Assessing the effect of promotion on sells in the case

of MOHA Soft Drink Company S.C

RESERCH PAPER

PREPARED BY: TEFERA TESHOME ABEBE

SUBMITED TO: (MSC)DANIEL TEKLA

UNIVERSITY OF ARBAMINCH COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANGMENT AT ADDISS ABEBA CENTER

FEB, 2018
ADDISS ABEBA, ETHIOPIA
Assessing the effect of promotion on sells in the case of
MOHA Soft Drink Company S.C

PREPARED BY: TEFERA TESHOME ABEBE

SUBMITED TO: (MSC) DANIEL TEKLA

UNIVERSITY OF ARBAMINCH COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANGMENT AT ADDISS ABEBA CENTER

FEB, 2018
ADDISS ABEBA, ETHIOPIA
 Abstract

Promotion presents the need for companies to expand its sells into existing &
new territories world-wide. An ethos of promotional knowledge transfer,
implementation and learning are needed for international business success.

Now a day, many companies engaged in production and distribution of different

products in order to make heavy investment on promotion. This research is
conducted to identify the effect of promotion on sales volume and customer
satisfaction of MOHA soft drink Industry S.C. Products. In fulfilling the above
objective, the study is designed to identify the major role which is played by
promotion.

The main objective of the study is to indicate the role of promotion on sales
volume and customer satisfaction. Indicate to the company, promotion influence
on the sales volume and incremental of customer satisfaction. Also data present
and analysis using figures too.

The area coverage of this study is limited to Addis Ababa city, especially
southern district. The type of product would be limited to only MOHA soft drink
Company.

Both the primary and secondary data collection could be used by researcher in
the methodology part. The researcher uses Judgment sampling technique,
Interview, tables, figures and charts.

MEDROC groups in general & MOHA soft drink Industry S.C. in particular are
new and significant phenomena, are newly internationalizing, and are culturally
working by advancing in promotional aspect. This study will huge important
which attach with research to identify if and how they reconcile this conundrum,
to advance understanding concerning the link between Promotion and
international business development.

I
 Acknowledgment

I would like to express my spatial thanks of gratitude to my teacher (MSC) Mr.

DANIEL TEKLE who gave me the golden opportunity to do this wonderful
research on the topic “Assessing the effect of promotion in the case of MOHA Soft
Drink Company”, I came to know about so many new things I am really thankful
for your ultimate support.

Secondly I would also thank my parent and friends who helped me a lot in
finalizing this research within the limited time frame.

Finally I would also thank s EYERUSALEM ABI(MBA) allowing me to use her

project “Advertisement effects on sales volume of Coca cola company “ as
warming up thought and advice.

II
 Table of Contents

Abstract...................................................................................................I
Acknowledgment.....................................................................................II
Table of Contents...................................................................................III
List of Tables .......................................................................................IV
List of Figures.........................................................................................V
Acronomy............................................................................................. VI
Chapter one............................................................................................1
1. Introduction........................................................................................1
1.1. Background of the Study....................................................................................1
1.2. Statement of the problem.................................................................4
1.3. Objectives of the study.....................................................................5
1.3.1.General objective.....................................................................5
1.3.2. Specific objects.......................................................................5
1.4. Significance of the study....................................................................................6
1.5. Scope of the study............................................................................6
Chapter Two...........................................................................................7
2. Literature Review................................................................................7
2.1. Developing and Managing an Advertising Program...................................7
2.1.3. Promotional Effectiveness.......................................................9
2.1.4. Deciding on the promotion Budget........................................10
2.1.5. Choosing the promotion message..........................................12
2.1.6. promotion Channels.............................................................13
Chapter Three.......................................................................................15
3. Methodology......................................................................................15
3.1. Sources of data..............................................................................16
3.2. Method of data collection.................................................................................16
3.3. Sampling technique and sampling size.......................................................17
3.4. Data processing and analysis.........................................................................17
3.5. Data presentation and interpretation..........................................................17
Chapter Four........................................................................................18
4. Data Presentation and Analysis.........................................................18
Chapter Five.........................................................................................28
5. Recommendation and Conclusion.....................................................28
5.1. Recommendation...........................................................................29
5.2. Conclusion.....................................................................................31
Organization of the paper......................................................................33
Appendix...............................................................................................34

III
 List of Tables

Customer’s background........................................................................19
Attitude towards product of MOHA company........................................21
Customer’s preference to the product....................................................21
Customer source of information of MOHA company..............................22
Customer eveluation on price of MOHA product....................................24
Customer interest towards the company promotion.............................23
Attitude toward customer satisfaction...................................................25
Evaluation of MOHA soft drink company promotion..............................25
Effect of the company Promotion on its customers buying rate…………..26

IV
 List of Figures and Images

Bar-Chart Image (MOHA products).........................................................2

Pie-chart Sex distribution of customer.....................................................18
Bar-Chart Monthly income level of customers..........................................20
Pie-chart Evaluation of MOHA soft drink company..................................27

v
 Acronyms

AMU – Arbaminch University

MOHA - MOHAMODE AND its family company

DW - District Wholesaler

GMP - Good Manufacturing Practices

AIDS - Acquired immune deficiency syndrome

VI
 Chapter 1 (Introduction)

