EFFECT OF SALES PROMOTION ON THE

CONSUMPTION OF SOFTDRINKS
(A CASE STUDY OF COCA-COLA BOTTLING COMANY
 Abstract

This project examines the effect of sales promotion on the

consumption of soft drinks. The study revealed the

importance of sales promotional activities. The work also

examines the importance and use of sales promotion.

Information were gathered from both primary and

secondary sources. The former involved the use of

questionnaire and personal interview while the letter

involved consulting printed materials such as test-books,

journal etc. from the analysis of the collected data, it was

revealed that sales promotion increased the sales of the

company’s product. It was therefore recommended that it

would be cost effective if the company improve on its

products and sales promotion.

 Table of Content

Title Page
Certification
Dedication
Acknowledgement
Abstract
Table of Content
Chapter One
1.0 Introduction
1.1 Background of the Study
1.2 Statement of problem
1.3 Objectives of Study
1.4 Research Question/Hypothesis
1.5 Significance of Study
1.6 Scope/Delimitation of Study
1.7 Operational Definitions of Terms
Chapter Two
2.0 Review of Related Literature
2.1 Meaning of Sales Promotion
2.2 Objectives of Sales Promotion
2.3 Importance of Sales Promotion
2.4 Problems of Sales Promotion
2.5 Planning Sales Promotion
2.6 Measuring and Distribution Activities in Coca-Cola
Bottling Company
2.7 Promotional Activities in Nigeria Bottling Company
 References
Chapter Three
3.0 Research Methodology
3.1 Research Design
3.2 Population of study
3.3 Sample/Sampling Procedure
3.4 Sources of Data Collection
3.5 Validation of Instrument Used
3.6 Method of Data Analysis
3.7 Cut-off Point/Decision Rule
Chapter Four
4.0 Data Presentation and Interpretation
4.1 Presentation of Data
4.2 Analysis of Data
4.3 Test of Hypothesis
4.4 Discussion of Findings
Chapter Five
5.0 Summary of Findings, Conclusion and
Recommendation
5.1 Limitations of Study
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
5.5 Area for Further Study
Bibliography
Appendices
 Chapter One

1.0 Introduction

1.1 Background of the Study

Advertising has a long fascinating history and

has a major impact on our culture. Advertising has

entertained move and motivated consumers for more

than a century, and many of the images created by

advertisers have become cultural icon – Ronald

McDonald, the Maviboro man, Bunny, to name just a

few. Much has been written about the history of

advertising and how it reflects society and its whole

range of activities.

However, sales promotion also have a very rich

and interesting history; marketers have developed

and used a variety of techniques over the past

century to give consumers on extra incentive to use

their products and services. Many of the sales

promotion offers that motivate consumers today and

have become part of their everyday lives have been

around for nearly a century or more.

 The success of sales promotion has had a major

impact on consumers throughout the years and also

has resulted in similar programs being developed by

competitors. Such promotions show that advertising

is not the only integrated marketing communication

tool with a rich and interesting history, but sales

promotion and other promo tools are still very vital

means to boost the revenue of any given

establishment.

1.2 Statement of Problem

Apart from the problem of recognition, sales

promotion is the most recent promotion in strategy

use by many establishment to boost and increase the

market share of many enterprises. There is the dearth

of sufficient information, technical knowledge as well

as literature.

Sales promotion campaign need to be just and

fair in extension to enable the right audience to

benefit from the programme.

 However, communication, finance and

transportation facilitates are hardily adequate to

support the programme especially at sell of time.

In Nigeria, the necessary conditions for effective

sales promotion hardily exist.

This give rise to the following questions.

i. Does sales promotion adequately result in high sales

volumes?

ii. Does sales promotion motivate consumer to consume

more bottles of Coca-Cola?

iii. Is use of sales promotion signatures?

1.3 Objectives of Study

This research work is carried out in order to

achieve the following:

 To know the cost effectiveness of sales promotion

consumption of soft drinks.

 To know how consumers view sales promotion in line

with other promo tools in the area of trial and

adoption of Coca-Cola as a soft drink.

 To know the necessary factors to be considered before

and after the application of sales promotion on the

consumption of soft drink.

 To know how sales promotion strategies can help a

company to retain and gain more prospects to the

company.

 To know the consequence of not applying sales

promotion strategies in Coca-Cola company.

 To know the right level by which sales promotion

strategies can be used in product life cycle.

1.4 Research Question/Hypothesis Statement

The following hypotheses should direct the

thrust of the study.

Hypothesis I

HO: Sales promotion does not result in high sales

volume.

HI : Sales promotion result in high sales volume

Hypothesis II
 HO: Sales promotion does to motivate consumers to

consume more bottling of mineral drinks.

