THE INFLUENCE OF SALES PROMOTION ON CONSUMER BRAND LOYALTY

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Price: 2000 Naira (BSC, MSC)

ABSTRACT

This research was undertaken to elicit the influence of sales promotions on consumer’s brand loyalty using uncle C.Y Bread as a case study. The project is divided into five chapter, chapter one introduces the topic, defines certain terms, stated the problems and the purpose of the study. It also contains the hypothesis.

Chapter two reviewed some existing literatures that are relevant to the study. Chapter three deals with research methodology survey research design were employed. Two hundred (200) questionnaires were distributed to respondents in Obowo L.G.A.

Chapter four analyzes all the questions in the questionnaires using simple percentages and chi-square wew used to test the hypothesis stated in chapter one.

Chapter five discusses findings, conclusion and recommendations. Some of the findings are;

  • Sales promotions boosting and increasing sales of brands, products or services in the short run.
  • It ahs little or no influence on consumer’s brand loyalty.
  • Competitions, sweepstakes prizes / gift discovered to be the most effective sales promotion strategies

The researcher makes the following recommendation

  • Sales promotions should always be supplemented with other promotional variables.
  • The period during which companies the organizations intent to promote their goods brand and service should be made long reasonably and efforts should be made to get consumers to be aware of it.
  • They should use more of eye catching and appealing tool or techniques such as competitions sweepstakes gift items, and so forth when embarking on sales promotions.


CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

       Today be it electronic print or outdoor is the prevalence of lots of commercial slots competing with the traditional views items like polities, business congratulatory messages in birthdays, conferment of chieftaincy titles or honorary degree obituaries, memories and so forth.

       These commercial slots are usually either advertising some old or new improved products or brands or making announcements when seeks to draw public attention to some sales promotions currently going on and rewards to be won by consumers who wish to participate.

       As a matter of fact, as one watches the television in recent times listen to the radio or flip through the day’s newspapers and magazine attention is in variable drawn to these commercial slots which are either advertising old or new brands or product or informing public about a  sales promotion competition going on already of the release of result from old competitions announcing the winners and prizes outdoor  advertisement the bollards usually placed on the sidewalls or the expressways wall posters, handbill and so forth are not left out too in this prevailing business of sales promotions.

       Certainly one may not be too wrong to say that the advertising industry has never had it so good in terms of profound patronage, which is brought about by this   phenomenon called “sales promotions” meanwhile, prior to this current upsurge, sales promotions had existed in the country although seasonality.

       The reasons for the upsurge in sales promotion by most firms could be traced primarily to the depression in the Nigeria economy culminating in the adoption of the structural adjustment programme (SAP) which was initiated in 1906. A major fall out from structural adjustment programme (SAP) is the prevailing acutely low consumer disposable income, which has also manifested in every low patronage for both industrial and consumer products.

       There now exist considerable glut  and excess stock in most industries with many consumer, because of financial constraints doing away with “Luxury” goods  and buying only essential ones. Most market one now “buyers” markets with manufactures and producers continually looking for means and ways to entice and arouse the interest of the consumer (through the provision of numerous incentives) in purchasing their products, brands and services.

       Generally, some people do have the impression that constant lightly fascinating and beautifully packaged  sales promotions exercise usually allow customers to increase their trial of those brands products or services and with several satisfaction and eventual conversion to that brand product or services.

       To other the question of conversion does not arise because as far they are concerned the “only” effect of sales promotions is the positive drive it exerts on the consumer’s initial purchase and through this the resulting increase in sales of the brands product and services. They further contented that this effect on sales is very transient unending and will eventually gradually fade out as soon as the sales promotions activities on the brands products or service are over.

       This study therefore emanated from the desire to find out which is the correct position of the effect and influences of sales promotion on consumers, brand loyalty using uncle C.Y bread manufacturing company as a study.

1.2 STATEMENT OF THE PROBLEM

       Every research is aimed at addressing one problem or the other. There are certain problems that hamper the influences of sales promotion on customer’s brand loyalty.

       In this study specific problem that will be addressed include these following.

  •  If highly fascinating and beautifully packaged sales promotions exercise allow customers to increase their trials and eventually be converted to loyalty to that brand product or services.
  • Which one of the sale promotional tools appears to her most effective in mobilizing and securing the customers active participation and interest

1.3 OBJECTIVES OF THE STUDY

       The objectives of this research are to show or evaluate the importance of an effective sales promotion on customer’s brand loyalty. Specially on these following objectives

  • To find out whether sales promotions activities on a brand, product or services have any influence shifting consumer’s loyalty.
  • To examine which sales promotional tool appear to be most effective in mobilizing and securing customers active participation and interest in such sales promotion.
  • To know if customers really care about the brands products and services which they buy
  • Finally, to proffer recommendation that one in line with other researchers observations.

