The Impact of Sales Promotion On Organizational Performance: (A Case Study of Nigeria Bottling Company PLC)

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THE IMPACT OF SALES PROMOTION ON

ORGANIZATIONAL PERFORMANCE
(A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC)
BY
---------------------------
--------------
A RESEARCH PROJECT PRESENTED TO THE

DEPARTMENTOF MARKETING SCHOOL OF BUSINESS AND
MANAGEMENT TECHNOLOGY
------------
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF --------- IN MARKETING
NOVEMBER, ---------
Tom
APPROVAL PAGE
This project has been read and approved by undersigned on behalf
of school of business and management technology, department of
marketing ------------, having met the requirement for the Award of ----
------------
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…………………………… ………………….
Mr. ------------ Date
Project Supervisor
…………………………… ………………….
Mr. ---------------- Date
Head of Department
…………………………… ………………….
External Examiner Date
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DEDICATION
I dedicated this work to God Almighty who made all things
possible. And all who champion the freedom of the oppressed, the
suppressed and the deprived.

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ACKNOWLEDGEMENT
My gratitude goes to the God Almighty, the creator of Heaven and
earth, the beginning and the end, for seeing me through my years
in the University, may his name be glorified in Jesus Name Amen.
I also express my sincere appreciation to my beloved parents Mr.
& Mrs. --------, for their love and support they show me through my
academic section, I play that God will grant them long life. My
greetings also goes to my beloved brothers and sisters, -----, ------,----
--, ------, for their love and kindness which hey gave me, I pray that
the Almighty God will see the according to their needs Amen. My
gratitude also goes to my well wishers and friends who has being
their for me, I pray that God with his infinite mercy grant them their
heart desires Amen.
ABSTRACT
The analysis of research on impact of sales promotion
on organizational performance. (A case study of Nigeria bottling
company (NBC plc, coca cola Onitsha plant. revealed that the
study is relevant in that it seeks to identify the role sales promotion
plays in the marketing strategies and achievement of

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organizational goals and objectives. And have tried to expose the
impact of sales promotion output and employees commitments
on organizational activities.
Also serves as a guide to the company under
examination and the entire soft drink company in Nigeria by given
them an insight on ways in which planning and execution of sales
promotion programme can be done to yield a better result. And will
add to existing stock of knowledge in administrative science
research and will equally help other researcher seeking adventure
into sales promotion.

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TABLE OF CONTENTS
Title page i
Approval page ii
Dedication iii
Acknowledgement iv
Abstract v
Table of contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study 1
1.2 Statement of problem 8
1.3 Objectives of the study 11
1.4 Research question 12
1.5 Significance of the study 13
1.6 Scope of the study 14
1.7 Limitation of the study 15
1.8 Definition of terms 17

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CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 20
2.2 Concept of sales promotion 20
2.3 Types of sales promotion 28
2.4 Designing and development sales promotion 34
2.5 The concept of organization performance 39
2.6 Components of organizational performance 42
References 49
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 50
3.2 Research design 50
3.3 Population of the study 51
3.4 Sampling procedure and technique 52
3.5 Data collection method 56
3.6 Questionnaire design and administration 57
3.7 Description of data analysis/technique 58
CHAPTER FOUR: PRESENTATION AND
INTERPRETATION OF DATA
4.1 Introduction 59
4.2 Analysis of number of questionnaires 59
4.3 Analysis of questionnaire to management of NBC 60

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4.4 Analysis of questionnaire to consumer 74
CHAPTER FIVE: SUMMARY OF FINDINGSS,
CONCLUSION & RECOMMENDATIONS
5.1 Restatement of the problem 82
5.2 Summary of findings 83
5.3 Conclusion 86
5.4 Implication of the study 88
5.5 Recommendation 89
Bibliography 92
Questionnaires 94-102
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CHAPTER ONE: INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Business is like war in one respect. If its ground strategy is correct,
any number of tactical errors can be made and yet the enterprise
proves successful (Robert E. Wood).
The business in question could be private or public venture. It
could be one man business (Sole proprietorship) or a world class
multinational. Every business enterprises still operating as a going
concern, must adopt its marketing strategy to meet the desired
aspiration. In the same vein for any business to survive under the
current unpredictable socio-eco-political dispensation in the
country be it profit making or non-profit making, it has to
effectively market its products or services which have to be
promoted on a regular basis.
Apparently, one of the vehicles for conveying marketing strategies
is sales promotion and its significant to organizational
performance cannot be over emphasized. Sales promotion
according to Kotler and Armstrong 2001:512, is a short term
incentive to encourage the purchase of sales of a product or
services.
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Kotler (1984) posits sales promotion as consisting of a variety of
promotional tools designed to stimulate earliest and/or stronger
market response. Undoubtedly, sales promotion is an important
element in making function. It forms part of the promotional mix.
Sales promotion helps maintain a high level of awareness of the
supplier and the brand in several ways. Not only does sales
promotion win and help to maintain the patronage of customers
but it also build the goodwill of dealers and distributors who enjoys
increase in store-traffic and high rate of stock turnover, sales
promotion also encourages the trail and repeat purchase of
product and services. It forms an essential ingredient in motivating
adoption process of products. Direct mail, shorts and catalogues
which are component of sales promotion generates enquire for
industrial goods and services leading to increase in re-order level.
It is quite evident level that no business organization that desire to
survive can afford to neglect the importance of sales promotion in
the marketing of its product or services. It is on the basis of this
invaluable contribution to organizational success that this study is
being carried out to focus on sales promotion and organizational
performance in NBC plc (coca-cola) onitsha plant. The origin of
sales promotion Nigeria Bottling Company Plc, this can be traced

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from the era of marketing philosophies/concepts and
development of coca-cola product it self when Dr. Johnson
pemberton first had an appreciation of advertising. Coca-cola the
product that gives the world its best known task was developed
under modest circumstance in Atlanta, Georgia on May 8th 1886 in
United States. Dr. John Perberton first produced what to become
coco-cola syrap in a three legged brass pot with a boat bar in his
backyard. He carried the jg of few products down the street to
jacob’s pharmacy where it was placed on sales for scent a glass
as sode foundation drink.
Dr. Perbertons partner and book-keeper Frank M. Robinson
suggested the name “COCA-COLA” and designed the script that
distinguishes the famous trademark. The first newspaper
advertisement appeared in the Atlanta journal not only inducing
and promising refreshment but also informed the public where to
get it.
The idea of Dr. Perberton was by means of a free ticket “go for one
drink and redeemable at soda foundation”. Since the slogan
“Delicious and refreshing was introduced in 1886, coca-cola
promotional activities have continued to reflect several of such
slogan.
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In Nigeria coca-cola sales promotion activities have taken several
dimensions for instance the first promotional event was tagged
“Animal kingdom”. A competition which offered its participants to
win gifts. It lasted for a period of three months. It was a successful
and rewarding promotion as it generated great awareness for coca
-cola and its products. Other subsequent sales promotion
activities includes:
 Under the crown promotion
 The price reduction promotion
 The coca-cola N20 million BIG BLAST sweepstake.
 Instance redemption of price
 Mega million
 A “Drink, collect and win crown collection promotion.
Onitsha like her parent plant has also embarked on series of sales
promotion activities focuses on fanta. The program was tagged
“Fanta Actuation:. The sales promotion was aimed at stimulating
the demand for fanta and it offered the consumer opportunity to
win gift. There was also trade promotion in which dealers where
given allowance to buy in large quantities and enjoy free additional
cases of coca-cola.
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The coca-cola fanta refreshment promotion programme embarked
on by Nigeria Bottling Company Plc, was carried out nation wide
and it offered its participants opportunity to win a returned ticked
to south Africa. Winners were selected through raffle draw,
consolation prize such as free drink, T-shirt, cap, were also given to
customers. Another promotion had, was A “Drink, collect and win
crown collection promotion. The exercise took place in April 2002
and it was tied in to the 2002 FITA world cup tournament in
Korea/Japan, over 120 million Naira worth of prizes were awarded
during the three months long promotion.
The mega million promotion was another promotional programme
of NBC Plc. It took place in 2003 for just three months and it was
held nation wide. The topic was taken so as to examine and
appraise, critically the role of sales promotion and its efforts on
both organizational performance of NBC Plc and the product being
manufactured. Likewise, the research work orients to seek and
analyze the problems inherent in efficiency and effectiveness of
management in terms of profit realized as a function or result of
the promotional activities.
HISTORICAL BACKGROUND OF THE STUDY
The Nigerian Bottling Company (NBC), which is part of coca-cola

