1

THE IMPACT OF SALES PROMOTION ON

ORGANIZATIONAL PERFORMANCE
(A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC)

BY

---------------------------
--------------

A RESEARCH PROJECT PRESENTED TO THE

DEPARTMENTOF MARKETING SCHOOL OF BUSINESS
AND MANAGEMENT TECHNOLOGY
------------

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF --------- IN MARKETING

NOVEMBER, ---------
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APPROVAL PAGE

This project has been read and approved by undersigned

on behalf of school of business and management

technology, department of marketing ------------, having

met the requirement for the Award of ----------------

……………………………
………………….
Mr. ------------ Date
Project Supervisor

……………………………
………………….
Mr. ---------------- Date
Head of Department

……………………………
………………….
External Examiner Date
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DEDICATION

I dedicated this work to God Almighty who made all

things possible. And all who champion the freedom of the

oppressed, the suppressed and the deprived.

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ACKNOWLEDGEMENT

My gratitude goes to the God Almighty, the creator of

Heaven and earth, the beginning and the end, for seeing

me through my years in the University, may his name be

glorified in Jesus Name Amen.

I also express my sincere appreciation to my beloved

parents Mr. & Mrs. --------, for their love and support they

show me through my academic section, I play that God

will grant them long life. My greetings also goes to my

beloved brothers and sisters, -----, ------,------, ------, for

their love and kindness which hey gave me, I pray that

the Almighty God will see the according to their needs

Amen. My gratitude also goes to my well wishers and

friends who has being their for me, I pray that God with

his infinite mercy grant them their heart desires Amen.

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ABSTRACT

The analysis of research on impact of sales promotion on

organizational performance. (A case study of Nigeria bottling

company (NBC plc, coca cola Onitsha plant. revealed that the

study is relevant in that it seeks to identify the role sales promotion

plays in the marketing strategies and achievement of

organizational goals and objectives. And have tried to expose the

impact of sales promotion output and employees commitments on

organizational activities.

Also serves as a guide to the company under examination

and the entire soft drink company in Nigeria by given them an

insight on ways in which planning and execution of sales

promotion programme can be done to yield a better result. And will

add to existing stock of knowledge in administrative science

research and will equally help other researcher seeking adventure

into sales promotion.

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TABLE OF CONTENTS

Title page i

Approval page ii

Dedication iii

Acknowledgement iv

Abstract v

Table of contents vi

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of problem 8

1.3 Objectives of the study 11

1.4 Research question 12

1.5 Significance of the study 13

1.6 Scope of the study 14

1.7 Limitation of the study 15

1.8 Definition of terms 17

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CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction 20

2.2 Concept of sales promotion 20

2.3 Types of sales promotion 28

2.4 Designing and development sales promotion 34

2.5 The concept of organization performance 39

2.6 Components of organizational performance 42

References 49

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction 50

3.2 Research design 50

3.3 Population of the study 51

3.4 Sampling procedure and technique 52

3.5 Data collection method 56

3.6 Questionnaire design and administration 57

3.7 Description of data analysis/technique 58

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CHAPTER FOUR: PRESENTATION AND

INTERPRETATION OF DATA

4.1 Introduction 59

4.2 Analysis of number of questionnaires 59

4.3 Analysis of questionnaire to management of NBC 60

4.4 Analysis of questionnaire to consumer 74

CHAPTER FIVE: SUMMARY OF FINDINGSS,

CONCLUSION & RECOMMENDATIONS

5.1 Restatement of the problem 82

5.2 Summary of findings 83

5.3 Conclusion 86

5.4 Implication of the study 88

5.5 Recommendation 89

Bibliography 92

Questionnaires 94-102
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CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Business is like war in one respect. If its ground strategy is correct,

any number of tactical errors can be made and yet the enterprise

proves successful (Robert E. Wood).

The business in question could be private or public venture. It

could be one man business (Sole proprietorship) or a world class

multinational. Every business enterprises still operating as a going

concern, must adopt its marketing strategy to meet the desired

aspiration. In the same vein for any business to survive under the

current unpredictable socio-eco-political dispensation in the

country be it profit making or non-profit making, it has to effectively

market its products or services which have to be promoted on a

regular basis.

Apparently, one of the vehicles for conveying marketing strategies

is sales promotion and its significant to organizational performance

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cannot be over emphasized. Sales promotion according to Kotler

and Armstrong 2001:512, is a short term incentive to encourage

the purchase of sales of a product or services.

Kotler (1984) posits sales promotion as consisting of a variety of

promotional tools designed to stimulate earliest and/or stronger

market response. Undoubtedly, sales promotion is an important

element in making function. It forms part of the promotional mix.

Sales promotion helps maintain a high level of awareness of the

supplier and the brand in several ways. Not only does sales

promotion win and help to maintain the patronage of customers

but it also build the goodwill of dealers and distributors who enjoys

increase in store-traffic and high rate of stock turnover, sales

promotion also encourages the trail and repeat purchase of

product and services. It forms an essential ingredient in motivating

adoption process of products. Direct mail, shorts and catalogues

which are component of sales promotion generates enquire for

industrial goods and services leading to increase in re-order level.

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It is quite evident level that no business organization that desire to

survive can afford to neglect the importance of sales promotion in

the marketing of its product or services. It is on the basis of this

invaluable contribution to organizational success that this study is

being carried out to focus on sales promotion and organizational

performance in NBC plc (coca-cola) onitsha plant. The origin of

sales promotion Nigeria Bottling Company Plc, this can be traced

from the era of marketing philosophies/concepts and development

of coca-cola product it self when Dr. Johnson pemberton first had

an appreciation of advertising. Coca-cola the product that gives

the world its best known task was developed under modest

circumstance in Atlanta, Georgia on May 8th 1886 in United States.

Dr. John Perberton first produced what to become coco-cola syrap

in a three legged brass pot with a boat bar in his backyard. He

carried the jg of few products down the street to jacob’s pharmacy

where it was placed on sales for scent a glass as sode foundation

drink.
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Dr. Perbertons partner and book-keeper Frank M. Robinson

suggested the name “COCA-COLA” and designed the script that

distinguishes the famous trademark. The first newspaper

advertisement appeared in the Atlanta journal not only inducing

and promising refreshment but also informed the public where to

get it.

The idea of Dr. Perberton was by means of a free ticket “go for

one drink and redeemable at soda foundation”. Since the slogan

“Delicious and refreshing was introduced in 1886, coca-cola

promotional activities have continued to reflect several of such

slogan.

In Nigeria coca-cola sales promotion activities have taken several

dimensions for instance the first promotional event was tagged

“Animal kingdom”. A competition which offered its participants to

win gifts. It lasted for a period of three months. It was a successful

and rewarding promotion as it generated great awareness for

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coca-cola and its products. Other subsequent sales promotion

activities includes:

 Under the crown promotion

 The price reduction promotion

 The coca-cola N20 million BIG BLAST sweepstake.

 Instance redemption of price

 Mega million

 A “Drink, collect and win crown collection promotion.

Onitsha like her parent plant has also embarked on series of sales

promotion activities focuses on fanta. The program was tagged

“Fanta Actuation:. The sales promotion was aimed at stimulating

the demand for fanta and it offered the consumer opportunity to

win gift. There was also trade promotion in which dealers where

given allowance to buy in large quantities and enjoy free additional

cases of coca-cola.
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The coca-cola fanta refreshment promotion programme embarked

on by Nigeria Bottling Company Plc, was carried out nation wide

and it offered its participants opportunity to win a returned ticked to

south Africa. Winners were selected through raffle draw,

consolation prize such as free drink, T-shirt, cap, were also given

to customers. Another promotion had, was A “Drink, collect and

win crown collection promotion. The exercise took place in April

2002 and it was tied in to the 2002 FITA world cup tournament in

Korea/Japan, over 120 million Naira worth of prizes were awarded

during the three months long promotion.

The mega million promotion was another promotional programme

of NBC Plc. It took place in 2003 for just three months and it was

held nation wide. The topic was taken so as to examine and

appraise, critically the role of sales promotion and its efforts on

both organizational performance of NBC Plc and the product being

manufactured. Likewise, the research work orients to seek and

analyze the problems inherent in efficiency and effectiveness of

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management in terms of profit realized as a function or result of

the promotional activities.

HISTORICAL BACKGROUND OF THE STUDY

The Nigerian Bottling Company (NBC), which is part of coca-cola

HBC, was incorporated in November 1951 to bottle and sell

carbonated non-alcoholic beverages. The company has the sale

franchise to bottle coca-cola product in Nigeria. Product of coca-

cola began in 1953 at a bottling facility in Lagos, and new plants at

Kano, Port Harcourt and Ibadan were opened shortly afterwards.

The company metta.

