EFFICACY OF SALES PROMOTION IN THE MARKETING OF CONSUMER PRODUCT
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EFFICACY OF SALES PROMOTION IN THE MARKETING OF CONSUMER PRODUCT
Chapter one
INTRODUCTION
Promotion is synonymous with marketing communications. They are commonly used interchangeably; they are professional terminology for the component of marketing that deals with informing, convincing, and reminding the target audience about a company’s product offering. Thus, promotion includes advertising, personal selling, sales promotion, publicity, public relations, and direct marketing.
Promotion is a marketing tool that moves a product, service, or concept through a distribution route to the target market. Pate marketing is one such promotional tactic that promotes or arouses consumer interest in purchasing.
Nigeria Bottling Company (NBC), a soft drink producer, employs a variety of sales promotion tactics, including consumer, dealer, and salesforce promotion. The company focuses on consumer promotion, which includes sampling, demonstrations, sweepstakes, and other methods.
According to Philip Kotler (2003:609) in marketing management, sales promotion is a key ingredient in marketing campaigns and consists of a diverse collection of incentive tools, most of which are short-term, designed to stimulate faster or greater purchases of specific products or services by consumers or trade.
According to the American Marketing Association, sales promotion is defined as activities other than personal selling and advertising designed to stimulate sales dealer effectiveness, which can take the form of displays, demonstrations, shows, and exhibitions,
as well as other non-recurring efforts that are not part of the ordinary routine. It is used by producers and consumers to increase demand.
Sales promotion is a short-term investment of value made to pique interest along the marketing path in purchasing goods and services. It may be emulated from dealers to retailers and finally to customers during periods of severe competition or around sales deadlines in order to claim short-term sales. Sales promotion is a persuasive action that can be directed at either consumers or the channel of distribution.
1.1 Background of the Study
The Nigeria Bottling Company (NBC) is an offshoot of Coca-Cola International, which was founded in 1886 in Affanta Georgia in the United States of America. The Nigerian bottling business NBC has suffered production constraints at its factory in Wari Detta state.
This is owing to the inefficiency of the plants used at their peak. It has also been discovered that several of its mechanics are obsolete, resulting in inefficiencies in manufacturing and operations.
Y. A. Kareem, the plant engineer, stated that this would be resolved soon. He was chatting to the agent about the recent communication of the plant’s additional line 11, which was relocated from the former Warri facility, and the plant’s connection to the Asa Dam. Similarly, the new washer for Line 1 is planned to be installed by the end of August, he said.
This, he claimed, would provide a major boost to the plant’s manufacturing operations.
The Nigeria Bottling Company began operations in Nigeria in 1953 by holding a franchise for Coca-Cola International. This means that the concentrate formula and receipt of production have not been realised by the Nigeria bottling company, but the formular and syrup of the mixture have been provided to them to assist them in bottling their product in Nigeria.
1.2 Statement of Problem
Sales promotion is an extremely important strategy for advertising a company’s services. There are numerous variables that reduce the effectiveness of sales promotional activity. This includes both internal and external variables.
Internal variables include the organisation’s strengths and flaws. In this case, there was inefficiency in production, which hampered their product’s sales and the impact of sales promotion in the marketing of sold drinks in Warri Delta state.
In terms of external variables, the Nigeria Bottling Company (NBC) in Warri Delta state faces competition from a variety of other manufacturers of simulo soft drinks, all vying for the largest market share. External influences include threats and opportunities for the company.
When the JUP bottling company initially released their 35cl soft drink in the soft drink sector, Coca-Cola was nearly thrown out of the industry after gaining a significant market share. This happened in 1999. Coca-Cola introduced 35cl in its offering,
which allowed the bottling business to solidify its dominance in the industry. Given the circumstances, a significant amount of advertising was conducted in order to reshape its position in the soft drink product business.
The reason behind this was that the corporation (NBC) was unable to keep up with its changing and dynamic environment. That is why, as a marketer, you must remain aware of your external surroundings so that your opponent does not overtake you.
Finally, there is a stated linguistic barrier to good communication, which may result in a drop in profit. Some of the challenges to effective communication include:
1) Linguistic issues,
2) Cultural differences that affect its operation in the marketing of consumer products, as well as the issue of rapid sales promotion, which eventually reduces the company’s image,
because consumers may begin to perceive discounts and other price deals as a reduction in product quality, making it difficult for the firm (NBC) to seal its products without production.
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