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HBC, was incorporated in November 1951 to bottle and sell
carbonated non-alcoholic beverages. The company has the sale
franchise to bottle coca-cola product in Nigeria. Product of coca-
cola began in 1953 at a bottling facility in Lagos, and new plants at
Kano, Port Harcourt and Ibadan were opened shortly afterwards.
The company metta.
Nigerian Bottling Company (NBC) became a public company in
1972 with its shares coasted on the Nigeria stock exchange NBC
generated its own power and is self sufficient in carbon dioxide
and water product. Coca-cola’s range of products in Nigeria
includes the following beverages all of which are bottle in
returnable glass. Coca-cola, fanta in orange, lemon and black
current flavours, sprite, Eva bottle water, five alive juice, and
Schweppes in bitter lemon, club soda and tonic water (These,
“Mixers” were previously bottled under the krest brand but NBC re-
acquire the Schweppes franchise in August 2001).
However, the company has grown across the geographical blocks
of Nigeria with about 16 bottling facilities (plants) around the
country, and it uses 82 distribution warehouses and 200,000
distribution outlet. For instance, the onitsha plant is one its plails
and it began production in 1987 at the commercial nerve centre of

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eastern region. It cover Anambra and Delta State. The plant
supplies four (4) major depots located in Nnewi, Oba, Agbor and
Ekwulobia, with numerous retailers over ten thousand currently its
staff strength ranges between four hundred and fifty staffers. The
success of the plant since its fourteen years of operation has put
coca-cola product the ultimate in the eastern market.
1.2 STATEMENT OF THE PROBLEM
The beverage industry is influenced by seasoned fluctuations and
climatic changes coupled with depression in the economy. This
phenomenon puts soft drink. The sensitivity of the soft drink
market often lead to sales decline, erosion of market share, low
capacity utilization, reduction in overall industrial output and
colossal loss of profit. Thus the success of any beverage firm that
wishes to sustain the acceptability of its product hands on its
intensive sale promotional activities.
Despite the magnitude and relative importance of sales promotion,
comparatively, little attention is given to it by most business
organization. Many view it a money consuming and a waste
venture. So, the question is “could sales promotion if adopted as
one of the problem solving behaviour help organization to achieve
their marketing objectives”.

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It is in the light of this question that the researcher was motivated
to conduct a study on sales promotion with reference on the
Nigeria Bottling Company Plc. However, one excruciating
hindrance of sales promotion is the difficulty in measuring its
direct contributions to organizational performance.
Hitherto, the major problem is mobility to know the extent sales
promotion can be used to stimulate organizational performance
and operations, which can be viewed under the following sub-
problems.
 Is sales promotion helping to improve sales?
 Does the promotional activity have position impact on
organization?
 Is there any correlation between sales promotion and
organization performance
 Could sales promotion be an incentive to sales force
motivation
 Is sales promotion really influencing the activity and choice
of distribution channel?
 Are there opportunities that organization has not taken
advantage of?
 Are the existing customers satisfied with the company’s

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product?
 What are the criteria used in the application of the promotion
to suit organizational operation?
1.3 OBJECTIVE OF STUDY
The objective of the study is to find out the impact of sales
promotion on Nigeria Bottling Company Plc Onitsha within three
months sales promotion and the contribution of sales promotion
to the growth of soft drink industry in Nigeria. Thus the research
seeks the following:
i. To find out how effective sales promotion is being used in
the operation of NBC Plc with respect to profitability and
market share.
ii. To find out the extent to which sales promotion can be
used to improve consumer patronage, gather channel
supports and motivate the sales force of NBC Plc and the
entire soft drink industry in Nigeria.
iii. To establish whether the use of sales promotion activate
the production level of soft drinks.
iv. To ascertain whether sales promotion helps to level sales
peak and valley that might be brought about by seasonal
fluctuation in the soft drink market.

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v. The research project would also expend the researchers’
knowledge and equip her basic skills in scientific problem
techniques towards the fulfillment of her academic
pursuit.
1.4 RESEARCH QUESTIONS
The research question for this study will cover the following:
i. What effect does sales promotion have in the operating of
NBC Plc, with respect to profitability and marketing share?
ii. What extent can sales promotion be use to improve
consumer patronage, gather channel supports and
motivate the sales force of NBC Plc?
iii. Does sales promotion activates the production level of
soft drinks?
iv. Does sales promotion help to level sales peak and valley
that arise as a result of seasonal fluctuation in the soft
drink market?
1.5 SIGNIFICANCE OF THE STUDY
The study is relevant in that it seeks to identify the roles sales
promotion plays in the marketing strategies and achievement of
organizational goals and objectives. The study tries to expose the
impact of sales promotion on profit generation, production output

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and employees commitment to organizational activities.
The study will serve as a guide to the company under examination
and the entire soft drink company in Nigeria by giving them an
insight on ways in which planning and execution of sales
promotion programme can be done to yield a better result.
It will furnish information which serves as reference points for
organization that caries out sales promotion in motivating and
gathering channel supports and consumer’s patronage. The
findings and recommendation will be relevant to all firms in the
soft drink industry.
Lastly, the study will add to existing stock of knowledge in
administrative science research and will equally help other
researcher seeking adventure into sales promotion.
1.6 SCOPE OF THE STUDY
The study will involve a view of sales promotion activities of
Nigeria Bottling Company (Coca-cola) Onitsha plant, Onitsha
metropolises of Anambra State (Eastern Nigeria). The study will
further cover the following:
i. The relationship between sales promotion and
organizational performance for a period of three months,

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which form the promotional period.
ii. The effect of sales promotion on the sales of major
brands of the Nigeria Bottling company Plc. product.
iii. The effect of economic condition and the purchasing
power of consumers at the time of sales promotion.
iv. The effectiveness and efficiency of management in term
of profit generation and planning.
Finally, the study would rely on the sampling opinion of
management/staff of NBC plc, coca-cola Onitsha plant, the
distributors/dealers and the consumers all within the Onitsha
metropolis of Anambra State.
1.8 LIMITATION OF THE STUDY
Undoubtedly, any study that seeks to enrich human knowledge is
certainly a difficult task. This project is not an exception. Many of
the difficulties that could have jeopardized the success of the
research was able to eliminated by the researcher but some
constraints are still outstanding, these include:
TIME- It is difficult to cover more areas than those itemized one to
time constraints within which the study should be completed. It
become an Herculean task to travel round various village and
towns within Onitsha metropolis to collect the information and still

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meet up with demand of academic at school.
FINANCE- The cost of research materials were very exorbitant and
grossly out of the researcher one to the prevalent economic
situation in the country. Since accurate data gathering repeated
calls on respondents, high cost of transportation, high cost of
transportation greatly reduced the number of investiture schedules
appointment with respondents.
ILLITERACY- The level of awareness in the society of ours also
affected the collection of data. Most respondent (consumers and
distributions) were illiterate. Some of them could not even fill the
questionnaire themselves. Hence, it demands greater time and
effort to read and interpret the questionnaires to them to facilitate
prompt response.
INFORMATION- One of the most obvious limitations is the size of
the sample and the coverage. The research is limited to onitsha
metropolis, which is a commercial centre. However, the number of
total target population. Therefore, this limits the extents of which
generalization could be made and create the need for further study
that will take care of adequate sample size. Again, the research is
affected by time and mobility for pressing issues, churches,
services and domestic family clears which make it difficult, to
collect more information likewise, sales manager was not very

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accessible because of his frequent trips outside the company to
monitor the sales force and make contacts for more sales.
The relevant attitude of management staff of NBC plc Onitsha and
the bureaucratic ways of the executives in granting request for
interviews and their deliberate hold back of information to avoid
industrial espionage, constituted a major set back for the research.
Thus, there was problem of researcher trying to ascertain the
exact income and turnover of the company over the period in
question.
1.9 DEFINITION OF TERMS
a. Advertising- Advertising is any paid form of non-personal
presentation and promotion of ideas, goods and services by
an identified sponsor.
b. Brand- This is a name, term sign, symbol or design or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate
them from those of the competitors.
c. Brand loyalty- This is consumer unreserved willingness to
choose a brand over the other brands and tendency to
search for that particular brand when buying.
d. Coupon- These are pieces of paper from the manufacturer

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or his intermediary entitling its holder to a discount on a
particular product. They are certificates that give buyers a
saving when purchase a specific product merely to invite
guest.
e. Dealers- Middlemen in the distribution chain. They buy
goods in order to resell them. They include wholesalers and
retailers.
f. Direct mail- Mailing of a price of information literature of
any other promotional materials to selected prospects.
g. Effectiveness- Having the power to produce or producing a
desire result. The act of producing a pleasing effect or
actual rather than theoretical.
h. Efficiency- Producing satisfactory results. The quantity of a
person capable of completing work within a relative short
time.
i. Exhibition- Putting on display of a company’s product or

service for promotional purpose particularly the gathering
of number of such display which are either on view to the
public in general or merely to invited quest.
j. Goods- Articles that are being offered for sales or produced
for consumption.
k. Motivation- This is the drive that propels a person to act
beyond normal expectancy or to achieve a goal or objective
that he would not ordinarily. It is an inducement which
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propels or under action.