Background of the study

This research intends to assess the promotional effect towards the MOHA soft
drink Industry S.C.
In marketing, Promotion is advertising a product or brand, general sales, and
creating brand loyalty. It is one of the basic elements of market mix. So in 21
centuries it’s unthinkable selling a product without a backlog of huge
promotion. (Michael R and Ilkka A, 1998)

The effective implementation of the promotional program is a key ingredient in

the marketing success of the firm. The promotional tools must be used within
the opportunities and constraints posed by the communications channels as
well as by the lows and repudiations governing marketing communications.
(Michael R and Ilkka A, 1998)

Currently, No matter how there is an increment of sells here is a gap between

sells rate of the product by customers decreased in 2017 in a comparison.
(Company’s brusher, 2017)

Due to different reasons, the researcher tries to fill the gap by seeing different
researchers work. To fill this gap the researcher used the following ideas.

 Peoples need to know about detail product features.

 Problem of choosing the correct Promotional media

 In what best way that the promotion can be able to address the expected
message?
 Focus on out of promotional thought

page 1
“Ethiopia has a great consumer story. Its growing so quickly but there is still so
little that is manufactured locally. One of the industries that people are really
excited about is beverage.” (Brooks, 2014)

Competion in soft drink industry in Ethiopia is so intensive for example: - Last

year Coca cola Sabaco invested in refurbishing its plant in Ethiopia city of Dire
Dawa and building a new returnable glass bottling line. (Capital Magazine,
2013).

So this indicate there is an intense competion on the market and this company
must fully backed by promotional scenario to achieve high amount of sales.

In my point of view, “MOHA Soft drink industry S.C have face huge competion
in the market and have face decrement on sales rate in last year” (Company’s
brusher, 2017). So it’s obvious this company needs a well defined research and
researcher to indicate brief and clear promotional ways.

Background of the Organization

MOHA soft drinks industry S.C was established on may 15, 1996 acquiring
“Nifassilk” plant, “Teklhymanot” plant, “Gonder” plant and “Dessie” plant from
the Ethiopian privatization agency with the paid capital of Birr 108,654,000.
The company currently has seven operating units including “summitte” plant,
“Bure” plant, and the recently inaugurated “Hawasa” plant in the SNNPR.

Image 1 Product of MOHA Soft drink company S.C (From left to right – PEPSI, Miranda
Orange, 7Up, Miranda Tonic, Kool water and PEPSI Shresher)

page 2
The annual turnover of the company has reached to birr 556 million and sales
stands at an average annual growth rate of 12%. (company website, 2017).With
its leadership working hand in hand the business has seen significant growth
over the years .processed and functions have been improved, resulting in
considerable sales increases.

Ethiopia enjoy a range of beverage from MOHA soft drink Company including
those are: PEPSI Cola, Miranda Orange, 7Up, Miranda Tonic, Miranda Apple
(All Pepsi Brands) and “Kool” and “Tossa” bottled water products.)

Market

MOHA hold 52% of the market share in soft drink industry in the country with
an expansion and replacement of obsolete machinery. Production capacity of
the plant has invested birr 8 million for the expansion of new projects, birr 153
million for marketing, infrastructure, excluding promotion and sponsorship
expenses. Also a significance growth over the years of production, Sales and
profitability due to reorganization of operations has been achieved. But no
matter how the production is increasing tremendously the growth rate declined
throw time due to intense competion and lack of alternative source of
promotional ways.(Company website,2016)

Corporate Citizenship and Social Responsibility

The company has to date paid birr 656 million as excise and sales tax to the

government. It provided 2485 for citizens out of which 1095 are now
employment opportunities since acquisition. MOHA has been successfully
implementing its social obligation by way of sponsoring different events and
supporting initiatives. It has contributed Birr 2 million for victim of natural
disasters. It has also backed initiatives and supports HIV/AIDS victims in the
company. page 3
 MOHA is well known for its multi fascinated participation in the community
activities of which is “Merkato Adarash” modern city bus terminal project
under the motto of “Beautifying the city together” is a recent paradigm.

Future plan

An average annual increase of 15% in sales volume and a corresponding profit

growth is anticipated. (Company website, 2016)

Statement of the problem

Most of the time there is a problem on the process of making promotion.

Among the problems the promotion cannot consider those groups who need to
know about the product features, the time of promotion and promotion agency.
(Mc Carthy & Jerome E (1964))

Addressing the promotion in short and brief way so that it can be able to
address the required information and it take into consideration to decrease the
cost incurred for the promotion and to give clear information to the customers.
Choosing the best suitable time for promotion and proper promotional agency
are the most important issues that the company should give due attention. The
company made a different attempt to looking a solution. But the way they use
such layout is outdated and backward (traditional way of advertising only).
With advertising, a company engages in a one-way communication to the
prospect or customer which is magazines, newspapers, and television,
websites, and city buses. So, this thesis indicate to look a new way of
promotional strategies to add a worth value to customer. The problems are
observed and obviously seen using interview of customers and all stakeholders.

page 4
Therefore, this study has the purpose of investigating whether the promotion
really influences the sales volume of the product. And reduce the information
gap of the subject and were contribute to work better understanding on
improved strategies for reorienting the promotion system for the benefit of the
company.