Nigerian Bottling Company (NBC) became a public company in

1972 with its shares coasted on the Nigeria stock exchange NBC

generated its own power and is self sufficient in carbon dioxide

and water product. Coca-cola’s range of products in Nigeria

includes the following beverages all of which are bottle in

returnable glass. Coca-cola, fanta in orange, lemon and black

current flavours, sprite, Eva bottle water, five alive juice, and
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Schweppes in bitter lemon, club soda and tonic water (These,

“Mixers” were previously bottled under the krest brand but NBC re-

acquire the Schweppes franchise in August 2001).

However, the company has grown across the geographical blocks

of Nigeria with about 16 bottling facilities (plants) around the

country, and it uses 82 distribution warehouses and 200,000

distribution outlet. For instance, the onitsha plant is one its plails

and it began production in 1987 at the commercial nerve centre of

eastern region. It cover Anambra and Delta State. The plant

supplies four (4) major depots located in Nnewi, Oba, Agbor and

Ekwulobia, with numerous retailers over ten thousand currently its

staff strength ranges between four hundred and fifty staffers. The

success of the plant since its fourteen years of operation has put

coca-cola product the ultimate in the eastern market.

1.2 STATEMENT OF THE PROBLEM

The beverage industry is influenced by seasoned fluctuations and

climatic changes coupled with depression in the economy. This

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phenomenon puts soft drink. The sensitivity of the soft drink

market often lead to sales decline, erosion of market share, low

capacity utilization, reduction in overall industrial output and

colossal loss of profit. Thus the success of any beverage firm that

wishes to sustain the acceptability of its product hands on its

intensive sale promotional activities.

Despite the magnitude and relative importance of sales promotion,

comparatively, little attention is given to it by most business

organization. Many view it a money consuming and a waste

venture. So, the question is “could sales promotion if adopted as

one of the problem solving behaviour help organization to achieve

their marketing objectives”.

It is in the light of this question that the researcher was motivated

to conduct a study on sales promotion with reference on the

Nigeria Bottling Company Plc. However, one excruciating

hindrance of sales promotion is the difficulty in measuring its direct

contributions to organizational performance.

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Hitherto, the major problem is mobility to know the extent sales

promotion can be used to stimulate organizational performance

and operations, which can be viewed under the following sub-

problems.

 Is sales promotion helping to improve sales?

 Does the promotional activity have position impact on

organization?

 Is there any correlation between sales promotion and

organization performance

 Could sales promotion be an incentive to sales force

motivation

 Is sales promotion really influencing the activity and choice

of distribution channel?

 Are there opportunities that organization has not taken

advantage of?

 Are the existing customers satisfied with the company’s

product?
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 What are the criteria used in the application of the promotion

to suit organizational operation?

1.3 OBJECTIVE OF STUDY

The objective of the study is to find out the impact of sales

promotion on Nigeria Bottling Company Plc Onitsha within three

months sales promotion and the contribution of sales promotion to

the growth of soft drink industry in Nigeria. Thus the research

seeks the following:

i. To find out how effective sales promotion is being used in

the operation of NBC Plc with respect to profitability and

market share.

ii. To find out the extent to which sales promotion can be

used to improve consumer patronage, gather channel

supports and motivate the sales force of NBC Plc and the

entire soft drink industry in Nigeria.

iii. To establish whether the use of sales promotion activate

the production level of soft drinks.

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iv. To ascertain whether sales promotion helps to level sales

peak and valley that might be brought about by seasonal

fluctuation in the soft drink market.

v. The research project would also expend the researchers’

knowledge and equip her basic skills in scientific problem

techniques towards the fulfillment of her academic

pursuit.

1.4 RESEARCH QUESTIONS

The research question for this study will cover the following:

i. What effect does sales promotion have in the operating of

NBC Plc, with respect to profitability and marketing

share?

ii. What extent can sales promotion be use to improve

consumer patronage, gather channel supports and

motivate the sales force of NBC Plc?

iii. Does sales promotion activates the production level of

soft drinks?
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iv. Does sales promotion help to level sales peak and valley

that arise as a result of seasonal fluctuation in the soft

drink market?

1.5 SIGNIFICANCE OF THE STUDY

The study is relevant in that it seeks to identify the roles sales

promotion plays in the marketing strategies and achievement of

organizational goals and objectives. The study tries to expose the

impact of sales promotion on profit generation, production output

and employees commitment to organizational activities.

The study will serve as a guide to the company under examination

and the entire soft drink company in Nigeria by giving them an

insight on ways in which planning and execution of sales

promotion programme can be done to yield a better result.

It will furnish information which serves as reference points for

organization that caries out sales promotion in motivating and

gathering channel supports and consumer’s patronage. The

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findings and recommendation will be relevant to all firms in the soft

drink industry.

Lastly, the study will add to existing stock of knowledge in

administrative science research and will equally help other

researcher seeking adventure into sales promotion.

1.6 SCOPE OF THE STUDY

The study will involve a view of sales promotion activities of

Nigeria Bottling Company (Coca-cola) Onitsha plant, Onitsha

metropolises of Anambra State (Eastern Nigeria). The study will

further cover the following:

i. The relationship between sales promotion and

organizational performance for a period of three months,

which form the promotional period.

ii. The effect of sales promotion on the sales of major

brands of the Nigeria Bottling company Plc. product.

iii. The effect of economic condition and the purchasing

power of consumers at the time of sales promotion.

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iv. The effectiveness and efficiency of management in term

of profit generation and planning.

Finally, the study would rely on the sampling opinion of

management/staff of NBC plc, coca-cola Onitsha plant, the

distributors/dealers and the consumers all within the Onitsha

metropolis of Anambra State.

1.8 LIMITATION OF THE STUDY

Undoubtedly, any study that seeks to enrich human knowledge is

certainly a difficult task. This project is not an exception. Many of

the difficulties that could have jeopardized the success of the

research was able to eliminated by the researcher but some

constraints are still outstanding, these include:

TIME- It is difficult to cover more areas than those itemized one to

time constraints within which the study should be completed. It

become an Herculean task to travel round various village and

towns within Onitsha metropolis to collect the information and still

meet up with demand of academic at school.

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FINANCE- The cost of research materials were very exorbitant

and grossly out of the researcher one to the prevalent economic

situation in the country. Since accurate data gathering repeated

calls on respondents, high cost of transportation, high cost of

transportation greatly reduced the number of investiture schedules

appointment with respondents.

ILLITERACY- The level of awareness in the society of ours also

affected the collection of data. Most respondent (consumers and

distributions) were illiterate. Some of them could not even fill the

questionnaire themselves. Hence, it demands greater time and

effort to read and interpret the questionnaires to them to facilitate

prompt response.

INFORMATION- One of the most obvious limitations is the size of

the sample and the coverage. The research is limited to onitsha

metropolis, which is a commercial centre. However, the number of

total target population. Therefore, this limits the extents of which

generalization could be made and create the need for further study

that will take care of adequate sample size. Again, the research is
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affected by time and mobility for pressing issues, churches,

services and domestic family clears which make it difficult, to

collect more information likewise, sales manager was not very

accessible because of his frequent trips outside the company to

monitor the sales force and make contacts for more sales.

The relevant attitude of management staff of NBC plc Onitsha and

the bureaucratic ways of the executives in granting request for

interviews and their deliberate hold back of information to avoid

industrial espionage, constituted a major set back for the research.

Thus, there was problem of researcher trying to ascertain the

exact income and turnover of the company over the period in

question.

1.9 DEFINITION OF TERMS

a. Advertising- Advertising is any paid form of non-personal

presentation and promotion of ideas, goods and services by

an identified sponsor.
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b. Brand- This is a name, term sign, symbol or design or a

combination of them, intended to identify the goods or

services of one seller or group of sellers and to differentiate

them from those of the competitors.

c. Brand loyalty- This is consumer unreserved willingness to

choose a brand over the other brands and tendency to

search for that particular brand when buying.

d. Coupon- These are pieces of paper from the manufacturer

or his intermediary entitling its holder to a discount on a

particular product. They are certificates that give buyers a

saving when purchase a specific product merely to invite

guest.

e. Dealers- Middlemen in the distribution chain. They buy

goods in order to resell them. They include wholesalers and

retailers.

f. Direct mail- Mailing of a price of information literature of

any other promotional materials to selected prospects.

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g. Effectiveness- Having the power to produce or producing a

desire result. The act of producing a pleasing effect or

actual rather than theoretical.

h. Efficiency- Producing satisfactory results. The quantity of a

person capable of completing work within a relative short

time.

i. Exhibition- Putting on display of a company’s product or

service for promotional purpose particularly the gathering of
number of such display which are either on view to the
public in general or merely to invited quest.
j. Goods- Articles that are being offered for sales or produced
for consumption.
k. Motivation- This is the drive that propels a person to act
beyond normal expectancy or to achieve a goal or objective
that he would not ordinarily. It is an inducement which
propels or under action.
l. Organization- A business or profit oriented outfit that
produces goods and services for the society.
m. Sales promotion- Short term incentives to encourage

purchases or sales of a product or services.