HI : Sales promotion motivate consumers to

consume more bottles of minerals drinks.

1.5 Significance of Study

This study will help also to highlight the extent

to which the objectives of the organization are

achieved through the use of sales promotion

activities.

Secondly the study will help to identify whether

sales promotion programmes are beneficial or not and

to what extent.

Thirdly, the student will serve as a source of

information to any person who may consult it. The

study will furnish him or her with information on the

effective application of the promotional activities in

achieving organizational goals.

The study will help to ascertain the relevance of

economic condition on sales promotional activities.

1.6 Scope/Delimitation of Study

The scope of the work is limited to effect of sales

promotion on the consumption of soft drinks. In the

light of this techniques and principles of strategic

management would be looked into to enhance the

achievement of this aims and objectives.

1.7 Operational Definition of Terms

Advertising: It is any paid form of non-presentation

and promotion of ideas, goods or services by an

identified sponsor.

Sales Promotion: These are marketing activities

other than advertising, personal selling and publicity

that are designed to stimulate consumers purchasing

and dealer effectiveness such as demonstration,

context premium, discount and other various non-

current selling effort.

Marketing: Is a social and managerial process by

which individuals and groups obtain what they need

and want through creating and exchanging products

and values with others.

Brand: This is a name, terms symbols or designed or

a combination of them to identifying goods or services

and to differentiate them from those of the

competitors.

Sample: Is a part of the population of a subset from

the set of unit which is provided by some process.

Psychology: This is the study of individual which

enable us understand consumption needs, action,

reaction and response of individual to different

product.

Preference: It means a great interest in or desire.

Perfect Competition: It is a situation in which there

are many buyers and many sellers in which no single

seller can influence the ruling price in the market.

Consumption: This is the act of buying and using

products.

Demography: This is a study of human population

and its distribution.

 Chapter Two

2.0 Review of Related Literature

2.1 Meaning of Sales Promotion

According to Adirika (2007) defined sales

promotion as something extra that can arouse

interest, cerate a buying desire, spark an immediate

reaction from customers, middlemen company’s sales

force. He further explain that sales promotion is a

name that is applied to special kinds of sales

accelerating, personal selling or publicity. It is

considered as a special selling effort. It consist or

short terms incentives designed to stimulate buying

action.

While according to S. M. Momoh (2010)

explained that sales promotion is different from

promotion for sales. He further explained that

promotion for sales involves all promotional efforts

including advertising, personal selling and publicity

while on the other hands defined sales promotion as

those marketing activities other than advertising,

 personal selling and publicity that are designed to

stimulated consumers purchasing and dealers

effectiveness such as demonstration context premium

discount and offer various non current selling efforts.

2.2 Objectives of Sales Promotion

The objective of sales promotion is to encourage

purchase by improving the value of a brand. An

organization may hunts for the need for sales

promotion option in order to achieve certain

objectives these objectives are as follows:

a. Regain Buyer/Consumer Attention: In spite of the

fact that a lot of awareness has earlier been created

through the use of advertising, part of his awareness

use may at the maturity stage be declining in terms of

achieving sales.

b. To Achieve Quick Sales: Sales promotion as

incentives backed techniques is sometimes aimed at

quick sales, especially during a given period in the

business calendar (semiannually or annually by way

 of clearing goods in stores in order to simplify

inventory taking and restocking).

c. New Product Introduction: A successful launch of a

new product may not be achieved through advertising

alone seeing is believing. This is why certain products

must be given a during product introduction as free

sample.

d. Provide a Drag-Net for Fishing: The incentive

offered is like a fisting net. It is directed at non-brand

users to try the brand and to reward brand loyal

users to continuing with their loyalty.

e. It helps to stimulate sales in off-season

2.3 Importance of Sales Promotion

Sales promotion is increasing becoming

importance in marketing as a way of increasing the

demand of product/service, sales promotion activities

are usually used to produce immediate short terms

sales.
 While a marketer uses advertising or personal

selling either non a continuous or cyclical basis, sales

promotion activities makes valuable contribution to

marketing effectiveness by supporting advertising,

personal selling and public relation activities and

there by increases producers profit specifically sales

promotion producer profit. Specifically sales

promotions have the following uses.

 Prices Determination: Sales promotion permits

marketers to practice price discrimination, changing

different customers, price to different customers price

discrimination, also explains the use of coupon and

price special aimed at the more price sensitive

consumers who will make effort on his preferred

brand. Sales promotion also enables producers to

practice price discrimination over time by adjusting to

variation in demand and supply.

 Trade Behaviour: Sales promotion also encourage

the trade to provide temporary displaty price cut

 advertising features that makes customers buy some

quantities from traders to consumers.

