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ABSTRACT
This study evaluated the impact of sales promotional strategies on consumer’s brand loyalty to coca-cola products. Both primary and secondary data required for this study were gathered from two sources, the first from a field study and the second from text books, journals and past studies. The population of the study was unknown so the sample size derived from the population was 275 but 240 respondents returned their questionnaires. Structured questionnaire was implored for the elicitation of relevant data regarding the respondent’s bio-data and study variables information generated were analyzed firstly on percentage and frequency tables and finally hypothesis test was carried out using regression with the aid of Pearson Product Moment Correlation (PPMC). Result indicated that there is a significant impact of sales promotional strategies on consumers brand loyalty to coca-cola products. This study recommends that organizations should invest more resources on sales promotion as to capture consumer’s loyalty to patronizing coca-cola products.
TABLE OF CONTENTS
DECLARATION ii
CERTIFICATION iii
DEDICATION iv
ACKNOWLEDGEMENT v
ABSTRACT vii
TABLE OF CONTENTS viii
CHAPTER ONE 1
1.0 BACKGROUND OF THE STUDY 1
1.1 BRIEF HISTORY OF COCO-COLA NIGERIA PLC 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVE OF THE STUDY 4
1.4 RESEARCH QUESTION 4
1.5 RESEARCH HYPOTHESES 4
1.6 SIGNIFICANCE OF THE STUDY 5
1.7 SCOPE OF THE STUDY 5
1.8 LIMITATIONS OF THE PROBLEM 5
1.9 DEFINITION OF TERMS 6
CHAPTER TWO 8
2.0 INTRODUCTION 8
2.1 CONCEPTUAL FRAME WORK 9
2.1.1 SALES PROMOTION 9
2.1.2 COUPON 10
2.1.3 EVENT-SPONSORSHIP 11
2.1.4 BONUS PACKS 11
2.1.5 BRAND LOYALTY 12
2.1.6 PERCEIVED QUALITY 13
2.1.7 BRAND AWARENESS 13
2.1.8 CUSTOMER SATISFACTION 14
2.2 THEORETICAL FRAME WORK 15
2.2.1 PULL THEORY OF PROMOTION 15
2.3 REVIEW OF RELATED EMPIRICAL STUDIES 15
2.4 SUMMARY OF REVIEW OF RELATED LITERATURE 17
CHAPTER THREE 19
METHODOLOGY 19
3.0 INTRODUCTION 19
3.1 RESEARCH DESIGN 19
3.2 POPULATION OF THE STUDY 19
3.3 SAMPLE SIZE 20
3.4 SAMPLING TECHNIQUES 20
3.5 SOURCE OF DATA 20
3.6 RESEARCH INSTRUMENT 20
3.7 STATISTICAL TECHNIQUES FOR DATA COLLECTION 21
CHAPTER FOUR 23
DATA PRESENTATION AND ANALYSIS 23
4.1 INTRODUCTION 23
4.2 PRESENTATION ON QUESTIONNAIRE RESPONSE RATE OR QUESTIONNAIRE ADMINISTRATION AND RETRIEVAL 23
4.3 ANALYSIS OF RESPONSES 24
4.4 DATA PRESENTATION AND ANALYSIS 25
4.5 TESTING OF HYPOTHESIS 28
4.6 DISCUSSION OF FINDINGS 34
CHAPTER FIVE 36
5.1 SUMMARY OF FINDINGS 36
5.2 CONCLUSION 36
5.3 RECOMMENDATIONS 37
BIBLIOGRAPHIC 38
APPENDIX 1 40
APPENDIX II 41
CHAPTER ONE
1.0 BACKGROUND OF THE STUDY
Why do people buy? To what extent do environmental forces influence the thought process? Numerous variables have been proposed to describe the relationship between sales promotions and consumer brand loyalty. The consumption process appears to begin with external stimulus that strive the consumer’s information processing (Teunter, 2002). Sales promotions such as coupons, rebates, premiums and samples, typically are viewed as temporary incentives that stimulate the sales of product or services. There are different ways to classify sales promotions; the most basic is to classify them between trade promotions and consumer promotions. Consumer promotions are directed at the consumer and are designed to induce them to purchase the marketer’s brand. Trade promotions are designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customer (Belch and Belch, 2008). Lead in soft drink production in Nigeria employs over 60,000 Nigerians in all fields of its operation. The company has immensely helped in the development of sport and sporting activities mainly through sponsorship.