l. Organization- A business or profit oriented outfit that
produces goods and services for the society.
m. Sales promotion- Short term incentives to encourage
purchases or sales of a product or services.
CHAPTER TWO: LITRATURE REVIEW
2.1 INTRODUCTION
The chapter intends to review some past works of authors and
researchers on the matter of the research work. It provides an
avenue to have an in depth exploration of the topic under study
and balanced the key words of the research topic: SALES
PROMOTION AND ORGANIZATIONAL PERFORMANCE in a
comprehensive manner. The topic covered under the review
includes concept of sales promotion, types of sales promotion,
designing and developing sales promotion, concept of
organization performance and component of organizational
performance.
2.2 CONCEPT OF SALES PROMOTION
The American Marketing Association Journals (1960:12) defines
sales promotion as. These marketing activities other than personal

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selling, advertising and publicity that stimulate consumer
purchasing and dealer effectiveness such as displays, shows
exposition, demonstration and various non-recurrent selling effort
not in the ordinary routine.
According to Jefkins (1985:86) “Sales promotion covers special
promotional schemes usually of limited duration at the point of
sales or point of purchase. He added that in addition to
inducement of buying habits or the buying of quantities to the
exclusion of other brands. It could induce frenetic brand switching
and the loss of brand loyalty. It also encourage greater
competitiveness at point of sales and wider consumers choice.
Kotler (1997:661) posited that sales promotion consist of a
diverse collection of incentive tools, mostly short term, designed to
stimulate quick and or greater purchase of a particular
products/services by consumer or the trade.
While advertising offers a reason to buy, sales promotion of an
incentive to buy. In actual fact, when a company starts to
experience dwindling sales, not making enough sales as before, it
is worth at that point to carry at sales promotion tool campaign to
boast sales, or if it introduces new products into the market, sales
promotion tool will be appropriate. On the other hand, to increase

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or to combat competition it will be wise to organize sales
promotion. This is very much exemplified in the promotion,
normally carried out by the Nigerian Bottling Company Plc.
Nwosu et al (1996:322) argued as debunking the short-term
marketing and sales objectives as sales promotion by referring to
it as “a long communication medium that acts as along term
image builder, awareness creator and a veritable communication
medium”.
The implication of this is that with effective sales promotion it will
have a halo effect on the co=operate image of the company,
attract repeat purchase and attract non-users to quiet their
patronage. It is on this view Majaro (1993:131) opined that sales
promotion seems the best promotional tool to use to stimulate
consumers to behave in the way that is at apart with the
company’s palm especially, if certain parts of the products range
is experiencing low sales. He therefore, advocated that for the
effect of sales promoting schemes to be maximized. It should not
be done isolated but rather be planned and integrated with other
marketing activities of a company like advertising, personal selling
etc.
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It should be noted that planning for sales promotional activities
involves blending consumers socio-cultural and psychological
differences which induce buying attitude or behaviour for product.
The fact remains that consumers are conscious of price reduction
or sensitive of price. They would want to win items or want a gift
item for the purchase of a product while comparing such decision.
The perhaps is explained by the economic recession and inflation
in the economy.
In light of this Assael (1985:370) agrees that companies spend
more on sales promotion for consumer packed goods than on
other promo-mix (advertising, personal selling). He noted that the
relevance of sales promotion can be seen in the fact that there
have been increasing price pressure on national brands and
because of this companies now realize the importance of price
sensitive quality conscious, price conscious and less brand loyal
because of the cycle of inflation and economic recession that the
only thing that appears they can rely on the sales promotion which
is a valuable tool in a price sensitive economy.
In a simplified way, sales promotion according to American
Association of Advertising Agencies (1978:2) includes “any activity
which offers an incentive to buy a product beyond its inherent

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benefits”. From the layman point of view, sales promotion can be
seen from the perspective with which it is used. Nigeria sales
promotion to many is an activity that acquire such benefit as
money or goods to the consumers. Which ever, definition one
prefers, what is in controvertible is the fact that sales promotion is
an integral component of a company overall marketing and which
occurs once or over a limited period of times.
Characteristic of sales promotion
Kotler (1991: 631 – 632) submitted that the growth of sales
promotion is the result of greater firm acceptance, better
management quick response, competition economic conditions
and demand by sales promotion have both strengths and
weaknesses as a promotion. In other to use sales promotion
proper, one has to be selective and thereby put its strength to work
for the company and nullity its weakness.
Strength of sales promotion is interviewed area.
o It establishes the feeling among middlemen and
consumers that they are getting something for nothing.
o Sales promotion is in addition to other inducements,
they are “extra something” that get the consumer to
buy.
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o Sales promotion are directly inducement, they try to get
action now rather than later and if they are successful,
immediate sales increase take place.
o Sales promotion are at are any stage of a new product
introduction. They can enhance a selling massage
delivered by advertising or personal selling.
Management of sales promotion program involves on
understanding of the activities that constitution sales promotion,
the objective in the sales promotion program and the other
marketing promotion mix. Managers must know the factor that
dictates the specific use of sales promotion as well as the
importance of evaluating sales promotion efforts.
A number of factors contributed to the rapid growth of sales
promotion in recent years, particularly in consumer markets. The
internal and external factors.
INTERNAL FACTORS
 Sales promotion has become more accepted to stir
management as an effective means to stimulate sales.
 More product managers are qualified to use sales promotional
tools
 Products managers are under greater pressure to obtain quick
sales response.
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EXTERNAL FACTORS
 Brands have increased in number
 Many brands are at parity
 Consumer are more deals oriented
 Competitors have become more promotion minded
 Trade has demanded more deals from manufacturers
 There is a belief that advertising efficiency has declined
because of raising cost, media clutters and government
restraints. In light of the above, sales promotion is more
effective under the following condition.
 When a new brand is being introduced when a major product
improvement in an established brand is being communicated to
market and also to conclusion the effect of the price increase.
 When the brand that is being promoted is already enjoying an
improvement competitive trend.
 When company is trying to increase store distribution and
actuation of channel actors and middlemen
 When a branded product is being advertised sales promotion is
used to amplify the result of the advertisement.
 When market share is being maintained.
Achievement of sales promotion objectives is independent of
promotion type, geographical area, incentive level promotion

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duration, promotion cost, trade participation, single/dual,
promotional components, pre-testing trade, reactions target, sales
force support or trade support and product life cycle.
2.3 TYPES OF SALES PROMOTION
Sales promotion is being classified into three (3) types that aimed
at.
 Final consumer or users or consumer promotion
 Middlemen or trade promotion
 The company’s own sales force (sales force promotion).
1. Consumer promotion- These are sales promotion efforts
targets at the final consumer or users. It tries to increase demand
or speed of the time of purchase. Such promotion might involve
developing material to be displayed in retailers store. They involve
tools such a banner and screamer, samples packaged point of
purchase materials, sweepstakes, coupons, premiums insert
warranties.
OBJECTIVE OF CONSUMER PROMOTION
 To get consumers to try a new product or brand
 To meet or counter balance competitors promotion.
 To implant favorable opinions in customers mind
 To motivate consumers to buy

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COMMON CONSUMER PROMOTIONAL TOOL
Premium- A premium is either an out right gift or semi-gift (when
the person collecting the premium pay a small normal sum of it).
There are basically two types of premium, those received
immediately on purchase of the production and those obtained
later in exchange for a number of wrappers. Premium ranges from
items of external low cost such as small plastic, toys given away
with packets of breakfast cereals packaged, chocolate, y-shirt,
football etc. to more valuable article such a kitchen knives, with
some house hold durable and even whole set of pots and pans
offered with cooker.
PATRONAGE REWARDS
These are cash or other awards for the regular use of a certain
company’s product or services for example, airlines offer “frequent
flyer plans”. Awarding points for miles traveled that can be turned
in for free airline trips.
CONTEST/SWEEPSTAKE/GAMES
These are promotional event that gives consumer chance to win
something such as cash, trips or goods by luck or through extra
effort.
CONTEST
This calls for consumers to summit an entry a jingle, guess,

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suggestion to be joined by a panel that will select the best entries.
SWEEPSTAKES
This calls from consumer to submit their names for a drawing.
GAME
A game presents consumer with something bingo numbers
missing letters. Every time the buy what may or may not help them
win a prize.
2. TRADE PROMOTION
This type of promotion is aimed at middlemen or channel actors. It
is designed to gain reseller support and to improve re-seller selling
effort. It stresses price related matters as the objectives assigned
to it may be to encourage stocking of new items be or buying in
large quantity or buying early to control inventory and enhance that
utility of time from place and possession. It may also be to
encourage retailers or wholesales or distributors to sell specific
items or the company’s whole line offering. It uses tools such as,
discount, allowance, free goods, corporate advertising.
OBJECTIVE OF TRADE PROMOTION
 To get middlemen to participate in manufacturers promotion.
 To induce middlemen to buy in greater quantities.
 To help middlemen to buy in greater quantities and control

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stock to avoid obsolete stock and operate more effectively.
TRADE PROMOTION TOOLS
These are special offers given to trade or channel actors to
persuade them to carry brands, give it shelf space, promote it in
advertising and push it to consumers, such incentive include, price
off, allowances, buying back guarantee, discounts.
DISCOUNT
A straight reduction in price on purchase during stated period of
time. It is also called a price off, off involve or off list. The offer
encourages deals to buy in quantity or to carry a new item. Dealers
can use the discount for immediate profit, for advertisement or for
price reduction or their customers.
ALLOWANCES
This is promotional paid by manufacturers to retailers in return for
an agreement to feature the manufacture preclude is some ways.
They include advertising allowance which compensates for
displaying product.
Manufacturers may offer free goods which are extra cases of
merchandise to middlemen who buys in a certain quantity or who
feature a certain flavour or size manufacturer can as well offer
push money cash or gift to dealers or their sales force to push the
manufacturers good etc. Manufacturers can also give the retailers

35
free gift especially advertising items that carry the company’s
name such as pen, pencils, coolers sacks colanders, papers,
weights, match books memo pads etc.
3. SALES FORCE PROMOTION
This type of promotion is designed to motivate the sales force and
make sales selling effort more effective. It aims is to boast the
moral of sales force so as to sell more by placing goods financial
and material rewards recognition to excelling sales staff. In the
process they might be used as intelligence gathering. It uses tools
such as bonuses, cosmists, commissions sales rallies.