 Sales promotion enables producers and their

marketers to reach the deal pone to customers and

encourage the consumer to switch. Though sales

promotion, consumers are exposed to new products

there by reducing the risk in stocking new product.

2.4 Problems of Sales Promotion

Sales promotion has the following negative

effects and they are:

 Dearth and information: There is usually little or no

information to be given, there is equally problem of an

approach time of the sales promotion offer.

 Further problem faced in the use of sales promotion

is that of illiteracy, ignorance, conservation and

sentiment even if the promotional message is clear

the methods of entry is usually highly procedural.

 There is problem of dishonesty: The organizers of a

sales promotion campaign may exclude certain people

from participating in the interest of fairness.

 Role conflict, ideally, the brand manager is in charge

of managing the sales promotion programmes, but

when the incentive is attractive the brand manager

may not be given a free hand to run the sales

promotion programme.

 Programme distribution: The distribution of incentive

may not be done freely as expected the distribution

even be directed to the wrong sources.

2.5 Planning Sales Promotion

When it comes to considering the range of sales

promotion tools and techniques we all face with

almost bewildering verity.

Two excellent review of the range of sales

promotion tools are those given by Davidson (1987)

and Coulson Thomas (1983). The intention here is to

point to the users of sales promotion in marketing

 planning together with some of the users which arise

in an attempt to manage this element more effectively

with many varieties of sales promotion techniques,

however, we need to be sure that the planning of

sales promotion is systematic.

The starting point in planning of sales

promotion is the identification of the target audience

and specific objective we intend our sales promotion

to achieve.

The following are the factors to be considered in

planning sales promotion strategy.

 Nature of the Market: This means the sales, the

location compositing, exposure, and demography.

 Culture of Tradition: This takes into account the

perception of the incentive in terms of the culture

religions, economic and social class as well as

political consideration.

 Cost Consideration: The seller should be able to

ascertain the impact of the incentive cost of the profit

realize.
 Competition: Middlemen can organize competition

for members of the public as a way of creating

awareness, stimulating interest and desire in order to

enhance sales.

 Promotional Objectives: The promotion should be

selected on the basis of promotional objectives, loss

leader pricing is a short term incentives for attracting

buyers to the shop.

2.6 Measuring Sales Promotion Effectiveness

Evaluating of sales promotion is becoming

increasingly important because of the increasingly

important because of the increase expenditure on it.

In spite of the crucial nature of evaluating it to the

management many marketers still neglect to

evaluate the result of sales promotion activities that

is difficult to do.

The effect of sales promotion can only be

through evaluation and control of sales promotion

activities often the formal evaluation of sales

promotion campaign is over looked by marketers. The

chief factors is accessing the success of a sales

promotion.

Comparing is usually of effect on sales, in doing

this will must also be aware that this should be

compared with both the cost of the campaign and the

money or the other element of promo tools.

In measuring the effectiveness of sales

promotion it is important to monitor sales.

The explanation for this is given by Spiland

(1960) and it is show in figure 1.1 below

A B
C

Figure 1.1 measurement of sales promotion effectiveness

 Figure 1.1 above the area AB diagram

represents the additional sales volume generated by

the sales promotion.

Area A represents extra sales during the time

promotion is in effect and B is the carry over effect.

Area C however represents future last sales.

2.7 Marketing and Distribution Activities in Coca-Cola

Bottling Company

Marketing department is one of the functional

areas of the company (C.B.C) It handles all the

marketing activities in the organization this unit is

the area of jurisdiction of the marketing manager who

is the head of the marketing department.

He ensure that the product is effectively

distributed to all parts of the town e.g. Auchi,

Ekpoma, Fugar, Egor and Okada etc.

 This is done to ensure that the product gets to

its customers and consumers. The company makes

use of efficient co-ordinators such as wholesalers and

retailers who ensure that the products are distributed

to the remote part of the state.

However, the main functions of the marketing

department are listed below:

 Trial Policy: These included method of selling prices,

recovery and sales feedback to ensure a first class

standard of marketing product through distributors

nationally.

 Training: They embark on all level of training to

ensure competence and well motivated sales force.

 Preparation of Accounting Document: These

documents are required for the effectiveness running

of the business.

2.8 Promotional Activities in Nigeria Coca-Cola

Product Company (NBC)

 Promotional activities used by Nigeria bottling

company to promote sales are as follows:

Consumer Promotion: The consumer is the ultimate

source of demand for any product.

As a result, the seller should attempt to do

whatever is possible to influence the consumer

choices in his favour. Coca-Cola do make some of the

following offer:

 Free Sample: This is one of the oldest method often

used in consumer promotion it is the most desirable

when product is new and relatively known to the

buyers and consumers.