The main problems MOHA soft drink company face

 Selection of a better promotional agencies

 Lack of promotional strategies
 Lack of computational scenario against revelries
 Lack of influential promotional communication

The evidence that I have stated is the 2017 sales growth rate would be
decreased unpredictably by 7% No matter how the sales amount is increased.
(Company brusher, 2017)

Objective of the study

Main objective

To assess the perceptions of the study is to indicate the role of Promotion on

sales volume and customer satisfaction.

Specific Objectives

1. To identify the influences of promotion on the sales volume of the company.

2. To assess the attitude of the customers and distributors towards the
promotion of the company
3. To identify whether the promotion really influences the sales volume of the
company and its customers.
4. To identify the promotional strategy of the organization.
page 5
5. To identify the way that the organization dealing with customers and sales
volume of the product.
6. To identify customer satisfaction up on promotional strategy of the
company.
7. To forward recommendations as a possible solution on for the identified
problem.

Significance of the study

This study on the perceptions of customers towards new promotional system at

ordinary level will have numerous significances as follows. First, the study will
make a researcher to be more familiar to the problem, as well as how to
conduct research promotional way.

Second, the study will be helpful to perceptions towards the new Promotional
system.

Scope of the study

The study focuses on the promotional activity of MOHA soft drink Industry S.C.
and its impact on the sales volume of the products and customer satisfaction.
The area coverage of this study was limited to Addis Ababa city, especially
South district. The type of product would be limited to only MOHA soft drink
Industry S.C.

Limitations
 Might be the simple random sampling cause unpredictable result on the
research.

 Distance might be a limitation

page 6
 Chapter Two
Literature review

Developing and Managing an Promotional Program

In marketing, promotion refers to any type of marketing communication used

to inform or persuade target audiences of the relative merits of a product,
service, brand or issue. The aim of promotion is to increase awareness, create
interest, generate sales or create brand loyalty. It is one of the basic elements
of the market mix, which includes the four P's: price, product, promotion, and
place. (Wikipidia.com/Definition/promotion, 2017)

Sales promotion is a type of Pull marketing technique. If you have a product

which is new in the market or which is not receiving a lot of attention, then you
can promote this product to customers via sales promotions. You can use
various techniques like giving discounts on the product, offering 1 + 1 free
schemes, etc.(Cambridge online dictionary)

Organizations handle their promotion in different ways. A large company will

often set up its own promotion department. The promotion department job is to
develop total budget.

In developing promotional program, managers must always start by identifying

the target market and buyer motives. Then they can proceed to make five major
decisions in developing promotional program, known as the five M’S.

 Mission: what are promotional objectives?

 Money: How much can be spent?
 Message: what message should be sent?
 Media: what media should be used? page 7
  Measurement: how should the results be evaluated (Kottler, 1998;
p.637).

Setting the promotional objectives

The first step in developing promotional program is to set the promotion

objectives. (Wikipidia.com/Definition/promotion, 2017)

Promotional objectives can be classified according to whether their aim to

inform, persuade or remind.

1. Informative Promotion: where the objective is to build primary demand.

Thus the MOHA Company initially had to inform consumers of MOHA and
its other products benefit and many uses.

2. Persuasive Promotion: becomes important in the competitive stage, where a

company’s objective is to build selective demand for a particular brand.
Most promotion falls into this category. Some persuasive promotion which
seeks to establish the superiority of one brand through specific comparison
of one or more attributes with one or more other brands in the product
class.
3. Reminder Promotion: is highly important with mature products. Expensive
four-color MOHA promotion magazines have the purpose not of informing or
persuading but of reminding people to purchase MOHA product. A related
form of promotion is reinforcement, which seeks to assure current
purchasers that they have made the right choice.

page 8
 The choice of the promotion objectives should be based on a thorough
analysis of the current situation. For example, if the product class is mature,
the company is the market leader and brand usage is low. The proper objective
should be to stimulate more brand usage. (Kottler, 1998)

The role of promotion

The role of promotion from promoters view is that it increases

profitability, even though it is difficult to quantify precisely to what extent.
Those roles of promotion are stated more explicitly below.

1. To increase demand: to the point where economies of scale are achieved.

The promoter may wish initially to build primary demand for the product
as a whole, anticipating that he will benefit proportionally from the
overall growth of the market.

2. The building of a “brand image”: in a competitive, mature market have

other benefits in addition to maintaining or improving the firm’s
competitive position. Brand recognition and brand loyalty relieve the
producer of their dependence on the distributive channels.

3. Information gathering: invariably precedes the purchase of a product to

some degree and clearly, the ready availability of such information in the
form of promotion reduces the prospective purchaser’s dependence on
personal selling.

4. Most firms are subject to a fluctuations demand for their output, be it

seasonal, cyclical or secular, and promotion can do much to minimize
such fluctuation through its impact is greatest in the case of seasonal
variations. page 9
 5. Finally, it is maintained that Promotion improve profitability:- in a less
tangible way by creating good will for the firm as a whole and by
improving the morale of its employee, everyone likes to work for a well-
known firm. (Michael J. Baker, 1996; p.p.366 -367).

