1.0 BACKGROUND OF THE STUDY
The economic situation of the country in
both the past and present year has affected the financial and
commercial activities of business organization as a whole, which has
resulted in decline level of sales and profitability. In view of this
facts, many business organization are therefore involved in different
type of measure such as sales promotion in order to increase their sales
and also to remain in business since there is doubt that without
adequate sales promotion, most of the business objective will not be
During the past decades or thereafter,
business organizations know their environment customers and market first
hand. Reason being that the environment and the business organization
were small with the increasing complexity of the business environment,
and systematic approach to studying the increase problems of management,
it becomes all the more important that the environment need be studied.
It is obvious that the principal
function of management is to make decision and without doubt marketing
decision seems to be the most difficult and therefore, its effect is
felt throughout the business.
With growing needs supply, individuals
and organization needs and inevitably bridge the gap between the
producers and the customers or users of the product, organizations
equally need to research into the growing needs of these groups. Also,
since there is the greatest need for the organization to maintain market
share, there is the need to create awareness so as to increase their
level of sales and productivity. Due to this reason, there is the
greatest need to understand the impact of sales promotion in business
Due to the increase acceptance of sales
promotion by firms as a very important element of the promotional mix
and its expenditure also being on the rise, it has become very import to
examine whether sales promotion is actually making any impact on the
volume of sales. This paper specifically evaluates the effect of sales
promotion on the volume of sales of products with special reference to
Chi Group Limited.
1.2 STATEMENT OF THE PROBLEM
Inspite of the tight definition of sales
promotion as an essential means of creating awareness of the product
existence and characteristics and also the positive, psychological
associations that can enhance the buyer satisfaction which add to the
real value of the company's offering, little attention is being given to
it by many business organisations in the country and they rarely
promote their sales to the fullest.
Many firm pay little attention to sales
promotion since they feel they can sell their product with little or no
promotional activities. Likewise, many firm which could not afford the
huge cost of the promotional programmes, would entail and despite the
effects of sales promotion, there had been insufficient research and
decision modeling devoted to it. In addition, there is an established
negative perception of many firms as regards the cost of business
promotion especially those whose benefits are not early and immediately
Also, adequate records of sales and
promotional cost are always neglected and some sales promotion
programmes are introduced at the wrong time, which will therefore hinder
the level of sales and profitability of the firm and thereby render
sales promotions less important in the community and the country as a
1.3 AIM AND OBJECTIVES OF STUDY
The aim of this research work is to
examine the impact of sales promotion in business organizations with
special reference to Nigerian Bottling Company Plc. The objectives of
the research work include:
- To identify the combination of promotional tools that should be adopted to enhance promotion.
- To determine the usefulness of sales promotion.
- To explore rationale behind sales promotion by examining consumer behaviour
- To pose challenges ahead sales promotion
- Identify conditions under which sales promotions influence purchase behavior
- To determine how long the company has been carrying out sales promotion.
- To find out the media used by the company in conveying sales promotion programmes.
1.4 RESEARCH QUESTION
This study tends to investigate and provide answers to the following questions.
- Does Sales Promotion have significant effect on organizational performance?
- Does sales promotion influence consumer purchase behaviour?
- Do consumers really benefit in sales promotion?
- What are the implications of defective sales promotion in an
- What are the main factors that affect sales promotion?
1.5 STATEMENT OF HYPOTHESIS
To provide answer to the research questions arising from this study, the following hypotheses are postulated.
H0: There is no significant relationship between sales promotion and organizational performance.
H1: There is a significant relationship between sales promotion and organizational performance.
H0: Sales promotion does not influences consumer purchase behavour.
H1: Sales promotion influences consumer purchase behavour
1.6 RESEARCH METHODOLOGY
Research methodology deals with the
procedure used by the researcher to conduct the study. It contains the
different activities performed and methods employed by the researcher in
the study. For the purpose of collecting necessary data for this
research work, primary and secondary data collection method will be
used. The primary data collection method will be through the following:
1. Structured questionnaire
2. Personal unstructured interview
The secondary data will be collected
from reports and documents from the company. Also, reports outside the
company and from library and desk research literatures will be used.