 Couponing: This consumer is given a leaser (coupon)

or voucher which enables him/her to buy a product

at a cheaper price. Coupons are used to produce

trails, conventiers to regular users and to attract

many prospects to the product.

 Premiums: They are used to boost sales by creating

product awareness and trials, premiums are of two

main types; free in mail and self liquidating premium.

a. Free in mail premiums offer a product free for the

purchase of another product. For example a free T-

shirt or Towel for any bottles of Coca-Cola you drink

or buy.

b. Self Liquidating Premiums: Offered to customers at

the firm wholesalers price it is self liquidating

because the consumer pay the cost of the goods plus

other expenses but the price paid is lesser than the

retail price of the product.

 Price off (Price Reduction): This provides a quick

defensive response to offset a competition promotion,

price off is “mark down” in the retail price of the

product.

 Refund Offers Discounts: This is a special consumer

deal that is used to encourage customers to buy and

an reinforce buyer band loyalty. Refunds create

interest and provide goods sales atmosphere or

talking point for the sales people, and are often used

to attract special attention to the products package.

 Sweepstakes Contest and Games: These generally

required contestants to participate in the contest by

sending in an entry in an entry in a special

stimulating format determine by the promoter. A

successful sweepstake and game promotion should.

a. Be simple and not offer confusing price

b. Combine and not suspensions and action that results

in minimum frustration no long period of waiting

should be required.

c. Be capable of being run more than once and be of low

cost to the advertiser.

 Demonstration: The seller should be able to

demonstrate the use of the product convincingly to

the potential buyers or consumers.

 Trading Stamp: They are usually initiated by

retailers to create steady users. A buyer is given a

stamp whose value is known and as benefit for

buying up to a certain quality and quantity.

 Point of Purchase Promotions: These are incentives

that are displayed at the point of purchase.

Manufacturers provided advertising allowance and

display allowance to middlemen to enable them

display their merchandise attractively and encourage

them to carry the manufacturers producer.

 References

Adirika, E. O. (2007). Principles and Practices of Marketing

(Marson Published Limited Enugu).

Coulson, T. (1979). Marketing Communication (Heinemann

London).

Momoh, S. M. (2001). “Marketing Communication” (Matko

Published Limited).

Kotler, P. (2000). Principle of Marketing, Darling

Kindersley, India Private Limited.
 Chapter Three

3.0 Research Methodology

3.1 Research Design

This research work was carried out using survey

method. Survey was chosen so that the result can be

used to generalize the effect of sales promotion on the

consumption of soft drinks.

3.2 Population of Study

The population of comprises the consumers and

staff of Coca-Cola product in Benin City and its

environs.

3.3 Sampling/Sampling Technique

For the purpose of this study, 20 consumers

representing different age and sex were selected using

the multi-stage type of random sampling and 20

staffs of the company randomly selected. Since it was

basically no possible to interview all the Coca-Cola

consumers and staffs in the selected areas.

 The procedures used here was random sampling

which is also known as probability sampling. The

random was achieved by selecting the main town in

Benin City.

However, out of 40 questionnaires administered

to the company staff and consumers, the 40

questionnaires were retrieved and fully completed

representing 100%.

3.4 Sources of Data Collection

There were two sources of gathering data viz

primary and secondary data collection.

The primary sources of data collection consisted

of administered questionnaires. The questions were

close ended an respondents were to tick (x) as the

right answer of the alternative provided for each

question.

Secondary data collection, information were also

gathered through secondary sources like text books,

journals, lecture notes and internet.

3.5 Validation of Data Analysis

The questionnaires were validated with the help

of research supervisor.

3.6 Method of Data Analysis

Data gathered were analyses by using simple

percentage as shown below.

The formula is in percentage (%)

F x 100
N

Where F = Frequency of respondents

N = Number of question retrieved

3.7 Cut-Off Point/Decision Rule

The total respondents will be put as hundred

percent. The percentage that will indicate

insignificant will range between 0% - 49% while

significant percentage will rage between 50% - 100%.

Decision Rule

If the level of significant is 50%-100% (that

means viable) we accept the null hypothesis and

reject the alternative hypothesis. If the level of

significant is 1%-49% (which is not viable) we accept

the alternative hypothesis and reject the null

hypothesis.
 Chapter Four

4.0 Data Presentation and Interpretation

4.1 Presentation of Data

The method employed by the researcher for

analyzing and interpreting of data include the tabular

interpreting of data and the use of simple

percentages.