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CHAPTER TWO: LITRATURE REVIEW

2.1 INTRODUCTION

The chapter intends to review some past works of authors and

researchers on the matter of the research work. It provides an

avenue to have an in depth exploration of the topic under study

and balanced the key words of the research topic: SALES

PROMOTION AND ORGANIZATIONAL PERFORMANCE in a

comprehensive manner. The topic covered under the review

includes concept of sales promotion, types of sales promotion,

designing and developing sales promotion, concept of organization

performance and component of organizational performance.

2.2 CONCEPT OF SALES PROMOTION

The American Marketing Association Journals (1960:12) defines

sales promotion as. These marketing activities other than personal

selling, advertising and publicity that stimulate consumer

purchasing and dealer effectiveness such as displays, shows

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exposition, demonstration and various non-recurrent selling effort

not in the ordinary routine.

According to Jefkins (1985:86) “Sales promotion covers special

promotional schemes usually of limited duration at the point of

sales or point of purchase. He added that in addition to

inducement of buying habits or the buying of quantities to the

exclusion of other brands. It could induce frenetic brand switching

and the loss of brand loyalty. It also encourage greater

competitiveness at point of sales and wider consumers choice.

Kotler (1997:661) posited that sales promotion consist of a diverse

collection of incentive tools, mostly short term, designed to

stimulate quick and or greater purchase of a particular

products/services by consumer or the trade.

While advertising offers a reason to buy, sales promotion of an

incentive to buy. In actual fact, when a company starts to

experience dwindling sales, not making enough sales as before, it

is worth at that point to carry at sales promotion tool campaign to

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boast sales, or if it introduces new products into the market, sales

promotion tool will be appropriate. On the other hand, to increase

or to combat competition it will be wise to organize sales

promotion. This is very much exemplified in the promotion,

normally carried out by the Nigerian Bottling Company Plc.

Nwosu et al (1996:322) argued as debunking the short-term

marketing and sales objectives as sales promotion by referring to it

as “a long communication medium that acts as along term image

builder, awareness creator and a veritable communication

medium”.

The implication of this is that with effective sales promotion it will

have a halo effect on the co=operate image of the company,

attract repeat purchase and attract non-users to quiet their

patronage. It is on this view Majaro (1993:131) opined that sales

promotion seems the best promotional tool to use to stimulate

consumers to behave in the way that is at apart with the

company’s palm especially, if certain parts of the products range

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is experiencing low sales. He therefore, advocated that for the

effect of sales promoting schemes to be maximized. It should not

be done isolated but rather be planned and integrated with other

marketing activities of a company like advertising, personal selling

etc.

It should be noted that planning for sales promotional activities

involves blending consumers socio-cultural and psychological

differences which induce buying attitude or behaviour for product.

The fact remains that consumers are conscious of price reduction

or sensitive of price. They would want to win items or want a gift

item for the purchase of a product while comparing such decision.

The perhaps is explained by the economic recession and inflation

in the economy.

In light of this Assael (1985:370) agrees that companies spend

more on sales promotion for consumer packed goods than on

other promo-mix (advertising, personal selling). He noted that the

relevance of sales promotion can be seen in the fact that there

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have been increasing price pressure on national brands and

because of this companies now realize the importance of price

sensitive quality conscious, price conscious and less brand loyal

because of the cycle of inflation and economic recession that the

only thing that appears they can rely on the sales promotion which

is a valuable tool in a price sensitive economy.

In a simplified way, sales promotion according to American

Association of Advertising Agencies (1978:2) includes “any activity

which offers an incentive to buy a product beyond its inherent

benefits”. From the layman point of view, sales promotion can be

seen from the perspective with which it is used. Nigeria sales

promotion to many is an activity that acquire such benefit as

money or goods to the consumers. Which ever, definition one

prefers, what is in controvertible is the fact that sales promotion is

an integral component of a company overall marketing and which

occurs once or over a limited period of times.

Characteristic of sales promotion

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Kotler (1991: 631 – 632) submitted that the growth of sales

promotion is the result of greater firm acceptance, better

management quick response, competition economic conditions

and demand by sales promotion have both strengths and

weaknesses as a promotion. In other to use sales promotion

proper, one has to be selective and thereby put its strength to work

for the company and nullity its weakness.

Strength of sales promotion is interviewed area.

o It establishes the feeling among middlemen and

consumers that they are getting something for nothing.

o Sales promotion is in addition to other inducements,

they are “extra something” that get the consumer to

buy.

o Sales promotion are directly inducement, they try to

get action now rather than later and if they are

successful, immediate sales increase take place.

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o Sales promotion are at are any stage of a new product

introduction. They can enhance a selling massage

delivered by advertising or personal selling.

Management of sales promotion program involves on

understanding of the activities that constitution sales promotion,

the objective in the sales promotion program and the other

marketing promotion mix. Managers must know the factor that

dictates the specific use of sales promotion as well as the

importance of evaluating sales promotion efforts.

A number of factors contributed to the rapid growth of sales

promotion in recent years, particularly in consumer markets. The

internal and external factors.

INTERNAL FACTORS

 Sales promotion has become more accepted to stir

management as an effective means to stimulate sales.

 More product managers are qualified to use sales promotional

tools
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 Products managers are under greater pressure to obtain quick

sales response.

EXTERNAL FACTORS

 Brands have increased in number

 Many brands are at parity

 Consumer are more deals oriented

 Competitors have become more promotion minded

 Trade has demanded more deals from manufacturers

 There is a belief that advertising efficiency has declined

because of raising cost, media clutters and government

restraints. In light of the above, sales promotion is more

effective under the following condition.

 When a new brand is being introduced when a major product

improvement in an established brand is being communicated to

market and also to conclusion the effect of the price increase.

 When the brand that is being promoted is already enjoying an

improvement competitive trend.

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 When company is trying to increase store distribution and

actuation of channel actors and middlemen

 When a branded product is being advertised sales promotion is

used to amplify the result of the advertisement.

 When market share is being maintained.

Achievement of sales promotion objectives is independent of

promotion type, geographical area, incentive level promotion

duration, promotion cost, trade participation, single/dual,

promotional components, pre-testing trade, reactions target, sales

force support or trade support and product life cycle.

2.3 TYPES OF SALES PROMOTION

Sales promotion is being classified into three (3) types that aimed

at.

 Final consumer or users or consumer promotion

 Middlemen or trade promotion

 The company’s own sales force (sales force promotion).

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1. Consumer promotion- These are sales promotion efforts

targets at the final consumer or users. It tries to increase demand

or speed of the time of purchase. Such promotion might involve

developing material to be displayed in retailers store. They involve

tools such a banner and screamer, samples packaged point of

purchase materials, sweepstakes, coupons, premiums insert

warranties.

OBJECTIVE OF CONSUMER PROMOTION

 To get consumers to try a new product or brand

 To meet or counter balance competitors promotion.

 To implant favorable opinions in customers mind

 To motivate consumers to buy

COMMON CONSUMER PROMOTIONAL TOOL

Premium- A premium is either an out right gift or semi-gift (when

the person collecting the premium pay a small normal sum of it).

There are basically two types of premium, those received

immediately on purchase of the production and those obtained

later in exchange for a number of wrappers. Premium ranges from

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items of external low cost such as small plastic, toys given away

with packets of breakfast cereals packaged, chocolate, y-shirt,

football etc. to more valuable article such a kitchen knives, with

some house hold durable and even whole set of pots and pans

offered with cooker.

PATRONAGE REWARDS

These are cash or other awards for the regular use of a certain

company’s product or services for example, airlines offer “frequent

flyer plans”. Awarding points for miles traveled that can be turned

in for free airline trips.

CONTEST/SWEEPSTAKE/GAMES

These are promotional event that gives consumer chance to win

something such as cash, trips or goods by luck or through extra

effort.

CONTEST

This calls for consumers to summit an entry a jingle, guess,

suggestion to be joined by a panel that will select the best entries.

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SWEEPSTAKES

This calls from consumer to submit their names for a drawing.

GAME

A game presents consumer with something bingo numbers

missing letters. Every time the buy what may or may not help them

win a prize.

2. TRADE PROMOTION

This type of promotion is aimed at middlemen or channel actors. It

is designed to gain reseller support and to improve re-seller selling

effort. It stresses price related matters as the objectives assigned

to it may be to encourage stocking of new items be or buying in

large quantity or buying early to control inventory and enhance that

utility of time from place and possession. It may also be to

encourage retailers or wholesales or distributors to sell specific

items or the company’s whole line offering. It uses tools such as,

discount, allowance, free goods, corporate advertising.

OBJECTIVE OF TRADE PROMOTION

 To get middlemen to participate in manufacturers promotion.

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 To induce middlemen to buy in greater quantities.

 To help middlemen to buy in greater quantities and control

stock to avoid obsolete stock and operate more effectively.

TRADE PROMOTION TOOLS

These are special offers given to trade or channel actors to

persuade them to carry brands, give it shelf space, promote it in

advertising and push it to consumers, such incentive include, price

off, allowances, buying back guarantee, discounts.

