EFFECT OF PERSONAL SELLING ON SALES VOLUME OF SOFT DRINK IN UYO METROPOLIS ( A CASE STUDY COCA COLA NIGERIA LIMITED)
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A lot of beverages manufacturing companies in Nigeria are suffering from the piling up of unsold stocks. In recent years, Nigeria witnessed sales promotions by most beverage industries such as Nigeria Bottling Company Plc, 7up Bottling Company, Nigerian Breweries and Guinness Nigeria Plc., etc. Beverage industry such as NBC Plc. uses sales promotion for several reasons: to generate quick sales bursts, to build long-term awareness and maintain steady market shares, to gain increase in shelf space and better in-store display, etc. Does the success of sales promotional programme really justify the promoter’s efforts in terms of time, cost and benefits?
The objective of this study is to examine the effect of personalsales promotion on the sales volume of the beverage industry and suggest ways sales promotional tools and techniques could enhance sales volume.
The data for this study was collected from both primary and secondary sources. Questionnaire administration was the major instrument for primary data collection. Data was collected from wholesales and retail distributors of the product and the ultimate consumers.
Sales promotion activities are impersonal and usually non-recurring and are directed to ultimate consumers, industrial users and middlemen. The final element of the marketing mix is promotion. Promotion is essentially seen as industry’s sales efforts to current and prospective customers. Its primary purpose is to increase profits by increasing sales volume, (Kotler 2001).
Sales promotion consists of those seller-initiated activities that supplement both advertising and personal selling and render them into a more effective persuasive force (Olujide, 2002). Sales promotion therefore covers a wide variety of short term incentive tools aimed at stimulating consumers, the chains of distribution and the organisation’s sales force. It could take different forms such as giving away free samples of product, reducing the usual price tag, etc. Thus, sales promotion has been an effective tool used by companies in effecting increase hi sales especially hi the face of competition and in an ailing economy. In Nigeria presently, the changing socio-political and economic environment may make products that hitherto had been selling like hot cake to suddenly lose their attraction. Sales promotion is a major force in marketing today. Coupons, rebates, free sample, point of purchase techniques are some of the promotional strategies being employed today. Thus, an analysis of the sales promotion on sales volume would help marketers to prognosticate into the future about the expected returns on this important marketing tool.One of the major concerns of business enterprises in an environment is to identify and develop an effective marketing strategy for its products. Some companies try to improve their product package, some try to offer free products
Manufacturers, who want to win the mind of the buyers of their products and drive away the interest those consumers have over competitors products, usually adopt marketing concept that sees the interest and satisfaction of the consumers as a focal point for any reasonable promotional strategies.
Sales promotion has been the major factor stimulating sales of a product. It is one of the major parts of marketing communication mix. Apart from sales promotion, we have other promotion mix like advertising personal selling, public relations and publicity. Base on this, the question note is how effective is sales promotion in sales of products (Coca-Cola in particular).
The Nigeria Bottling Company tool up its source from Coca-Cola international. It was established by John Pemberton. He is a pharmacist and has operated in Nigeria since 1953.
The Nigerian bottling Company (NBC) was commissioned first at Apapa in Lagos. It has the largest plant of all the branches of Nigeria Bottling Company. The branches include Enugu, Onitsha, Owerri, Jos, Kaduna, Ibadan, Aba, Maiduguri etc. Together with their various Deport.
A Deport was established along Abakaliki-Enugu express was in 1980 from the branch office at Enugu. It was headed by the Deport sales services office (D.S.S.). He is the senior superintendent and assisted by another sales supervisor together with the following people. Accountant, Drivers, Store Keeper, Severity men and workers.
The duty of the Deport sales service officer is to take care of the whole activities of the Company. To see that every body focus on their activities in the Company. While his assistance, the sales supervisor as his Job implies ensue a full record of all sales of the Company. The storekeeper is in chapter of all the drinks in the Deport. His duty is when the Deport sales service office gives the loading order to the fork lift operators; he will comply with the order and make sure that all the sales truck must be loaded accordingly. They usually move their drinks from the branch office Enugu to the Deport t Abakaliki. They have six sales truck and nave seven salesmen in the Deport. Through size of them operate the vehicle to the market and the seventh person stays in the Deport in case of emergency situation to replace such driver.