1.4 RESEARCH QUESTION

       This study sought an answer to these research questions.

  • Which sales promotional tools or technique appear to be the most effective in mobilizing and securing consumers active participation and interest in sales promotions on brands, products or services?
  • How effective and enduring are sales promotional activities and ensuring increasing in sales of those brands, products or services?
  • Do customers really care about the brands, or products and services, which they buy?
  • Do sales promotional activities on a brand, product or services have any influences in shifting consumer’s loyalty towards that particular brand product or services/
  • Do effective and efficient sales promotional activities influences consume to buy more of a company product brand or services?

1.5 STATEMENT OF HYPOTHESIS

HO Sales promotion activity has no influences in shifting consumer’s loyalty towards that particular brand, product or services.

HI  Sales promotion activity has influence in shifting consumer’s loyalty towards that particular brand, product or services

HO effective promotional activities does not generate customer loyalty.

HO effective promotional activities generate customer loyalty

1.6 SIGNIFICATION OF THE STUDY

       This research aims at finding out the appropriate sales promotional tools or techniques that appears to be most effective in mobilizing and securing customers active participation and interest in sales promotion.

       To find out if consumers really care about the brands, or product and services which they buy. If there is brand loyal. To find out if loyal buyers do not change their brands as a result of competitive sales promotions on rival brand.

       In this research work some important beneficiaries may include;

  • Marketers
  • Manufacturers/ producers
  • Marketing managers
  • Research scholars

1.7 SCOPE OF THE STUDY

       This study is limited to uncle C.Y bread manufacturing company, located in Obowo Imo State the researchers was totally convinced that this company will help him in determining how sales promotional activities on a brand, product or services have influence in shifting consumers loyalty towards that particular brand, product or services

1.8 LIMITATION OF THE STUDY

       This research work would have been better off and of more importance if it had stretched its tentacles to cover all the areas in Obowo but because of these following limitations. This is not so.

       In the process of this study, those following limitation were encountered. 

  • TIME CONSTRAINTS:  It is obvious that the time given to us to carryout this research work was not enough because the time given to us was used to carryout the research work at the same time going for lecture to acquire knowledge in order to be able to sit for the upcoming exams.
  • ECONOMIC CONSTRAINTS: Due to the attitude of the personnel who suppose to give me the necessary information for this study made me to spend more than necessary on transportation. I then resort to visiting him whenever I have transportation fare.
  • FINANCIAL CONSTRAINTS: Inability to generate money made it impossible for me to carryout this research work effectively and efficiently.
  • MATURIAL CONSTRAINTS: while carrying out this project I discovers the work not been done on this particular subject this nearly made it impossible for me to review past studies.

1.9 DEFINITION OF TERMS

  • BRAND:  A brand is a name, symbol or special design or some combination of this element that is intended to identify the goods and services of one company and differentiate them from those of competitors.
  • HARD–CORE LOYALS: These are sets of consumers who buy one brand irrespective of circumstances
  • SOFT –CORE LOYLAS: These are consumers who are loyal to two or three brands it is called spilt loyal.
  • BRAND LOYAL:  These are consumes who have developed a strong convinction about a particular product or brand, without it the consumer is not ready to buy any other brand
  • ADVERTISING: Any paid form of non personal presentation and promotion of ideas, goods and services by an identified sponsor.
  • SALES PROMOTION: Short term incentives to encourage or induce the purchase or sale of a product or services it can also mean a short term incentive package offer to customer by a firm to induce them to buy more of the company’s product.
  • CONTEST: A contest is a sales promotions devices that offers prizes to consumers, sales forces or dealers as a reward for analytical or creative thinking, usually about a product.
  • SWEEPSTAKE: Sweepstake is one of the major consumer promotion tools in which the consumers are asked to submit their names in a drawing to with cash, trips or merchants as a result of purchasing something.
  • GAMES: This is one of the major consumer promotion tools that present consumers with something every time they buy such as bingo number missing letters and questionnaire, which might help them win a prize.
  • BRAND SWTICH: This is consumer, which shows no loyalty to any brand or company, the person buys any brand that comes his ways.
  • PROMOTION: It is one of marketing mix strategy, that communicate with industries, groups or organizations directly or indirectly to facilities exchanges by influencing audience members to accept an organization’s products.


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