Impact Of Sales Promotion And Brand Equity

INTRODUCTION
Background of the Study
There is no doubt that Nigerians appreciates the Nigerian brewery products as one of the most attractive consumer markets in the world (Tong and Hawley, 2009). This has a positive impact on the brewing industry alongside with the growing interest and habit on drinks by its consumers and the increase in Nigeria population (means more patronage).
Promotion is a component of the marketing mix strategy that emphasizes the use of various communication tools to promote the value of a company’s products or services amongst other competitors in the brewing industry. While much promotion focuses on long-term communication objectives, sales promotions have a specific motive of attracting customers, create immediate sales, increase revenue and reduce inventory (Neil Kokemuller, 2020).
Brand equity is one of the most important concepts in marketing science, and it is well-recognized as one of the most valuable intangible assets by most firms in the brewing industry (Erenkol and Duygun, 2010). Brand equity is incremental utility and value endowed to a product or service by its brand name (Keller, 2003; Park and Srinivasan 1994; Marinova, Cui, Marinov&Shiu., 2011).
Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. A brewing firm can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability (Adam Hayes). High brand equity can lead customers into a positive or strong brand association; gain or increase their cash flow to the business, as well as make product differentiation in order to lead to competitive advantage (Keller, 1993; Marinova et al., 2011).
If a brewing firm could better understand the importance of brand equity, then it will better gain competitive advantage, loyal their customers.
In the present era of increasing globalization, competition is an important issue among policy makers of different levels (country, industry and company) in different parts of the world (Sayed, Javadin and Shams 2011). In the current situation of competitive market, obtaining a proper position in the mind of consumers in which the consumers becomes loyal to the company’s product is very important. Perhaps the most prominent skill of a brewery firm is providing a brand, protecting it, reinforcing it and makes loyal customers to it (Khadang 2011). The brand loyalty is the ultimate goal of a brewing firm that has a product with a special trademark (brand). When customers are proud about the company, say positive things about it and recommend the company to their friends and relatives, it will increase their volume of buying (Sobhani, 2011).
Research on customer loyalty has been concentrated on the product or brand loyalty. The brand loyalty is the ultimate goal of a brewing firm that has a product with a special trademark (brand); prioritizing or preferring purchasing a specific brand on a shelf of product by customer is called brand loyalty. Customer, first purchases a product with specific brand to test it, and then, after consent and satisfaction, is willing to repeat and continue the purchase of the same trademark or brand because they now know that product and trust it (Sobhani, 2011).
Studies indicate that the cost of retaining current customer, in practice, is much less than the cost of attracting new customers (Keller, 1993; Marinovaet al., 2011&Sobhani, 2011). Therefor, companies should believe that any attempt to retain customers through sales promotion and brand equity is a useful activity.Due to the foregoing, the researcher has deemed it necessary to pinpoint “The Impact of Sales Promotion and Brand Equity on Brewing Industry in Nigeria”

Statement of the Problem
Despite the increased relevance of sales promotion in the brewing industry, most firms still believe it is a form of deception. The planning of sales promotion can be problematic if the question to know its impact is raised? However, it is not always true that we cannot determine the impact of sales promotion. Internet usage in Nigeria is very low compared to Europe, South East Asia and the United States. However, many of the internet users are not taking advantage of the opportunities afforded by the internet, to purchase what they need, simply because they considered the products and services to be expensive and alien to their culture. However, poor sales promotion to the final consumers could give competitors an edge in terms of loyalty to brands, sales volume and high market share. Consequence of this has been the major setbacks for most firms in the brewing industry. Given the increasing competition in the marketing environment, most firms are yet to recognize the roles and relevance of sales promotion on product demand.There is also an increasing challenge on how organizations can use sales promotion and brand equity as a tool for marketing new products and obtaining the required results. Therefore, the body of knowledge cannot be complete without discussing “The Impact of Sales Promotion and Brand Equity on Brewing Industry in Nigeria”

Purpose of the Study
The main purpose of the study is to examine the impact of sales promotion and brand equity on brewing industry in Nigeria.
Specifically, the study sought to:
1. Determine the nature of relationship between sales promotion and brand equity.
2. Ascertain the extent to which celebrity endorsement impact on Brand Equity.
3. Find out the extent to which Word of Mouth can impact on Brand Equity.
4. Determine if sales promotion and brand equity has any influence on Nigeria Brewing Industry.

Research Questions
The study was guided by the following research questions:
1. What is the nature of relationship between sales promotion and brand equity?
2. To what extent does celebrity endorsement impact on Brand Equity?
3. To what extent does Word of Mouth impact on Brand Equity?
4. What impact does sales promotion and brand equity has on Nigeria Brewing Industry?

Hypotheses
The following research hypothesis will guide this study:
1. H0: There is no relationship between sales promotion and brand equity.
H1: There is relationship between sales promotion and brand equity.
2. H0: There is no celebrity endorsement impact on Brand Equity.
H1: There is celebrity endorsement impact on Brand Equity.
3. H0: There is no Word of Mouth impact on Brand Equity.
H1: There is Word of Mouth impact on Brand Equity.
4. H0: There is no impact of sales promotion and brand equity on Nigeria Brewery Industry.
H1: There is impact of sales promotion and brand equity on Nigeria Brewery Industry.

Significance of the Study
Competition is the most fundamental factor that directly affects the brand emergence and growth. Today, the competition is fiercely in Nigeria market due to the threat of new entrances and rivals. Breweries with their brands always try to outperform their competitors to grab a greater share of market. Thus, an appropriate sales promotion and brand equity is necessary. Hence, this study seeks to examine the impact ofsales promotion and brand equity in Nigeria Brewing Industry. The finding of this study will help brewing firms or companies to create positive brand equity and sales promotion in order to increase their future business growth and profit.