The drivers or salesmen after their daily sales for proper checkup of drinks sold and unsold. They drivers usually received commission of #4.00 per crate they sell, which us paid together with their salaries.
1.2 STATEMENT OF PROBLEM
Sales promotion, which is a vital aspect of product mix, is widely adopted by beverage drink industries in Nigeria. However, as Nigeria is witnessing a depressed economy, there have been increases in prices of consumer goods that also lead to an increase in beverage drinks cover prices. The importance of excessive promotion in a competitive market environment has generated a lot of interest in marketers and firms to develop numerous comprehensive promotional approaches. To what extent have the various personal sales promotional strategies affect the sales volume and profitability of coca cola (coke) product in Uyometropolis Does the success of sales promotional programme really justify the promoter’s efforts in terms of time, cost and benefits.
1.3 OBJECTIVE OF THE STUDY
The objectives of the subject matter on the effect of sales promotion on the sales of coca-cola soft drinks include the following:
(1) to find out if sales promotion increases sales of Nigeria Bottling Company products.
(2) To find out the effect of sales promotion on sales of Nigeria Bottling Company products.
(3) To find out whether sales v attract new buyers of Nigeria Bottling Company products
(4) To examine the effect of sales promotion in new product introduction by Nigeria Bottling Company.
(5) To examine whether sales promotion can help to stimulate repeat purchase of Nigeria Bottling Company products.
1.4 RESEARCH QUESTION
In other to achieve the objective of the study and proffering solution to problem of study, the following research question were formulated:
i) What is the benefit of personal sale on the volume of soft?
ii) Does personal selling approach increase profitability?
iii) Is there any difference between personal selling and sales promotion?
iv) Does personal selling ensure competitive advantage in the market?
1.5 SIGNIFICANCE OF THE STUDY
It is conceived that at the completion of the study its findings would be beneficial to:
i) The marketers of the product
ii) The researchers and academia
iii) The producer of the goods
iv) And the general public
1.6 SCOPE OF THE STUDY
The studies covers the effect of personal selling on sale volume of soft in Uyo metropolis. However, the study has some limitation, which are:
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher have to combine other academic activities and examinations with the study.
c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINATION OF TERMS
Sales promotion consist of any consumer or trade programs that add tangible value to brand of that consumer or trade program in order to stimulate sales and create more awareness of such program.
The activities involve in giving a product to a buyer for exchange of price paid on that product.
Marketing is the study and management of exchange relationships. The American Marketing Association has defined marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”
The techniques used in marketing include choosing target markets through market analysis and market segmentation, as well as understanding methods of influence on the consumer behavior.
From a societal point of view, marketing provides the link between a society’s material requirements and its economic patterns of response. This way marketing satisfies these needs and wants through the development of exchange processes and the building of long-term relationships.
In the case of nonprofit organization marketing, the aim is to deliver a message about the organization’s services to the applicable audience. Governments often employ marketing to communicate messages with a social purpose, such as a public health or safety message, to citizens.
In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are bought as raw materials and sold as finished goods. A service is another common product type.
Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. In insurance, the policies are considered products offered for sale by the insurance company that created the contract. In economics and commerce, products belong to a broader category of goods. The economic meaning of product was first used by political economist Adam Smith. Personal Selling
A related concept is that of a sub-product, a secondary but useful result of a production process.
Dangerous products, particularly physical ones, that cause injuries to consumers or bystanders may be subject to product liability. Personal Selling
The consumer is the one who pays to consume goods and services produced. As such, consumers play a vital role in the economic system of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.
Recently in marketing instead of marketers generating broad demographic profiles and Fisio-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization. Personal Selling
Largely due the rise of the Internet, consumers are shifting more and more towards becoming “prosumers” – consumers that are also producers (often of information and media on the social web) or influence the products created (e.g. by customization, crowdfunding or publishing their preferences) or actively participate in the production process or use interactive products. Personal Selling