DISCOUNT

A straight reduction in price on purchase during stated period of

time. It is also called a price off, off involve or off list. The offer

encourages deals to buy in quantity or to carry a new item.

Dealers can use the discount for immediate profit, for

advertisement or for price reduction or their customers.

ALLOWANCES

This is promotional paid by manufacturers to retailers in return for

an agreement to feature the manufacture preclude is some ways.

 41

They include advertising allowance which compensates for

displaying product.

Manufacturers may offer free goods which are extra cases of

merchandise to middlemen who buys in a certain quantity or who

feature a certain flavour or size manufacturer can as well offer

push money cash or gift to dealers or their sales force to push the

manufacturers good etc. Manufacturers can also give the retailers

free gift especially advertising items that carry the company’s

name such as pen, pencils, coolers sacks colanders, papers,

weights, match books memo pads etc.

3. SALES FORCE PROMOTION

This type of promotion is designed to motivate the sales force and

make sales selling effort more effective. It aims is to boast the

moral of sales force so as to sell more by placing goods financial

and material rewards recognition to excelling sales staff. In the

process they might be used as intelligence gathering. It uses tools

such as bonuses, cosmists, commissions sales rallies.

 42

EXAMPLE OF SALES PROMOTION ACTIVITIES

Aimed at final Aimed at Aimed at sales

middlemen force
Consumer contests Price deal promotional Controls bonuses

components Samples trade allowance sales Meetings portfolios

shows P.O.P materials contest calendar gifts displays sales aids

banner and streamers trade trade shows meetings training materials

stamps Catalogues

Sponsored event merchandizing

Source: McCarthy and Jerome 1990 Basic Marketing Page 36.

2.4 DESIGNING AND DEVELOPMENT SALES PROMOTION

Design is the preparation of promotional specification which

requires a team of analysis perhaps “consortium” and the

approved recommendation of the feasibility report of the

development of sales promotion. However, the development of

sales promotion involves several processes, which include.

A. DETERMINE GOAL/NEED FOR THE EXERCISE

The objective for which sales promotion is carried out must be

asserted. Some of the objective according to C.D. Moss, P.

 43

Thorne and P. Eassey 1963 in their book “Distributions of

coupons” which includes:

i. To gain customers and convert them to regular use

particular for new or improved product during introduction.

ii. To wide distribution of a product and fight competition

iii. To influence stock level which may be to high or too low

iv. To reduce sales peak and troughs and maintain economic

production levels

v. To cushion the effects of a price increase

vi. To create new interest in an established product and

improve results from in store displays.

B. SELECTION OF TARGET AUDIENCE

In doing this, one tries to match the sales promotion exercise and

the need or objectives. The organization may embark on

consumer promotion techniques if it targeted the consumers.

Likewise, it may be wise to promote to the trade channels or even

the sales force. No matter the focus of the sales promotion

 44

exercise, the organizations must know its market in terms of

segment and geographical location to enhance effectiveness.

C. SIZE OF INCENTIVES

The market has to determine how much to offer since at least

minimum incentive is necessary if the promotion is to succeed and

a high incentive as well, will produce more sales response. The

size of incentive must be valued using the cost benefit analysis

concept so that it does not jeopardize the entire exercise.

D. CONDUCT FOR PARTICIAPTING

Incentive might be offered to everyone or selected group. The

mode for redeeming price must be decided. An example is the

minimum that might be offered only to those who turn in crowns or

proof of purchase. The marketer must elicit and decide on how to

distribute the incentive of the promotional programme. The number

of redemption centres must be determined.

E. DURATION/TIMING OF PROMOTION

The objective of the sales promotion exercise must be matched

with the time frame of the promotional activities. If sales promotion

 45

period is too short or too long, it will affect much involvement from

the public. Its strategies may the competitors. Thus, the brand

manager needs to develop calendar dates for the exercise.

F. SALES PROMOTION BUDGET

In determining the achievement of sales promotion efforts, the

amount of capital or cash commitment must be given a special

attention other wise, the entire efforts will be at cross road.

However, to precisely ascertain the amount that would be spend

on promotion, certain fact must be considered. These include:

i. The type of product

ii. The interaction of different modes of communication

iii. Marginal advantage of each communication device

The optimal method of allocating promotional budget would be the

expansion of the budget until the additional increment equated the

marginal revenue received from the increment. This method

entails the expenditure of naira until each naira of promotional

expenses is equal to the additional naira release as profit. This

 46

approach is difficult in identifying the optional profit. Other means

of allocating promotional budget include.

a. Fixed sum per unit approach- This approach is

peculiar to producer of high value consumers goods

like automobiles it is a per-determined sum allocation

to each unit of the total company’s output. It can be

based on historical or forecast figures.

b. Percentage sales approach- This is the most

common method of allocating promotional budget to

its simplicity. The approach is based on percentage of

company’s part sales record or current years sales.

c. Meet competition approach- This is the most

inappropriate way to allocate promotional budget. The

approach implies matching the promotional

programme of competitors. The approach falls short

of taking cognizance of the company’s available

resources goals and other peculiarities.

 47

d. Task and objectives approach- This is based on a

sound valuation of a company’s promotional

objectives and it involves two sequential steps.

Firstly, organization must define the goals that marketing

communication can achieve for example 15% (Percentage)

increment in market share 3% three percent increment in gross

sales or combination of these. The salient thing is to specify

precisely, the goal which the firm wants the promotional effort to

accomplish.

Secondly, she must determine the amount as well as the type of

promotional activities to embark upon in order to achieve the

promotional objective, whichever method is applicable, the cost of

promotional effort must not out cost the benefit inherent in the

promotion exercise.

2.5 THE CONCEPT OF ORGANZIATION PERFORMANCE

According to Stoner et al (1996:6 “Organizational performance is

the measure of how efficient and effective an organization is”).

 48

That is, how well it achieves appropriate objectives. Efficiency is

the ability to minimize the use of resource in achieving

organizational objectives, “doing things right”. Efficiency is simply

the ability to do things right. It is an input output concept. An

efficient manager is one who achieves output or results that

measure up to the inputs (labour, materials and time) used to

achieve them. Managers who are able to minimize the cost of

resources needed to achieve goals that are acting efficiently.

EFFECTIVENESS

This measures the ability to determine appropriate objectives

“doing the right thing”. In contract to efficiency, effectiveness

involves choosing right goals. A manager who selects an

inappropriate goal for instance producing mainly large cars when

demand for small cars is soaring for an effectiveness manager

even if the large cars were produced with maximum efficiency. No

amount of efficiency can make up for a lack of effectiveness infect,

drunker says: effectiveness is the key to an organizations success.

Before we can focus on doing things efficiently, we need to be

 49

sure we have found the right thing to do. Organizational

performance is the product of the impact of sales promotion on

both the products of the organization and as a whole.

It emphasis on the economic performance of the firm, measured

by revenues cost and profits owned to the shareholders. Likewise,

on the social performance of the firm which is represented by

obligations to employees custom creditors, suppliers, distributors

and members of the general public.

The concept of organizational performance is to create awareness

as to whether the objective and the target of the sales promotion is

met or not. This is however determined through the following:

i. Additional profit derived

ii. Loss incurred

iii. Rate of purchase during the three month, period of the

promotion.

Apparently, the determination of the performance of the

organization depends on the comparison of records available on

 50

sales, profit and losses prior to, during and after the sales

promotion activities.

2.6 COMPONENTS OF ORGANIZATIONAL PERFORMANCE

Organizational performance depends on a number of variables

which include.

i. Sales performance

ii. Management of sales force

iii. Human resources

iv. Funding in terms of each commitments to the sales

promotion

v. The influence of environmental factors (internal and

external)

vi. Performance analysis according to Ben M.E. Keith

(15:1986 page 426-427) depends on a number of factors

vis-à-vis, sales analysis, brand positioning analysis,

distribution, profit/cost analysis and sales force analysis.

 51

1. SALES PERFORMANCE

This is the sales position of the product being promoted after the

comparison of set standard with actually sales, usually various

past record so as to determine whether target is met or not. Sales

performance is measures by these variables namely.

 ability of sales men/attitude. This depends largely on two type

of attitude test.

 Intellectual ability

 Test of personality tracts

 Financial commitments, compensation and incentives. This

relies on the design and administration of various compensation

and incentive plans.

 Psychological incentive and monetary incentive. This involves

recognition and personality the impact of the sales force on

sales performance.

 Organizational and managerial factors which relies on

 Selection policies

 Supervisory policies
 52

 Organizational climate and culture

2. MANAGEMENT OF SALES FORCE

Management of sales force has to be effective and crucial to the

organization. The sales force has to be monitored, controlled and

integrated into the wholesales promotional programmes. This will

ensure that the goal of the promotional activity is achieved.

Integration is a import part force management and it must be

embedded in the marketing efforts of an organization. Control on

the other hand, can be exercised through three vehicles namely,

payment and supervision, promotion and target, lastly

remuneration, payment is often in terms of salary plus commission

or straight commission. Target provides salesmen and manager

with clean idea about expected performance and added incentives

for achievement.