Promotional Effectiveness

1. The impact of promotion on brand switching: Telis analyzed housed

consumer product and concluded that promotion appears effective in
increasing the volume purchased by local buyers but less in winning new
buyers.

2. The effect of surroundings: promotion may be more effective when their

message is congruent with their surroundings. For age a “happy”
commercial placed with in art show is more likely to be effective than a
down commercial in the same place. Similarly “serious” commercial usually
works best when placed within a serious program.

3. The effect of positive versus negative messages: consumers may sometimes

respond more to negative messages than to positive messages.
The impact of the loss-oriented message was much stronger than the impact
of the gain-oriented message.

4. sales promotion versus Advertising: where advertising offers a reason to

buy, sales promotion offers an incentive to buy, sales promotion includes
tools for consumer promotion, trade promotion and business and sales force
promotion- sellers use incentive type promotions to attract new customers,
to reward loyal customers, and to increase the repurchase rates of
occasional users. (Kottler, 1998).
page 10
Deciding on the promotional Budget

The role of Promotion is to increase demand for the product or to increase sales
volume and customer satisfaction. The company wants to spend the amount
required to achieve the sales goal. But how does a company know if it is
spending the right amount? If the company spends too little, the effect will be
in significant. If the company spends too much on promotion, then some of the
money could have been put to better use. Although Promotion is treated as a
current expense, part of it is really an investment that builds up an intangible
value called good will or brand equity. (kottler, 1998).

There are five specific factors to consider when setting the Promotion budget:

1. Stage in the product life cycle: - new products typically receive large
Promotional budgets to build awareness and to gain consumer trial.
Established brands usually are supported with lower Promotional budgets
as a ratio to sales.
2. Market share and consumer base: - high market share brands usually
require less Promotional expenditure as a percentage of sales to maintain
their share. To build share by increasing market size (sales volume) requires
larger Promotion expenditure. Additionally on a cost-per impressive basis, it
is less expensive to reach consumers of a widely used brand than to reach
consumers of low-share brands.
3. Competitive and clutter: - in a market with a large number of competitors
and high Promotional spending, a brand must Promotion more heavily to be
heard above the noise in the market.
 Even simple clutter from Promotion is not directly competitive to the
brand creates a need for heavier advertising.
page 11
4. Promotional frequency: the number of repetitions needed to put across the
brand’s message to consumers has an important impact on Promotional
budget.
5. Product substitutability: brands in a commodity class. Example, soft drink
requires heavy promotion to establish a differential image. Promotion is also
important when a brand can offer unique physical benefits or features
(Kottler, 1998; p. 640).

Choosing the promotional message

The creative people must have a clear idea of the characteristics of the
audience expected to be exposed to the message. In this sense, the principles of
creating effective advertising are the same as in the domestic market place. The
marketer must determine what the consumer is really buying, that is the
customer’s motivations these will vary depending on the following.

1. The diffusion of the product or service into the market. Example, to

penetrate third world markets with business computers is difficult when
potential consumers know how to type.
2. The criteria on which the customer will evaluate the product.
3. the product positioning

The ideal situation in developing message strategy is to have a world brand a

product that is manufactured, packaged and positioned the same around the
world. Companies that have been successful with the global approach have
shown flexibility in the execution of the campaigns. The idea may be global, but
overseas subsidiaries then tailor the message to suit local market. The
localization international symbols and using international advertising agencies
(Michael R. and Ilkka A. 1997) page 12
Promotional Channels
1. Personal Selling
Basically personal selling is one-to-one communication between seller
and prospective purchaser. It generates direct contact with prospects and
customers. It is one of the most expensive forms of promotion.

Examples: personal meetings, and correspondence

2. Advertising
Advertising is a form of non-personal promotion. It is when companies
pay to promote ideas, goods, or services in a variety of media outlets. It can be
found everywhere. With advertising, a company engages in a one-way
communication to the prospect or customer.

Examples: magazines, newspapers, television, websites, city buses, etc.

3. Direct Marketing
Direct marketing is a type of advertising directed to a targeted group of
prospects and customers rather than to a mass audience. Two forms of direct
marketing are printed by mail, or direct by e-mail. The goals of direct
marketing are to generate sales or leads for sales representatives to pursue.
Direct marketing allows a business to engage in one-way communication with
is customers about product announcements, special promotions, bulletins,
customer inquiries, and order confirmations.
Examples: direct mail, e-mail, and telemarketing

 4. Sales Promotion

Sales promotion basically represents all marketing activities other than
personal selling, advertising, and public relations. Sales promotions are used to
stimulate purchasing and sales and the objectives are to increase sales, inform
potential customers about new products, and create a positive business or
corporate image. page 13
Examples: coupons, product samples, point-of-purchase displays, brushers,
posters etc.

5. Public Relations
Public relations activities enable an organization to influence a target
audience. Most of the time, public relation campaigns try to create a favorable
image for a company, its products, or its policies. Companies give news
releases to announce newsworthy developments about a company's products
or services, distribution channels, facilities, operations, partners, revenues and
earnings, employees, and events. Publicity is one tactic that public relations
professionals use. This means bringing newsworthy information to the public.

