This research study is carried out to examine the significance of sales promotion as a marketing strategy in a depressed economy, with a particular reference to 7up Bottling Company, Ilorin as the case study. Sales— promotion is a promotional mix activities other than advertising, publicity and personal selling that stimulate consumers purchasing and dealer’s effectiveness. The study aimed at finding out the effect of sales promotion on the sales of a company and revenue generation.
The objectives were pursued. The data were collected for the study by means of primary and secondary data; Questionnaires were used to get primary data, while secondary data involved the reviewed of the relevant literatures.
The finding showed that sales promotion is very important and essential to the soft drink industry if the companies would motivate and stimulate consumers to patronize their products in the market. Sales promotion will also go a long way to assist companies to maximized their revenue and improve their market shares in the market. Based on this analysis the study recommend that soft drink industry should adequate finance its sales promotion activities as to ensure better patronage on its products in the market environments.
TABLE OF CONTENT
Table of content
CHAPTER ONE: INTRODUCTION OF THE STUDY
1.1 Background ot the study
1.2 Statement of the study
1.3 Aims and objectives of the study
1.4 Significance of the study
1.5 Scope of the study
1.6 Limitation of the study.
CHAPTER TWO: LITERATURE REVIEW
2.1What is sales promotion?
2.2Sales promotion tools
2.3The concepts of marketing
2.4What is a depressed Economy
2.5Purpose of sales promotion
2.6Sales promotion and advertising
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research design
3.2 Research population
3.4 Sample size
3.5 Instrumental, validity and reliability of instrument
3.6 Sources presentation and analysis techniques
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Analysis of problems (Data presentation and analysis)
4.2 Hypothesis testing
4.3 Discussion of findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMEDATION
5.1 Summary of report
BACKGROUND OF THE STUDY
A company may have the best designed products, the most efficient system of distribution, but the company’s products may not sell if the markets are not aware of it. Therefore, promotion, one of the four major marketing mix variables which aimed at informing and educating consumers about the availability, usages and utility of the product. Promotion can be used by a company or organization to achieve objectives like; reverse declining sales, reverse declining products and to enlighten consumers about advantages and uses of new products. However, promotion helps to build consumer’s hopes, desires and provide image of what life is like and what might be like in the future. Promotion includes advertising, personal selling, publicity, public relation and sales promotion.
Sales promotion is a promotional mix activity other than advertising, publicity and personal selling that stimulates consumers purchasing and dealer’s effectiveness. It is a short-term inducement of value offered to arouse interest in buying a product. Coupons, rebates, samples, sweepstakes, discounts, free gifts are some of the tools used in sales promotion,
Depressed economy could be viewed as a situation where by trade and the supply of money in a particular country is facing the problem of not having enough capital to finance the production and consumption pattern of the people, which brings low level of productivities, low standard of living and even high level of unemployment. However, Nigeria as a depressed economy do face different problems like consumers rationing the money available and marketers or manufactures faced with the problem of low sales or poor sales. The consumers are not willing to spend or buy any product they have no interest in and marketers are aiming at making high sales and profit.
In other words, sales promotion can serves as a marketing strategy for achieving high sales, in a depressed economy market because it play major role through this, it build product awareness, sales promotion techniques are highly effective in exposing consumers to product for the first time and can serve as key promotional component in the early stage of a new product introduction, additional as part of effort to build product awareness, several sales promotion techniques possess the added advantage capturing consumers information at the time of exposure to the promotion.
Interest can be create through sales promotion because marketers find that sales promotion is verify effective in creating interest of the short-term sales increase for company that engaged in the activities sales promotion is also used to build demand by confusing customers to make a purchase especially when free gift are given along side with the goods purchase or reduction in price of the product. However it is noticed that too frequent sales promotion on a product may make people or consumers see product as interior and may actually hurt the production.
Therefore, it should be noted that sale promotion could help company if it is carefully and diligently cater for to increase sales, production and even make the company to have advantages over it competitors, but if it is negligently handled it can head to the winding up or liquidation of the company or product itself and even create unemployment in the country. Many manufactures of consumers goods or products see sales promotion as a very important marketing strategy because it play a role for the survival of a new and existing product and through this it develop the economics of the country.
1.2 STATEMENT OF THE PROBLEM
This research study will generate answer to most of the questions that constitute the problem of this research. They are:
- To what extent, sales promotion can satisfy an organization in a depressed economy?
- Does sales promotion as a marketing strategy be used in a depressed economy?
iii. Is there any correlation between sales and sales promotion?
1.3AIMS AND OBJECTIVE OF THE STUDY
This project aimed at finding the application of sales promotion as a marketing strategy in a depressed economy. Hence, this purses the following:
– To examine the effect of sales promotion on the sales of a company and revenue generation.
– To asses or examine the effectiveness of Sales promotion on company growth.
– To examine the effect of sales promotion on company corporate objective in a depressed economy.
The objectives of this study are:
– To strengthened the life cycle of a product.
– To sensitize people about the product and also stimulate the public.
– To improve the sales of a company.
– To improve the standard of living.
1.4 SIGNIFICANCE OF THE STUDY
The study is of immense benefit to the following: