IMPACT OF SALES PROMOTION ON THE MARKETING OF SOFT DRINKS
IMPACT OF SALES PROMOTION ON THE MARKETING OF SOFT DRINKS
The primary goal of this experiment was to establish the extent to which sales marketing is understood, accepted, and implemented by the 7-up bottling plant in Benin City. The information for the research was acquired from secondary sources such as books and journals. Personal interviews and questionnaires were also utilised as primary sources.
The researcher discovered that sales promotion encourages consumers to buy more and has a beneficial impact on the sales of 7-Up items. The researcher stated that sales promotion is critical in any manufacturing company looking to expand its present market share.
As a result, it was recommended that the company allocate sufficient funds for the execution of a sales promotion programme due to its relative importance in terms of increased sales volume and profits, and that sales promotion be viewed as an integral part of the company's marketing effort rather than an emergency tool.
1.1 Background of the Study
Promotional techniques in marketing theory and practice have traditionally focused on advertising, personal selling, and publicity initiatives. The level of competition in the business environment typically determines the type and sophistication of promotional efforts.
When sales growth appears to be stagnant or when a product reaches maturity, the best promotional option is for soft drink industries to adopt promotional strategies for the purpose of winning their target buyer
and the public through the process of communicating information with the goal of persuading, convincing, and possibly changing their attitudes and behaviours.
Free gifts and help to intermediaries and ultimate consumers are the most effective ways to increase sales at the maturity stage. This advertising method has been widely used by marketers across industries, particularly breweries.
The purpose of this project is to investigate the impact of sales promotional methods on the marketing of soft drinks, utilising the seven-up bottling plant in Benin City as a case study.
1.2 statement of Research Problem
Nigeria's market is essentially a “sellers market,” with fierce competition between domestic and foreign producers of products and services. Each participant in the competition contributes to the effort to not only preserve but also expand its present market share.
Various tactics and advice had been used to signal sales promotion at the expertise of competitors. On a regular basis, the Nigerian media, both print and electronic, broadcasts various forms of advertisement, sales promotion, and products. In addition, some economic incentives are implemented to increase patronage.
However, the extent to which these various strategies generate client traffic and enhance sales volume remains unknown. However, the manufacturing organisation has profited immensely.
The goal of such marketing initiatives is to develop the most effective way to improve client loyalty and sales volume. The primary methodologies used in this study were sampling, purchasing, exhibition, and specialisations.
It is hoped that this study would tell a lot about sales marketing tactics and the most effective strategy to implement by many organisations.
1.3 Objectives of the Study
The study on the impact of sales promotion in the marketing of soft drinks at Seven-Up Bottling Company Nigeria plc intends to achieve the following particular goals.
1. Determine the effect of sales promotion on sales volume.
2. investigating sales marketing is quite helpful in improving the company's image and reputation.
3. Examine the rationale and evaluate the problem with sales marketing.
4. Investigate novel sales promotion activities, with a focus on soft drink sales.
5. Determine the effect of sales promotion on turnover.
1.4 Research questions/Hypothetical Statements
To collect the necessary information, the following hypotheses have been formulated:
HO: Sales promotions do not encourage customers to buy more.
HI: Sales promotions encourage customers to buy more.
HO: Sales marketing reduces the sales of 7up items.
Hello: Sales promotions have a beneficial impact on 7up product sales.
HO: Sales promotions do not increase consumer loyalty.
Hello: Sales production improves consumer loyalty.
1.5 Significance of the Study
The majority of Nigerian manufacturing enterprises have experienced overall sales uncertainty. This has been attributed primarily to the current state of the nation's economy, and partially, of course, to ineffective sales promotion.
For most of these companies, the overriding motivation that influences manufacturing industries to use sales promotion must be to maximise profit, achieve greater market share, raise awareness of the company's existence, and increase sales volume.
Given the foregoing, the study's significance stems from the fact that it will be a valuable reference scholarly material for Seven-Up Bottling Company (SUBCO) and the entire soft drinks industry,
as it aims to determine the effectiveness of various sales promotion schemes in the industry, with a focus on Seven-Up Bottling Company (SUBCO) experience.
The study also allows the researcher to learn more about the soft drink sector, namely its promotional operations.
It will also help current and potential researchers and workers of the organisation learn more about the soft drink industry and its campaigns.
1.6 Scope of the Study
The research investigates the impact of sales promotion on the marketing of soft drinks, with a focus on the bottling firm Benin City.
The study does not delve into the company's administrative or financial aspects, but rather focuses on determining the influence of sales promotion on product marketing.
1.7 Limitations of the Study.
It is difficult to find suitable materials for the study. This is due to a severe shortage of current textbooks and publications in the school library. The researcher may have to travel frequently to obtain the essential materials while doing the investigation.
Finances may be another issue. The time available for the research study is also limited due to other administration and class work requiring some of the responders to provide proper answers to the questions.
1.8 Operational Definition of Terms
The following key words used in this study are defined below:
Promotion: This includes all of the tests in the marketing mix whose primary function is persuasive communication.
Advertising is any paid type of non-personal presentation and promotion of ideas, goods and services, events, or opinions by a designated sponsor.
Personal Selling: A face-to-face interview between the sales professional and the customer. It refers to an oral presentation made during a conversation with one or more potential customers in order to close a deal.
Publicity is the non-personal stimulation of demand for a product, service, or business unit by planning commercially significant news about it and publishing it, or securing a favourable presentation of it on radio, television, or stage that is not paid for by the sponsor.
Sales Promotion: This category includes marketing activities other than personal selling, advertising, and publicity that are intended to stimulate consumer purchasing and dealer effectiveness, such as displays, shows and exhibitions, demonstrations, and other non-current efforts that are not part of the normal routine.
Sales analysis is reviewing sales reports to determine which products and services have and have not sold well. The analysis is used to establish how to stock inventory, how to analyse the efficacy of a sales force, how to set manufacturing capacity, and how to see how the organisation is doing in relation to its goals.
Sales reluctance: This is potential consumers' reluctance to aggressive selling methods.
Sales talk is a line of reasoning or argument used by a salesperson to persuade a buyer to purchase their company's products or services.
Facilitators: These are goods that help to alleviate risk or burden from the buyer's side, such as a guarantee.
Selling Offer: These are the perks that purchasers receive when purchasing a specific product.
Prospects: This simply refers to a potential buyer or buyers.
Respondents: These are the individuals or prospects to whom a sales offer is being presented.
Response: This relates to the expected reaction of the responders to whom a selling offer is made.
Market share is a percentage measure of an individual company's share of industrial sales.