020
ADDIS ABABA, ETHIOPIA
 TABLE OF CONTENTS

Contents Page

ABSTRACT...............................................................................................................................i
CHAPTER ONE........................................................................................................................1
INTRODUCTION.................................................................................................................1
1.1.Background of the Study……………………………………………………………….1
1.2.Objectives of the Study....................................................................................................2
1.2.1.General Objective...................................................................................................2
1.2.2.Specific objectives..................................................................................................2
1.3.Significance of the Study.................................................................................................2
CHAPTER TWO.......................................................................................................................3
LITERATURE REVIEW..........................................................................................................3
2.1. Overview of Promotion..................................................................................................3
2.1.1. Promotional Strategies...........................................................................................3
2.1.2. Advertising............................................................................................................4
2.1.3. Sales Promotions and Brand Image.......................................................................4
2.1.4. Public Relation.......................................................................................................5
2.1.5. Personal Selling.....................................................................................................5
2.1.6.Sponsorship……………………………………………………………………….5
CHAPTER THREE...................................................................................................................6
RESEARCH METHODOLOGY...............................................................................................6
3.1. Research Design..........................................................................................................6
3.2. Research Approach......................................................................................................6
3.3. Data source and collection Instrument........................................................................6
3.4. Sample Size and sampling technique..........................................................................6
3.5. Method of Data Analysis.............................................................................................7
CHAPTER FOUR......................................................................................................................8
Data Analysing and Interpretation.............................................................................................8
4.1. Demographic Profile of Responsents...........................................................................17
4.2 Tourists Purpose of Visit to Bahir Dar..........................................................................19
4.3. Major Source of Information........................................................................................20
 4.4. Night Tourists Spend in Bahir Dar...............................................................................21
4.5. Well Managed and Suitable Attraction Sites................................................................21
4.6. Plan to Extend Length of Stay......................................................................................22
4.7. Planned Length of Stay.................................................................................................22
4.8. Price of Product Charged..............................................................................................23
4.9. Factors for Tourists Length of Stay..............................................................................23
4.9.1. Natural and Cultural Resource.............................................................................25
4.9.2. Tourist Infrastructure...........................................................................................26
4.9.3 General Infrastructure...........................................................................................28
4.9.4 Safety and Security...............................................................................................30
4.9.5 Service Quality.....................................................................................................31
CHAPTER FIVE.....................................................................................................................32
CONCLUSION AND RECOMMENDATION..................................................................32
5.1 Conclusion.....................................................................................................................32
5.2 Recommendations..........................................................................................................33
References................................................................................................................................35
Appendixes..............................................................................................................................38
 ABSTRACT
The promotional strategy in one company is important for the development of the market
share. However, the study of Promotional Strategies adopted by travel companies has
received little attention in the informal sector literature. The aim of the study is to identify the
various Promotional Strategies adopted by the ET-Holidays for promoting their products
and also particularly bring out the most effective technique in promoting their packages that
influence customers buying decision. The study used both primary and secondary data in
order to get accurate information. The study used 15 employees of ET- Holydays as a target
population. Thus, Questioners and semi-structured interview were used to collect data from
primary source. Then, the collected data were analyzed and presented by descriptive
technique like frequency, mean and percentage. Research propositions and recommendations
for further research are presented.
 CHAPTER ONE
INTRODUCTION
1.1Background of the Study
According to the American Marketing Association (1985), “marketing is the process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods
and services to create exchange and satisfy individual and organisational objectives”.
Marketing is also a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with other.
In marketing, promotion refers to any type of marketing communication used to inform or
persuade target audiences of the relative merits of a product, service, brand or issue. The aim
of promotion is to increase awareness, create interest, generate sales or create brand loyalty.
It is one of the basic elements of the market mix, which includes the four Ps, i.e., product,
price, place, and promotion.
Promotion is also one of the elements in the promotional mix or promotional plan. These
are personal selling, advertising, sales promotion, direct marketing publicity and may also
include event marketing, exhibitions and trade shows. A promotional plan specifies how
much attention to pay to each of the elements in the promotional mix, and what proportion of
the budget should be allocated to each element.
Promotion is defined as the coordination of all sellers initiated efforts, to get up channel of
information and persuasion in order to sale goods and service as promote an idea and
promotion is defined as many ways: it is pervasive communication that motives peoples to by
whatever an organization is selling goods and service or idea. Promotion may take the form
of direct, face to face communication or indirect communication through such as media,
television, radio, magazine, newspaper and other channel (McGraw, 2004).
Tourism industry has shown rapid growth for African countries while, Ethiopia is lagging
behind in spite of diverse Tourist attractions. Ethiopian Airlines has the advantage as it is the
gate-way for Africa.
ET-Holidays is the Tour Operator wing of Ethiopian Airlines and it is working to provide for
its customers with bundle packages including hotel, attraction sites (consist of culture, history
and nature), medical package, conference centers and ticket discounts for different Inbound
and Outbound tourists and also has rolled out Addis “STOPOVER” project to convert transit
passengers to visit Addis and its surrounding.
There are More than 72 standard packages are available which are valid throughout the year
and also have festival and event packages. As Tailor Made the ET-Holidays cater to all
requests that are not covered by the standard packages specific to the need of the customers.
1.2. Objectives of the Study
1.2.1. General Objective
The general objective of this study is to identify the various promotional strategies adopted
by ET-Holydays for promoting their products