In this study, descriptive method will be used to analyze data and also in testing hypothesis, chi-square (X2)
will be employed. Findings from this research study will be discussed
in the light of the research problem hypothesis, purpose research
questions, literatures of the research and other relevant issues
conclusions will be drawn and recommendations and suggestions also will
1.7 SCOPE AND LIMITATION OF THE STUDY
This study covers investigating the efficacy of the sales promotional tools adopted by Nigerian Bottling Company, Alausa, Lagos.
In the course of conducting this
research work it is expected that the following will constitute
impediments to the effective conduct of the study
a) Time constraint within which the study must be completed.
b) Financial constraint
c) Inaccessible and inadequate data
d) Also, combining project work
with several other activities is another stressful task that may not
allow me to cover research materials extensively.
Nevertheless, I believe the above limitations will in no way affect the reliability and validity of the research study.
1.8 SIGNIFICANCE OF THE STUDY
It is a fact that sales promotion has a
great impact in business organization. This study therefore intends to
determine to a great extent the impact of sales promotion in business
organization. Because of the important role of sales promotion, this
study will therefore make a useful improvement upon the performance of
business and how their level of sales and profitability can be improved.
This project will be of immense value to
future researcher who might intend to carry out a research on this
particular topic. It will also help to highlight how individual who may
set up their own business in future to carry out their business in an
1.9 HISTORICAL BACKGROUND TO THE STUDY
Nigerian Bottling Company Plc is a
marketing company engaging in the brewing of soft drinks of which
Coca-cola takes a paramount position among its product line.
Nigerian Bottling Company was
incorporated in Nigeria in the year 1951 by the reverend Chief A.G.
Leventis. From humble beginning in 1951 and under high inspired
leadership, the company has grown to become the largest soft drinks
bottler in Nigeria and one of the largest employers in the country,
operating about 20 production plants as well as 65 sales depot
throughout the Federation of' Nigeria with its Administrative head
office at Oyingbo, Lagos State, formerly at Iddo, Lagos State.
The Nigerian Bottling Company is a
noticeable giant among first class Bottling Companies and is also
reputed as having the same status in all the state of the country.
Because of its excellent performance over years, there is no doubt that
its features of operation will provide good presentative information in
other similar organizations.
Suffice is to say that the company
provides range of employment opportunities to school leavers and
professional in the field of commerce and marketing. In view of the fact
that sales promotion programmes are just being newly developed in
Nigeria and its view are only being embraced by larger scale ventures,
Nigerian Bottling Company- Coca-cola to be specific has been noted for
their involvement in promotional activities, which has been increasing
their level of sales and profitability.
There is no doubt, however, that the
company tinder consideration with its distinct features and give a good
highlight of. the impact of sales promotion in business organization
both in the short and long run.
1.10 ORGANIZATION OF THE STUDY
This product will be divided into four chapters.
Chapter one will take cognizance of
introduction, background of the study, problem, purpose &
objectives, scope and limitation of the study, significance of the
study, research question hypothesis and as well organization of the
Chapter two will cover the literature
review. Subheading in areas to be reviewed, appraisal, or related
literature and research questions.
Chapter three deals with details of the methodology used in carrying out the research work.
Chapter four critically examines the
result of the findings, while chapter five deals with the discussion on
the finding, summary, conclusion, recommendation finally the
bibliography and appendixes
1.11 DEFINITION OF THE BASIC TERMS
The terms to be given operational definitions to are:
SALES PROMOTION: Sales
promotion can be defined as a broad label that applies special kinds of
sales accelerating activity not necessarily classed as advertising and
BUSINESS: Business can
simply be defined as the totality of all economic activities that are
undertaken in the process of producing and distributing goods and
services for the purpose of making profit.
is defined by Robine (1987) said an organization is a consciously
coordinated social entity with a relatively identifiable boundary, that
function on a relatively continuous basis to achieve a common goal or
set of goals.
ADVERTISEMENT: Advertisement is any paid form of non-personnel presentation and production of ideas, goods or services by identified sponsor
PRICING: Price means the amount of money paid by the buyer to the seller of the product or service.
PUBLICITY: This is a
non-personal communication or presentation of ideal about a product,
service or a cry that is not paid by an identified sponsor.