Examples: a campaign to encourage businesses to donate computers to

schools, donating to hospitals, donating to a cause

Empirical research

Study on the effect of promotional strategies on performance revealed A

positive correlation between promotional strategies and sales performance.
Alphonce, Victor, Fredrick, Patrick, Beatrice, and Odhiambo, (2012) It was
reported that at 5% level of significance, there was positive relationship
between the promotional strategies and profits because as the costs on the
promotional strategies increased so did the profits.

Grankvist, Kollberg, Peterson, (2004) in their study in which they Focused on

promotional strategies for banking services, concluded that all Elements of
promotion mix were used to some extent for promotion of banking services.

page 14
This view was supported by Ananda & Murugaiah (2003) who carried out
similar study on financial industry and recognized the importance of
promotional strategy in influencing performance in the sector. In his finding,
Kristina (2006) recommended that promotional strategies should be designed
as per the nature of services to be promoted.

The impact of promotional strategy was further noted by Channon (1985) when
he opined that promotion attract deal oriented consumers who are likely to
switch banks rather than new long accounts. Mohd &Wannur (2012) in their
study noted that personal network promotional tool comprised of promotion
through family / friends (asking friends or relatives to advertise), sales
promotion (special sale price, purchase with purchase, giveaway with purchase
and free sample) and distributors (which moving around office, schools, clinics,
houses and any premises showing the products) have impact on performance.
In the study conducted among women in Kenya by Arvinlucy (2012) it was
found that most women groups use personal selling in promoting their
products. This was due to the fact that other promotional elements require a
lot of money and the groups do not have sufficient fund to carry out those
other promotional elements.

Chalarsoughi and Savory (2012) in the study on effect of sales promotion as a

tool on customer attention to purchase concluded that introducing Khodro’s
products through sales’ promotion attracts customer’s attention to purchase.
50% of the participant selected the agreement choice believing that sales’
promotion will bring about customers attention and promotion of selling.
Fornell, Robinson, and Wernerfelt (1985) argued that sales’ promotion can play
a dual role in that it can be involved in both “habit formation” as well as in
“habit destruction”.

page 15
 Chapter Three

3. Methodology

3.1.Sources of data

Both qualitative and quantitative data were collected, from primary and
secondary sources. This study used both primary and secondary sources of
data.

3.2. Method of data collection

The researcher use structured personal interview and self-administered

questionnaires were utilized to collect the relevant primary data, it were
collected from the customers and distributors by using scheduling
questionnaire in order to consider illiterate respondent.

In structured interview it is completed by the interviewer based on what the

respondent says and they are easier for respondent, especially what are sought
are opinions or impressions, the interviewer works directly with the respondent
so the interviewer had the opportunity to probe or ask follow up questions.

In self-administered questionnaire: the researcher prefers this technique to

design or to achieve cost and time minimization. By limiting time and cost the
researchers do more other necessary things about the research. The secondary
data were collected through reviewing secondary sources.

page 16
3.3. Sampling technique and sampling size

Judgment sampling technique, it was used to select the sample size from the
population. It enabled to select respondents or neutral peoples that provide
relevant information and it is low cost terms of money and save time.

Therefore, 8 distributors and 100 customers were selected from population

interest of the study.

3.4. Data processing and analysis

After the relevant data was collected it was processed through edition, coding,
classify and also analyzed. The data analyzation process was based on
descriptive form of data analysis method. Closed ended questions were
analyzed by tables and percentages. Response that were collected by open-
ended questions and unstructured interview analyzed by coherent and easily
understandable manner.

3.5. Data presentation and interpretation

The data were presented by using tables, figures and charts. Descriptive
statistics was employed to examine the findings of the study.

Page 17
 Chapter Four

4. Data Presentation and Analysis

This study was conducted to assess effect of promotion on sales volume and
customer satisfaction of MOHA soft drink company products. As it was
proposed previously structured questionnaires were prepared to be filled by
selected 8 distributors all of them are responded. From the proposed figure; 93
of the customers were responded. The results obtained are analyzed in this
chapter.

4.1. Characteristics of the customers

Before going to the main part of the study it could be appropriate to present
the characteristics or background information of the study participants.

The figure below presents the sex distribution of the respondents.

40%
Key

FEMALE
53% MALE

Figure 1: sex distribution of customer

Source: own survey, primary data

page 18
As indicated on the above figure, out of the total respondents 54(57%) of them
were Female whereas 40(43%) males. This shows that the proportion of Female
was higher than Male. So, Most of the females were not prefer to drink
alcoholic beverage because of social, cultural and religious influences.
Therefore, in order to satisfy there need they prefer to drink soft drink
products, as indicated on the above data most of the females were highly
correlated with MOHA Soft drink company products.

Table 4.2 customer’s background

Respondent in
N Item Response No %
o
1. Age 18-30 36 37.7
31-45 35 37.6
46-60 14 15
>60 8 8.7
Total 93 100
Source: own survey

According to the information observed on table 2, most of the customers

36(38.7%) were the age between 18-30,35 (37.6%) were between 31-40 followed
by 14(15%) between 46-60 and the rest 8(8-7%) were greater than 60. this
shows that age between 18-30 were the main customers of the company.