1.2.2. Specific Objectives

 To examine the specified promotional methods which the ET-Holydays use in the
market.
 To find out the most effective method in promoting their product.
 To identify factors that affect promotional practice in ET-Holidays.
1.3 Significance of the study
The finding of this study is important to identify the various promotional strategy adopted by
ET-Holydays and to create favourable condition to sustained customers in the study area. In
addition, it may serve as reference material for future studies in the field and recommend
important points based on its finding.

1.4 Scope of the Study

In order to make the study manageable it is necessary to define the delimitation of the study.
Thus, the study was delimited conceptually, methodologically and geographically.
Conceptually, the study focused on evaluating the promotional strategy practice of ET-
Holydays. Methodologically, the study was delimited to descriptive type of research design;
both quantitative and qualitative research approach were used for data collection to identify
the various promotional strategy adopted of ET-Holydays. The scope of the study is carried
out on ET-Holydays.
 CHAPTER TWO
LITERATURE REVIEW
2.1. Overview of promotion
“Marketing is managing profitable customer relationships, the twofold goal of marketing is to
attract new customers by promising superior value and to keep and grow current customers
by delivering satisfaction” (Armstrong & Kotler, 2007 p. 5).
The promotion strategy is used in increasing sales by creating differences in resources which
results in a firm being able to outspend a competitor in advertisement, purchase displays,
trade shows and other promotional methods (Rea & Kerzner, 1997 p. 58). According to
Jennifer Rowley (1998), the objectives of any promotional strategy will be drawn from an
appropriate mixture of the following roles of promotion to:

 increase sales;
 maintain or improve market share;
 create or improve brand recognition;
 create a favourable climate for future sales;
 inform and educate the market;
 create a competitive advantage, relative to competitor’s products or market position;
 improve promotional efficiency

People often think marketing as selling and advertising, which is just a small part of
marketing. ‘The marketer does a good job when he understands superior customer value,
prices, distributes and promotes them effectively; the products will sell very easily then. This
tells that selling and advertising are just a part of marketing as a marketing mix; a set of
marketing tools that work together to satisfy customer needs and build customer
relationships.’ (Armstrong & Kotler, 2007 p. 5)
There are some recent empirical papers addressing the promotion effect on consumer
stockpiling behaviour under price or promotion uncertainty. Erdem and Keane (1996) and
Gonul and Srinivasan (1996) establish that consumers are forward looking. Erdem et al.
(2003) explicitly model consumers ‘expectations about future prices with an exogenous
consumption rate. In their model, consumers form future price expectations and decide when,
what, and how much to buy. Sun et al. (2003) demonstrate that ignoring forward looking
behaviour leads to an over estimation of promotion elasticity.
Many studies have focused on the effects of promotion on brand switching, purchase
quantity, and stockpiling and have documented that promotion makes consumers switch
brands and purchase earlier or more. The consumers ‘consumption decision has long been
ignored, and it remains unclear how promotion affects consumption (Blattberg et al. 1995).