36
EXAMPLE OF SALES PROMOTION ACTIVITIES
Aimed at final Aimed at Aimed at sales force

middlemen
Consumer contests Price deal promotional Controls bonuses
components Samples trade allowance sales Meetings portfolios
shows P.O.P materials contest calendar gifts displays sales aids
banner and streamers trade trade shows meetings training materials
stamps Catalogues
Sponsored event merchandizing
Source: McCarthy and Jerome 1990 Basic Marketing Page 36.
2.4 DESIGNING AND DEVELOPMENT SALES PROMOTION
Design is the preparation of promotional specification which
requires a team of analysis perhaps “consortium” and the
approved recommendation of the feasibility report of the
development of sales promotion. However, the development of
sales promotion involves several processes, which include.
A. DETERMINE GOAL/NEED FOR THE EXERCISE
The objective for which sales promotion is carried out must be
asserted. Some of the objective according to C.D. Moss, P. Thorne
and P. Eassey 1963 in their book “Distributions of coupons” which
includes:
i. To gain customers and convert them to regular use

37
particular for new or improved product during introduction.
ii. To wide distribution of a product and fight competition
iii. To influence stock level which may be to high or too low
iv. To reduce sales peak and troughs and maintain economic
production levels
v. To cushion the effects of a price increase
vi. To create new interest in an established product and
improve results from in store displays.
B. SELECTION OF TARGET AUDIENCE
In doing this, one tries to match the sales promotion exercise and
the need or objectives. The organization may embark on consumer
promotion techniques if it targeted the consumers. Likewise, it
may be wise to promote to the trade channels or even the sales
force. No matter the focus of the sales promotion exercise, the
organizations must know its market in terms of segment and
geographical location to enhance effectiveness.
C. SIZE OF INCENTIVES
The market has to determine how much to offer since at least
minimum incentive is necessary if the promotion is to succeed and
a high incentive as well, will produce more sales response. The
size of incentive must be valued using the cost benefit analysis
concept so that it does not jeopardize the entire exercise.

38
D. CONDUCT FOR PARTICIAPTING
Incentive might be offered to everyone or selected group. The
mode for redeeming price must be decided. An example is the
minimum that might be offered only to those who turn in crowns or
proof of purchase. The marketer must elicit and decide on how to
distribute the incentive of the promotional programme. The
number of redemption centres must be determined.
E. DURATION/TIMING OF PROMOTION
The objective of the sales promotion exercise must be matched
with the time frame of the promotional activities. If sales
promotion period is too short or too long, it will affect much
involvement from the public. Its strategies may the competitors.
Thus, the brand manager needs to develop calendar dates for the
exercise.
F. SALES PROMOTION BUDGET
In determining the achievement of sales promotion efforts, the
amount of capital or cash commitment must be given a special
attention other wise, the entire efforts will be at cross road.
However, to precisely ascertain the amount that would be spend
on promotion, certain fact must be considered. These include:
i. The type of product
ii. The interaction of different modes of communication

39
iii. Marginal advantage of each communication device
The optimal method of allocating promotional budget would be the
expansion of the budget until the additional increment equated the
marginal revenue received from the increment. This method
entails the expenditure of naira until each naira of promotional
expenses is equal to the additional naira release as profit. This
approach is difficult in identifying the optional profit. Other means
of allocating promotional budget include.
a. Fixed sum per unit approach- This approach is
peculiar to producer of high value consumers goods
like automobiles it is a per-determined sum allocation
to each unit of the total company’s output. It can be
based on historical or forecast figures.
b. Percentage sales approach- This is the most
common method of allocating promotional budget to
its simplicity. The approach is based on percentage of
company’s part sales record or current years sales.
c. Meet competition approach- This is the most
inappropriate way to allocate promotional budget. The
approach implies matching the promotional
programme of competitors. The approach falls short
of taking cognizance of the company’s available

40
resources goals and other peculiarities.
d. Task and objectives approach- This is based on a
sound valuation of a company’s promotional
objectives and it involves two sequential steps.
Firstly, organization must define the goals that marketing
communication can achieve for example 15% (Percentage)
increment in market share 3% three percent increment in gross
sales or combination of these. The salient thing is to specify
precisely, the goal which the firm wants the promotional effort to
accomplish.
Secondly, she must determine the amount as well as the type of
promotional activities to embark upon in order to achieve the
promotional objective, whichever method is applicable, the cost of
promotional effort must not out cost the benefit inherent in the
promotion exercise.
2.5 THE CONCEPT OF ORGANZIATION PERFORMANCE
According to Stoner et al (1996:6 “Organizational performance is
the measure of how efficient and effective an organization is”).
That is, how well it achieves appropriate objectives. Efficiency is
the ability to minimize the use of resource in achieving
organizational objectives, “doing things right”. Efficiency is simply

41
the ability to do things right. It is an input output concept. An
efficient manager is one who achieves output or results that
measure up to the inputs (labour, materials and time) used to
achieve them. Managers who are able to minimize the cost of
resources needed to achieve goals that are acting efficiently.
EFFECTIVENESS
This measures the ability to determine appropriate objectives
“doing the right thing”. In contract to efficiency, effectiveness
involves choosing right goals. A manager who selects an
inappropriate goal for instance producing mainly large cars when
demand for small cars is soaring for an effectiveness manager
even if the large cars were produced with maximum efficiency. No
amount of efficiency can make up for a lack of effectiveness infect,
drunker says: effectiveness is the key to an organizations success.
Before we can focus on doing things efficiently, we need to be sure
we have found the right thing to do. Organizational performance is
the product of the impact of sales promotion on both the products
of the organization and as a whole.
It emphasis on the economic performance of the firm, measured
by revenues cost and profits owned to the shareholders. Likewise,
on the social performance of the firm which is represented by
obligations to employees custom creditors, suppliers, distributors

42
and members of the general public.
The concept of organizational performance is to create awareness
as to whether the objective and the target of the sales promotion
is met or not. This is however determined through the following:
i. Additional profit derived
ii. Loss incurred
iii. Rate of purchase during the three month, period of the
promotion.
Apparently, the determination of the performance of the
organization depends on the comparison of records available on
sales, profit and losses prior to, during and after the sales
promotion activities.
2.6 COMPONENTS OF ORGANIZATIONAL PERFORMANCE
Organizational performance depends on a number of variables
which include.
i. Sales performance
ii. Management of sales force
iii. Human resources
iv. Funding in terms of each commitments to the sales
promotion
v. The influence of environmental factors (internal and

43
external)
vi. Performance analysis according to Ben M.E. Keith
(15:1986 page 426-427) depends on a number of factors
vis-à-vis, sales analysis, brand positioning analysis,
distribution, profit/cost analysis and sales force analysis.
1. SALES PERFORMANCE
This is the sales position of the product being promoted after the
comparison of set standard with actually sales, usually various
past record so as to determine whether target is met or not. Sales
performance is measures by these variables namely.
 ability of sales men/attitude. This depends largely on two type
of attitude test.
 Intellectual ability
 Test of personality tracts
 Financial commitments, compensation and incentives. This
relies on the design and administration of various
compensation and incentive plans.
 Psychological incentive and monetary incentive. This involves
recognition and personality the impact of the sales force on
sales performance.
 Organizational and managerial factors which relies on

44
 Selection policies
 Supervisory policies
 Organizational climate and culture
2. MANAGEMENT OF SALES FORCE
Management of sales force has to be effective and crucial to the
organization. The sales force has to be monitored, controlled and
integrated into the wholesales promotional programmes. This will
ensure that the goal of the promotional activity is achieved.
Integration is a import part force management and it must be
embedded in the marketing efforts of an organization. Control on
the other hand, can be exercised through three vehicles namely,
payment and supervision, promotion and target, lastly
remuneration, payment is often in terms of salary plus
commission or straight commission. Target provides salesmen
and manager with clean idea about expected performance and
added incentives for achievement.
3. HUMAN RESOURCES
The totality of sales promotional effort will be jeopardize if there
were no qualitative man power based to execute the entire
activities. The personal department must be into the recruitment
and selection of sales force to be used for the programme. The
personnel should also emphases of the following aspect of

