CHAPTER ONE
1.0
GENERAL
INTRODUCTION
According to and Kirk Patrick (1982). promotion is an
important element in marking mix of most firms and it is not important in
others for soft drink manufactures, whose products, price and distribution
channels are very similar to those of
competitors seller of can juices and sweet flavored drinks in includes the
members of great many of differentiating their products in the minds of the
consumers.
Many industries lay emphasis and attention on promotion
than other marketing mix to create effective awareness and it enhance purchase
because, promotion gives the description of product to the end users and target
market.
However, in the promotional activities, the industry get
chance to communicate effectively with potential customer to beat the drum its
products.
The promotions are used to disseminating information or
communicating with the target audience. They include various forms of advertising,
packaging, sales presentation and demonstration, point if purchase displays,
sales (literature, films) and incentive tools (coupons contest, trading stamps,
premium) and publicity programs. Historically, industries first made separate
functions out of personal selling later out of advertising them, out of sales
promo tools and ultimately out publicity. The four major promotions.
1.1
STATEMENT OF THE PROBLEMS
The soft drink environment is bedeviled numerous structural
and promotional problems from past decades, these problems includes the
following;
(a)Manufactures
did not take great cognizance of sale promotion.
(b)Manufactures
use other promotion tools; advertising personal selling e.t.c instead of which
sales promotion is required.
(c)Sales
promotion was being used during and adverse economy. Other problems involved
are that bottlers in various townships fail to conduct proper marketing
research on the consumer. Gift to be used during sales promotion are those,
which the consumers would grave for .
Also the cost of conducting sales promotion should not be
too much to avoid running at a loss
Many people do not know what sales promotion means to
entail. Others cannot even differentiate one promo tool from another. Bottlers
have failed to create in the mind if customers the impression that they are
getting something for nothing, also the purpose of sales promotion, when
conducting it, is not well communicated to people in certain towns.
1.2
OBJECTIVES OF STUDY
There have been assertions that sales promotion, as an
element of promotional mix, has been helping soft drinks bottler effectively.
This study tends to correct this impression. The objectives of this research
include the following
1. To
know if sales promotion really motivate customer to buy (more) of soft drinks
2. To
know the response of customer and their behavious to sales promotion.
3. To
examine the impact of sales promotion on customer patronage of soft drinks
produce.
4. To
identity whether the customers will continue to buy the soft drinks when sales
promotion activities stop
1.3 RESEARCH
QUESTIONS
The motive behind the industry (soft
drinks) is continued used of sales promotion provide the major issues of
discussion which supply answers to such questions.
1. Do
the manufactures realize the impact or effects of sales promotion on their
business?
2. Do
they examine and evaluate, if sales promotion fails to make expected impact?
3. Will
customer buy much of soft drink during sales promotion?
1.4 LIMITATION OF THE STUDY
This
research, effectiveness of sales promotion in soft drink industry is
constrained by the following factors:
Lack of access to document:- formed the
looked worm attitude of the official releasing secret information and fear of
espionage from competition
Attitude of respondent:- the cold attitude display by respondent
is really disgusting. Financial constraints: transport and academic material
ranked highest in the general research.
Time constraints: His appointment of time on academics and
other social obligation was indeed not easy.
Social obligation was indeed not easy
Material:- insufficient of Nigeria authority marketing
tests.
1.5 SCOPE OF THE STUDY
The main forum of this study is on sales
promotion as an element of promotional mix, which indicates that sales
promotion will be single out. The study will focus on soft drinks market in
Ilorin with reference to 7up bottling company, Ilorin plant.
1.5
SIGNIFICANCE OF THE STUDY
1. The important of this to make many
bottlers of soft drink realize the part sales promotion plays as on element of
promotion mix. In this sense, many manufactures of soft drinks have used some
forms of promotion irrelevant to their problems in order to increase sales and
maximized profit.
2. Some do not even know when which
promotional to adopt or use this study aims at establishing and critically
analyzing the effect of sales promotion as one of the elements of promotional
mix.
3.
This study is also significant in term of its contribution to existing
knowledge. This is to say that the time, cost and energy expended in acquiring
this knowledge are justified
1.7 DEFINITIONS OF TERMS
Adverting:
– this is any form of ideas goods or services by an indentified sponsor.