Table 4.1.1 Table 1

Total number of questions administered and

retrieved

Participant No. of No. of Percentage

Questionnaires questionnaires (%)

Administered Retrieved
Staff 20 20 50
Consumer 20 20 50
Total 40 40 100

Source: Administered questionnaires 2013

Percentage of questionnaire administered and

retrieved

Total number of questionnaires administered x 100

Total number of questionnaires retrieved 1
Staff: The questionnaires were designed with option

given to the questions to enable the respondents to

answer the questions with ease from the

questionnaires. The staff were given little provisions

for their personal data.

Table 4.1.2 Age:

Table 2

Below 20-29 30-49 50 Total

20 above
No of 2 4 10 4 20

respondent
Percentage 10 20 50 20 100

Source: Field Survey 2013

Total population sampled randomly a total of 2

respondents making up to 10% of the population fall

below age of 20 years, 4 respondents making up to

20% were between the age range of 20-29 years, 10

respondents making up to 50% were between the

range of 30-49 years while 4 respondents making up

to 20% were between the age of 50 and above range of

50 and above.
4.1.3 Sex

Table 3

Female Male Total

Respondents 8 12 20
Percentage 40% 60% 100%

(%)

Source: Administered Questionnaires 2013

A total of 8 respondents making up 40% were

female while 12 respondents making 60% of the total

population were male.

Computation

Female = 8 x 100 = 40%

20 1

Male = 12 x 100 = 60%

20 1

Table 4

Married Single Total

Respondents 11 9 20
Percentage 55% 45% 100%

(%)

Source: Administered questionnaire 2013

 From the total population sampled, total of 11

respondents making up 55% were married while 9

respondents making up 45% were single.

Computation

Married = 11 x 100 = 55%

20 1

Single = 9 x 100 = 45%

20 1

Table 4.1.5 Occupation

Student Employee Trader Farmer Total

Respondents - 20 - - 20
Percentage - 100% - - 100%

Source: Administered Questionnaire 2013

The population sampled randomly 20

respondent making up 100% were employee.

4.1 Residence

Benin Auchi Other Total

Respondent 12 6 2 20
Percentage 60% 30% 10% 100%

(%)

Source: Administered Questionnaire 2013

 The total population sampled was 12

respondents making up 60% reside in Benin, 6

respondents making up 30% reside in Auchi while 2

respondents making up 10% reside in other part of

the state.

4.1.7 Does your company do any promotion?

Table 7

Respondent Percentage (%)

Absolutely 19 95%
Somehow 1 5%
No - -
Total 20 100%
From the table above 19 respondents making

95% recorded absolutely while 1 respondent recorded

somehow to the question above.

Computation

Absolutely = 19 x 100 = 95%

20 1

Somehow = 1 x 100 = 5%
20 1

Table 4.1.8: How often does your company carry

out sales promotion?

Table 8
 Respondent Percentage (%)
Annually 2 10%
Bi-annually 15 75%
Quarterly 3 15%
None - -
Total 20 100%

From the table above, a total of 2 respondents

making 10% record annually, 15 respondents making

up 75% recorded bi-annually while 3 respondents

making 15% responded quarterly.

Computation

Annually = 2 x 100 = 10%

20 1

Bi annually = 15 x 100 = 75%

20 1

Bi annually = 1 x 100 = 15%

20 1

4.1.9: Who does the planning of your company’s

sales promotion?

Table 9

Respondent Percentage (%)

Top manager 20 100%
Middle management - -
Any other option - -
Total 20 100%

From the table above a total of 20 respondents

making 100% recorded that it is the top management

that does the planning of the company’s sales

promotion.

4.1.10: Does you think adequate sales promotion

make your company to increase sales volume:

Table 10

Respondent Percentage (%)

Absolutely 20 100%
Somehow - -
No - -
Total 20 100%

From the table above a total of 20 respondents

making 100% of the population responded positively.

That is to say sales promotion increases the company

sales volume.

4.1.11: Does your company consider their

competitors before embarking on their promotion?

Table 11
 Respondent Percentage (%)
To a great extent 18 90%
To a small extent 2 10%
To no extent - -
Total 20 100%

From the table above, a total of 18 respondents

making 90% of the respondents responded positively,

that is to say that the company consider her

competitors before embarking on sales promotion

activities while 2 respondents making 10% responded

a small extent does the company consider their

competitors before embarking on their sales

promotion.

4.1.12: What impact has promotion made to your

company?

Table 12

Respondent Percentage (%)

Positive Impact 20 100%
Negative Impact - -
No option - -
Total 20 100%
 From the table above, a total of 20 respondents

making up 100% of the population recorded positive

impact.

4.1.13: How long do your company’s sales promotion

impact manifest?