45
development.
 Training the sales force
 Motivating the sales force
 Compensating the appraisal of the sales force
 Evaluation and appraisal of the sales force
4. FINDING IN TERMS OF CASH COMMITMENT
The success of sales promotion is a function of the monetary
resources available for its execution. Promotional and sales
budget should be prepared in a way to facilitate the achievement
of the goals and objectives of the promotional exercise. There
must be balanced allocated must relate anticipated cost of
performing a particular activity of the benefit associated with it.
Attempt should be made to prepare cost and income forecast
from which residual profit forecast can be prepared. Effort must
also be made to match specific budget method to the goals and
objectives of sales promotion.
5. THE INFLUENCE OF ENVIRONMENTAL FACTORS
Society they say is a function of business. Thus business makes
demand on the society so does demands on the business.
Managers in any organization must interact and respond to
environmental factors that0 affect their operations. The inter-
relationship between business and the society is referred to as the

46
business environment. Generally, managers often lack influence
and control on these external forces and as such, they find it
difficult to effectively change them. Therefore, ability to identify,
evaluate and react to these forces will have considerable impact
on organizational effectiveness.
It is very imperative to monitor the business environment during
sales promotion exercise because environmental factors may
bring opportunities that must be exploited. It may also bring
threats. Constraints or problems that will limit the scope of
operation of an organization.
The external environment includes: Technology political legal,
economy, and competition socio culture and so on. The internal
environments are the activities that affects of influence business
as a separate entity within the organization. They consist of the
functional structures and relationship in the organization. The
discussion on each of these environmental factors would not be
done so that the research work will be comprehensible.
6. PERFORAMNCE ANALYSIS
Performance analysis according to Enis: 1986, involves the
employment of data largely gathered within the employment
(internal report system) but often supplemented with available
external data (marketing intelligent). Making internal data available

47
promptly and classifying them accurately without wastage. It
demands a harmonious relationship between affected
departments such as accounting sales administration, the field
sales division and marketing research department. Performance
analysis are made of frequent and regular internals to enables
management figure out the pulse of marketing activities and also
to show the trend of activities within an organization in periods,
such analysis often indicate problems which marketing research
department may investigate with more complete techniques and
obtain external data that will show the pace of organizational
success. Performance analysis, brand positioning analysis,
distribution analysis profit and cost analysis, and sales analysis.

48
REFERENCES
McDonald (1994): Strategic Marketing Management The

Marketing Series of CIM p. 356
Baker, M.J. (1996): The Marketing Book Series CIM p. 535-553
American Marketing Association (1960): Sales

Promotion Techniques a Basic Guidebook.
American Association of Advertising p. 2
Kotler, P.C. (1997): Marketing Management Analysis Planning

Implementation and Control: Prentice Hall
th
Int’l USA 9 Edition P. 661
Nwosu et al (1996): Mass Media and Marketing

Communication: thought or Communication Publisher Enugu
(Nigeria), p. 322
Majaro (1993): The Essential of Market Prentice Hall Int’l UK.
Assael (1985): Marketing Management Strategy and Action P.N.S

Kent P. 370
Linus Osuagwu et al (1997): Marketing Management Principle,

Strategies and Cases Mathous Publisher
Lagos P. 181.
49
CHAPTER THREE: RESEARCH METHDOLOGY
3.1 INTRODUCTION
It has become necessary in every research study to form the basis
for bringing the variable in the study to the context of such
research. This crucial role is played by methodology as it provides
the framework or guide to data collection. Thus, this chapter deals
with the method used in collecting and sourcing for information. It
highlights the business carried out in the field and the various
researches; instruction used in generating response from the field
some of the topic covered under, this chapter includes research
design, population of the study, sample size, data collection
method, distribution of questionnaire method of data analysis.
3.2 RESEARCH DESIGN
Research design refers to the plan, structure and strategy of
investigation conceived by the researcher so as to obtain answer
to research question. It is a framework on plan that is used as a
guide in collecting and analyzing the data for a study.
In order to make the finding for this study explicit, the survey
method was employed. This is because the study is an exploratory
research. The instruments used were the structured questionnaire,

50
which were often used in the course of primary data collection.
This approach comprises open ended question and closed ended
questions. The open ended question gives room for respondents
to answer in his/her own words whereas close ended questions
pre-specify all the possible answers in which the respondent
makes choice among the alternatives. However, for the purpose of
this study two ways of structuring questionnaires design likewise,
dichotomous question was.
3.3 POLUATION OF THE STUDY
The research study encompasses the Onitsha south local
government areas of anambra state. Statistics shown that the
entire population of onitsha south local government areas is
90,000 (ninety thousand) and it is made up of five districts namely.
1. FEGEE
2. ODAKPU
3. OCHAWJA
4. WOLIWO
5. HOLISING
The population of Nigeria Bottling Company Plc onitsha plant
which is made up of the entire work force of 450 (four hundred and
fifty) staff, they include both senior and junior staff.

51
It is expedient to state that NBC plc is over 10,000 (Ten thousand)
but for the purpose of this study the population of the distributors
included is 34 redemption centres used during sales promotion
targeted finally refreshment promotion and direct distributors of
NBC onitsha.
3.4 SAMPLING PROCEDURE AND TECHNIQUE
The essence of sampling is to determine how sample procedure
would be obtained from the study population. The population of
study has been carefully divided into three strata namely.
 The consumers
 The management of NBC plc
 The dealer/distributors
Simple random sampling method was applied in selecting the
number of respondents to be sampled among the consumers and
the dealer/distributors. This is because the population is extremely
large and sample random sampling method ensures that every
member of each population have equal chance of being selected.
Therefore, a sample procedure or size of 100 was randomly taken
to represent the interest of consumers in onitsha south local
government based on the entire population of the area. The
sample procedure or size selected at random was shared in equal

52
proportion among five districts within onitsha south local
government area. Thus, it implies that to 20 persons were sample
toe ach district. In the same vein, a total 20 was selected randomly
to represent the interest and responses of the dealers/distributors
that was sampled. To obtain or determine the sample size for the
management of NBC plc, sample statistics was used, the reason
being that it was a finite population whose composition is
considerable not too large. Likewise, the characteristics of the
population, which is the staff strength of NBC plc, onitsha has
been revealed by previous study. They sample size will then be
determined by using the formula below.
S2
n= 2 + S2
Z2 N
Where
n = sample procedure or size to be determined
z = statistics corresponding to the desire confidence
level
s = estimated values of the standard deviation of

the sample statistics
E = the maximum acceptable magnitude of error
N = entire population which is the staff strength of
NBC plc onitsha plant which is 450 staff.
53
In applying the above formular to arrive at the number of
questionnaire that will be sampled. I chose 95% as my confidence
level as 5% as the significance level or allowance error and a
standard derivation of 14.5
(14.5)2
n = (52 ) + (14.5)2
(1.96)2 450
210 . 25
n= 25 + 210.25
3.84 400
210 . 25
n= 6.51 + 0.47
210. 25
n= 6.98
n= 30.12
by this, a total of 30 questionnaires were administered to
management of NBC plant onitsha.
3.5 DATA COLLECTION METHODS
The use of primary and secondary source of data collection was

54
instituted.
Primary source of data collection- Due to the exploration nature of
this research, the main method of primary research is the study
through oral interview and the administering of questionnaire.
However, primary source of information enhance the collection of
data through use of observation, survey, experiment and focus
group. The research approach is survey method. Dichotomous
types of closed ended questions which offers two answers choice
to respondents were used.
Secondary source of data collection- Available relevant literature
was reviewed. The researcher made use of textbooks, journals
note supplied by Nigerian Bottling Company Plc. local government
directory in onitsha south of anambra state as well as unpublished
materials of other research and authors relevant to this study. This
source of data formed the bedrock on which the theoretical work
in this project was based.
3.6 QUESTIONNAIRE DESIGN AND ADMINISTRATION
We have divided the population of the study into 3 states namely
consumers, distributors and management of NBC plc. Three sets
of questionnaire were produced for each stratum which
administered to elicit responses towards accomplishing the
purpose of the research. This distribution of questionnaire areas

55
follows
Response Table
Questionnaires No sample No return Usage %
Consumers 100 90 65
Distributors 20 20 14
NBC staff 30 30 21
Total 150 140 100
Showing the mathematical solution of the response rate we have
Response rate = No return (used) + 100
total questionnaires
Response rate = 140 x 100
500 = 93%
This research is carried out based on a total of 140 questionnaire.
3.7 DESCRIPTION OF DATA ANALYSIS
Qualitative and quantitative forms of statistics were used. Data
were presented in tubular form in line with verbal description of
result obtained. Frequency distribution and computation of simple
percentages were also used.