Brand:
– the name of product which consumer apply their analytical or active thing to
win a price
Contest:-
a sales promotion in which consumer apply their analytical or creative thinking
to win a price.
Competition:
– it is the set of alternative firm that could provide a product to satisfy a
specific market need.
Coupon:-
a sales promotion that usually offer discount price or interest to customers.
Industry:
– it is a big establishment by manufacture or services firm for trade and
manufacturing.
Management:
– this is defined as getting effective result by organizing and directing this
co operative effort of humans
Market:-
a group of potential customers with similar needs and sellers offering various
products, satisfying those needs or group of sellers for something of value. It
is those customers who have needs are willing to spend their money to satisfy
their needs.
Marketing
mix: – the controllable variable or element that the company put together to
satisfy a target group, it is called the 4ps (product, price, promotion,
place).
Organization:
– forms of organized human activities engaged in commercial or industrial
activity providing goods and services to the society with the view of making
profit.
Point
of purchase display:- these are display materials setup at there tail location
to build traffic, advertise the product and promote impulse buying, this
include windows displays, floor and wall displays, streams and posters.
Premium:
– an item that is offends free or at a bargain price to encourage the customer
buy and advertised product
Product:-
as good or serves or idea consisting of a bundle of tangible and intangible attribute
that satisfy consumers and is received in exchange for money or other unit of
valve.
Promotion:
– communicating information between seller and potential buyer to influence
attribute and behavior.
Promotional
mix: – they are set of devices or strategies used to achieve promotional
objectives (advertising personal selling sales promotion and publicity).
Publicity:-it a non personal stimulation of demand for a
product service or business unit by planting commercially significant news
about it in a published medium to obtain favourable presentation of it through
radio, television or stage that is not paid for by the consumers.
Public
relations:- the attempt by which information persuasion and adjustment to
engineer public support of activity. Course, movement or institution.
Sales
promotion:- promotional activities other than advertising personal selling and
publicity that stimulate interest, trial purchase by final customers.
Strategy’s:-
it lays down the broad principle by which a company hopes to achieve its
objectives. The objectives of a company shows where it wants to be, strategy
self forth the way to get there
Target
market:- the market segments or groups with the market segment towards which
all marketing activities are directed.
Trade
show:- exhibitions where manufactures, dealer and buyers of the industry’s can
get together or demonstration and discussion, expose new product, literatures
and sample to customers
Trade
stamps:- this consists of stamps given relation to the value purchase which may
be redeemed by the consumers for merchandise or cash
1.8 HISTORICAL BACKGROUND OF SEVEN UP BOTTLING COMPANY
Seven up bottling company, plc, (SBC)
was founded by a Lebanese in 1956 and on October 1st 1960,
production of carbonated soft drink began at the first plant, then located at
Ijora Lagos. On the 1st day of production, the companies sold a
total of 24 crates of its product in other words, a total of 576 bottlers were
sold. Although the number didn’t win the company any awards, it certainly was
significant accomplishment of the company.
In order to create a favourable climate for the smooth
operation, the company had to become involved with the community. SBC, plc was
the first to introduce wreathing in Nigeria by sponsoring the late and great
mike Bamidele who won a word little SBC, plc was involved in the first miss
Nigeria beauty competition, which has continued to grew in size and importance
over the years.
Till date the company sponsors many sporting and special
activities amongst which are Pepsi football academy, Pepsi professional
football league seven up premier basketball, Mirnda school programme since
these are the other brands types of the company (Pepsi & Mirinda)
The company was quoted in the Nigeria stock exchange (NSE)
and went public in 1984
The greatest period of growth for SBC plc. Began in the
early 80’s with the inadan plant 1980, Ikeja a plant in 1981, the Kano plant in
1985 the Aba plant in 1989 the acquisition of john holt oft drinks with the
Kaduna plant in 1989 Benin plant in 1992 and Enugu plant in 2002, making the
total number of depts. Now to be 37 several deposit and dealers in all parts of
the country. The present range product include seven up Pepsi Mirinda Orage,
and the latest of it’s range of product is Mirinda, fruity, which was Launched
in the year 2002 and then mountain dew in 2008.
Source: personnel and administrative department of seven
bottling company plc. Ilorin plant