PROMOTIONAL STRATEGY OF MR BIGGS KADUNA BRANCH AND ITS IMPACT ON SALES TURNOVE

CHAPTER ONE

INTRODUCTION

1.0  Introduction

The
promotion is considered as a starting point, and the first step, the producers
followed to communicate and contact with their customers, in both local and foreign
markets alike, where it paves the road to another marketing efforts such as
presentation of companies’ product, its features, specifications, distribution
of the product, and what distinguishes it from other producers’ competing
products in the target markets.

Sales
promotion, a key ingredient in marketing campaigns; the need to promote a
product, service or an idea cannot be over emphasized. Obi (2002) described
sales promotion consists of the related promotional activities that are
necessary to supplement personal selling. Some of these include distribution of
sample products to customers, exhibitions, or demostration of  products at stores or trade fairs or shows
and preparation of printed materials used by sales people or for point-of sale
displays. A combination of the above variables defines a firm’s promotional
programme that hopes to influence consumers to patronize and become loyal to
the organizations offering.

Hence,
promotion in marketing represents those tools that companies used to persuade
their prospective consumers to buy their product or service. The determination
of the most appropriate, effective, and influential promotional elements on the
consumers’ purchasing decision making, which achieve the producers’ objectives
may have a strong, important, and useful indications for both decision makers,
and marketing planners in fast food firms such as Mr Biggs who are confronted
with issue arising from competition from other numerous fast food firms in
Kaduna.

1.1
Background of the Study

Promotion became an essential motivating factor in the area
of marketing in any organization especially in fast food firms. The element in
the promotional mix that is rapidly gaining additional recognition in most industries
especially in the fast food industry in Nigeria is the sales promotion. It is
not enough mostly in developing countries like Nigeria and particularly in fast
food industry to merely
trust that consumers will become aware of services.
The firm has to engage in promotional activities.
Over the year some notable author have regard sales promotion as having such
roles as the development of  small and medium scale enterprise such as
eateries, besides, increasing sales which leads to the ability of competing for
a large market share, producing companies has interested and make more
attention to promotional activities. The promotion is considered as a starting
point, and the first step, the producers followed to communicate and contact
with their customers, in both local and foreign markets alike, where it paves
the road to another marketing efforts such as presentation of companies’
product, its features, specifications, distribution of the product, and what
distinguishes it from other producers’ competing products in the target markets.

This
is so because it has been established by Nagar (2009) in literature that only
consumers with repeat purchases are profitable. It is not every repeat purchase
that is connected to consumer’s commitment of a brand.

However,
consumer’s commitment is important for a repeat purchase. Therefore, business
operators need to develop marketing program that will not only reinforce
customer’s commitment but also encourage repeat purchases. A part of the
functions of sales promotion is not only to reinforce commitment of consumers
but to encourage repeat purchase. Sales promotion has effects on various aspects
of consumer’s purchase decisions such as brand choice, purchase time, quantity,
and brand switching. Thus, sales promotion becomes an integral part of the
marketing strategy for reaching the target market and it is the responsibility
of marketing managers to combine elements of promotional strategies, which is
promotional mix into coordinated plans. Sales promotion efforts are directed at
final consumers and designed to motivate, persuade, and remind them of the goods
and receives that are offered.

Sales
promotion which is a major force in marketing is widely adopted by beverage
drink industries in Nigeria, but as Nigeria is witnessing an economic down
turn, there is increase in prices of consumer goods that also lead to an
increase in prices of products in fast food Firms.

The
importance of the excessive promotion in a competitive market environment has
generated a lot of interest in marketers and firms to develop numerous and comprehensive
promotional approaches. The objective of this study therefore is to survey the
extent to which sales promotional strategies affect the effectiveness of Mr
Biggs Fast food.

Hence, the researcher intends to analyze the impact of sales
promotion al mix elements on the choice of fast food outlet in Kaduna
metropolis.

1.2.   Statement of the Problem
In a developing economy like Nigeria, it is not enough for fast food firms to
expect that  consumer will buy their
product or services without considering what they will benefit or deprive from
it. Hence sales promotion becomes inevitable. 
Organisations who operates fast food outfits are faced with the problem
of products substance and competition. So for that reason many fast food firms
now attempt to stimulate and get consumers attention with customer loyalty,
increase market share by using sales promotion tools on goods and
service.   Organizations usually encounter problems such as lack of
management known how not appointing the right and experience marketers or sales
promotion experts. More sales promotions carried out by organizations are usually
badly organized and implemented which leads to the aim being defeated thereby
having a direct effect on sales volume and profit.