56
CHAPTER FOUR: PRESENTATION AND
INTERPRETATION OF DATA
4.1 INTRODUCTION
Principally, the focus of this chapter is on the concrete analysis of
the data collected in the study of the impact of sales promotion an
organizational performance using Nigeria Bottling Company Plc,
onitsha plant as a case study. In this chapter, information and data
collected for the purpose of answering research question
formulated in the study are presented, interpreted and analyzed.
They findings are presented according to the research questions.
4.2 ANALYSIS OF NUMBER OF QUESTIONNIARES
Based on the computed sample size in the research methodology.
One hundred and fifty (150) questionnaire were altogether set out
to the respondent 140 were returned. Accordingly all relevant data
derived from the questionnaire returned will be exhaustively
analyzed to either prove or disprove in formulated hypothesis. The
tools of the analysis employed were simple percentages and chi-
square, which facilitate the test of hypothesis being formulated.
The breakdown of the questionnaires distribution are as follows.
No of No returned No of usage
questionnaire
administered
Consumer 100 90 90
57
Distributors 20 20 20
NBC staff 30 30 30
Total 150 140 140
The researcher made necessary calculation based on the response
for and against a particular questions as it was in the
questionnaires.
4.3 PART 1: ANALYSIS OF QUESTIONNAIRE TO
MANAGEMENT OF NBC
QM1: Does sales promotion increase the patronage of NBC
promotion.
58
Table 4.1
Options No of respondents Percentage %
Yes 26 87
No 4 13
Total 30 100
INTERPRETATION
From the table above 87% of the 30 (thirty) respondents believed
that sales promotion activate sales beyond that normal
expectancy. However, 13% of the respondent believed that the
company could make good sales and increase profit even without
sales and increase profit even without sales promotion.
QM3: Has effective of sales promotion been responsible for the
increase in company’s profit?

59
Table 4.2
Yes 23 77
No 7 23
Total 30 100
INTREPRETATION
The evidence from the above table shows that many of the
respondent believed that sales has a positive impact on
company’s profit, about 77% of the respondents support the
assertion while 25% opposes the view.
QM4: Has effective use of sales promotion help to increase
market share
Table 4.3

Yes 27 90
No 3 10
Total 30 100
INTERPRETATION
Quite a large percentage of the respondents agreed that sales
promotion has helped the company to gain increase in market
share 90% of the respondent believed that sales promotion

60
enhances deeper penetration of the market depth which a few of
10% disagree with the claim.
QM5: Does production output increase during sales promotion
Table 4.4

Yes 29 97
No 1 3
Total 30 100
INTERPRETATION
The above table shows that production output is directly related to
sales promotion 97% of the respondent revealed this positive
which only 3% counted the arguments.
QM6: Which of these sales promotion tools sales force prefer
most?

Free gift 16 53
Coupon 4 13
Discount 3 10
Contest/game 7 24
Total 30 100
61
INTERPRETATION
The illustration of the table shows that high number of the sales
force about 53% preferred free gift while 47% of the remaining
sales force preferred other alternatives.
QM7: Does effective sales promotion budget encourage force?
Table 4.6

Yes 29 97
No 1 3
Total 30 100
INTERPRETATION
It is evident here that 29 out of the 30 respondent agreed that
effective sales promotion budget motivates the sales force. And if
this so, sales promotion is bound to be a success.
QM8: Does sales promotion programme expand the market
coverage of sales force?
Table 4.7

Yes 30 100
No 0 0
Total 30 100
62
INTERPRETATION
This table revealed that all the respondent strongly believed that
sales programme expand the market coverage of the sales force,
thus more effort is needed to cope within the challenges brought
by the sales promotion exercise.
QM9: Does management involve sales force in planning sales
promotion programme
Table 4.8

Yes 30 100
No 0 0
Total 30 100
INTERPRETATION
The outcome of this analysis shows that management engages
sales force in the planning of sales promotion programme has
been tied to its execution.
QM10: Do you believe that sales promotion helps to generate more
cash flow for the organization.
Table 4.9

Yes 28 93
No 2 7
63
Total 30 100
INTERPRETATION
It could be deduced from the table quite a large number of the
respondent, about 93% of them believed that sales promotion
yields immediate returns. Thus, it activates the liquidity position of
the organization in the short run.
4.4 PART II: Analysis of questionnaire to distributors of NBC
QM3: Does sales promotion increase distribution expenses.
Table 4.10

Yes 3 15
No 17 85
Total 20 100
INTERPRETATION
The table shows that majority (about 85%) did not believe that
sales promotion increase their distribution expenses. However,
155 of the respondents opposed the question. It means sales
promotion increase profit of the distributors.
QM4: Are consumers satisfied with sales promotion incentive
Table 4.11
64

Yes 18 90
No 2 10
Total 20 100
INTERPRETATION
As seen from table, quite a large number of respondents revealed
that consumes are content with the sales promotion incentive 18
out of 20 distributors supported this, this satisfaction of the
consumers were shown in form of continuous patronage of the
distributors outlets during the sales promotion exercise.
QD5: Do sales promotion programme help to increase the late of
stock turnover?
65
Table 4.12

Yes 20 100
No 0 0
Total 20 100
INTERPRETATION
Empirically, the table shows that all respondents believed that the
frequency with which they turned their stock over was higher
during sales promotion. Thus, the result shows that more minerals
were sold and faster rate to equate the demand.
QD6: Do you think sales promotion is being carried out effectively?
Table 4.13

Yes 16 80
No 4 20
Total 20 100
INTERPRETATION
Out of the 20 respondents, 16 support that sales promotion is
being carried out effect. Minimum incentive to be given must have
been decided and activities integrated to meet the objectives of

66
the sales promotion exercise. However, the 4 deviants are not
uncommon.
QD7: Do you record more sales during sales promotion exercise?
Table 4.14

Yes 20 100
No 0 0
Total 20 100
INTERPRETATION
Undoubtedly, contribution of the respondents from the table
revealed that more sales where recorded during sales promotion
exercise. Thus, incentives given build in traffic to the distributors
outlet.
QD8: How can you access the consumption pattern of consumer
during sales promotion
Table 4.15

Yes 19 95
No 1 5
Total 20 100
67
INTERPRETATION
From the table, all but one respondents agreed that the demand
for soft drinks was at the peak at the distributors store during
sales promotion exercise. This is connected to the quest for
additional benefit by the consumers.
QD9: Do you agree that sales promotion enhances consumers
acceptability of product without considering competitors brand?

68
Table 4.16

Yes 14 70
No 6 30
Total 20 100
INTERPRETATION
This table shows that 70% of the respondent believed that sales
promotion would create product acceptability at the expense of
creditors brand. However, the 30% disparity in the response shows
that consumer would still be loyal to their favorite brand inspite
sales promotion.
QD10: Does sales promotion help to attract new customer
Table 4.17

Yes 20 100
No 0 0
Total 20 100
INTERPRETATION
This analysis from the able made it known that all the respondents
were of the opinion that sales promotion will attract new customer
69
to their outlets.
QD11: Do sales personnel visit you more during the period of sales
promotion
Table 4.18

Yes 16 80
No 4 20
Total 20 100
INTERPRETATION
The respondent show that sales personnel visit distributors often
during sales promotion exercise. We can infer that there is
commitment on the part of the sales personnel because it enables
them to meet the sales target.
4.5 PART III: ANALYSIS OF QUESTIONNAIRE TO CONSUMER
QCI: Do you take soft drink
Table 4.19

Yes 76 84
No 14 16
Total 30 100
70
INTERPRETATION
The above table shows that 84% of the total respondent does not
take soft drink. This implies that majority of consumers takes soft
drink.
QC2: Which of these brands of NBC do you enjoy most

71
Table 4.20

Coca-cola 49 54
Fanta 20 22
Sprite 8 10
Krest/other 13 14
Total 90 100
INTERPRETATION
This table shows that majority of the respondent have their brand
loyalty for coca-cola. A few of them could go for fanta while other
will settle for the alternatives. Thus sales should be concentrated
on less known products.
QC3: Do you believe sales promotion is always real?

72
Table 4.21

Yes 37 63
No 33 37
Total 90 100
INTERPRETATION
The table shows that quite a number of the respondents agreed
that sales promotion is real 63% out of the 90 consumers surveyed
believed in the reality of sales promotion while about 37% did not.
QC4: Do you watch out for gift during sales promotion
Table 4.22

Yes 29 32
No 61 68
Total 90 100
INTERPRETATION
The table pointed out that majority of the respondent have not
benefited from sales promotional activities. About 68% of the
respondent have not won any gift. We can now infer that despite
the noise being made about sales promotion people do not still
73
believe them. This might stem from the fact that the distribution of
incentive was not properly and evenly carried out.
Table 4.23

Yes 59 66
No 31 34
Total 90 100
INTERPRETATION
Here many people agreed that though the buy soft drink with sales
promotion. About 34% also responded that they buy without sales
promotion, but they first look around to see if there is any
substitute drinks with sales promotion incentive before making
their purchase. This is done to “grab the offer while it lasts”.
QC7: Do you increase your in take of soft drinks when sales
promotion activity is on?
Table 2.24

Yes 57 63
No 33 27
Total 90 100
74
INTERPRETATION
The table revealed that 63% of the respondents surveyed increase
their consumption of soft drink during sales promotion activities.
We can deduce from here that the quest to win gift accelerates the
consumption pattern of the consumers.