3. HUMAN RESOURCES

The totality of sales promotional effort will be jeopardize if there

were no qualitative man power based to execute the entire

activities. The personal department must be into the recruitment

 53

and selection of sales force to be used for the programme. The

personnel should also emphases of the following aspect of

development.

 Training the sales force

 Motivating the sales force

 Compensating the appraisal of the sales force

 Evaluation and appraisal of the sales force

4. FINDING IN TERMS OF CASH COMMITMENT

The success of sales promotion is a function of the monetary

resources available for its execution. Promotional and sales

budget should be prepared in a way to facilitate the achievement

of the goals and objectives of the promotional exercise. There

must be balanced allocated must relate anticipated cost of

performing a particular activity of the benefit associated with it.

Attempt should be made to prepare cost and income forecast from

which residual profit forecast can be prepared. Effort must also be

made to match specific budget method to the goals and objectives

of sales promotion.
 54

5. THE INFLUENCE OF ENVIRONMENTAL FACTORS

Society they say is a function of business. Thus business makes

demand on the society so does demands on the business.

Managers in any organization must interact and respond to

environmental factors that0 affect their operations. The inter-

relationship between business and the society is referred to as the

business environment. Generally, managers often lack influence

and control on these external forces and as such, they find it

difficult to effectively change them. Therefore, ability to identify,

evaluate and react to these forces will have considerable impact

on organizational effectiveness.

It is very imperative to monitor the business environment during

sales promotion exercise because environmental factors may

bring opportunities that must be exploited. It may also bring

threats. Constraints or problems that will limit the scope of

operation of an organization.

The external environment includes: Technology political legal,

economy, and competition socio culture and so on. The internal

 55

environments are the activities that affects of influence business

as a separate entity within the organization. They consist of the

functional structures and relationship in the organization. The

discussion on each of these environmental factors would not be

done so that the research work will be comprehensible.

6. PERFORAMNCE ANALYSIS

Performance analysis according to Enis: 1986, involves the

employment of data largely gathered within the employment

(internal report system) but often supplemented with available

external data (marketing intelligent). Making internal data available

promptly and classifying them accurately without wastage. It

demands a harmonious relationship between affected departments

such as accounting sales administration, the field sales division

and marketing research department. Performance analysis are

made of frequent and regular internals to enables management

figure out the pulse of marketing activities and also to show the

trend of activities within an organization in periods, such analysis

often indicate problems which marketing research department may

 56

investigate with more complete techniques and obtain external

data that will show the pace of organizational success.

Performance analysis, brand positioning analysis, distribution

analysis profit and cost analysis, and sales analysis.

 57

REFERENCES

McDonald (1994): Strategic Marketing Management The

Marketing Series of CIM p. 356

Baker, M.J. (1996): The Marketing Book Series CIM p. 535-553

American Marketing Association (1960): Sales

Promotion Techniques a Basic Guidebook.
American Association of Advertising p. 2

Kotler, P.C. (1997): Marketing Management Analysis

Planning Implementation and Control:
Prentice Hall Int’l USA 9th Edition P. 661

Nwosu et al (1996): Mass Media and Marketing

Communication: thought or Communication Publisher Enugu
(Nigeria), p. 322

Majaro (1993): The Essential of Market Prentice Hall Int’l UK.

Assael (1985): Marketing Management Strategy and Action P.N.S

Kent P. 370

Linus Osuagwu et al (1997): Marketing Management

Principle, Strategies and Cases Mathous
Publisher Lagos P. 181.
 58

CHAPTER THREE: RESEARCH METHDOLOGY

3.1 INTRODUCTION

It has become necessary in every research study to form the basis

for bringing the variable in the study to the context of such

research. This crucial role is played by methodology as it provides

the framework or guide to data collection. Thus, this chapter deals

with the method used in collecting and sourcing for information. It

highlights the business carried out in the field and the various

researches; instruction used in generating response from the field

some of the topic covered under, this chapter includes research

design, population of the study, sample size, data collection

method, distribution of questionnaire method of data analysis.

3.2 RESEARCH DESIGN

Research design refers to the plan, structure and strategy of

investigation conceived by the researcher so as to obtain answer

to research question. It is a framework on plan that is used as a

guide in collecting and analyzing the data for a study.

 59

In order to make the finding for this study explicit, the survey

method was employed. This is because the study is an exploratory

research. The instruments used were the structured questionnaire,

which were often used in the course of primary data collection.

This approach comprises open ended question and closed ended

questions. The open ended question gives room for respondents

to answer in his/her own words whereas close ended questions

pre-specify all the possible answers in which the respondent

makes choice among the alternatives. However, for the purpose of

this study two ways of structuring questionnaires design likewise,

dichotomous question was.

3.3 POLUATION OF THE STUDY

The research study encompasses the Onitsha south local

government areas of anambra state. Statistics shown that the

entire population of onitsha south local government areas is

90,000 (ninety thousand) and it is made up of five districts namely.

 60

1. FEGEE

2. ODAKPU

3. OCHAWJA

4. WOLIWO

5. HOLISING

The population of Nigeria Bottling Company Plc onitsha plant

which is made up of the entire work force of 450 (four hundred and

fifty) staff, they include both senior and junior staff.

It is expedient to state that NBC plc is over 10,000 (Ten thousand)

but for the purpose of this study the population of the distributors

included is 34 redemption centres used during sales promotion

targeted finally refreshment promotion and direct distributors of

NBC onitsha.

3.4 SAMPLING PROCEDURE AND TECHNIQUE

The essence of sampling is to determine how sample procedure

would be obtained from the study population. The population of

study has been carefully divided into three strata namely.

 61

 The consumers

 The management of NBC plc

 The dealer/distributors

Simple random sampling method was applied in selecting the

number of respondents to be sampled among the consumers and

the dealer/distributors. This is because the population is extremely

large and sample random sampling method ensures that every

member of each population have equal chance of being selected.

Therefore, a sample procedure or size of 100 was randomly taken

to represent the interest of consumers in onitsha south local

government based on the entire population of the area. The

sample procedure or size selected at random was shared in equal

proportion among five districts within onitsha south local

government area. Thus, it implies that to 20 persons were sample

toe ach district. In the same vein, a total 20 was selected randomly

to represent the interest and responses of the dealers/distributors

that was sampled. To obtain or determine the sample size for the

management of NBC plc, sample statistics was used, the reason

 62

being that it was a finite population whose composition is

considerable not too large. Likewise, the characteristics of the

population, which is the staff strength of NBC plc, onitsha has

been revealed by previous study. They sample size will then be

determined by using the formula below.

S2

n= 2 + S 2

Z2 N

Where

n = sample procedure or size to be determined

z = statistics corresponding to the desire confidence

level

s = estimated values of the standard deviation of

the sample statistics
E = the maximum acceptable magnitude of error
N = entire population which is the staff strength of
NBC plc onitsha plant which is 450 staff.
In applying the above formular to arrive at the number of

questionnaire that will be sampled. I chose 95% as my confidence

 63

level as 5% as the significance level or allowance error and a

standard derivation of 14.5

(14.5)2

n = (52 ) + (14.5)2

(1.96)2 450

210 . 25

n= 25 + 210.25

3.84400

210 . 25

n = 6.51 + 0.47

210. 25

n= 6.98

n= 30.12

by this, a total of 30 questionnaires were administered to

management of NBC plant onitsha.

 64

3.5 DATA COLLECTION METHODS

The use of primary and secondary source of data collection was

instituted.

Primary source of data collection- Due to the exploration nature

of this research, the main method of primary research is the study

through oral interview and the administering of questionnaire.

However, primary source of information enhance the collection of

data through use of observation, survey, experiment and focus

group. The research approach is survey method. Dichotomous

types of closed ended questions which offers two answers choice

to respondents were used.

Secondary source of data collection- Available relevant

literature was reviewed. The researcher made use of textbooks,

journals note supplied by Nigerian Bottling Company Plc. local

government directory in onitsha south of anambra state as well as

unpublished materials of other research and authors relevant to

this study. This source of data formed the bedrock on which the

theoretical work in this project was based.

 65

3.6 QUESTIONNAIRE DESIGN AND ADMINISTRATION

We have divided the population of the study into 3 states namely

consumers, distributors and management of NBC plc. Three sets

of questionnaire were produced for each stratum which

administered to elicit responses towards accomplishing the

purpose of the research. This distribution of questionnaire areas

follows

Response Table

Questionnaires No sample No return Usage %

Consumers 100 90 65

Distributors 20 20 14

NBC staff 30 30 21

Total 150 140 100

Showing the mathematical solution of the response rate we have

Response rate = No return (used) + 100

total questionnaires

Response rate = 140 x 100

 66

500 = 93%

This research is carried out based on a total of 140 questionnaire.

3.7 DESCRIPTION OF DATA ANALYSIS

Qualitative and quantitative forms of statistics were used. Data

were presented in tubular form in line with verbal description of

result obtained. Frequency distribution and computation of simple

percentages were also used.

