Impact Of Promotional Activities On Product
(A Case Study Of Bourn Vita – Cadbury Nigeria Plc In Enugu)
Promotional activities play a crucial role in influencing consumer behavior and driving product sales. These activities encompass a diverse range of strategies, including advertising, sales promotions, public relations, and direct marketing. By leveraging various channels such as social media, television, print media, and in-store displays, businesses can effectively communicate their value proposition and create awareness about their products or services. Moreover, promotional activities can stimulate demand, encourage brand loyalty, and differentiate a product from competitors in the market. Through targeted messaging and incentives such as discounts, coupons, or contests, companies can attract potential customers and encourage them to make purchasing decisions. Additionally, positive publicity generated through PR campaigns or influencer partnerships can enhance brand credibility and trust among consumers. Overall, the strategic implementation of promotional activities is instrumental in maximizing product visibility, driving sales, and ultimately achieving business success in competitive markets.
1. THE TOPIC
The topic of this proposed research project is “the impact of promotional activities on Bournvita product (A case study Cadbury Nigeria PLC)
2. THE RESEARCH OBJECTIVE
The objectives of the research study will be to determine the effect of promotional activities on the marketing of Bournvita product of Cadbury Nigeria PLC.
3. THE HYPOTHESIS
Adequate hypothesis will be formulated by the research that will guide him finding the solution is the research topic.
4. THE RESEARCH DATA
The researcher will make use of both the primary data and secondary sources of data collections for this project.
5. THE LITERATURE REVIEW
For the literature review, the researcher hopes to consult past but recent literature materials/works that are related to the proposed research project.
6. THE RESEARCH QUESTIONNAIRES
The researcher will employ the personal interview and questionnaires for the collection of the primary data.
7. THE RESEARCH METHODOLOGY
In this research project, the researcher will make use of the questionnaire as the research instrument.
Also concerning the type of data analysis, the researcher intends to adopt the descriptive analysis under this descriptive analysis, the measurement of central tendency or measures of dispersion will be used in the data analysis
This study focused on the impact of promotional activities on Bournvita product with particular note on Cadbury Nigeria Plc the objectives of the study among other things include:
To know how effective each of the promotion has been increasing the beverage’s market shares in the market.
Based on these, four hypothesis were formulated each focusing on the impact of specific promotion date were sourced. Extensive literature review on textbook, journals and material on the area of the study was carried out. While primary data were sourced from respondents, which form the sample of study. The sample include the management staff of the supermarkets.
Open ended questions in a structured questionnaire were used to collect data from respondents. These data were presented on statistical tables after analysis and interpretation.
Based on the analysis, the following findings were made
That the personnel selling strategy used in burerage industry has much impact on customers disposition and patronage.
Many consumers indicated that the quality of Bournvita is high but many equally complained that the price is high compared to other beverages in the market
Based on the above findings the following recommendations were made: define its promotional objectives in order to device suitable stategics to follow. This can only be very much possible where experts. Are used.
Serious effort should be made by beverage industries in using promotional activities. In using advertising apart from billboards, advertising on radio and local newspapers in English and local languages should be used in creating customers awareness.
The high quality product of Bournvita should be maintained and not relaxed. And a good product with good promotion is easier to sell than bad product with intensive promotion as consumers look for the best quality.
If all these recommendations were carried out the company will not improve on their profit position.
ii Title page
iii Approval page
v Acknowledgement
vii Abstract
CHAPTER ONE
1.1 Introduction
1.2 Statement of problem.
1.3 Objectives of study
1.4 Research hypothesis
1.5 Significance of the study
1.6 Scope of the study.
1.7 Definition of terms.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Analysis of the various promotional tools.
2.2 Nature and importance of promotional activities
2.3 Promotional objectives
2.4 Promotional budget
2.5 Company’s profile
CHAPTER THREE
3.0 DESIGN OF THIS STUDY OR RESEARCH METHODOLOGY
3.1 Method of data collection
3.2 Sources of data
A Primary source of data collection
B secondary source of data collection.