2.1.1. Promotional Strategies:-Promotion is concerned with any activity you employ

for getting people to know more about your product or service. Advertising, public relations,
point-of-sale displays, and word-of-mouth promotion are all traditional ways for promoting a
product. Promotion can be seen as a way of closing the information gap between would-be
sellers and would-be buyers (Jones, 2007). Zeithaml et al. (1985) described promotion as part
of specific effort to encourage customers to tell others about their services. Kotler, (2005)
discovered that Promotions have become a critical factor in the product marketing mix which
consists of the specific blend of advertising, personal selling, sales promotion, public
relations and direct marketing tools that the company uses to pursue its advertising and
marketing objective.

2.1.2. Advertising:-the effectiveness of advertising can be defined as the extent to which

advertising generates a certain desired effect. The sales effect refers to the assessment of the
capability of advertising to affect the sales volume and/or the market share, regardless of the
possible influence of other variables. For Batra et al. (1995), the effectiveness of advertising
should be considered for its effect on sales in the short term. This advertising performance
measurement is based on the marginal theory (Chamberlin, 1948). The advertising is
therefore regarded as an independent variable that can be combined with other marketing
variables to have a certain effect on the dependent variable. Authors assess the effectiveness
of advertising in reference either to the language of the message (Barthes, 1964; Durand,
1964) or the graphic image of the message (Eco, 1979; Mick, 1986; Scott, 1994). However,
they analyse the quality of message from the viewpoint of its construction, its presentation
and the place of the communication process. The impact of the message on the recipient is a
minor problem in the process of the message evaluation. This is an important limitation to the
semiotic approach in terms of marketing.

2.1.3. Sales Promotions & Brand Image: - Sales promotion is an inevitable tool in
the marketing communications mix, due to pressures such as retailers ‘growing demands and
increasing competition. This has proven to be an issue for many companies, especially those
with a premium brand positioning and those concerned about the impact that Sales promotion
might have on the long-term image of the company. Despite the fact that literature is replete
with research on Sales promotion, it seems to be vastly generalized and mostly focused on
price reductions. Danijela Mandić (2009) analysed and discussed the issue of the long-term
impact that Sales promotion has on companies, especially on premium brands in the FMCG
(Fast Moving Customer Goods) markets and concluded that, when used properly and
strategically, Sales promotion may have a positive long-term impact on brands.

When the effects of Sales promotion are analysed, Sales promotion is often compared to
advertising. This is probably due to the fact that their impacts are viewed as opposite – Sales
promotion with known short-term effects while advertising is generally considered a brand-
building tool. Usually, this relationship symbolizes the direction a company chooses to take -
whether it chooses to allocate most of the budget on Sales promotion or advertising implies
whether its focus lies on short-term or long-term objectives, as incorrect as this assumption
might be. Companies may strategically use both methods or have them complement each
other, as many companies do successfully. Also, these kinds of discussions and assumptions
imply that the advertising effect on brand-building is indisputable.
On the one hand, studies have shown that a premium brand is more likely to be supported by
advertising while a product with a lower price is likely to allocate more funds into Sales
promotion. It has also been found that, in relation to Sales promotion, advertising makes
consumers less price sensitive, which is a problem often associated with Sales promotion.
There is, of course, evidence pointing towards the positive impact that advertising has on
brand image.