Table 13

Respondent Percentage (%)

Short period 12 60%
Long time effect 8 40%
Any other option - -
Total 20 100%

From the table above, a total of 20 respondents

representing 60% recorded short period while a total

of 80 respondents making 40% of the total population

say long time effect.

4.2 Analysis of Data

Section B Part One

For Consumers
 The questionnaires were designed with option

given to the question to enable the respondens

answer the questions.

4.2.1 Age

Table 14

Respondent Percentage (%)

Below 4 20%
20-29 6 30%
30-49 10 50%
50 and above - -
Total 20 100%

From the table above a total population of 4

respondents making up 20% of the total population

fall between the age below 20, 6 respondents making

up 30 of the total population fall between the age of

20-29 while 10 respondents making up 50% of the

total population fall between the age 30-49.

4.2.2 Sex

Table 15

Respondent Percentage (%)

Male 7 35%
Female 13 65%
Total 20 100%
 From the above a total of 7 respondents making

up 35% were male, while 13 respondents were female

making up 13 respondents were female making up

65%.

4.2.3 Marital Status

Table 16

Respondent Percentage (%)

Married 1 5%
Single 19 95%
Total 20 100%

From the total population of 1 respondent

making up 5% is married while a total of 19

respondents making up 95% were single.

4.2.4 Occupation

Table

Respondent Percentage (%)

Student 19 95%
Employee - -
Trader 1 5%
Unemployed - -
Total 20 100%
 From the above table a total of 19 respondents

are student making up 95% while 1 respondents

making up 5% of total population is a trader.

4.2.5 Residence

Table 18

Respondent Percentage (%)

Benin 7 35%
Auchi 9 45%
Other 4 20
Total 20 100%

From the total population 7 respondents making

up 35% reside in Benin, 9 respondents making up

45% reside in Auchi while 4 respondents making up

20% residence in other part of the state.

Section B Part Two

4.2.6 Are you aware of Coca-Cola Bottling

Company?

Table 19

Respondent Percentage (%)

Very well 20 100%
Fairly well - -
No - -
 Total 20 100%

From the table, a total of 20 respondents

making up 100% recorded that they are aware of the

company Coca-Cola bottling company.

4.2.7 Do you consume any of its products?

Table 20

Respondent Percentage (%)

Absolutely 20 100%
Somehow - -
No - -
Total 20 100%

From the table above a total of 20 said that they

consume the company’s product.

4.2.8 Are these products distributed to your

area?

Table 21

Respondent Percentage (%)

Very well 20 100%
Fairly well - -
No - -
Total 20 100%
 From the above, a total of 20 respondents

making up 100% said that the company products are

distributed in their area.

4.2.9 Are you satisfied with the level of

distribution of the products to your area?

Table 22

Respondent Percentage (%)

Highly stratified 20 100%
Fairly solidified - -
No satisfied - -
Total 20 100%

From the above a total of 18 respondents

making up 90% are contended with the quality of

Coca-Cola bottling drinks while total of 2 respondents

making up 10% are of small extent of being

contended with the quality of the drinks.

In the soft drink market?

Table 23

Respondent Percentage (%)

Top 20 100%
Middle - -
Lower - -
Total 20 100%
 From the table above, a total of 20 respondents

making up 100% said that Coca-Cola product hold

the top position in the soft drinks market.

4.2.10 Can you any Coca-Cola sales promotion

listed below?

Table 24

Respondent Percentage (%)

Lift of promo 14 70%
Coca-cola mega 2 10%
Speak football 3 5%
Cash promo 1 5%
Total 20 100%

From the table above, a total of 14 respondents

making up 70% recorded lift of promo, 2 respondents

making up 10% recorded Coca-Cola mega, 3

respondents making up 15% recorded speak football

while 1 respondent making 5% of the population

recorded case promo.

4.2.11 Do sales promotion motivate you to

consume more bottles of coca-cola products?

4.3 Test of Hypothesis

Hypothesis I

HO: Sales promotion result does not motivate

consumers to consume more bottles of mineral.

HI : Sales promotion motivates consumers to

consume more bottles of minerals drink.

From the data collected with the aid of

questionnaire and interviewed guild are presented in

tabular for analysed with simple percentage and chi-

square as a test of association which is the statistical

tool employed to find out the existence of a

relationship between the variables.

The use of Chi-square here is to determine the

effect of sales promotion on the consumption of soft

drinks.

The formula of chi-square as use here is

X2 = (o – e)2
E

Where X2 is chi-square

O is the observed frequency

E is the expected frequency

 This measure the difference between the

expected frequency and the computed with the above

formula.

Degree of freedom: The number of degree of

freedom for a contingency.

M x n (m – 1) (n – 1)

Is to determine the table value of the calculated

degree of freedom.

