IMPACT OF SALES PROMOTION STRATEGIES ON CUSTOMER PATRONAGE OF BREWERIES PRODUCT

ABSTRACT

This projected is concerned with the impact of sales promotion strategies on customers patronage of Breweries Industry. Nigerian Brewery Plc was selected as a case study. It is argued that customers of consumer goods exhibit various attitudes and behaviour toward the product rendered to them. Hence it is not just enough for a manufacturer to product and expect consumers will come and buy their product without considering what they will benefit from it. It is further argued that manufacturers are faced with problems of product substitutes and competition for these reasons many manufacturers now make attempts to simulate and try to win customers loyalty in increasing market share by the use of sales promotional tools, therefore, sales promotion is inevitable. This project attempts addressing issues by determining on how effectively and efficiently sales promotion activities are being carried out and its impact. Extensive literature research was conducted and was reviewed by series of authors such like, Smith P.R.P, Kotler and Stanton who views sales promotion as activity designed to supplement and coordinate personal selling and advertising efforts. In order to collect adequate data a comprehensive questionnaire was drafted percentage and chi-square methods were use to test the hypothesis at the end of the analysis. The findings revealed that both management and consumer respondents believe that sales promotion has contributed greatly to sales volume. Based on the finding some recommendations were made among which is sales promotion should be encouraged so as to achieve higher patronage from customers.

CHAPTER ONE

1.1    INTRODUCTION     

In any organization whether profit or non profit oriented the main purpose of the organization is to achieve its objective. The objectives cannot be achieved in a vacuum there must be a clearly set strategy that management should use in order to meet these objectives.

Many businesses fail to realize that they cannot stay in business without any marketing strategies. This is because they were operating in a market that was monopolistic in nature. This means that there was no intense competition from other organization. But these days due to dynamic nature of the market, and consumer taste changes every day it has become imperative on the part of the business to look into their strategies and review them if at all they want to remain in business.

The marketing communication mix consists of the sub sets of marketing tools that are primarily communicational in nature. They are tools normally classified under promotion which is one of the controllable variables of the 4ps of marketing promotional mix, is made up of advertising, personal selling, sales promotion and publicity. The element in the promotional mix that is rapidly gaining additional recognition in most industries especially in the brewery industry in Nigeria is the sales promotion. It is not enough mostly in developing countries like Nigeria in manufacturing to merely produce and trust that consumers will become aware of such products. The firm has to engage in promotional activities.

Over the year some notable author have regard sales promotion as having such roles as:

1. Boosting sales in a particular geographical area
2. Appealing to special segments of the market
3. Attracting bargain hunting, non brand conscious buyers
4. Stimulating a new use of the product
5. Encouraging more frequent use of a product
6. Encouraging the use of other product
7. Securing self space of a particular product
8. Encouraging seasonal sales or stimulating off peak period sales
9. Offsetting price competition
10. Assisting sales force in presentation of their product because motivation and encouragement have been created

1.2    BACKGROUND OF THE STUDY

Sales promotion became an essential motivating factor in the area of marketing in any organization whether in the Brewery Industry or any other company.

The researcher has undergone a four month student’s industrial work experience (SIWES) in the company. He has developed interest in the company promotional activities which is one of the reasons that has prompted him to write on the topic. The impact of sales promotion in Nigeria Breweries Company.

The researcher intends to identify the level of depending on sales promotion and its importance to Nigeria Brewery Plc consumers and customer alike.

The researcher deliberated on the effectiveness achievements and the results. The merits and demerits associated with sales promotion are also highlighted.

1.3    STATEMENT OF THE PROBLEM

It is true that consumers of both industrial and consumers of goods exhibits various attitudes and behaviour toward the products and service offered and rendered to them. This is basically because presently consumer’s income is very low due to the economic predicament coupled with the other environmental factors that influence their buying habit many consumers preferred to spend their hard earned resources on essential goods like food stuff, clothes, shelter and other immediate requirement.