 67

CHAPTER FOUR: PRESENTATION AND

INTERPRETATION OF DATA

4.1 INTRODUCTION

Principally, the focus of this chapter is on the concrete analysis of

the data collected in the study of the impact of sales promotion an

organizational performance using Nigeria Bottling Company Plc,

onitsha plant as a case study. In this chapter, information and data

collected for the purpose of answering research question

formulated in the study are presented, interpreted and analyzed.

They findings are presented according to the research questions.

4.2 ANALYSIS OF NUMBER OF QUESTIONNIARES

Based on the computed sample size in the research methodology.

One hundred and fifty (150) questionnaire were altogether set out

to the respondent 140 were returned. Accordingly all relevant data

derived from the questionnaire returned will be exhaustively

analyzed to either prove or disprove in formulated hypothesis. The

tools of the analysis employed were simple percentages and chi-

 68

square, which facilitate the test of hypothesis being formulated. The

breakdown of the questionnaires distribution are as follows.

No of No returned No of usage
questionnaire
administered
Consumer 100 90 90

Distributors 20 20 20

NBC staff 30 30 30

Total 150 140 140

The researcher made necessary calculation based on the

response for and against a particular questions as it was in the

questionnaires.

4.3 PART 1: ANALYSIS OF QUESTIONNAIRE TO

MANAGEMENT OF NBC

QM1: Does sales promotion increase the patronage of NBC

promotion.
 69

Table 4.1

Options No of respondents Percentage %

Yes 26 87

No 4 13

Total 30 100

INTERPRETATION

From the table above 87% of the 30 (thirty) respondents believed

that sales promotion activate sales beyond that normal

expectancy. However, 13% of the respondent believed that the

company could make good sales and increase profit even without

sales and increase profit even without sales promotion.

QM3: Has effective of sales promotion been responsible for the

increase in company’s profit?

 70

Table 4.2

Options No of respondents Percentage %

Yes 23 77

No 7 23

Total 30 100

INTREPRETATION

The evidence from the above table shows that many of the

respondent believed that sales has a positive impact on

company’s profit, about 77% of the respondents support the

assertion while 25% opposes the view.

QM4: Has effective use of sales promotion help to increase market

share

Table 4.3

Options No of respondents Percentage %

Yes 27 90
No 3 10
Total 30 100

INTERPRETATION
 71

Quite a large percentage of the respondents agreed that sales

promotion has helped the company to gain increase in market

share 90% of the respondent believed that sales promotion

enhances deeper penetration of the market depth which a few of

10% disagree with the claim.

QM5: Does production output increase during sales promotion

Table 4.4

Options No of respondents Percentage %

Yes 29 97

No 1 3

Total 30 100

INTERPRETATION

The above table shows that production output is directly related to

sales promotion 97% of the respondent revealed this positive

which only 3% counted the arguments.

QM6: Which of these sales promotion tools sales force prefer most?

Options No of respondents Percentage %

 72

Free gift 16 53

Coupon 4 13

Discount 3 10

Contest/game 7 24

Total 30 100

INTERPRETATION

The illustration of the table shows that high number of the sales

force about 53% preferred free gift while 47% of the remaining

sales force preferred other alternatives.

QM7: Does effective sales promotion budget encourage force?

Table 4.6

Options No of respondents Percentage %

Yes 29 97
No 1 3
Total 30 100

INTERPRETATION
 73

It is evident here that 29 out of the 30 respondent agreed that

effective sales promotion budget motivates the sales force. And if

this so, sales promotion is bound to be a success.

QM8: Does sales promotion programme expand the market

coverage of sales force?

Table 4.7

Options No of respondents Percentage %

Yes 30 100

No 0 0

Total 30 100

INTERPRETATION

This table revealed that all the respondent strongly believed that

sales programme expand the market coverage of the sales force,

thus more effort is needed to cope within the challenges brought

by the sales promotion exercise.

QM9: Does management involve sales force in planning sales

promotion programme
 74

Table 4.8

Options No of respondents Percentage %

Yes 30 100

No 0 0

Total 30 100

INTERPRETATION

The outcome of this analysis shows that management engages

sales force in the planning of sales promotion programme has

been tied to its execution.

QM10: Do you believe that sales promotion helps to generate

more cash flow for the organization.

Table 4.9

Options No of respondents Percentage %

Yes 28 93
No 2 7
Total 30 100

INTERPRETATION
 75

It could be deduced from the table quite a large number of the

respondent, about 93% of them believed that sales promotion

yields immediate returns. Thus, it activates the liquidity position of

the organization in the short run.

4.4 PART II: Analysis of questionnaire to distributors of NBC

QM3: Does sales promotion increase distribution expenses.

Table 4.10

Options No of respondents Percentage %

Yes 3 15

No 17 85

Total 20 100

INTERPRETATION

The table shows that majority (about 85%) did not believe that

sales promotion increase their distribution expenses. However,

155 of the respondents opposed the question. It means sales

promotion increase profit of the distributors.

QM4: Are consumers satisfied with sales promotion incentive

 76

Table 4.11

Options No of respondents Percentage %

Yes 18 90

No 2 10

Total 20 100

INTERPRETATION

As seen from table, quite a large number of respondents revealed

that consumes are content with the sales promotion incentive 18

out of 20 distributors supported this, this satisfaction of the

consumers were shown in form of continuous patronage of the

distributors outlets during the sales promotion exercise.

QD5: Do sales promotion programme help to increase the late of

stock turnover?
 77

Table 4.12

Options No of respondents Percentage %

Yes 20 100

No 0 0

Total 20 100

INTERPRETATION

Empirically, the table shows that all respondents believed that the

frequency with which they turned their stock over was higher

during sales promotion. Thus, the result shows that more minerals

were sold and faster rate to equate the demand.

QD6: Do you think sales promotion is being carried out effectively?

Table 4.13

Options No of respondents Percentage %

Yes 16 80

No 4 20

Total 20 100

INTERPRETATION
 78

Out of the 20 respondents, 16 support that sales promotion is

being carried out effect. Minimum incentive to be given must have

been decided and activities integrated to meet the objectives of the

sales promotion exercise. However, the 4 deviants are not

uncommon.

QD7: Do you record more sales during sales promotion exercise?

Table 4.14

Options No of respondents Percentage %

Yes 20 100

No 0 0

Total 20 100

INTERPRETATION

Undoubtedly, contribution of the respondents from the table

revealed that more sales where recorded during sales promotion

exercise. Thus, incentives given build in traffic to the distributors

outlet.
 79

QD8: How can you access the consumption pattern of consumer

during sales promotion

Table 4.15

Options No of respondents Percentage %

Yes 19 95

No 1 5

Total 20 100

INTERPRETATION

From the table, all but one respondents agreed that the demand

for soft drinks was at the peak at the distributors store during sales

promotion exercise. This is connected to the quest for additional

benefit by the consumers.

QD9: Do you agree that sales promotion enhances consumers

acceptability of product without considering competitors brand?

 80

Table 4.16

Options No of respondents Percentage %

Yes 14 70

No 6 30

Total 20 100

INTERPRETATION

This table shows that 70% of the respondent believed that sales

promotion would create product acceptability at the expense of

creditors brand. However, the 30% disparity in the response

shows that consumer would still be loyal to their favorite brand

inspite sales promotion.

QD10: Does sales promotion help to attract new customer

Table 4.17

Options No of respondents Percentage %

Yes 20 100
No 0 0
Total 20 100
 81

INTERPRETATION

This analysis from the able made it known that all the respondents

were of the opinion that sales promotion will attract new customer

to their outlets.

QD11: Do sales personnel visit you more during the period of

sales promotion

Table 4.18

Options No of respondents Percentage %

Yes 16 80

No 4 20

Total 20 100

INTERPRETATION

The respondent show that sales personnel visit distributors often

during sales promotion exercise. We can infer that there is

commitment on the part of the sales personnel because it enables

them to meet the sales target.

 82

4.5 PART III: ANALYSIS OF QUESTIONNAIRE TO

CONSUMER

QCI: Do you take soft drink

Table 4.19

Options No of respondents Percentage %

Yes 76 84

No 14 16

Total 30 100

INTERPRETATION

The above table shows that 84% of the total respondent does not

take soft drink. This implies that majority of consumers takes soft

drink.

QC2: Which of these brands of NBC do you enjoy most

 83

Table 4.20

Options No of respondents Percentage %

Coca-cola 49 54

Fanta 20 22

Sprite 8 10

Krest/other 13 14

Total 90 100

INTERPRETATION

This table shows that majority of the respondent have their brand

loyalty for coca-cola. A few of them could go for fanta while other

will settle for the alternatives. Thus sales should be concentrated

on less known products.

QC3: Do you believe sales promotion is always real?

 84

Table 4.21

Options No of respondents Percentage %

Yes 37 63

No 33 37

Total 90 100

INTERPRETATION

The table shows that quite a number of the respondents agreed

that sales promotion is real 63% out of the 90 consumers surveyed

believed in the reality of sales promotion while about 37% did not.