As we know MOHA franchise all PEPSI brand soft drink product. So the
promotion of MOHA was made by foreign mass media like super sports on
internet web and other related media, this media is now a day’s dominated by
adult (18-30) age. This shows that they are more aware of MOHA product than
other age groups.

page 19
 40
35
30
25
20
15
10
5
0
Monthly income Key
Birr <1000 Birr 1000 - 2000 Birr 2001 - 3000 Birr >4000
level of cus-
tomersSource: own
survey, primary data

Figure2. Monthly income level of customers

Source: own survey, primary data

One of the determining factors for consumption of any product is income of

customers. As indicated on figure 2, regarding the income level of respondents,
37(39.8%) earned greater than birr 4000, followed by 34(36.5%)birr 2001-3000,
20(21.5%) birr 1000-2000, 2(2.2%) less than birr 1000.

From this we can conclude that the larger proportion of the respondents had
earned greater than 4000 and least of them had earned less than 1000 birr.
This shows the more income they generate, the more MOHA product they use.
Therefore, the amount of money used can determine purchasing ability of the
product.

page 20
Table 4.3 attitude towards a product of MOHA Company

N Question Measurement No of Percentage

o respondent (%)
Do you drink a product of Yes 88 94.6%
MOHA company No 5 5.4%
Total 93 100%
Source: own survey, primary data

According to the data observed on the above table, most 88(94.6%) of

respondents were get or drink a product of MOHA company. The other 5(5.4%)
were not used a product of MOHA company. From the above data we can
slimily say that most of the people drink a product of MOHA Company. This is
because MOHA company done more on quality and related activities. Like the
quality of the product, its sustainability to environment, its healthy related
credibility and others leads people to use the MOHA products. But stile needs
some sort of promotional strategies.

Table 4.4.Customer’s preference to the products of the company

item of products number Percentage

(%)
Miranda Orange 71 76.3%
7Up 14 15.06%
PEPSI Cola 6 6.5%
KOOL water 2 2.14%
Miranda Tonic & Miranda Apple - -
Total 93 100%
Source: own survey, primary data

page 21
As indicated on the above table, concerning customers preference to the
company products most of 71(76.3%) preferred Miranda Orange followed by
14(15.06%) 7Up, 6(6.5%) PEPSI Cola 2(2.14) KOOL water and none of drink
Miranda Tonic & Miranda Apple. From the above data we can simply say that
Miranda Orange has highly preferred by the customers due to its taste and its
refreshing power to motivate people.

Table 4.5.Customers source of information of MOHA Company

Source of information Number Percentage

(%)
Advertising 90 96.78%
Personal Selling - -
Direct Marketing - -
Public Relations - -
Sales Promotion 3 3.23%
Total 93 100%
Source: own survey, primary data

According to the data observed on the above table, most 90(96.7%) of

respondents had gained information about the company is products while the
company makes advertisement, followed by 3(3.23%) for Sales promotion, Null
through Direct Marketing, Personal Selling and Public Relations. This shows
advertisement is the main source of information & company luck alternative
source of promotional way for customers.

Thus, the company had taken a great concern to its advertisement. In this way
advertisement can be addressed in different ways like TV, Radio and Printed
media, therefore; it can addressed to the customers easily.

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 90
80
70
60
50
40
30
20
10
0
Advertising Personal Selling Direct Marketing Public Relations Sales Promotion

Figure 3 Promotional media for which customers get information about the
company products

Source: own survey, primary data

According to the above Figure observed, most 90(96.7%) of respondents had

gained information about the company is products while the company makes
advertisement, followed by 3(3.23%) for Sales promotion, Null through Direct
Marketing, Personal Selling and Public Relations. This shows advertisement is
the main source of information & company lack alternative source of
promotional way for customers.

Table 4.6.Customers interest towards the company’s promotion

item Number Percentage

(%)
Do you find the current promotion of
the company interesting?
Yes 44 47.3%

No 49 52.68%

Total 93 100%
page 23

As we observed on the above table, majority 49(52.68%) of customers stated as

the company Promotion activity not interested of them where as the rest
 44(47.3%) were interested. This shows that the promotion was not interesting
for most of the customers.

Table 4.7.Customers evaluation on prices of MOHA soft drink company

product

very high high average low very Total

Item of Products low
No % No % No % No % No % No %
Miranda Orange 39 42 36 38.72 13 14 5 3.3 - - 93 100
7up 33 35.5 45 48.4 9 9.7 6 6.4 - - 93 100
Pepsi cola 11 11.8 4 4.3 63 67.7 15 16.2 - - 93 100
KOOL water 10 10.7 8 8.6 8 8.6 67 72.1 - - 93 100
Miranda Apple - - - - - - - - - - - -
Miranda Tonic - - - - - - - - - - - -
Source: own survey, primary data

Since price is the sum of values that consumers exchange for the benefits of
having or using the product or service, it is the major factor or variable
affecting buyer’s choice. According to the data observed on table most 39(42%)
of customers indicated the price of Miranda Orange followed by 36(38.7%) high,
whereas 67(72.1%) stated low price for 7Up. Since, consumer perceive price of
the product effective, if quality of the product fits its ability to satisfy. This
implies that the price of the product needs to consider satisfying the customer.

page 24

Table 4.8.Attitude towards customer satisfaction

 Item Number Percentage (%)
Do you find customer satisfaction
make the organization
100%
productive?
93 0
Yes
0
No
Total 93 100%
Source: own survey, primary data

As we observed on the table, majority 93(100%) of customers stated on the

customer satisfaction make the organization productive where as the rest 0(0%)
were negatively stated for the promotion of the company. This shows that
customer satisfaction makes the organization productive.

