The impact of sales promotion on the purchasing of consumer product in nigeria. (a case study of unilever brothers nigeria pie aba).

Description

 ABSTRACT

This research work is centered on the impact of Sales promotion on the purchasing of consumer products in Nigeria with particular reference to Unilever Nigeria plc, Apapa. The research is aimed at finding out if a sales promotion activity has positive impact on the sales of the company products to find out if the role of companies product. In an attempt to achieve the objectives states above research samples the opinion of the respondents gotten through convenience sampling procedure the data gotten were analyzed through simple percentage. After the analysis, the following findings were made.

1. That Unilever Nigeria plc adopts sales promotion
2. That the organization needs the media to research customers
3. That sales promotion has a positive effect on The profit of the firm.

Based on the findings above, the following recommendations were made

1. That the organization should intensify unit’s soles promotional activities.
2. That the company should not neglect any promotion tool! activity because each of them has a part to plan in realizing the organization objectives.
3. The company should be innovative in nature meet up with the world modernization.

TABLE OF CONTENTS

Title page

Approval page

dedication

Acknowledgement

Abstract

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Statement of problem

1.3 Objective of the study

1.4 Research questions

1.5 Significance of the study

1.6 Scope of the study

1.7 Definition of terms

CHAPTER TWO

2.0 Literature review

21 Background information 4

2.2 Factors that contribute to the sales promotion

2.3 Sales promotion in Nigeria lever brother plc

2.4 Selecting the soles promotion tools

2.5 Developing the sales promotion programme

2.6 Pre- tasting the sales promotion programme

2.7 Implementing the sales promotion programme

2.8 Evaluating the soles promotion result

Reference

CHAPTER THREE

3.0 Research  design and methodology

3.1 Area of coverage

3.2 Research design

3.3 Source of data

3.4 Population

3.5 determination of sample

3.6 Description of data analysis techniques

3.7 lImitation of the study

3.8 method of data analyses

CHAPTER FOUR

4.0 Data presentation

4.1 Analysis of research

CHAPTER FIVE

5.0 Summary of findings

and recommendation

5.1 Summary of finding

5.2 Conclusions

5.3 Recommendations

Bibliography

Appendix

Questionnaire

CHAPTER ONE

1.0 INTRODUCTION

A brief review of the trend of sales promotion in the purchasing of consumer products campaign in Nigeria with help us to place in proper perspective the critical and analytical position of its effectiveness strategies  of Nigeria brewerys in Nigeria in general and Imo  state in particular. Sales promotion in the purchasing of consumer products is an activities other than personal selling, advertising and publicity designed to stimulate sales and deals effectiveness, which may take the form exhibitions and various non-recurrent effort not in the ordinary routine (American purchasing Association) C.O Uturu Pg 76.

The study was to an evaluation of sales promotion and Growth Strategies and growth employed of Nigeria brewery in Imo  state. This study will help us to find out if there is direct relationship between increase in quantity purchased of product by consumers and sales promotion in the purchasing of consumer products.

1.1 BACKGROUND OF THE STUDY

The changes in the economic existence of people and improvement in their standard of living with increasing need of the people have lead to the development of purchasing opportunity in the business world

Manufactures in order to satisfy the consumer development new product to meet the changing needs of the people. But as the economy grows and expands, there is an increasing need for information about a wider variety of production available for consumption of product use and cm increase in the sales volume of the firm Kotler (1980:513) noted that important information different which is thought to have similar values.

5cheme (19978:482) equally noted that this necessity gave rise to purchasing communications which is means information, persuading and reminding customer about the nature and availability of the product. It is therefore a communicative tool, which comes in different forms such advertising public relations and sales promotion.

Kotler (1989:514) defined communication as a process of exchanging idea and meanings. Communication process therefore provides a basis for all activities of the organization that are perceived the market. Anyanwu (1993:95) noted that in the modern economy with depressed large population interpersonal communication between producing with and their customer is not longer selkible. But in planning process purchasing rely on formal promotion activity.

The research will specially centre on one aspect of promotional activities or the other. Different authorities and authors have given different view of what a sales promotion means and only few of such concept are described here.

Kotler (1980:513) ‘defined soles promotion as a purchasing promotional tools comprising a wide variety of tactical promotional tools of short term incentives nature designed to stimulated earlier of stronger target market response.

