PROMOTION AS A STRATEGIC INSTRUMENT IN THE SALES OF MALT DRINKS
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
PROMOTION AS A STRATEGIC INSTRUMENT IN THE SALES OF MALT DRINKS
Abstraction
For the Guinness Nig. Plc., this research initiative is extremely important. The need to determine the role of promotion as a tactical tool in the sales of any manufactured goods drove the research.
Because of the quality and precision this study aims to accomplish, the researcher used Guinness Nig. Plc as a case study. Also anticipated from this investigation were:
i) Assess the efficacy of the marketing strategies Guinness Nig Plc is using.
ii) Assess the degree to which this company has managed its operations successfully using the present product marketing.
iii) Establish strategies so that advertising can be employed as a tactical tool to boost sales growth. This investigation is done. is consequently noteworthy in that it has made an effort to offer practical and agreeable recommendations that businesses can utilise to address organisational issues, especially those pertaining to promotion.
In order to prevent straying from the topic of the study, the research hypothesis was developed. The data was gathered using both primary and secondary sources. Oral interviews and questionnaires served as the research instruments for data collection.
Tables, frequencies, and percentages were utilised to arrange and display the data in a way that made sense. After that, chi-square was utilised to test each hypothesis at the significance level of 0.05 for each of the several hypotheses.
After testing, the following hypothesis was approved.
i) Malta Guinness is favoured above rival malt beverages due to its higher quality.
ii) The Guinness trade name’s reputation has a significant impact on the product’s pricing.
iii) The product’s price has affected how much of the market it holds.
According to the researcher’s conclusions, in divided opinions. Here are a few suggestions that should prove beneficial to both the company under investigation and other businesses operating in the same field.
The study’s conclusion goes on to say that product promotion is not just a good way to gauge how well a product is doing on the market. It contends that a superior product, goodwill, and other elements typically make a significant contribution.
All things considered, the promotion is the most effective tool for both boosting a product’s sales and launching and projecting a company’s overall corporate goals.First Chapter
The Introduction
1.1 Background of The Study
Instead than trying to recoup costs, advertising aims to make consumers recognise the product’s worth. Coordination of seller-initiated channels of information and persuasion is what makes up promotion,
which forecasts sales of products and services. Promotion refers to any method of informing the buyer or final consumer about a product or service.
Recall that in order to accomplish the organization’s marketing objectives, each marketing mix communication element entails correctly integrating the promotional mix and marketing mix variables in the appropriate ratio.
Put differently, promotion, according to Wibur Schram, is a communication strategy that aims to create a shared understanding or agreement between the supplier and the customer. The product continues to advance due to improved comprehension and expertise.
Depending on the product’s life cycle stage or the specific reaction that marketers are requesting, effective promotion moves the product through various response stages. Responses may include conviction, awareness, like, knowledge, preference, and/or purchasing.
It is also stated that even if a company produces the highest-quality produce at a price that is thought to be fair, its failure to spread awareness of its existence and location will prevent it from receiving market share due to a serious lack of promotion.
Likewise, no advertising at all for a product would be the result of improper integration of the promotional mix at the optional level.
Advertising, sales promotion, direct marketing, public relations, and personal selling make up the promotional mix. Advertising: any type of non-personal, paid presentation and promotion of concepts, products, or services by a designated sponsor.
Utilising mass media, such as radio, television, newspapers, etc., is part of it. Advertising can serve a variety of functions. Competition-based advertising aims to suppress rivalry;
informative advertising announces the launch of a new product or service or changes an established brand); and institutional advertising promotes the company’s reputation and goodwill. Promoting requires a few specific requirements.
A mass communication occurs when a message is disseminated via media to a huge number of individuals at once.
b) Controlled: The advertiser has control over the content, timing, and direction of an advertisement.
b) Impersonal: advertising is a one-man show.
d) Dramatisation: Print, colour, and sound are the three main elements of advertising. In addition to making the message engaging, this occasionally dramatises the brand and its offerings. Selling in person:
The sales team of the company makes personal presentations to potential clients in an effort to close deals and cultivate long-term connections. It works well as a tool to strengthen the preferences, convictions, and behaviours of buyers.
Among its unique qualities are:
Close personal interaction between vendors and buyers is a key component of personal selling.
Quick response: Since it’s a conversation, the potential customer can voice concerns, pose inquiries, or place an order right now.
Sales promotion: Temporary rewards used to promote the purchase or sale of a good or service. A variety of instruments, each with their own special attributes, are used in sales promotion, including as coupons, contests, lent-off offer premiums, and more.
Advertising says “buy our product,” but sales promotions say “buy it now.” Sales promotions can be divided into three categories: trade promotions (dealer contests, free goods, merchandising allowance, etc.), consumer promotions (sampling premium offer, price off, etc.), and sales force promotions (bonus, sales force contest, etc.).
Among its unique qualities are:
a) Attracting attention: They make an instant, direct concession and inducement to draw the customer in and direct them towards the merchandise.
b) Product or image damage: When sales promotion techniques are used excessively, it could give the impression that the things being promoted are poorly made, overpriced, or of worse quality.