In a developing economy like Nigeria, it is not enough for manufactures to just produce and expect consumer will buy their product or services without considering what they will benefit or deprive from it. Hence sales promotion becomes inevitable. Manufacturers are faced with the problem of products substance and competition. So for that reason many manufactures now attempt to stimulate and get consumers attention with customer loyalty, increase market share by using sales promotion tools on goods and service.

Organizations usually encounter problems such as lack of management known how not appointing the right and experience marketers or sales promotion experts. More sales promotions carried out by organizations are usually badly organized and implemented which leads to the aim being defeated thereby having a direct effect on sales volume and profit. This problem of low sales and low demand have promoted producers to use sale promotion to compliment the use of other promotional mixes like advertising personal selling, publicity and public relations.

However, it has been observed over the year that some producers do not employ the use of appropriate sales promotional tools and methods, to enhance the achievement of stated goals, and have neglected the importance of marketing concept which is people oriented philosophy that regarded the customers as a king and sole aim of the business existence.

Some of the questions the study will answer are what impact does sales promotion has on the sales performance of an organization.

1.4    OBJECTIVE OR PURPOSE OF STUDY

All research or product work ought to have purpose or objective will be meaningless. For the purpose of this study the followings are the objectives of the project.

1. This study will highlight the prospect and importance of sales promotion in an organization
2. The study will also highlight the role of sales promotion and also recommend on measures to be used in order to improve on sales performance of an organization.
3. The major objective is to examine how the company creates awareness and the impact of sales promotion in the Brewery Industry.
4. The study will also assess the contribution and efforts of sales promotion to improve the sales of an organization.

1.5    SCOPE FO THE STUDY

This research study cover all products of Nigerian Breweries Plc Kaduna consumers within confines of Unwar Television in Chukun Local Government Area of Kaduna State to examine what the impact of sales promotion strategies on customers patronage.

1.6    DEFINITION OF TERMS

1. Sales Promotion: May be described or defined as the use of short term incentives periodically to stimulate or encourage consumers to buy product
2. Consumer: One who buys and uses goods and services to satisfy personal or household ants or for resale.
3. Advertising: Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor in the Radio Television or cinema
4. Consumer Goods: goods destined for use by the infinite consumer or a household.
5. Marketing: Is the management function that is concerned with the identification anticipation and satisfaction of customer wants. It organises and directs all the business activities involved in accessing and converting consumer purchasing power into effect demand for a specific product or service and in moving the product or service to the final consumer to achieve the profit target get by the organization.
6. Public relations: Conscious effort to improve and mention a good corporate image and relationship with pubic and employee and customers, shareholders, local communities, trade union etc.
7. Personal selling: The process of making oral commercial representation during a buying / seller interview situation. This is collegially referred to as face to face selling or known as buyer / seller interface
8. Promotional mix: This is the set tool used by manufacturers to persuade consumption habit. They are advertising, personal selling, sales promotion, publicity and public relations.
9. Marketing communication: Conveying of information from the marketing to the market with the aim of creating awareness and obtaining favourable attitude toward the company and its products or service.
10. Marketing mix: This is a concept of marketing strategy which is based on product, price promotion, distribution, processing and pack gaining in an integrated marketing programme.
11. Competitors: These are business rival usually in charge of sales who sell or persuade buyers to buy the company’s products or service who are controlled by the national or regional sales manager.
12. Dealers: Middlemen in distribution channels who buy goods in order to resell them, but not always to the general public. This is general synonymous with retailers but it is often referred to the large distributors.

1.7    LIMITATION OF THE STUDY

In the process of undertaking, this research work, a number of problems both directly or indirectly have affected the study. Brewery products like other branches are consumed virtually buy many people every day. It has been the intention of the researcher to cover all other branches of breweries to determine to what effect sales promotion has on consumers and dealers. The time is a major constraint to the study. Attitudes of consumers and consumers are generally unpredictable as some of them are not willing to give useful information. It was limited to the impact of sales promotion.