EFFECT OF SALES PROMOTION ON THE MARKETING OF COCA-COLA BRAND OF SOFT DRINKS
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EFFECT OF SALES PROMOTION ON THE MARKETING OF COCA-COLA BRAND OF SOFT DRINKS
ABSTRACT
This study looked at the characteristics that influence brand preference among Enugu urban consumers.
This study used Coca-Cola soft drinks accessible at Enugu urban retail stores.
The study used two types of data: primary data and secondary data. Again, questionnaires were employed as research tools to supplement information obtained from other sources.
The hypothesis in this study was tested using chi-squared (x2).
Based on the findings, it was discovered that:
– Coca-Cola has emerged as the market leader in Enugu urban. Taste and taste revealed to be a strong factor of customer brand preference and soft drink purchase in Enugu city.
– It was also discovered that sales advertising is a significant element influencing consumer purchases of Coca-Cola brand soft drinks.
– It was discovered that a consumer’s income level had no influence on their choice of a specific brand of soft drink.
– It found that the majority of the soft drink consumers in the sample were loyal to their brand.
– It also found that the majority of soft drink customers in Enugu urban are both men and women.
Based on the findings, the following suggestions were issued:
– Soft drink manufacturers and marketers should pay greater attention to consumers’ perceptions of these brands, which are strongly related to their taste and preferences.
– Manufacturers should cut the sugar level of soft drinks in such a way that it does not harm customers’ health while maintaining the stable flavour of soft drinks.
– They should also avoid adulteration and the creation of low-quality soft drinks, as well as improve the taste of their soft drinks. They should conduct more product research,
particularly in the area of preference. The analysis of such research should be updated on a regular basis to keep up with customer trends and demands.
– Based on the findings, one can conclude that both soft drink makers and marketers can employ sales promotion to identify the most appropriate groups of customers to aim their brands towards in order to achieve maximum efficacy.
Finally, local soft drink manufacturers should purposefully produce some of their products so that they can compete favourably with overseas competitors.Chapter one
INTRODUCTION
1.1 Background of the Study
Promotion is an integral component of the whole marketing strategy. The importance of promoting a product, service, or idea cannot be overstated. This is supported by the fact that an effective marketing strategy cannot be implemented without mentioning promotional strategies and tools employed to achieve the goals. Understanding of promotion is intimately related to understanding of the fundamental concept of marketing.
The primary goal of marketing is to match products, services, or ideas with consumer needs. Marketers should be quick to capitalise on newly identified demands. The marketing activity, however, does not end with the pairing of products, services, or ideas.
The consumer should be convinced that the match is a good one. According to Kincaid (1985, pp. 20-30), “of course the marketing process does not end with the initial marketing of the product with consumer need somehow the product must be made available to consumers and appear more desirable than competiting alternative or substitutes” . This is what the marketing department is all about.
Learning about the existence of a product, service, or concept is not an automatic process. No matter how wonderful the product, how dependable the service, or how rational the concept, its presence will remain unknown until there is a determined effort to make the necessary information public.
The facts should be delivered in a persuasive manner to elicit the intended acceptance, reaction, or response. The success of any advertising message is determined on the designee’s competence, variety, and talent.
Promotion is the art of informing, persuading, and educating. These three parts are related in the sense that persuading is synonymous with informing, and for these two to be effective, they must be communicated appropriately. Promoting is persuasive in nature, particularly in our socioeconomic system.
According to Neil (1982: 10-15) of Harvard University, “the use of influence in commercial relations is one of the characteristics of a free society, first because persuasion and counter-persuasion are freely exercised in many walks of life in our force, society, in the home, in the press, in the classroom, in the pulpit, in the courts, in the political forum, for information.
According to the system approach, a corporation should manage all promotional efforts as a subsystem, which includes the product, the pricing, the location, and the promotion. Advertising, personal selling, sales promotion, publicity, and relations are some of the sub-systems of promotional activities.
For the purposes of this research, sales promotion, which is the primary subject of this research, is a tactic for boosting customer purchasing and improving middleman efficacy.
This strategy, however, is most commonly employed to supplement personal selling and promotion, resulting in a synergistic effect. It is one method of providing additional incentives to consumers to choose “our” brand of soft drink from a diverse variety of soft drink products on display.
Sales promotion should not be confused with the broader phrase “promotion,” of which sales promotion is the first component. The primary purpose of sales marketing is to generate immediate purchase action or attitude notification.