2.1.4. Public relation:-Public relation is refers to any activity designed to create a

favourable towards a business its products or its policies. Building a good relation with
company’s various public by obtaining favourable publicity, building up a good cooperate
image and handling or handing of unfavourable, stories and events. Public relation can have
strong impact on public awareness at much lowest cost than advertising cost (A.shimp, 1997).
It any communication about an organization, its product, or polices through media that is not
paid for by the organization public a new story appearing in the media or an endorsement
provided by an individual either informally or in speech or interview ( ramaswamy and
snamakumare,1990).

2.1.5. Personal selling: - Personal selling any form of direct contact occurring between
sales person and a customer. The key factor that sets it apart from other form of promotion is
that there is two way communications between the sellers and buyer. Personal selling is one
of the largest forms of promotion it requires individuals to make contact with potential
buyers, making it the most expressive form of promotion. Personal selling is designed to
complete a sale once a customer is attracted to a business buy advertising sales promotion or
public relation.(McGraw Hill, 2003). Personal selling is an ancient art it has spawned a large
literature and many principles (kotler 2006).
It is the interpersonal arm of the promotional mix advertising consists of one way, non-
personnel communication with target consumer groups. For promotional practice and
customer researchers have only discussed the relationship between them in the past some
researcher’s state that promotional practices have positive effects on customers. Some
researchers found that promotional practices have no effect on customers (Jerome E, 1964).

2.1.6. Sponsorship:-According to Arens (1999), sponsorship is a cash or any kind of fee

pay to a property which may be sport, entertainment, or non-profit evens of the organization)
in turn for access to the exploitable commercial potential associated with the property. It is
getting involved in events in order that an organization can be achieve objective such as
increased awareness levels, enhanced reputation and thus build company’s brand image.
 CHAPTETR THREE
RESEARCH METHODOLOGY
3.1 Research Design
According to Chopra et al. (2012) research design is the conceptual structure within which
research is conducted. They specifically indicated that “a research design is the arrangement
of condition for collecting and analysis of data in a manner that aims to combine its relevance
to the research purpose with economy in procedure”. For the purpose of this, a descriptive
design was implemented to analyzing different variables and narrated the results and to reach
conclusion for this study.

3.2 Research Approach

Depends on the time qualitative and quantitative data can be collected sequentially (Creswell,
2009). The researchers used mixed research approach, which contains both qualitative and
quantitative approaches as per kinds of information which is needed for the completion of the
study. Hence, in order to provide valid promotional strategy practice research, an approach of
quantitative data collection should come before; the qualitative data comes next to constructs
relevant information being studied.

3.3 Data Source and Collection Instrument

To undertake this study, both primary and secondary sources were generated by employing
both qualitative and quantitative method. The primary source of data in this study were
information collected as firsthand, generated from employees of ET-Holidays through
structured questionnaires (open and close ended) was developed. In addition to questionnaire,
interview is the most important data collection to generate the qualitative information. Semi-
structured face to face key informants interview was conducted with ET Holidays promotion
department. The researchers distributed and collect the questionnaires for the employees and
briefed about the objective of the study.
The secondary data, in contrast, defined as information that has already been collected for
other purpose and still the researcher found it is important for the intended current study
(Kothari, 2004). In an effort to make this research more valid, creditable and applicable
secondary data source which are found to the study is reviewed. For this purpose, both
published and unpublished sources are investigated thoroughly.

3.4 Sample Size and Sampling Technique

Sample size determination is the technique of selecting the number of observations to include
in a sample (Kothari, 2004).
The subject of this study is targeted on employees of ET-Holidays. Thus, the above
population groups are able to get the reliable information and are considered as the target
population of the study. Simple random sampling was implemented for employees of ET-
Holidays who are available in the study area to collect the survey data. Therefore, the
researchers conducted this study on 15 sample participants.
 The researchers were also employed purposive sampling for ET Holidays promotion team
based on their knowledge and experience on the study. For interview questions three key
informants were participate.