3.3 Population of study
3.4 Determination of sample size
3.5 Research instrument used.
3.6 Sampling technique
3.7 Method of data treatment and analysis
3.8 Limitation of the study
CHAPTER FOUR
4.0 PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
4.1 Presentation of analysis of data
4.2 Testing hypothesis.
CHAPTER FIVE
5.0 DISCUSSION OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Summary of findings.
5.2 Recommendation
5.3 Conclusion
Bibliography
1.1 INTRODUCTION
One of the major pillars of marketing is the provision of goods and services to satisfy the needs and wants of the consumer at a profit to the firm. Thus the provision of product for the satisfaction of the consumer or customer is the focus of marketing thereby making product a fundamental tool of marketing. But Ebue (1990:1) stated that if you product, package it brilliantly, price it, rightly distribute it well and position it to best meet the needs of customer you must have wasted all the marketing skills if nobody knows you have those things. Your customers will only know through promotional activities.
It becomes imperative that a firm must not only create high quality goods that meets the expectations of the target market but tell success story. That is disseminate information about the product attributes and benefits to the target market.
Adirika, Ebue and Nnolim (1996:35) see promotion as the component used by the organization to inform, educate and persuade the market regarding the company’s offerings:- advertising, personal selling sales promotion, publicity and public relations are the major variable of promotional tools.
The myopic thinking in Nigeria, that the money spent in promotional activities is a waste should not crop up at all although, we are operating in a sellers’ market, where companies can sell their goods and services even without adequate promotion. There is no guarantee that such a situation will continue forever. Promotion like distribution is one of the elements of the firm. Marketing mix and it seeks to inform the public of the availability of goods and services and their communication cycle between those engaged in production and those in consumption. The need for product promotion exists in both surplus and scarcity condition. This is because in trying to inform, promotion can often persuade and so can be a useful means to a desirable social change if well utilized.
Modern marketing companies are increasing, recognizing the value of an effective communication and promotion Programme for their entire public. This includes Beverage industries. Their product encompasses vegetable commodities that significantly affect our life’s. (According to onah and Nnolim (1988:9) decisions with these components of promotional mix in order to accomplish the objectives of any given organization) the Beverage industry for sometimes now is very lucrative, this has brought so many Beverage industries into their market, thus leading to competition in other to survive the competition beverage industries should pay adequate attention to the issues that involve decision making in designing an appropriate promotion strategies for survival. It is because of the importance of promotion not only as tool for informing the company that the researcher tries to examine the impact of promotional activities on Bornivita products.
1.2 STATEMENT OF PROBLEM
Here, many consumers do not patronize a company’s product when they are ignorant of its existence. Insufficient and inadequate use of marketing communication tools lead to low sales turnover. Given the competitive pressure attributable to escalating cost, increased industrial concentration as the result of acquisitions and mergers, the threat of product obsolescence inherent in accelerating technological innovation. It is clear that promotional policies have becomes questions of acute importance to the manufacturer as well as the marketer.
There has been a sharp increase in the number of Beverage products (both locally manufactured and imported) thus leading to competition and this competition is becoming fierce and cutthroat. Infact, the creation of an effective promotional strategies would be an essential step towards creating a marked.
Consumers find it difficult to make repeat purchase of a product whose communication is not motivating and captivating.
Improper application of marketing strategies sometimes rob Cadbury Nigeria PLC the opportunity of winning new customers for tom and Bournvita to be precise.
The problem goes a long way to hinder the growth of the firm if urgent solutions are not offered to deal with them.
1.3 OBJECTIVES OF THE STUDY
These objectives are
1. To know how effective each of the promotions has been increasing the beverage’s market shares in the market.
2. To know the impact of each promotion such as advertising, sales promotion, personal selling public relation and publicity on the Bournvita product.
3. To know if the success of the product is due to the dynamism in the company’s promotional Programme.
4. To determine the relationship between promotion and consumers patronage of the product.
5. To determine the impact of promotion in creating consumers awareness on Bournvita product in Enugu metropolis.
6. Promotional activities adopted by Cadbury in Enugu Metropolis in increased profitability.
7. To recommend solution on how to effectively use promotion in increasing sales in an organization
1.4 RESEARCH HYPOTHESIS
The following hypothetical statements are designed to help us in representations in both null and alternative.
HYPOTHESIS 1
Ho: Promotional activities of Cadbury Nigeria PLC do not leads to high level demand for the product.
Hi: promotional activities of Cadbury Nigeria PLC lead to increase in the demand of the product bought by buyers.
HYPOTHESIS 2
Ho: Promotional activities on Bournvita product does not encourage customers patronage.
Hi: Promotional activities on Bournvita product encourage customers patronage.
HYPOTHESIS 3
Ho: Promotional activities on Bournvita product do not lead to increased sales volume of the company.
