SALES PROMOTION AS A MEANS OF INCREASING PROFITABILITY IN AN ORGANIZATION

ABSTRACT

The purpose of this work is to find out the Effect of Sales Promotion activities in any organization. The benefit ranges from its support in profit generalization, increased profit and net profit. The technical research design population, sampling procedure and procedure for data collection and data analysis was used. Tables and percentage were used to analyze the data collected through a well structured and scrutinized questionnaires. The American marketing of association defined Sales promotion as these marketing activities other than personal selling adverting and publicity that stimulates consumers decisions and purchasing. The competitiveness and high sales and return on investment is the ability to create better sales promotional activities. The fact that Nigerian breweries Plc is able to do these promotional activities effectively, are reflected by the acceptance of the personal interview with the sales manager. It is adequate to make conclusion that sales promotion is indeed the survival strategy in a competitive marketing and sales environments.

CHAPTER ONE

INTRODUCTION

The American Marketing Association defines “Sales Promotion as: - Those marketing activities other that personnel selling advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display and various non – current selling efforts not in the ordinary routine”.

In their own contribution, Dr. Aham Anyanwu and Mr. Alfred I. Okafor define “sales promotion as “a deliberated and short-term advice comprising of activities which include “above the line” media advertising that work towards adding sales representative and distributors achieve more sale at the point of sale”.    

They maintained that sales promotional device tend to be semi – personal in nature, unlike advertising that is a non Personal information.

What can increase profitability in an organization: -

1.          Catalogues is a comprehensive printed information about a product, designed for demonstrations and reference purpose

2.          Publicity and Public: Publicity is defined as non personal stimulation of demand for a product, service or business unit by plating commercially significance news about it in a published medium or obtaining favourable presentation of it on radio, television or stage that is not paid for by the sponsor while

Public is defined as a the deliberate, planned and sustained effort to established and maintain mutual understanding between an organization and its publics.

3.          Trade shows are the common and the oldest form of industrial sales promotion.

1.1              BACKGROUND OF THE STUDY

The word brewery is the process of producing been from barley some 4000 year ago. Ancient beer has taste but lack foam. The indigenous drink in Nigeria include palmwine, poto – kaika kwange, burukutu etc. though still not new in some quarters, beer is gradually replacing these traditional drinks in celebrations such as marriage, birth ceremony, funerals which were not often celebrated in the past. Consumers promotes these traditional drinks through tasting methods. They were allowed to taste various palm wine brought to the market by different producers or sellers. It serves as a means that determines consumers patronage decisions.

Bottled beer was first marketed in Nigeria by the Nigeria Breweries Limited (NB) 1949 marked the year for their production and marketing of site brands of alcoholic and non – alcoholic breweries. Today, social nom,s as they relate to the use of alchologic in ceremonies has changed and beer is now used. Some use it exclusively while some use it for social chillouts. Nonetheless, not every consumer prefer beer to palmwine neither do consumers accept all brands of beer in the country inspite of the fact that consumer do not accept all brands.

The expressions the survival of the fittest, described the situation in order to survive the bottle neck competitions in the industries. The breweries use promotional strategies to attract and regain consumers.

In positive response to need of attracting and regaining customers, Nigerian breweries Plc, Aba, consumers makers of star beer, maltina etc has embarked on many sales promotional activities and strategies that are scarcely funded and founded in other breweries in Nigeria today.

This has a lot of impact on the customers patronage of the products do no have problems with the competitors.

1.2  STATEMENT OF THE PROBLEMS

The current economic recession paralyzed almost all business activities in Nigeria and Brewery as an industry of technology gave rise to breweries and the resultant proliferation of many other types of beer, which gave rise to competition the competition in attracting and retaining customers. This is based on the fact that the researcher wants to consumer these sales promotional activities in attracting and retaining customers. This is based on the fact that the researcher wants to consider these sales promotional activities that the company can use in order to achieve an increase in profit of the organization. The study differently aimed at diagnosing different situations that can attract salse and also can be used to salvage the situation in addition to offering the product which sales promotion should cover during the promotional period. The study also diagnosis problems that can hinder sales promotional activities such as the problems of customer inability to comprehend the sales promotional activities of the company and the subordination of marketing department thereby naming it scope of operations.

1.3  THE OBJECTIVE OF THE STUDY

The study aimed at determining how sales promotional activities can contribute profitability to Nigeria  Breweries Plc Aba

This could be achieved by taking the following recent objective consideration.

1.          To determine what kind of sales promotional activities to be use;

2.          To determine whether sales promotional activities actually contribute to the profitability of the organization

3.          To determine the segment of the market or consumers to cover during these promotional period (age bracket and race)

4.          To determine whether sales promotional budget is commensurable to the actual benefits derivable.

1.4      RESEARCH QUESTION

The following research questions have been put unto to assist the research to get needed information.

1.          What are the promotional means used in the sales promotional activities ?

2.          Does your company use promotion in marketing its products?

3.          Does your company have a promotional department?

4.          What is your organizational area of activities?

1.5      SIGNIFICANCE OF THE STUDY

Any promotional activity used must bring return on investment. It is believed that promotional activities lures consumer to purchase their products to attract and keep their various consumers. As a result, it is necessary to study sales promotional activities as a means of increasing profit in an organization. The result of the study will produce possibly better effects on the organizations products and their present economic conditions such as increasing their sales volumes.

Also, the findings of the study enables the organization especially Nigeria  Breweries  Plc in solving their sales promotional activities problems and correct whatever mistakes they have made or will be  making in future which is in line with their business operations.

Also, the applications of sales promotion as the findings of the study will generate more profit for the organization if practiced or conducted perfectly.

1.6      SCOPE OF THE STUDY

This research study is limited to Aba which is considered as a good area because of large number inhabitants and the growing of organization which creates rooms for stiff competitions, and the Nigeria Breweries is one of the companies in state and Federal Polytechnic Nekede, Owerri.

1.7      LIMITATION OF THE STUDY

This research paper which investigating the importance of sales promotional tool as a way of realized profitability of Nigeria Breweries Plc, Aba was affected by a lot of constraints.

The major problem encounter was the inability of give adequate co – operation from the staff of the company, more especially from the personnel department they made things difficult for the researcher to get the data required in order to make our findings. They really wasted our time during the research period.

Furthermore, the bureaucratic nature of work existing in the company acted also a constraint during the study, they requested that we should go to the personnel department before going to the sales department.

And also finance acted as a hindrance dring the period of this study, the cast of transportation to the company for the number of days carried out his research was also a hindrance.

Unwillingness of the organization management to release most of the required. Information needed for the required information needed for the study also attracted the research study.

1.8  DEFINITION OF TERMS

Sales promotion: Sales promotion is defined as the use of variety  of marketing tools of short term incentive nature of stimulate demand.

Profit: This is the sum total of tenure generated minus taxes

Industry: This is geographically cited place for the production of goods and service

Product: This is the physical produce by industry for the satisfaction of needs and want.

Breweries: This is the process of making beer from barley

Organization: This is the management of as firm or businesses acting as a one body for the production of goods and service

Transportation: This is that movement of convey of people of goods from ones place to another.

Consumers: These are the sole uses of a product or service. They are vested with the responsibility of using the products and services produced.

Advertising, customer: They are the organizational buyers. They appear inform of buyer that is the final buyers and secondly organizational buyer, the buyers for further production of products.

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