In 1995, the some author Kotler (1985:518) defined it as a short term incentive used to encourage [purchase of sales pf product or service.

Evans and barman (1990:547) defined sales promotion as a paid purchasing communication activities others than personal selling, advertising, public relation, that stimulate consumer purchase. It is also seen by pride and farewell, (1985:406) as encompassing all promotional activities and materials other than personal selling advertising and publicity, many sales promotion activities are non-cyclical and more design produced for immediate short run effort

Ta the view of borne and Kurtz (1980: 342). It is a category of non personal effort designed to supplement and extent and the other aspects of promotional strategy.

Anyawu (1993:125) equally observed that sales promotions are activities which are typically called advertising but which do not make used to the mass media. The list of definition terms will be. endless as each marketer defines in his own  perspective.

1.2 STATEMENT OF PROBLEM

It has been noticed that there has been an incessant fall in the purchasing of the product in an oral interviews with the customer service, purchasing managers south, M. E Maduagwu, he noted that company’s influence with regard to purchasing of its product have declined.

This unrestricted invasion of competitive brands they are cheaper and sometimes regards to be higher quality that those of Unilever Nigeria Plc have also cut off into Unilever Niger Plc (URNS) market share, for instance, its flagship OMO detergent.

So considering the enormous increase action to determine the cost effectiveness of the expensive programmed and response.

1.3 PURPOSE AND OBJECTIVE OF STUDY

In Nigeria there is enormous increase recent promotion activities of consumers products in a study of Unilever Nigeria Plc .Apapa,lagos   state , Nigeria with a view of finding out the impact of sales promotion in the purchasing of consumer products.

The main objective is in finding out what impact sales promotion activities have on the profit and sales of Unilever brothers Nigeria plc  Apapa before promotions during promotions and after promotions.

1. To find out the effect of sales promotion on profit sales of consumer goods with special emphasize the Unilever brother Nigeria Apapa.
2. To determine the effect of sales promotion on the demand of the company products.
3. To determine the acceptability of sales promotion as an important purchasing strategy by the customers of the product.
4. To find out the relationship between a firm strategy and its products acceptance.
5. To offer sound suggestions as o the profitability of sales promotion as a strategy of the promotional mix elements.

1.4 RESEARCH QUESTION

In carrying. out this research the following research question will be answered. The research questions are.

1. How do sales promotions influence the promotion of manufacturer of detergents?
2. Does sales promotion have on the demand of the consumers’ product i.e. detergent?
3. What is the effect of sales promotion activities of manufacturer on consumers products i.e. Detergent

1.5 SIGNIFICANCE OF THE STUDY

The fact that sales promotion activities has been on the increase nowadays portrays its significance in the purchasing of consumer product i

The degree to which a company’s sale is a function of the effectiveness of sales promotion is not yet ascertained. This calls for this study.

The determination of this will afford the company the opportunity to examine the cost involved with view the knowing the cost effectives ie if the should continue in the sales promotion, or not it should be noted most companies register huge sale during sales promotion. It is now left to the company concerned to conduct a cost benefit, analysis this will afford them opportunity to either continue or discontinue.

This study is also of significance at of economy (the Nigeria economy) at large, this is because sales promotion often result in sales and profit to the organization to any its faxes and increase employment to the citizen which will go a long way in boosting the economy.

1.6 SCOPE AND LIMITATION OF THE STUDY

This study will examine the impact of sales promotion in the purchasing of consumer products in Nigeria with an emphasis on Unilever Nigeria plc. Makers of Omo detergent etc. research of this nature generally involves coat in terms of survey questionnaire administration collection of data .id the promotion of the research work. As a student those cost became more glaring and financial difficult to settle and therefore stretched the financial resources of the researcher.

There were the problems of illiteracy and prejudice distrust arising from the ignorance of the respondents of the basis of the study some respondents never understood what were required of them and why the research was being carried.

Another limitation of the study was the of time constraint which did not allow for the boarding of the sample which would have increased the reliability and validity of the result of the study. There was the elimination of the basis of official protocol in the collection of information in  lagos state.