Hi: Promotional activities on Bournvita product lead to increase sales volume of the company.
HYPOTHESIS 4
Ho: Promotional activities on Bournvita impact negatively on the profit of the company
Hi: Promotional activities on Bournvita impact positively on the profit of the company
1.5 SIGNIFICANCE OF THE STUDY
Promotion is not complete until the product ends up being consumed. The study will be of great benefit to the industry as well as individuals. Their promotional resources the company to their product to still buy. This study will help the research appreciate how to use promotional activities in introducing and increasing sales of any product. it will also help the customers to improve their standard of living as they had been made aware through promotion. it will equally be of great benefit to readers and researcher as it may form a base for further researchers and more over it will widen their scope of understanding and knowledge of promotion.
1.6 SCOPE OF THE STUDY
This study is designed to examine promotional activities of Cadbury Nigeria PLC on the sales of its product Bournvita. This study is restricted to Enugu state. It will cover the management staff and consumers that are been exposed to the product.
This study concentrated on the impact of marketing promotion on improving company’s performance with particular interest on Cadbury Nigeria PLC within Enugu Metropolis.
The study intends to point out how the promotional tools techniques – Advertising personal selling, sales promotion, publicity and public relation will be used in improving the company’s performance with particular interest on Bournvita product within Enugu metropolis
1.7 DEFINITION OF TERMS.
Promotional campaign: this is an inter- related services of promotional activities designed to communicate the target group of people to produce change in behaviour.
Product sampling: this is one of the effective means of persuading and encouraging the consumers to try a new product when the product is being introduced.
Premium offers: this is the offer of a merchandised item either free or at a substantially reduce rate to stimulate the purchase of the product.
Point of purchase display. The points of purchase material act as an inducement to buy the product. it consists of display of materials and sign placed inside a certain product package.
Impact Of Promotional Activities On Product:
Promotional activities play a significant role in influencing consumer behavior and the success of a product. These activities encompass a wide range of marketing efforts aimed at raising awareness, generating interest, and ultimately driving sales. The impact of promotional activities on a product can be both positive and negative, depending on various factors. Here are some key points to consider:
- Increased Awareness: Promotions, such as advertising campaigns or social media marketing, can create awareness about a product among potential customers. This heightened awareness is often the first step in the consumer’s decision-making process.
- Customer Interest and Engagement: Promotional activities can pique the interest of consumers and engage them with the product. For example, offering discounts or hosting contests can encourage people to explore the product further.
- Sales Boost: Promotions like discounts, buy-one-get-one-free offers, or limited-time offers can drive immediate sales spikes. These incentives create a sense of urgency and encourage consumers to make a purchase.
- Brand Loyalty: Well-executed promotional activities can help build brand loyalty. Customers who have positive experiences during promotions are more likely to return for repeat purchases and become brand advocates.
- Market Positioning: Promotions can influence how a product is perceived in the market. High-quality promotions can position a product as premium, while frequent discounts may position it as a budget-friendly option.
- Competitive Advantage: In a competitive market, effective promotions can give a product a competitive edge. Offering unique promotions or incentives can attract customers away from competitors.
- Clearing Inventory: Promotions can be used to clear excess inventory or introduce new product lines. This can help maintain optimal stock levels and reduce carrying costs.
- Customer Data Collection: Promotions often require customer engagement, such as signing up for newsletters or participating in surveys. This can provide valuable customer data for future marketing efforts.
- Customer Relationships: Engaging with customers through promotions can foster stronger relationships. Responding to customer feedback and providing personalized offers can enhance the overall customer experience.
- Budget Considerations: Over-reliance on promotions can impact profit margins if not managed carefully. Heavy discounting can erode profitability, and customers may come to expect constant promotions.
- Negative Perceptions: Poorly executed or deceptive promotions can have a detrimental impact on a product’s reputation. Customers who feel misled may develop negative perceptions of the brand.
- Short-Term vs. Long-Term Impact: Some promotions may generate immediate results but fail to sustain long-term growth. Balancing short-term gains with long-term brand-building efforts is crucial.
In summary, the impact of promotional activities on a product can be substantial, but it requires careful planning and execution. Effective promotions can drive sales, build brand loyalty, and enhance a product’s market position. However, they should be part of a broader marketing strategy that considers both short-term and long-term goals while ensuring that the customer experience remains positive and authentic.