QC4: Do you watch out for gift during sales promotion

Table 4.22

Options No of respondents Percentage %

Yes 29 32

No 61 68

Total 90 100

INTERPRETATION
 85

The table pointed out that majority of the respondent have not

benefited from sales promotional activities. About 68% of the

respondent have not won any gift. We can now infer that despite

the noise being made about sales promotion people do not still

believe them. This might stem from the fact that the distribution of

incentive was not properly and evenly carried out.

Table 4.23

Options No of respondents Percentage %

Yes 59 66

No 31 34

Total 90 100

INTERPRETATION

Here many people agreed that though the buy soft drink with sales

promotion. About 34% also responded that they buy without sales

promotion, but they first look around to see if there is any

substitute drinks with sales promotion incentive before making

their purchase. This is done to “grab the offer while it lasts”.

 86

QC7: Do you increase your in take of soft drinks when sales

promotion activity is on?

Table 2.24

Options No of respondents Percentage %

Yes 57 63

No 33 27

Total 90 100

INTERPRETATION

The table revealed that 63% of the respondents surveyed increase

their consumption of soft drink during sales promotion activities.

We can deduce from here that the quest to win gift accelerates the

consumption pattern of the consumers.

 87

QC8: Do you additional satisfaction by winning gift

Table 4.25

Options No of respondents Percentage %

Yes 57 63

No 33 37

Total 90 100

INTERPRETATION

Undoubtedly, the table shows that of the 63% of the 90

respondents were enjoying extra satisfaction by winning a gift

while 37% claimed that they donor enjoy extra satisfaction.

QC9: Which of these sales promotion incentives do you prefer

most?

Table 4.26

Options No of respondents Percentage %

Free gift 62 96

Contest/game 28 31

Total 90 100
 88

INTERPRETATION

The analysis shows that highest proportion of the respondent

preferred free gift to contest or game. We can deduce from there

that most consumers want something that will give them

immediate benefit than any other options.

QC10: Should sales promotion be a continuous exercise

Table 4.27

Options No of respondents Percentage %

Yes 68 76

No 22 24

Total 90 100

INTERPRETATION

The table shows that 68% respondents want sales promotion by

continues while 22 respondents believed that it should be for

specific time frame. It could be inferred from the respondents here

that those who advocated for continuity of sales promotion want to

benefit from the exercise.

 89

QC11: Are you likely to reduce your pattern of consumption after

sales promotion

Table 4.28

Options No of respondents Percentage %

Yes 66 73

No 24 27

Total 90 100

INTERPRETATION

The result from table shows that 73% of the respondents agreed

that sales personnel visited the redemption centres. This implies

that there was high commitment on the of the sales force towards

sales promotion.
 90

CHAPTER FIVE: SUMMARY OF FINDINGS,

CONCLUSION AND RECOMMENDATION

5.1 RESTATEMENT OF THE PROBLEMS

Despite the magnitude and relative importance of sales promotion,

comparatively, little attention is given to it buy most business

organization. Many view it a money consuming and a waste

venture. So the question is could sales promotion if adopted as

one of the problem solving behaviour help organization to achieve

their marketing objectives”.

It is in the light of this question that the researcher was motivated

to conduct as study on sales promotion with reference on the

Nigeria Bottling Company Plc. However, one excruciating

hindrance of sales promotion is the difficulty in measuring its direct

contributions to organizational performance. Hitherto, the major

problem is mobility to know the extent sales promotion can be

used to stimulate organizational performance and operations,

which can be viewed under the following sub-problems.

 91

 Is sales promotion helping to improve sales?

 Does the promotional activity have position impact on

organization?

 Is there any correlation between sales promotion and

organizational performance

 Could sales promotion be an incentive to sales force motivation

 What are the criteria used in the application of the promotional

to suit organizational operation

 Are the existing customers satisfied with the company’s

products

5.2 SUMMARY OF FINDINGS

The primary goal of embarking on this research work is to appraise

the impact sales promotion has on the performance of

organization in the soft drinks industry with respect of Nigeria

Bottling Company Plc, coca-cola, onitsha plant anambra state. In

order to achieve this purpose, adventure was made into review of

related books and journals. Discussions were made on concept of

 92

sales promotion and organizational performance as well as their

determinants.

Furthermore, in devising a means for the investigating the

framework, data were collected from three sets of questionnaires

administered to the staff of NBC plc (coca-cola), the distributors

and the consumers all within the onitsha south local government

area of anambra state. The qualitative responses of the

respondents were translated to qualitative attributes which were

used in analysis and interpretating the research. in line with the

research conducted, the following findings were discovered.

 Sales promotion is an essential tool in the marketing strategies

of NBC plc.

 Promotion output and capacity increased during sales

promotion exercise (see table 4.4) extra working hours were

instituted to cope with the increase production capacities.

 The sales recorded on NBC Plc, products (coca-cola) as a

result of the sales promotion exercise was higher than that

 93

which was recorded before the sales promotion (see table 4.2).

Thus the research showed that there was more cash flow

during the 3 months of sales promotion exercise.

 Distributors of NBC plc replenished their stock at a faster rate

when there is sales, promotion than the period when there is no

sales promotion (see table 4.12

 The quest to win gift accelerates the consumption pattern of

consumers of NBC products (coca-cola) during the sales

promotion (see table 4.24)

 Despite the noise being made by sales promotions, substantial

number of the consumers interviewed about 68% of them have

not benefited because the incentive were not evenly distributed

(see table 4.25)

 The research showed that 54% of the consumers interviewed

prefer coca-cola brand to all other brands offered by NBC plc,

(See table 4.19) likewise sales force and consumer prefer free

gift to any other sales promotional incentives.

 94

 The research shows the study revealed that they visited the

redemption centres and distributors warehouse (office

promptly).

 Sales promotion expand the market coverage of the sales force

and exert negative effect on competing product in the soft drink

industry.

 Sales promotion complements advertising and personnel

selling thus having a positive impact on organization

performance of NBC plc.

5.3 CONCLUSION

The ability of any organization to get its production its target

audience or consumers depend very much on the effective use of

promotional strategies and the ground strategy referred to as

“40s’. Among the element of promotion of NBC plc. And the soft

drink industry, sales promotion stands out distinctively to be key to

organizational success as it offers the incentives to buy a given

the reason to buy. However, if any organization must service,

 95

succeed and maintain its position in the fluctuating soft drink

market, must sensitize its environments both internal and external

and accept sales promotion as vehicles to its organizational

objectives. Undoubtedly, if sales promotion objectives are

harmonized with the purpose of an organization, consumers will

beat path to the doorstep of such organization. From the research

work, not only does sales promotion help to improve sales,

productivity consumer patronage, cash flows, it also, ensure that

employees and distributors or channel actors are motivated. This

sales promotion cannot be divorced from organizational

performance and activities.

Finally, a deep study and understanding of this research would

afford any organization an opportunity to know the vital areas to

concentrate its efforts for improvement and development as

regards sales promotion. It is also the view of the research that the

study will be a panacea to poor planning and execution of sales

promotion programme in the soft drink industry in Nigeria.

 96

5.4 IMPLICATION OF THE STUDY

The wide scope of the concept “organizational performance” and

limitation of time, wide condition of the study would not allow a

complete adventure into the impact of sales promotion plays as a

function of organizational performance. Hence the researcher

opined that attention should be paid to the follow related topics or

areas in future studies.

i. Sales analysis

ii. Brand positioning analysis

iii. Profit distribution and cost analysis

iv. Distribution analysis

v. Sales force analysis/job evaluation

It is expedient to state here that financial constraints has limited

the scope of study to cover just onitsha south local government

and one organization. NBC plc, subsequent research should

expand the scope of the study and concentrate on more areas.

 97

Two or more companies within the soft drink industry can be

selected for comparative analysis.

5.5 RECOMMENDATION

In spite of the myriad of benefit derived from sales promotion

efforts, it is quite imperative for NBC and the soft drinks industry to

seek further improvement. This is necessary if the must be a

continual and consistent positive impact form sales promotion. It is

the opinion of the research that firms within the soft drinks industry

must seen their business environment and discover opportunities

and threat which may shape their sales promotion activities. This

must be material with their strength and weakness. However,

based on the outcomes of the research two, essential areas must

be given adequate attention.

INTERNAL CONSIDERATION

 NBC plc should examine itself before embarking to any sales

promotion exercise. The objective of any sales promotion

exercise must be the first, consideration pricing policies, must

 98

be flexible must be determined. Likewise, the resources

available for the execution of the programme. In view of this,

the company has to be consumer oriented and embark on

market research before designing future sales promotion. The

incentive to the consumer needs since the research revealed

that consumer want value incentive and non just more gift.

 Since sales promotion programme affects the totality of

organizational activities NBC plc should embark on integrated

marketing strategies and ensure that all functional area within it

organization are involved in the planning and implementation of

sales programme. They could form a consortium.