From the data gathered through the

questionnaire administered the research hypothesis

formulated the research hypothesis formulated earlier

will now be tested using chi-square X2 test.

The test represent a useful method of comparing

experimentally obtained result with those to be

expected theatrically on the hypothesis in order to

achieve the objective and the study, two hypothesis

were formulated and analyzed.

Hypothesis I

HO: Sales promotion does not result in high sales

volume.
HI : Sales promotion result in high sales volume

Respondent Percentage (%)

Absolutely 20 100%
Somehow - -
No - -
Total 20 100%

From the table above the total of 20% making

up 100% respondents responded positively.

Hypothesis II

HO: Sales promotion does not motivate to consumers

to consume more bottle of mineral drinks.

HI : Sales promotion motivates consumers to consume more bottles of

mineral drinks.

Respondent Percentage (%)

To a great extent 15 75%
To a small extent 4 20%
To no extent 1 5%
Total 20 100%

From the table above a total of 15 respondents

making up to 75% recorded great extent, 4

respondents making up 20% recorded small extent

while 1 respondent making up 5% recorded no extent

do sales promotion motivation to consume more

bottles of coca-cola drinks.

To analyze using chi-square have:

X2 = (o – e)2
E

To get value for expected

e – 20 = 6.7
e 3

Response O E o-e (o-e)2 (o-e)2

e
To a great extent 15 6.7 8.3 68.89 10.28
To a small extent 4 6.7 -2.7 7.29 1.09
To no extent 1 6.7 -5.7 32.49 4.85
Total 16.22

Calculating the degree of freedom

K–1

3–1 = 2

3 under level of significance of 0.05 = 5.991

The calculated value is more than the table

value (cvtv).

That is to say that alternative hypothesis H I

should be accepted while the null hypothesis H O

 should be rejected showing that sales promotion

motivate consumers to consume more of coca-cola

drinks.

4.4 Discussion of Findings

Based on the analysis of the questionnaire

administered the following findings were made.

i. That sales promotion increases the sales of the

company’s product.

ii. That sales promotion increases the competitiveness of

a business organization. Which lead to having a large

market shares.

iii. That sales promotion will be effective if properly

planned.

iv. That people are aware of the company’s product

through the intensive awareness created by sales

promotion.

v. The effectiveness of sales promotion is based on the

return on sales.
vi. That no business can meet or achieve its goals and

objectives without sales promotion in a competitive

environment, this is due to the facts that a lot of

people will not be aware of the product of the

company. When a company do sales promotion and

there is increase in sales, the promotion can be said

to be effective.
 Chapter Five

5.0 Summary of Findings, Conclusion and

Recommendations

5.1 Limitation of Study

In carrying out this project work, the researcher

encountered several constraints and limitations. They

are poor cooperations of respondents. Another major

constraints was limited finance.

5.2 Summary of Findings

Based on the analysis, it was observed from

Hypothesis I question 9 in the questionnaires that

majority of the respondents accepted that adequate

sales promotion resulted in high sales volume. It was

also found from Hypothesis II in question 8 of

questionnaire that 15 responding representing 75% of

the total population feels that sales promotions help

to motivate consumers more, 4 respondents making

up 20% recorded small extent. While it was also

discovered that 1 respondent representing 5% of the

 total population recorded that sales promotion

motivate consumer.

It was observed from the questionnaire

administered that out of the total population, the

majority of the respondent agreed that sales

promotion has a positive impact on the sales of Coca-

Cola products.

It was also discovered that from the total

population, 20 respondents representing 100% say

that the company considers their competitors before

embarking on their sales promotion.

5.3 Conclusion

The research study showed that sales promotion

produces a high sales responses shown by the

significant difference between the level of

consumption before and during the promotion as

shown when chi-square techniques is used on the

sales figures in hypothesis II.

 The study also showed that high response to

sales promotion is not maintained at the expiration of

the promotions.

There is no significant differences in the level of

consumption before and after any of the sales

promotion as shown by the data analysis.

5.4 Recommendations

The company should embark on sales promotion

as one of the promo tools to achieve its cooperate

goals.

The company should improve on the quality of

its products to differentiate it from other products of

the competitors and used sales promotion to enhance

its competitive advantage and to increase its

profitability.

The study also suggests that sales promotion

should be done at the appropriate time with regards

to availability of products and funds.

 The study also recommended that adequate

budget should be made available. The study also

recommended that adequate planning should be

made as to whether the external environment of the

business is favourable before sales promotion is

carried out.

Sales promotion budget should be prepared in

such a way that will be suitable for the organization

that is applying it.

5.5 Areas for Further Study

Since the research work was restricted to few

towns in the state, it is the researcher’s opinion that

the same research on the same topic should be

carried out in another different state entirely.