3.5 Method of Data Analysis

After the researchers gathers all the required data the researcher first record and then it is
analysed descriptively. Descriptive analysis is used to be described, compare, and contrast
various data that are collected with respect to the desire characteristics.

CHAPTER FOUR
 Data analysis and interpretation
This part deals with the data which was gathered by the help of questionnaire from 15 sample
respondents on the topic of promotional practice by ET- Holydays.
Table 4.1 Attitude towards promotion

Item Response Categories Frequency Percentage%

1.The ET - Holydays attitude Very good 3 20%

towards promotion
Good 5 33.33%

Poor 7 46.66%
Very poor _ _
Total 15 100%
As shown in the above table 4.1 out of the total sample respondents 3(20%) of them respond
the ET-Holydays attitude to promotion is very good, whereas 5(33.33%) and 7 (46.66%) of
the sample respondents replied ET-Holydays attitude towards promotion is good and poor
respectively from the above results of the study the researcher can generalized that majority
46.66% of the sample respondents replied the ET-Holydays attitude towards promotion is poor
and awareness about the value of promotion for their products is low.

It your answer is poor what is your reason?

It is low budget allocation about the promotion activities some organizations there is no
specialized personal for the department and the business is small the promotional cost is not
advisable for the small organization.

Table 4.2 ET- Holydays use promotional strategy?

Item Response Categories Frequency Percentage%

2. Do ET- Holydays use Yes 15 100%

promotional strategy?
No _ _
Total 15 100%

Based on the above table 4,2 out of the total sample respondents 15(100%) of the sample use
promotional strategy therefore as we can see the above information the researcher conclude
ET-Holidays use promotional strategy,
Table 4.3 Types of promotional strategy ET- Holydays
 Item Response Categories Frequency Percentage%

3. If your answer is “yes” Advertising 5 33.33%

which type of promotional
strategy do ET- Holydays Personal selling 2 13.33%
use?
Sponsorship 5 33.33%
Sales promotion 3 20%
Public relation _
Total 15 100%
Based on the above table 4.3 out of the total sample respondents 5(33.33%) of the replied
both advertising and sponsorship type of promotion is more reliable and important, but
2(13.33%) and 3(20%) of the sample respondents selected personal selling and direct
marketing sales promotion respectively as the most type of promotion which are important
for ET-Holidays product and service. This implies that majority of the respondents replied
advertising and sponsorship is most important for ET-Holidays.

Table 4.4 Promotional strategies appropriate

Item Response Categories Frequency Percentage%

4. Do you believe that a Yes 15 100%

promotional strategy is
No _ _
beneficial for ET- Holydays
product? Total 15 100%

As clearly shown in the above table 4.4 out of the total sample respondents 15(100%) of the
them replied promotion is important for ET-Holidays.

Table 4.5. Benefits of promotion

Item Response Categories Frequency Percentage%

 Increasing sales 6 40%
5. for the question number 4.
Creating strong 6 40%
If your answer is “yes” what
purchase desire
benefits get the organization
from the promotion? Convenience 3 20%
potential buyers
Total 15 100%

From the above table 4.5 out of the total sample of respondents 6(40%) of the respondent
replies promotion increase sales and it creating strong purchase desire. And some of
them respondent’s promotion creates strong convince potential buyer. From this result the
researcher understand that promotion is important for ET-Holidays in order to create strong
purchase desire and it also increase sales within the customers.

Table 4.6 Effectiveness of promotion

Item Response Categories Frequency Percentage%

6. The promotional practice Strongly agree _ _

that is commonly used by
ET-Holidays is effective? Agree 2 13.33%

Disagree 13 86.66%
Total 15 100%

From the above table 4.56 out of the total sample of respondents 2(13.33%) of them agree
and 13(86.66%) researcher can generalize that majority of the respondents replied
promotional practice that commonly used by the ET-Holidays is not effective.