 The company should improve on the distribution of incentive so

that more consumers can benefit from the sales promotion

programme, sales force should be trained and motivate to

enhance absolute commitment and increase their productivity.

 Sales promotion should be employed to build brand loyalty for

fanta and other less patronized brands. However, market

 99

intelligent gathering can be carried out before embarking on

such exercise.

EXTERNAL CONSIDERATION

 Due to the seasonality in the soft drink industry the objective of

the sales promotion must be linked with the prevent climatic

condition and sales. This will enhance efficient and effective

evaluation of performance. In addition, force of demand and

supply must be borne in mind with NBC formulates its sales

promotion policies.

 NBC plc, should provide additional warehouse facilities to its

distributors during sales promotion to reduce traffic conjunction

and cope with high rate of stock replenishment. Lastly, NBC

should give adequate advertising message to increase

extensive awareness of the sales promotion exercise before it

is embarked on.
 100

BIBLIOGRAPHY

Assael (1985): Marketing Management Strategy and

Action.

Asika Nnamdi (1991): Research Methodology in

Behavioural Science Longman, Nigeria.

Baridam D.M (1990): Research Method in Administration

Science Bell Publisher Nigeria

Ben M. Enis et al (1986): Marketing Classic- A Selection of

Influential Article Allyn and Balen Inc. Boston

James A.F. Sonter et al (1996): Management: Prentice Hall

International India

Carthy E.T. et al (1990): Basic Marketing Richard D.

Irwin Inc. USA

Jefkines F. (1985): Advertising Mac Donald and Evan Ltd.

Estoner Plymouth USA

Linus Osuagwu et al (1997): Marketing Management

Principle Strategies and Case. Mathouse
Publisher Lagos Nigeria.

Majaro (1993): The Essence of Marketing Prentice Hall

International Ltd. United Kingdom.

Michael J. Baker (1996): Marketing. An Introductory

Text Macmillan U.K.
 101

McDonald (1994): Strategic Marketing Management The Marketing

Series of CIM

Baker, M.J. (1990): The Marketing Book Series CIM.

Nwosu et al (1996): Mass Media and Marketing

Communication. Through Comm. Publishers
Enugu, Nigeria.

Kotler P. et al (1996): Principles of Marketing Prentice Hall Int’l

London.

Kotler P. (1991): Marketing Management Analysis

Planning Implementation and Control.
Prentice Hall Int’l USA

Peterson (1979): Sales Promotion in Action. Association Business

Press London

JOURNALS

America Marketing Association (1960) Advertising

Effectiveness

American Advertising Association (1978) Sales Promotion

Techniques a basic Guidebook.

Nigerian Institute of Management (1997) Management in Nigeria.

 102

QUESTIONNAIRE LETTER TO NBC STAFF

Marketing Department School of

Business and Management Technology
-----------------
----------------
------ State.

Nigerian Bottling Company Plc.

Onitsha Plant
Anambra State

QUESTIONNAIRE FOR NBC STAFF

I am conducting a research on THE IMPACT OF SALES

PROMOTION ON ORGANZIATIONAL PERFORAMNCE in partial
fulfillment of the requirement of the Award of ------------ in marketing
Department in the above named Institution.

In the light of the above, attached herewith is a set of questions,

which you are to answer as objectively as possible and return. Your
view and options will contribute in no small measure towards
enhancing the success of this study.
Yours cooperation in providing answers to the questions shall be
highly appreciated.
I am assuring you that any information supplied will be treated in
strict confidence.
Thanks you for your anticipated co-operation

Yours faithfully

----------------------
--------------
 103

QUESTIONNAIRE TO THE COMPANY

Please tick () or comment where necessary.

Personal data (Section A)

1. Name…………………………………………………………………….

2. Sex………………………………………………………………………

3. Position held……………………………………………………..…….

4. Number of your spent with company……………………………….

SECTION B

1. Does sales promotion increase the patronage of NBC product? a.

Yes b. No

2. Has sales promotion had any impact on the company’s sales? a.

Yes b. No

3. Has effective use of sales promotion be responsible for the

increase in company’s profit? a. Yes b. No

4. Has effect use of sales promotion helped to increase market

shares? a. Yes b. No

5. Does production output increase during sales promotion?

a. Yes b. No
 104

6. Which of these sales promotion tools do sales force prefer most?

a. Free gift b. Coupon

7. Does effect sales promotion budget encourage sales force? a.

Yes b. No

8. Does sales promotion programme expand the market coverage

of the sales force? a. Yes b. No

9. Do management involve sales force in planning sales promotion

programme? a. Yes b. No

10. Do you believe that sales promotion help to generate more cash

flow for the organization? a. Yes b. No

 105

QUESTIONNAIRE/LETTER TO DISTRIBUTORS/DEALERS

Marketing Department School of

Business and Management Technology
Federal Polytechnic
Nekde, Owerri
Imo State.

Nigerian Bottling Company Plc.

Onitsha Plant
Anambra State

QUESTIONNAIRE FOR DISTRIBUTORS/DEALERS

I am conducting a research on THE IMPACT OF SALES

PROMOTION ON ORGANZIATIONAL PERFORAMNCE in partial
fulfillment of the requirement of the Award of National Diploma (ND)
in marketing Department in the above named Institution.

In the light of the above, attached here with is a set of questions,

which you are to answer as objectively as possible and return. Your
view and options will contribute in no small measure towards
enhancing the success of this study.
Yours cooperation in providing answers to the questions shall be
highly appreciated.
I am assuring you that any information supplied will be treated in
strict confidence.
Thanks you for your anticipated co-operation

Yours faithfully

ENI ONYINYECHI LAURINA

08/2380/MK
 106

QUESTIONNAIRE TO THE DISTRIBUTORS/DEALERS

Please tick () or comment where necessary

SECTION A

1. Business name

2. Business address

SECTION B

1. How many creates of minerals (NBC products) do you sell per day?

a. Before sales promotion create(s)

b. During sales promotion create(s)

2. How many times do you supply per week?

a. Before sales promotion time(s)

b. During sales promotion time(s)

3. Does sales promotion increase distribution expenses?

a. Yes b. No

4. Are consumers satisfied with sales incentive?

a. Yes b. No

5. Do sales promotion help to increase the rate of stock turnover?

a. Yes b. No
 107

6. Do you think sales promotion is being carried effectively?

a. Yes b. No

7. Do you record more sales during sales promotion exercise?

a. Yes b. No

8. Do you agree that sales promotion enhance consumers acceptability

of product without considering competitors brand? a. Yes b. No

9. Can you asses the consumption pattern of consumers during sales

promotion? a. Yes b. No

10. Does sales promotion help to attract new customers?

a. Yes b. No

11. Do sales personnel visit you more during the period of sales

promotion? a. Yes b. No
 108

QUESTIONNAIRE/LETTER TO CONSUMER

Marketing Department School of

Business and Management Technology
Federal Polytechnic
Nekde, Owerri
Imo State.

Nigerian Bottling Company Plc.

Onitsha Plant
Anambra State

QUESTIONNAIRE FOR TO CONSUMER

I am conducting a research on THE IMPACT OF SALES

PROMOTION ON ORGANZIATIONAL PERFORAMNCE in partial
fulfillment of the requirement of the Award of National Diploma (ND)
in marketing Department in the above named Institution.

In the light of the above, attached here with is a set of questions,

which you are to answer as objectively as possible and return. Your
view and options will contribute in no small measure towards
enhancing the success of this study.
Yours cooperation in providing answers to the questions shall be
highly appreciated.
I am assuring you that any information supplied will be treated in
strict confidence.
Thanks you for your anticipated co-operation

Yours faithfully

ENI ONYINYECHI LAURINA

08/2380/MK
 109

QUESTIONNAIRE FOR TO CONSUMERS

Please tick () or comment where necessary

1. Name………………………………………………………………………

2. Occupation………………………………………………………………..

3. Sex………………….…………………………………………………….

4. Marital status…………………………….……………………………….

5. Age………………………………………………………………………..

SECTION B

1. Do you take soft drink? a. Yes b. No

2. Which of these of NBC product do you enjoy?

a. Coca-cola b. Fanta c. Sprite

d. Krest and others

3. Do you believe that sales promotion is always real?

a. Yes b. No

4. Do you watch out for gift during sales promotion?

a. Yes b. No

5. Have you ever won gift during sales promotion exercise?

a. Yes b. No
 110

6. Does sales promotion induce you to buy soft drink?

a. Yes b. No

7. Do you increase your intake of soft drink?

a. Yes b. No

8. Do you derive additional satisfactions by winning a gift?

a. Yes b. No

9. Which of these sales promotion incentives do you prefer most? a.

Free gift b. Contest/game

10. Should sales promotion be in continuous exercise?

a. Yes b. No

11. Are you likely to reduce your pattern of consumption after sales

promotion? a. Yes b. No

12. Do sales promotion personnel’s visit the redemption center

frequently? a. Yes b. No