 Bibliography
Adirika, C. O. (2007). Principles and Practices of Marketing
(Marson Published Limited Enugu).

Brown R. (1974). Sales Response to Promotion and

Advertising (Journals of Advertising Research).

Coulson, T. (1979). Marketing Communication (Heinemann

London).

Donald, R. M. (2005). 15 Tips for more Effective Sales

Promotion (Business Management vol. 40).

Kotler, P. (2000). Principle of Marketing, Darling

Kindersley, India Private Limited.

Momoh, S. M. (2001). “Marketing Communication” (Matko

Published Limited).
 Appendix I
Department of Marketing,
Auchi Polytechnic,
P. M. B. 13,
Auchi,
Edo State.

Dear Respondent,
Questionnaire
I am a final year student of the Department of
Marketing, Auchi Polytechnic, Auchi.
I have been assigned to carry out a research work on
Effects of Sales Promotion on Consumption of Soft Drinks
using Coca-Cola Bottling Company Plc as a case study.
The purpose of this questionnaire is for you to supply
all necessary information or data required by me to
complete my research work. The research work is in partial
fulfillment of the requirement for the awards of Nation
Diploma (ND) in Marketing.
The research is purely academic, hence any
information supplied would be treated as confidential.
It will be appreciated if you can provide honest
answer to the questions it contains.
Thanks for your anticipated cooperation.

Yours faithfully,
John Kinglsey U
 Questionnaire for Company Staff

Please Tick the Right Box

1. Age

a. Below 20 [ ]

b. 20 – 29 [ ]

c. 30 – 49 [ ]

d. 50 and above [ ]

2. Sex

a. Male [ ]

b. Female [ ]

3. Marital Status

a. Male [ ]

b. Female [ ]

4. Occupation

a. Student [ ]

b. Employee [ ]

c. Trader [ ]

d. Farmer [ ]

5. Residence

a. Benin [ ]
 b. Auchi [ ]

c. Other [ ]

6. Does your company do any sales promotion?

a. Absolutely [ ]

b. Somehow [ ]

c. No [ ]

7. How often does your company carry out promotion?

a. Annually [ ]

b. Bi-annually [ ]

c. Quarterly [ ]

d. None [ ]

8. Who does the planning of your company’s sales

promotion?

a. Top management [ ]

b. Middle management [ ]

c. Any other option [ ]

9. Do you think adequate sales promotion can make

your company to increase their sales volume?

a. Absolutely [ ]

b. Somehow [ ]
 c. No [ ]

10. Does your company consider their competitors before

embarking on their sales promotion?

a. To a great extent [ ]

b. To a small extent [ ]

c. To no extent [ ]

11. What impact has sales promotion made to your

company?

a. Positive impact [ ]

b. Negative impact [ ]

c. Any other opinion [ ]

12. How long do your company sales promotion impact

manifests?

a. Short period [ ]

b. Long time effect [ ]

c. Ay other opinion [ ]

Questionnaire for Consumers

Please Tick the Right Box

Section A
1. Age

a. Below 20 [ ]

b. 20 – 29 [ ]

c. 30 – 49 [ ]

d. 50 and above [ ]

2. Sex

a. Male [ ]

b. Female [ ]

3. Marital Status

a. Male [ ]

b. Female [ ]

4. Occupation

a. Student [ ]

b. Employee [ ]

c. Trader [ ]

d. Farmer [ ]

5. Residence

a. Benin [ ]

b. Auchi [ ]

c. Other [ ]
 Section B

1. Are you aware of the Coca-Cola bottling company?

a. Very well [ ]

b. Fairly well [ ]

c. No [ ]

2. Do you consume any of its products?

a. Absolutely [ ]

b. Somehow [ ]

c. No [ ]

3. Are these products distributed to your area?

a. Very well [ ]

b. Fairly well [ ]

c. No [ ]

4. Are you satisfied with the level of distribution of these

products to your area?

a. Highly satisfied [ ]

b. Fairly satisfied [ ]

c. Not satisfied [ ]

5. Have you considered the quality of the drinks?

a. To a great extent [ ]
 b. To a small extent [ ]

c. To no extent [ ]

6. What position do you think coca-cola products hold

in the soft drink market?

a. Top [ ]

b. Middle [ ]

c. Lower [ ]

7. Can you recall any coca-cola sales promotion listed

below?

a. Lift of promo [ ]

b. Coca-cola [ ]

c. Speak football [ ]

d. Cash promo [ ]

8. Do sales promotion motivate you to consume more

bottles of coca-cola products?

a. To a great extent [ ]

b. To a small extent [ ]

c. To no extent [ ]