Sales promotion might take the shape of a store display, product sampling, premium offers, trade exhibitions, sweepstakes contests and games, giveaway demonstrations, or point-of-purchase displays.
Shop display is one of the sales marketing strategies employed by soft drink makers. The method and aesthetics of the soft drink display in the fridge with glass doors, as well as the arrangement of the stop, could be powerful motivators for a purchase decision.
Many soft drink makers utilise product sampling as one of the most efficient ways to persuade and encourage consumers to try a new brand of soft drink when it is released. At times, the consumer is provided a free sample of the newly released soft drink.
Soft drink producers employ premium offers as well. This is an offer of a retail item for free or at a significantly reduced price to encourage the purchase of soft drinks.
Items include crates, bottles, coolers, and refrigerators. It is most commonly used to persuade customers to switch brands, rather than to introduce a new soft drink.
Soft drink producers also employ sweepstakes contests and games. This is a random drawing that may or may not necessitate a transaction, such as purchasing a ticket or a product. Sweepstakes contests and games typically require competitors to participate in the promotion by submitting an entry in a special format specified by the promoters.
It could include giving a client a number or letters to complete a sequence or writing letters on crown corks; customers who qualify mail in entries with the winning cork. This encourages the buying of soft drink.
Soft drink manufacturers employ giveaways as well. These are unique present items for customers, commonly printed on crown corks. The goal is to remember and reinforce a product or corporate message. Wall clocks, diaries, T-shirts, pens, pencils, bottle openers, and other regularly used and inexpensive things are common giveaways.
The majority of giveaways are stamped with the brand or company name. It could be about the company’s product. Soft drink producers take part in trade shows, seminars, and demonstrations. The value of these cannot be overstated.
There are essentially specialised temporary markets where buyers and sellers can meet some of these soft drink businesses. Individual company exhibits, seminars, and demonstrations are also used on markets such as international trade fairs. In this instance, the target audience is more selective.
It is movable and easily relocated from one site to another using a specific vehicle. It is projected (Kotler 1976: 45-50) that trade exhibitions, conversions, and demonstrations take place in America each year.
Daniel (1979:10-18) believes that “these give manufacturers and wholesalers an opportunity to display their wares to a large audience or potential buyers at a relatively low cost.”
1.2 Statement of the Problem
Sales promotion is an important component of the whole marketing system since it stimulates consumer buying and improves the performance of salespeople, all with the goal of ensuring customer patronage. Based on this, good sales marketing strategies are required for the soft drink business to operate successfully. However, soft drink manufacturers should strive for near-perfection.
It must rate its primary operations on a nightly basis, such as advertising, personal selling, publicity, and public relations, and be able to correctly organise and implement these mixtures of activities. But the question is: “Is this so?”
A negative response to this question indicates that the results are not as expected. The objective of this research is to determine whether such problems exist, what causes them, and what can be done to solve them.
There are numerous brands on the market, both foreign and indigenous. But what effect does sales promotion have on the marketing of the Coca-Cola soft drink brand in Enugu urban?
1.3 Objectives of the Study
In accordance with the macro goal of determining the influence of sales promotion on soft drink products in Enugu urban, this research contains several objectives, which are
1. To investigate the sales promotion objectives of soft drinks in Enugu urban and determine whether their actions were carried out as intended.
2. Analyse the current sales marketing strategies to determine their level of efficiency.
3. Determine the extent to which Coca-Cola’s sales promotion coincides with actual sales.
4. To identify the factors that influence sales promotion in Coca-Cola marketing in Enugu urban.
1.4 Research Hypotheses
This research is guided by the hypothesis presented below.
i) Ho: Coca-Cola is not particularly popular in Enugu.
Hello: Coca-Cola has very wide demand throughout Enugu urban.
ii) HO: Most consumers are not influenced by sales promotions for Coca-Cola goods.
Hello: Most consumers are influenced by sales promotions on Coca-Cola products.
iii) HO: Sales promotion does not increase sales of the Coca-Cola soft drink brand in Enugu urban.
HI: Sales promotion promotes immediate sales of Coca-Cola soft drink in Enugu.
iv) HO: In Enugu urban, the majority of consumers do not choose Coca-Cola soft drink brands.
Ho, most people in Enugu urban choose Coca-Cola soft drink brands.
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