This problem of low sales and low demand have promoted
producers to use sale promotion to compliment the use of other promotional mixes
like sale promotion personal selling, publicity and public relations. Some of
the questions the study will answer are what impact does sales promotion has on
the sales performance of an organization.

1.3.    Objective or
Purpose of Study
The main objective of this study will be to analyze the impact of sales
promotional mix element on the choice of fast food outlets in Kaduna
metropolis. Other specific objective include:

i.
Identify the extent to which  fast food
outlets in Kaduna metropolis use of promotional mix elements.

ii.
Identify the effect of promotional mix elements that is used fast food outlets
in Kaduna metropolis on consumers purchasing decision making.

iii.
Assess the contribution and efforts of sales promotion to improve the sales of
fast food outlets in Kaduna metropolis.

iv.
Examine the constraint militating against sales promotion in fast food outlets
in Kaduna metropolis.

1.4. Research Questions

i.
To what extent are fast food outlets in Kaduna metropolis using promotional mix
elements?

ii.
What are the effect of promotional mix elements that is used fast food outlets
in Kaduna metropolis on consumers purchasing decision making?

iii.
What is the contribution and efforts of sales promotion in  improving 
the sales of fast food outlets in Kaduna metropolis?

iv.
What are the constraint militating against sales promotion in fast food outlets
in Kaduna metropolis?

1.5 Significance of the study

The
importance of this study is basically to addressed promotional mix as primary
marketing element, which is responsible for communicating with consumers, under
a certain conditions its effectiveness and success depend heavily on the
rational choice of the appropriate promotional element, and for this reason,
promotional mix elements has a special significance importance in effecting
consumers purchasing decision.

The
importance of using marketing communications increases with the amount of
competition and its intensity, the diversity of economic and social activities,
the increasing in consumer awareness, and the consumers multiplicity of
options, so it is very important to choose the promotional communication means,
which has the ability to reach the target consumers and persuading them to take
the purchasing decision.

Hence
the study will be useful to fast food firms in formulate their marketing
strategies especially in the area of promotion. The study will also be useful
to students especially as they utilize this finding as a spring board for
further research. The study will also add to existing knowledge in promotional
mix.

1.6.   Scope of the Study
This study will cover an analysis of the impact of promotional mix element on
the choice of fast food outlets in Kaduna metropolis. Hence, the study will
identify the extent to which fast food outlets in Kaduna metropolis use of
promotional mix elements as well as identify the effect of promotional mix
elements that is used fast food outlets in Kaduna metropolis on consumers
purchasing decision making and assess the contribution and efforts of promotion
to improve the sales of fast food outlets in Kaduna metropolis. The study will
equally examine the constraint militating against sales promotion in fast food
outlets in Kaduna metropolis.

1.7    Definition
of Terms

Sales Promotion: May be described or defined as the
use of short term incentives periodically to stimulate or encourage consumers
to buy product

Consumer: One who buys and uses goods and services to satisfy
personal or household ants or for resale.

Sale promotion: Any paid form of non personal presentation and promotion of
ideas, goods or services by an identified sponsor in the Radio Television or
cinema

Consumer Goods: goods destined for use by the infinite consumer or a
household.

Marketing: Is the management function that is concerned with the
identification anticipation and satisfaction of customer wants. It organises
and directs all the business activities involved in accessing and converting consumer
purchasing power into effect demand for a specific product or service and
in moving the product or service to the final consumer to achieve the profit
target get by the organization.

Public
relations:
Conscious effort to improve and mention a good corporate image and relationship
with pubic and employee and customers, shareholders, local communities, trade
union etc.

Personal
selling:
The process of making oral commercial representation during a buying / seller
interview situation. This is collegially referred to as face to face selling or
known as buyer / seller interface

Promotional
mix:
This is the set tool used by manufacturers to persuade consumption habit. They
are sale promotion, personal selling, sales promotion, publicity and public
relations.

Marketing
communication:
Conveying of information from the marketing to the market with the aim of
creating awareness and obtaining favourable attitude toward the company and its
products or service.

Marketing
mix:
This is a concept of marketing strategy which is based on product, price
promotion, distribution, processing and pack gaining in an integrated marketing
programme.

Competitors: These are business rival usually in
charge of sales who sell or persuade buyers to buy the company’s products or
service who are controlled by the national or regional sales manager.

Dealers: Middlemen in distribution channels
who buy goods in order to resell them, but not always to the general public.
This is general synonymous with retailers but it is often referred to the large
distributors.