Table 4.9.Evaluation of MOHA soft drink company promotion

Item Number Percentage

(%)
Do you ever seen MOHA soft-drink
company Personal selling, Public
relation, Direct marketing and sells
promotion?
3 3.22%
Yes
90 96.77%
No
Total 93 100%
Source: own survey, primary data

page 25

From the above table we can see that 90(96.77%) of the study population see
the company no use Personal selling, Public relation, Direct marketing and
sells promotion. This shows that the company lack alternative source of
promotional strategies’. Therefore, MOHA tries to address all of its products to
all over the country. By addressing the product to the country it can gain
acceptance and attract more customers.

Table 5.1. Effect of the company Promotion on its customers buying rate

place Number Percentage

Major effect 7 7.52%
Medium effect 78 83.87%
Little effect 6 6.45%
No effect 2 2.15%
Total 93 100%
Source: own survey, primary data

As indicated on the above table, most of the respondents 7(7.52%) agreed on

having major effect that the promotion of the company on buying the product,
78(83.87%) them agreed for its medium effect and the other little 6(6.45%)and
no effect 2(2.15%)have responses. From the above result the company of MOHA
soft drink could do more and more on alternative source of promotional ways.
The effects are depending on customer satisfaction being enjoyment and
frequency of buying the company products than others. Therefore, the
company can increase the buyer’s rate through effective way of Promotional
strategy.

page 26
 Little effect No effect Major effect
6% 2% 8%

Medium
effect
84%

Figure 4: evaluating of MOHA soft drink company effectiveness in promoting its

products

Source: own survey, primary data

As indicated on the above Figure, most of the respondents 7(7.52%) agreed on

having major effect that the promotion of the company on buying the product,
78(83.87%) them agreed for its medium effect and the other little 6(6.45%) and
no effect 2(2.15%) have responses. Therefore from the above result the
company of MOHA soft drink could do more and more on alternative source of
promotional strategies’.

On this way most of the peoples need lower price but form day to day the
prices of coca-cola soft drink company products become high and high. In this
way the company has to consider to and make some kind of change.

The information from MOHA soft drink company management group

Promotion is found to be the major tool which the factory uses to introduce the
different products available to build a permanent image in the mind of
customers.

page 27
The company’s update the promotion by getting top line direction from division
office and the local team work on making its locally relevant.

The company believes that as promotion affects the sales of the company
product.

The promotion affects the sales in two ways; long-term and short-term. Where
specific promotions give a short term sales boost, the thematic campaigns
(which are not related to a specific promotion) will help drive brand association
and affinity which is a long term benefit.

As the manager of the company concludes Advertisement is never enough, our

world is changing very fast and so do the behaviors of our target consumers.
We need to be on top of the game and continue to connect with our consumers
more than ever before by tapping their position points.

page 28
 Chapter Five

5. Recommendation and Conclusion

5.1. Conclusion

The main purpose of this study was to investigate the effect of promotion on
sales volume and customer satisfaction in case of MOHA soft drink Company.
It is concluded as follow,

The result of the analysis shows that among 93 respondents 53(57%) of them
are females and remaining 40(43%) of them are males and most of the
respondents 36(37.7) were under the group of (18-30) years.

The study made on sales volume and customer satisfaction by using different
promotion media like advertising, personal selling, Direct marketing, sells
promotion and public relation.

Customers need promotion strategy to prepare locally by give for the people
awareness and satisfaction by making promotion locally relevant.

MOHA representative office uses its capacity to make customers satisfied and
to increase sales volume. This indicates the company gives special
consideration to the issue because without customer satisfaction the company
cannot increase its volume of sales and cannot become profitable.

page 29
According to the findings, Advertisement is never enough, our world is
changing very fast and so do the behaviors of the target consumers. It needs to
be on top of the game and continue to connect with consumers more than ever
before by tapping their passion points. Therefore, in order to keep customers
satisfied the MOHA representative office must utilize different kinds of
Promotional thoughts such as advertising, personal selling, Direct marketing,
sells promotion and public relation.

page 30
 7.2. Recommendation

On the bases of the survey the following are recommended as follow,

One of the causes for customers not interested about the company
promotion is that, most of the time the promotion is not prepared locally.
Therefore, in order to keep the customers interested and satisfied the
promotional department should maintain a strategy to do more locally , the
action give awareness and satisfaction for the people that need to prepare
locally and not only for this people it makes interested but for all the people
who are aware by the company promotional strategy.

The MOHA Company was done much in 2016 by using advertising only. Rather
the company used the other media. Therefore, in order to gain a full image the
company needs to work more on alternative source of promotional way.