There also the non-availability of text books, journals, magazines, newspapers, covering the topic under investigation. Through these are many factors which can contribute to the effective purchasing of consumer product like quality of the product and other promotional factors like advertising, personal selling, etc. but the researcher only limited herself to that of sales promotion

1.6   THE SCOPE OF THE STUDY

This study covers the population of the staffs, management, Distributors, retailer and consumers in Nigeria brewery plc Owerri .

1.7   LIMITATION OF THE STUDY

In carry out this study, the researcher encounters some itches in areas of time constraints, scarcity of related books. In adequate finance and uncooperative attitude of respondent.

(a)    TIME CONSTRAINT: The period of time allocation, one has to combine the research with numerous other stressful academic challenges in school.

(b)    SCARCITY OF RELATED BOOKS: The libraries of the universities and polytechnic in the country to day has always been described as lacking in stock of good book sand references .journals. This was confirmed during my literature review trips, and it affected the scope of my review.

(c)    INADEQUATE OF FINANCE: As a student. I was unable to   afford some modern books and publications found in many leading bookshops. Furthermore, It affected my ability to travel to ser-deports of the firm. I was studying in order production and binding of this work could have been better alone etc.

(d)    INCORPORATED ATTITUDE OF RESPONDENTS: It .is no longer a news that some prospective respondents hardly co-operate with researchers while many never return their questionnaire. These are some of the experience I met in this research work.

1.7 DEFINITION OF TERMS

SALES PROMOTION: Sales promotion has been described as a short term incentive design to stimulate the interest of the target audience in the goods and services been promoted. It is short term because by its nature, sales promotion programme is not expected to last long.

By was of definition Okpara et al (1999:211) defined encapsulate all the short terms promotional arrangement and inducement aimed at consumers reinforces favorable market response towards products. Sales promotion can originate from the manufacturers, wholesalers or retailers. The target is the consumers, industrial users, wholesalers, retailers.

PROMOTION: it can be defined as a terms which covers all other promotional elements which includes sales promotion according to Agbonifol (1998:30) he described promotion a broad term that refers lo any form communication intended to inform educate and persuade an audience especially present and potential buyers. The audience therefore simply means individual consumers institutional users or may be the middlemen in the labour market.

BRAND: is the use of name, term symbol design or combination of these to identify a product. It also includes the use of brand name, brand mark and trade mark.

PRODUCT: generally a product is anything which has the capacity to satisfy human needs can exist in any of the following forms. Physical objective as in the case of cars, map, machines an accomplished musician, an orator, an accomplished professor etc. Place as in the case of yankary –games states of American etc. as in design architectural designs etc.

ADVERTISING: advertising is one of the most important promotional tools a firm uses to reach its effect of creating areness for the firms’ products and other business activities. In addition for persuading reminding and convincing the market to patronize a particular product more than the other.

Advertising alone does not sell a company’s product but does so w hen the market quality and price are favorable, the channel of advertisement are efficient, the firms has enough financial resources and the environment is favoring and inviting Anyawu Aham (1993:100)

1. BEVERAGES: This means any liquid for drinking such as alcoholic and non-alcoholic drinks.
2. CONSUMERS: Is a group of people who buy or use a product.
3. EFFECTIVENESS: This is an organ/substance that affect a response to stimulus.
4. PURCHASING: This is the management process satisfying customer requirements profitably and efficiently.(chartered institute of purchasing London).
5. PROMOTION: An organization communication with consumer to inform, persuade or remind product. R.H.Euskert 1989).
6. SALES PROMOTION AND GROWTH AND GROWTH: This can be defined as any selling activates that is not personal selling or advertising. It is distinguish to supplement and compliment both of them.

CHAPTER TWO

2.0  LITERATURE REVIEW

2.1  BACKGROUND INFORMATION

The name of the company y lever brothers was derived from William leer and James lever, two brothers of the same parents. William lever was born in England on the l9” of September 1851, while the date of birth of James could t be verified by the researcher. These brothers (William .id James) formed the company in (1889) they also visited same placed of interest like 5olomon’s island pacific ocean Congo and even British west African in search of raw material. In 1920 lever brothers purchased the royal Niger for eighty million pounds (80 pound starling). The aim was to facilitate the guest for raw materials. In 1929, there was the formation of UNILEVER by merging margarine union which involved butch margarine makers) through out Europe.