1.1 BRIEF HISTORY OF COCO-COLA NIGERIA PLC
The coca-cola Nigeria plc first came to Nigeria in 1953 and established its first coca-cola plant in Lagos. This was to be the beginning of growth and development in 1956; two other plants were established in Kano and Jos respectively. The opening of the Ibadan plant followed in 1961, the next was that of Benni in 1976 and today, there are about 21 coca-cola plants in several parts of the country including that of Port-Harcourt. In some states where coca cola plants are not found, large depots are always maintained to serve the growing demand for the brand by consumers in those areas. The coca cola companies are sole makers of several brands of soft drinks in Nigeria. The brands include; coca cola, fanta orange, fanta apple, sprite, bitter lemon chapman, fanta lemon, soda water and among others. The coca Cola Company as the most marketing programmes include both trade and consumer promotions. The difference between one and the other relies primarily on who is targeted in the marketing channel; the consumer or retailer, the aim of such strategies is not only to beat the competition and retain the customers; it triggers the new customers by offering them the attractive packages. There is no doubt that the ultimate objective of every company is to generate the certain level of sales that may create profit to continue the business activities. It is not enough for a business to have goods and products sold at attractive price, but to generate sales and profits, the benefits of the products have to be communicated to customers and this is why managers use different strategies to communicate these benefits to customers.
1.2 STATEMENT OF THE PROBLEM
Selling concepts made it clear that customers will not patronize a product or service if promotional activities are not in place. Organizations such as coca cola plc may be faced with challenges of inadequate sales of the varieties of products they offer due to poor promotional strategies which lead to customer disloyalty. One of the major ways of enduring that they stand out and achieve their aim is through intensive and strategic implementation of promotional mix which include sales promotion, advertising, personal selling, public relations, publicity and all elements of promotional mix leading to customer loyalty, increase profit, attraction of both old and new customers and sales increase. Despite the benefit of marketing strategies, most organizations still have serious threat in promoting their product/services (Kabouh et al 2015).
This is as a result of their inability to recognize and exploit the strategic competitive advantage associated with the application of the concept of strategic marketing. This little or non-attention of these promotional activities especially sales promotion which is the key to attracting customers who eventually becomes loyal to the organization may affect negatively, organizational profitability. This study seeks to evaluate the impact of sales promotional strategies on consumer brand loyalty towards consumers of coca cola products.
1.3 OBJECTIVE OF THE STUDY
The main objective of the study is to evaluate the impact of sales promotion strategies on consumers brand loyalty. Specifically, the study intends to achieve the following objectives;
To ascertain the relationship between coupon and consumer brand loyalty.
To ascertain the relationship between event-sponsorship and consumer brand loyalty.
To ascertain the relationship between bonus packs and consumer brand loyalty.
1.4 RESEARCH QUESTION
What is the relationship between coupon and consumer brand loyalty?
What is the relationship between event sponsorship and brand loyalty?
What is the relationship between bonus packs and consumer brand loyalty?
1.5 RESEARCH HYPOTHESES
Ho1 There is no significant relationship between coupon and consumer brand loyalty
Ho2 There is no significant relationship between event sponsorship and consumer brand loyalty
Ho3 There is no significant relationship between bonus packs and consumer brand loyalty
1.6 SIGNIFICANCE OF THE STUDY
Extensive literature searches revealed that little research exists in the area of sales promotion and brand loyalty. The research is of significance to the domain of marketing as it extends the knowledge base that currently exist in the field of promotion marketing; In specific, the knowledge between different types of sales promotion and brand loyalty.
1.7 SCOPE OF THE STUDY
This research focused mainly on “Impact of sales promotional strategies on consumers brand loyalty” using consumers of coca cola products as a case study. This was performed by administering questionnaires to consumers in Port Harcourt of River State.
1.8 LIMITATIONS OF THE PROBLEM
Many challenges were faced in the course of executing the work. Finance which was the major resources for the success of the research study was inadequate. There was little or no time to carry out further studies as the semester was too short. Problems were administered in gathering of information both primary and secondary data because of illiteracy of some of the consumers. Also, incomplete response and some misleading information from respondents and event the attitude of the respondents constituted another limitation of the study. Besides, the researcher tried to be as objective as possible in analyzing the data collected.
1.9 DEFINITION OF TERMS
Sales promotion: The American Marketing Association (AMA) defined sales promotion as those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display, shows and exhibitions, demonstrations and various non-recurrent selling efforts not in the ordinary routine.
Brand Loyalty: A deeply held commitment to re-patronize a preferred product/service consistently in the future, thereby causing repetitive same, brand purchasing, despite situational influences and marketing efforts having potential to cause switching behavior (Adeleke et al 2012).
Coupon: In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product.
Event-sponsorship: An event sponsorship can be defined as a critical source of funding for all kinds of events where companies, non-profits, and small businesses give certain amount of cash or incentives, in exchange for both visibility and brand awareness at an event.
Bonus-Packs: This offer an extra amount of product at a regular price by providing customers with extra unit. Bonus packs are used frequently to introduce a new product by the same manufacturer.
Brand Awareness: Is the degree of consumer awareness of a brand and its related products. Creating brand awareness is one of the key steps in promoting and marketing a product.