Public relations involves cultivating positive relationships with the company’s diverse audiences through positive press coverage, fostering a positive corporate image, and managing or averting negative rumours, stories, and incidents.
Press relations (placing news) is one way that publicity manifests itself. Newsworthy item), product publicity (introducing a new product), lobbying (opposing unfavourable government policies and promoting the ones that are desired), and corporate marketing (messaging both internally and externally to enhance public perception of the organisation).
Among its unique qualities are:
Good Credibility: Since the news articles and messages are not endorsed by the sellers, readers regard them as reliable and real.
Off-Guard: News-like messages are not paid for in the sense that the company is not charged for the time or space.
Direct marketing: Making direct contact with carefully chosen individual customers in order to generate a response right away and build enduring relationships. It is private in nature, and the communication is meant only for that one person
It is interactive, personalised, and instantaneous. The phone, mail, fax, email, internet, and other means are used for direct marketing.
One of the marketing mix’s components that represents cost is promotion. Thus, in order to develop a profitable and acceptable strategy, any research on the issue would need to be streamlined.
To that end, the goal of this study is to ascertain the role that promotion plays in the sales of malt beverages, with a focus on Malta Guinness, which is made by Guinness Nigeria Plc.
Put another way, approaching promotion from a sales perspective, which measures the impact of promotion on consumers, rivals, and amount desired using sales as a parameter.
1.2 THE HISTORICAL CONTEXT (GNPLC)
Guinness Nigeria Plc was established in 1950 with the purpose of bringing in and distributing Guinness from Dublin for Nigerian consumers.
The product was so successful in Nigeria that a brewery was decided to be built there in 1960. The Ikeja stout brewery was built in 1962, making the new business the third in the world—public and Loudon being the other two—to produce Guinness stout.
The brewery expanded in response to the growing demand for their superior product, and in 1974, they ventured into the lager beer market by building the Harp facility in Benin.
In order to accommodate the enormous market need in the Eastern Zone, a third brewery was also constructed to suit the steadily increasing demand for Guinness stout.
Guinness Nigeria Plc makes a significant economic contribution to the country not only by directly employing over 5,000 (five thousand) people, but also indirectly by creating jobs for 4,000 additional Nigerians who work in the production of bottles, crow cocks, crates, cantons, labels, and other products.
They also employ contractors to maintain their breweries and transporters of their supplies. By paying import duties, corporation tax, and excise duties—which, in a typical year,
total an average of $14 million in excise duty alone—the company also contributes significantly to the government’s internal income stream. Chief (Dr.) A. K. Ubeku became the first Nigerian to take the firm’s advice in 1975.
The company had an official reorganisation on September 1st, 1986, and was divided into three primary divisions: the Guinness firm division, the Guinness processing division, and the brewery division.
In addition to adhering to government policies regarding impart substitution, the company is dedicated to maintaining high-quality products and has demonstrated good corporate citizenship by constructing and maintaining ageing hospitals and promoting sports development across the federation.
In 1990, the company launched a new product range under the Malta Guinness brand, capitalising on the success of the nation’s brewing industry. specifically to target the market group of non-alcoholic product drinkers.
Noteworthy to remark here is that as of the writing date. Compared to other brands in the market, Malta Guinness is performing well as a product.
The company’s turnover has increased from N286 million in 1986 thanks to the Board of Directors’ sound direction, the technical partners’ assistance, the management and staff’s diligence, and the customers’ unwavering support.
The company’s main office, situated in Ikeja, is in charge of the overall organisation, management, and planning of the entire enterprise.
1.3 EXAMINATION OF THE ISSUE
In Nigeria, Guinness Nigeria Plc was founded in 1950. In 1990, the company launched a new product range under the Malta Guinness brand, capitalising on the success of the nation’s brewing industry.
In the Enugu Metropolis, Guinness Nigeria Plc dominates the Malta drinks sector. The corporation also sells alcoholic drinks like Guinness stout and harp.
For many years, Malta Guinness has been a popular beverage in Nigeria, with good sales and market performance. The product is preferred by the majority of customers over other malt brands.
Even if the price is more than other Malta drinks, why do customers still choose it over other brands?
Why has Malta Guinness performed so well in the marketplace? Is the company’s name, trademark, flavour, price, or promotional strategy responsible for the success?
1.4 PURPOSE OF THE STUDY
Since promotion is one of the marketing mix elements that can be controlled and generates income, its significance cannot be overstated. As a result, the management must plan this blend with greater precision. As a result, the study’s goals are:
To determine if the product’s sales volume is impacted by the company’s promotional mix methods.
· To determine how the sales volume of the company is impacted by the promotion systems of competitors.
· To ascertain whether the choices made about promotions in corporate organisations actually form a complicated web.
· To make recommendations for enhancing the promotional mix tactics so as to advance the company’s main goal.
Need help with a related project topic or New topic? Send Us Your Topic