THE EFFECT OF SALES PROMOTION ON PRODUCT PERFORMANCE AND MARKET SHARE OF THE ORGANISATION
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- NGN 5000
ABSTRACT
This study was carried out on the effect of sales promotion on product performance and market share of an organization using Nestle Food Nigeria Plc as case study. To carry out the study, 3 research questions were posed. The study adopted a descriptive survey design. The study was carried out in Lagos state. The population of the study comprised of all the staff of Nestle Food Nigeria Plc. Lagos state. The population size of the study was 108. The instrument for data collection in this study was structured questionnaire. Data collected were analyzed using frequency Table and the hypothesis were tested using Chi-square statistical tool SPSS v23. The major findings of the study disclosed that; there is a direct relationship between sales promotion and the sales volume of Nestle Foods Nigeria Plc. there are various ways in which sale promotions has increased sales volume and enhance profit levels in the company among which are; attracts more consumers, increase customers patronage, increase product awareness and increase customer loyalty. sales promotion creates permanent consumer acceptance of a product. The numerous ways through which sales promotional strategy influence consumer permanent acceptance of a product include; through rewarding existing loyal customers, through bonus pack schemes, premium (free gifts), delivery of product sample to consumer’s door, through coupons offering a discount off the usual price, through cash refunds, through rebates redeemable after purchase and through sweepstakes. Business operations improves through strategic sales promotion. And companies business operations has improved as a result of strategic sales promotion. The improved areas include; market share, revenue, in and out flow of cash, and productivity. Based on the findings; the research proffered the following recommendation; companies should define their sales promotion objectives and their customers should be well informed in order to achieve the stated objective. Sales promotion records should be well kept after the promotion in order to evaluate the results. Companies should involve the customer retailers in sales promotional activities if they need to meet the goals stipulated for such campaigns. This is because customer retails deal directly with consumers hence they can give adequate feedback on promotional activities used. The management should periodically evaluate the contribution of sales promotion relative to other promotional tools. And the management of organizations should ensure effective integration of communication tools to ensure that the intended objectives for all promotional tools are achieved.