75
QC8: Do you additional satisfaction by winning gift
Table 4.25

Yes 57 63
No 33 37
Total 90 100
INTERPRETATION
Undoubtedly, the table shows that of the 63% of the 90
respondents were enjoying extra satisfaction by winning a gift
while 37% claimed that they donor enjoy extra satisfaction.
QC9: Which of these sales promotion incentives do you prefer
most?
Table 4.26

Free gift 62 96
Contest/game 28 31
Total 90 100
INTERPRETATION
The analysis shows that highest proportion of the respondent
preferred free gift to contest or game. We can deduce from there
that most consumers want something that will give them

76
immediate benefit than any other options.
QC10: Should sales promotion be a continuous exercise
Table 4.27

Yes 68 76
No 22 24
Total 90 100
INTERPRETATION
The table shows that 68% respondents want sales promotion by
continues while 22 respondents believed that it should be for
specific time frame. It could be inferred from the respondents here
that those who advocated for continuity of sales promotion want
to benefit from the exercise.
QC11: Are you likely to reduce your pattern of consumption after
sales promotion
Table 4.28

Yes 66 73
No 24 27
Total 90 100
77
INTERPRETATION
The result from table shows that 73% of the respondents agreed
that sales personnel visited the redemption centres. This implies
that there was high commitment on the of the sales force towards
sales promotion.
78
CHAPTER FIVE: SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATION
5.1 RESTATEMENT OF THE PROBLEMS
Despite the magnitude and relative importance of sales promotion,
comparatively, little attention is given to it buy most business
organization. Many view it a money consuming and a waste
venture. So the question is could sales promotion if adopted as
one of the problem solving behaviour help organization to achieve
their marketing objectives”.
It is in the light of this question that the researcher was motivated
to conduct as study on sales promotion with reference on the
Nigeria Bottling Company Plc. However, one excruciating
hindrance of sales promotion is the difficulty in measuring its
direct contributions to organizational performance. Hitherto, the
major problem is mobility to know the extent sales promotion can
be used to stimulate organizational performance and operations,
which can be viewed under the following sub-problems.
 Is sales promotion helping to improve sales?
 Does the promotional activity have position impact on
organization?
 Is there any correlation between sales promotion and

79
organizational performance
 Could sales promotion be an incentive to sales force motivation
 What are the criteria used in the application of the promotional
to suit organizational operation
 Are the existing customers satisfied with the company’s
products
5.2 SUMMARY OF FINDINGS
The primary goal of embarking on this research work is to appraise
the impact sales promotion has on the performance of
organization in the soft drinks industry with respect of Nigeria
Bottling Company Plc, coca-cola, onitsha plant anambra state. In
order to achieve this purpose, adventure was made into review of
related books and journals. Discussions were made on concept of
sales promotion and organizational performance as well as their
determinants.
Furthermore, in devising a means for the investigating the
framework, data were collected from three sets of questionnaires
administered to the staff of NBC plc (coca-cola), the distributors
and the consumers all within the onitsha south local government
area of anambra state. The qualitative responses of the
respondents were translated to qualitative attributes which were

80
used in analysis and interpretating the research. in line with the
research conducted, the following findings were discovered.
 Sales promotion is an essential tool in the marketing strategies
of NBC plc.
 Promotion output and capacity increased during sales
promotion exercise (see table 4.4) extra working hours were
instituted to cope with the increase production capacities.
 The sales recorded on NBC Plc, products (coca-cola) as a result
of the sales promotion exercise was higher than that which was
recorded before the sales promotion (see table 4.2). Thus the
research showed that there was more cash flow during the 3
months of sales promotion exercise.
 Distributors of NBC plc replenished their stock at a faster rate
when there is sales, promotion than the period when there is no
sales promotion (see table 4.12
 The quest to win gift accelerates the consumption pattern of
consumers of NBC products (coca-cola) during the sales
promotion (see table 4.24)
 Despite the noise being made by sales promotions, substantial
number of the consumers interviewed about 68% of them have
not benefited because the incentive were not evenly distributed
(see table 4.25)

81
 The research showed that 54% of the consumers interviewed
prefer coca-cola brand to all other brands offered by NBC plc,
(See table 4.19) likewise sales force and consumer prefer free
gift to any other sales promotional incentives.
 The research shows the study revealed that they visited the
redemption centres and distributors warehouse (office
promptly).
 Sales promotion expand the market coverage of the sales force
and exert negative effect on competing product in the soft drink
industry.
 Sales promotion complements advertising and personnel
selling thus having a positive impact on organization
performance of NBC plc.
5.3 CONCLUSION
The ability of any organization to get its production its target
audience or consumers depend very much on the effective use of
promotional strategies and the ground strategy referred to as “40s’.
Among the element of promotion of NBC plc. And the soft drink
industry, sales promotion stands out distinctively to be key to
organizational success as it offers the incentives to buy a given
the reason to buy. However, if any organization must service,

82
succeed and maintain its position in the fluctuating soft drink
market, must sensitize its environments both internal and external
and accept sales promotion as vehicles to its organizational
objectives. Undoubtedly, if sales promotion objectives are
harmonized with the purpose of an organization, consumers will
beat path to the doorstep of such organization. From the research
work, not only does sales promotion help to improve sales,
productivity consumer patronage, cash flows, it also, ensure that
employees and distributors or channel actors are motivated. This
sales promotion cannot be divorced from organizational
performance and activities.
Finally, a deep study and understanding of this research would
afford any organization an opportunity to know the vital areas to
concentrate its efforts for improvement and development as
regards sales promotion. It is also the view of the research that the
study will be a panacea to poor planning and execution of sales
promotion programme in the soft drink industry in Nigeria.
5.4 IMPLICATION OF THE STUDY
The wide scope of the concept “organizational performance” and
limitation of time, wide condition of the study would not allow a
complete adventure into the impact of sales promotion plays as a

83
function of organizational performance. Hence the researcher
opined that attention should be paid to the follow related topics or
areas in future studies.
i. Sales analysis
ii. Brand positioning analysis
iii. Profit distribution and cost analysis
iv. Distribution analysis
v. Sales force analysis/job evaluation
It is expedient to state here that financial constraints has limited
the scope of study to cover just onitsha south local government
and one organization. NBC plc, subsequent research should
expand the scope of the study and concentrate on more areas.
Two or more companies within the soft drink industry can be
selected for comparative analysis.
5.5 RECOMMENDATION
In spite of the myriad of benefit derived from sales promotion
efforts, it is quite imperative for NBC and the soft drinks industry to
seek further improvement. This is necessary if the must be a
continual and consistent positive impact form sales promotion. It
is the opinion of the research that firms within the soft drinks
industry must seen their business environment and discover

84
opportunities and threat which may shape their sales promotion
activities. This must be material with their strength and weakness.
However, based on the outcomes of the research two, essential
areas must be given adequate attention.
INTERNAL CONSIDERATION
 NBC plc should examine itself before embarking to any sales
promotion exercise. The objective of any sales promotion
exercise must be the first, consideration pricing policies, must
be flexible must be determined. Likewise, the resources
available for the execution of the programme. In view of this,
the company has to be consumer oriented and embark on
market research before designing future sales promotion. The
incentive to the consumer needs since the research revealed
that consumer want value incentive and non just more gift.
 Since sales promotion programme affects the totality of
organizational activities NBC plc should embark on integrated
marketing strategies and ensure that all functional area within it
organization are involved in the planning and implementation of
sales programme. They could form a consortium.
 The company should improve on the distribution of incentive so
that more consumers can benefit from the sales promotion
programme, sales force should be trained and motivate to

85
enhance absolute commitment and increase their productivity.
 Sales promotion should be employed to build brand loyalty for
fanta and other less patronized brands. However, market
intelligent gathering can be carried out before embarking on
such exercise.
EXTERNAL CONSIDERATION
 Due to the seasonality in the soft drink industry the objective of
the sales promotion must be linked with the prevent climatic
condition and sales. This will enhance efficient and effective
evaluation of performance. In addition, force of demand and
supply must be borne in mind with NBC formulates its sales
promotion policies.
 NBC plc, should provide additional warehouse facilities to its
distributors during sales promotion to reduce traffic
conjunction and cope with high rate of stock replenishment.
Lastly, NBC should give adequate advertising message to
increase extensive awareness of the sales promotion exercise
before it is embarked on.

86
BIBLIOGRAPHY
Assael (1985): Marketing Management Strategy and

Action.
Asika Nnamdi (1991): Research Methodology in

Behavioural Science Longman, Nigeria.
Baridam D.M (1990): Research Method in Administration

Science Bell Publisher Nigeria
Ben M. Enis et al (1986): Marketing Classic- A Selection of

Influential Article Allyn and Balen Inc. Boston
James A.F. Sonter et al (1996): Management: Prentice Hall

International India
Carthy E.T. et al (1990): Basic Marketing Richard D.