Table 4.7 Factors that affect promotional practice

Item Response Categories Frequency Percentage%

 8. What are the factors that Economic factor 11 73.33%
affect ET-Holidays
promotional activity? Cultural factor _ _

Technological factor 4 26.66%

Political factor _ _
Total 15 100%
The above table 4.7 out of the total sample of respondents 11(73.33%) respondent responded
that economic factor affect the promotional activities in ET-Holidays while 4(26.66%)
employee’s responders that technological factor affects promotional activities in ET-Holidays
and almost none of cultural factor affects the promotion of ET-Holidays. Therefore, from the
above information the researcher concluded that the major factors for ET-Holidays
promotional activities affected by economic factors.

CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1Conclusion
According to the ET-Holidays managers and employees, indicated that most of ET-Holidays
are using advertisement and sponsorship. Almost all managers of ET-Holidays believe that
sales volume and promotion has relationship due to the fact that promotion program are
directly affects sales volume of the business enterprises i.e. it increases sales, Creating strong
purchase desire and Convenience potential buyers. But they have negative attitude toward
promotion. Most of the respondent says their sales volume is no change because of lack of
good promotional strategies and they have plan in the future to use promotion in the future of
business running. Many respondents disagree that the use of promotional practice, the many
respondents said that the major factor that affects ET-Holidays is Economical factor.

5.2 Recommendation
Recommendations are given based up on conclusion and finding of the research. Giving
recommendations research problems is very essential so that, the following important
recommendation are given.

 Since innovative and new product needs promotion to create awareness in the mind of
potential customers, setting promotion programs at the very beginning is very
essential more ever.
 To reach to the customer and to create interest in the mind of customers, they have to
use integrated marketing communication, determine the best message, the promotion
need to match with the expectation of the potential buyers, develop strong format for
the message and describe the product well.
 ET-Holidays managers must try to evaluate their sales volume before, during and
after promotion. Because this help the company to determine profit/loss statement
within short period of time. To do so, time, money and energy budget will be
allocated.

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Appendixes

Appendix 1: Survey Questionnaire

 LUNAR INTERNATIONAL COLLEGE

School of Graduate Students

Masters of Business Administration (MBA)

Dear respondents,

The main objective of the questionnaire is to collect relevant data for the study entitled as
“PROMOTION STRATEGY PRACTICE IN THE CASE OF ET-HOLYDAYS” Hence,
your sincere response to every question is essential to the success of the study. Therefore,
your genuine cooperation, accurate and honest responses is kindly requested for the
accomplishment of the study. All information you will provide will remain confidential and
will solely be used for academic purposes.

Thank you for your assistance and cooperation!!

Part One: Dear respondents please put the tick () mark on your answer in a given box and
write your answer on the space provided.

1. The ET-Holidays attitude towards promotion?

Good very good poor very poor
2. If your answer is poor what is your reason?
_____________________________________________________________________
3. Do ET-Holidays use promotional strategy?
Yes No

4. If your answer is “yes” which type of promotional strategy do ET- Holydays use?

Advertising Personal selling Sales promotion

Public relation Sponsorship

5. Do you believe that a promotional strategy is beneficial for ET- Holydays product?
 Yes No
6. If your answer for the question number 5 is “yes” what benefits get the organization
from the promotion?
Increasing Sales Create strong Purchase desire
Convenience potential buyers
7. The promotional practice that is commonly used by ET-Holidays is effective?
Strongly Agree Agree Disagree
8. If your answer is “Disagree” what is your reason?
_____________________________________________________________________

9. What are the factors that affect ET-Holidays promotional activity?

Economical factor Technological factor Cultural factor Political factor

THANK YOU VERY MUCH!

Appendix 2: Survey Interview check list

Interview Guideline for ET-Holidays promotional team

1. What are the important of promotional practice for ET-Holidays?
2. What type of promotional strategy that you used commonly?
3. Do you use promotional strategies effectively?
4. What is your suggestion for improvement of promotional practice?
5. What do you think the factors that affect the wellbeing of promotional practice by ET-
Holidays?