Irwin Inc. USA
Jefkines F. (1985): Advertising Mac Donald and Evan Ltd.

Estoner Plymouth USA
Linus Osuagwu et al (1997): Marketing Management

Principle Strategies and Case. Mathouse
Publisher Lagos Nigeria.
Majaro (1993): The Essence of Marketing Prentice Hall

International Ltd. United Kingdom.
Michael J. Baker (1996): Marketing. An Introductory Text

Macmillan U.K.
McDonald (1994): Strategic Marketing Management The Marketing

Series of CIM
Baker, M.J. (1990): The Marketing Book Series CIM.
Nwosu et al (1996): Mass Media and Marketing

Communication. Through Comm. Publishers Enugu,
Nigeria.
87
Kotler P. et al (1996): Principles of Marketing Prentice Hall Int’l

London.
Kotler P. (1991): Marketing Management Analysis

Planning Implementation and Control.
Prentice Hall Int’l USA
Peterson (1979): Sales Promotion in Action. Association Business

Press London
JOURNALS
America Marketing Association (1960) Advertising

Effectiveness
American Advertising Association (1978) Sales Promotion

Techniques a basic Guidebook.
Nigerian Institute of Management (1997) Management in

Nigeria.
88
QUESTIONNAIRE LETTER TO NBC STAFF
Marketing Department School of

Business and Management Technology
-----------------
----------------
------ State.
Nigerian Bottling Company Plc.

Onitsha Plant
Anambra State
QUESTIONNAIRE FOR NBC STAFF
I am conducting a research on THE IMPACT OF SALES PROMOTION

ON ORGANZIATIONAL PERFORAMNCE in partial fulfillment of the
requirement of the Award of ------------ in marketing Department in the
above named Institution.
In the light of the above, attached herewith is a set of questions,

which you are to answer as objectively as possible and return. Your
view and options will contribute in no small measure towards
enhancing the success of this study.
Yours cooperation in providing answers to the questions shall be
highly appreciated.
I am assuring you that any information supplied will be treated in
strict confidence.
Thanks you for your anticipated co-operation
Yours faithfully
----------------------
--------------
89
QUESTIONNAIRE TO THE COMPANY
Please tick () or comment where necessary.
Personal data (Section A)
1. Name…………………………………………………………………….
2. Sex………………………………………………………………………
3. Position held……………………………………………………..…….
4. Number of your spent with company……………………………….
SECTION B
1. Does sales promotion increase the patronage of NBC product? a.
Yes b. No
2. Has sales promotion had any impact on the company’s sales? a.
Yes b. No
3. Has effective use of sales promotion be responsible for the
increase in company’s profit? a. Yes b. No
4. Has effect use of sales promotion helped to increase market
shares? a. Yes b. No
5. Does production output increase during sales promotion?
a. Yes b. No
6. Which of these sales promotion tools do sales force prefer most?
a. Free gift b. Coupon
7. Does effect sales promotion budget encourage sales force? a.
Yes b. No
90
8. Does sales promotion programme expand the market coverage of
the sales force? a. Yes b. No
9. Do management involve sales force in planning sales promotion
programme? a. Yes b. No
10. Do you believe that sales promotion help to generate more cash
flow for the organization? a. Yes b. No

91
QUESTIONNAIRE/LETTER TO DISTRIBUTORS/DEALERS

Federal Polytechnic
Nekde, Owerri
Imo State.

Onitsha Plant
Anambra State
QUESTIONNAIRE FOR DISTRIBUTORS/DEALERS

requirement of the Award of National Diploma (ND) in marketing
Department in the above named Institution.
In the light of the above, attached here with is a set of questions,

highly appreciated.
strict confidence.
Yours faithfully
ENI ONYINYECHI LAURINA

08/2380/MK
92
QUESTIONNAIRE TO THE DISTRIBUTORS/DEALERS
Please tick () or comment where necessary
SECTION A
1. Business name
2. Business address
SECTION B
1. How many creates of minerals (NBC products) do you sell per day? a.
Before sales promotion create(s)
b. During sales promotion create(s)
2. How many times do you supply per week?
a. Before sales promotion time(s)
b. During sales promotion time(s)
3. Does sales promotion increase distribution expenses?
a. Yes b. No
4. Are consumers satisfied with sales incentive?
a. Yes b. No
5. Do sales promotion help to increase the rate of stock turnover?
a. Yes b. No
6. Do you think sales promotion is being carried effectively?
a. Yes b. No
7. Do you record more sales during sales promotion exercise?
a. Yes b. No
93
8. Do you agree that sales promotion enhance consumers acceptability
of product without considering competitors brand? a. Yes b. No
9. Can you asses the consumption pattern of consumers during sales
promotion? a. Yes b. No
10. Does sales promotion help to attract new customers?
a. Yes b. No
11. Do sales personnel visit you more during the period of sales
94
QUESTIONNAIRE/LETTER TO CONSUMER

Federal Polytechnic
Nekde, Owerri
Imo State.

Onitsha Plant
Anambra State
QUESTIONNAIRE FOR TO CONSUMER

requirement of the Award of National Diploma (ND) in marketing
Department in the above named Institution.
In the light of the above, attached here with is a set of questions,

highly appreciated.
strict confidence.
Yours faithfully
ENI ONYINYECHI LAURINA

08/2380/MK
95
QUESTIONNAIRE FOR TO CONSUMERS
Please tick () or comment where necessary
1. Name………………………………………………………………………
2. Occupation………………………………………………………………..
3. Sex………………….…………………………………………………….
4. Marital status…………………………….……………………………….
5. Age………………………………………………………………………..
SECTION B
1. Do you take soft drink? a. Yes b. No
2. Which of these of NBC product do you enjoy?
a. Coca-cola b. Fanta c. Sprite
d. Krest and others
3. Do you believe that sales promotion is always real?
a. Yes b. No
4. Do you watch out for gift during sales promotion?
a. Yes b. No
5. Have you ever won gift during sales promotion exercise?
a. Yes b. No
6. Does sales promotion induce you to buy soft drink?
a. Yes b. No
7. Do you increase your intake of soft drink?
a. Yes b. No
96
8. Do you derive additional satisfactions by winning a gift?
a. Yes b. No
9. Which of these sales promotion incentives do you prefer most? a.
Free gift b. Contest/game
10. Should sales promotion be in continuous exercise?
a. Yes b. No
11. Are you likely to reduce your pattern of consumption after sales
12. Do sales promotion personnel’s visit the redemption center
frequently? a. Yes b. No

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1

THE IMPACT OF SALES PROMOTION ON

A RESEARCH PROJECT PRESENTED TO THE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

This project has been read and approved by undersigned on behalf

of school of business and management technology, department of

I dedicated this work to God Almighty who made all things

suppressed and the deprived.

My gratitude goes to the God Almighty, the creator of Heaven and

in the University, may his name be glorified in Jesus Name Amen.

I also express my sincere appreciation to my beloved parents Mr.

greetings also goes to my beloved brothers and sisters, -----, ------,----

heart desires Amen.

The analysis of research on impact of sales promotion

on organizational performance. (A case study of Nigeria bottling

study is relevant in that it seeks to identify the role sales promotion

plays in the marketing strategies and achievement of

organizational goals and objectives. And have tried to expose the

impact of sales promotion output and employees commitments

Also serves as a guide to the company under

examination and the entire soft drink company in Nigeria by given

them an insight on ways in which planning and execution of sales

promotion programme can be done to yield a better result. And will

add to existing stock of knowledge in administrative science

research and will equally help other researcher seeking adventure

into sales promotion.

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of problem 8

1.3 Objectives of the study 11

1.4 Research question 12

1.5 Significance of the study 13

1.6 Scope of the study 14

1.7 Limitation of the study 15

1.8 Definition of terms 17

CHAPTER TWO: LITERATURE REVIEW

2.2 Concept of sales promotion 20

2.3 Types of sales promotion 28

2.4 Designing and development sales promotion 34

2.5 The concept of organization performance 39

2.6 Components of organizational performance 42

CHAPTER THREE: RESEARCH METHODOLOGY

3.2 Research design 50

3.3 Population of the study 51

3.4 Sampling procedure and technique 52

3.5 Data collection method 56

3.6 Questionnaire design and administration 57

3.7 Description of data analysis/technique 58

CHAPTER FOUR: PRESENTATION AND

4.2 Analysis of number of questionnaires 59

4.3 Analysis of questionnaire to management of NBC 60

4.4 Analysis of questionnaire to consumer 74

CHAPTER FIVE: SUMMARY OF FINDINGSS,

CONCLUSION & RECOMMENDATIONS

5.1 Restatement of the problem 82

5.2 Summary of findings 83

5.4 Implication of the study 88

CHAPTER ONE: INTRODUCTION