As the manager of the company stated promotion affects the volume of sales in
two ways; short-term and long-term ways, where specific promotions give a
short-term sales boost, the thematic campaign (which are not related to a
specific promotion) were help drive brand association and affinity which is a
long-term benefit.

The PEPSI representative office should give a due attention about sales volume
and customer satisfaction. Therefore, Top-management must support sales
volume and customer satisfaction by prepared an adequate budget and the
manager must give their personal support by make clear communication with
the department and it can keep customers satisfied and increase the volume of
sales.

page 31
According to the findings, advertisement is never enough, our world is
changing very fast and so do the behaviors of the target consumers. It needs to
be on the top of the game and continue to connect with consumers more than
ever before by tapping their passion point. Therefore, in order to keep
customers satisfied the MOHA representative office must utilize different kinds
of media like advertising, personal selling, Direct marketing, sells promotion
and public relation.

page 32
Organization of the paper

In marketing, Promotion is advertising a product or brand generating sales and

creating brand loyalty. Promotion covers the method of communication that a
marketer uses to provide information about its product. So in this era making
sales without Promotion is unthinkable. The research tried to organize
according to the following sources.

FIRST Major source to support thesis

 EYERUSALEM ABI(MBA) Research on JIMMA University(2007): Effect of

Advertisement on Sales Volume and Customer Satisfaction (A Case Study of
Coca-Cola Soft Drink Company)

 Julian Cummins and Roddy Mullin, (2010). Sales promotion, 5 th edition,

Harcourt Brace college publisher, USA. Vol.40, No. 3, Pp. 137-145.
 Michael J. Baker, (1996), marketing an introductory text 6 th edition, Macmillan,
London. Vol. 7, No.5, Pp. 477-501.
 Philip Kottler, (1998), marketing management, 9 th edition, prentice-Hall of India
private limited, India.
 Terpstra, (1997), International marketing, 7 th edition, Harcourt Brace college
publishers, united states of America.
 Barney, J. B.(1999) ‘How a Firm’s capabilities Affect Boundary Decisions’, Sloan
Management Review, Buckley, P.J, and Casson, M.C. (1976) ‘The Future of the
Multinational Enterprise’, Macmillan: London.

 Retrieved from https://www.Wikipedia.org

 Retrieved from https://www.2merkato.com

 Retrieved from https://www.Mohasoftdrink.com

SECOUND Major Source to support thesis

 Will an Interview with supervisors, employees and the whole

stockholders from the company.
 Will an observation from society
 Will an observation from wholesalers and retailer
Page 33
Appendix: A Questionnaire

Arba Minch University

College of Business and Economics

Department of Management

Questionnaire to be filled by the employee of MOHA soft drink Industry S.C

Dear respondent,

This questionnaire is designed to collect vivid data for the research conducted
on the Assessing the promotional way (case study in MOHA soft drink S.C).The
research is to be done by graduating class Management student for the
purpose of partial fulfillment of successful completion of BA degree in
Management. The success of the study depends on the quality and amount of
data you will provide. Therefore, you can provide the information you think
relevant without fear because it will only be used for the purpose of the study
and will kept confidential. Thank you in advance to take your incredible time to
fill this questionnaire.

 Notice
 No need of writing your name
 Put √ mark in the box Provide for your response
1. Sex
Male Female
2. Age
18-25 26-30
35-40 31-35 Above 40
3. Marital status
Married Unmarried Divorced other
4. Level of education
Grade 1-8 Grade 9-12 Diploma Degree MA

Other________________________________ I
5. Income level
Under 1000 1000-2000 2001-3000
3001-4000 Above 4000

Section 2:

1. Do you drink a product of MOHA soft drink Industry products?

Yes No

2. If “yes” to the above question, which one do you prefer?

Pepsi cola Miranda Apple Miranda Orange
7up Miranda Tonic KOOL water

3. Do you think that MOHA Soft Drink Company have stronger competitor, if yes,
which company?
A) Soft drink companies
B) Mineral Water Products
C) Juice products
D) Others
4. How do you get information about MOHA soft drink Industry products?
While it makes advertisement

Through word of mouth

While it makes sponsors

On the exhibition and bazaars

Others, specify

5. If you inform by promotion, in which media?

Personal Selling Public Relations

Advertising Sales Promotion

Direct Marketing

Other, specify II
6. If you inform by promotion, do you find interesting?
Yes No

7. If yes, what interested you most in promotion?

_____________________________________________________________

8. when you consider prices of MOHA soft drink products in relation to their
quality, their price is
Very high High Average Low Very low

Pepsi cola

Miranda Apple

Miranda Tonic

Miranda Orange

7up

KOOL water

9. Do you think customer satisfaction make the organization productive? If yes,

How?
________________________________________________________________________
________________________________________________

10.Have you ever seen the MOHA soft drink company pamphlet or banners?

Yes  No 
11.If yes, where is that? ________________________________________
 III
12.How do you find the effects of promotion on your rate of buying the products?
Major effect Medium effect

Little affect No effect

13.If no, why

14.Do you think MOHA soft drink company promotions are effective in promoting
its products?
Yes No

15.What do you recommend about MOHA soft drink products promotion to make
more awareness to consumers

THANK YOU FOR YOUR CO-OPRATION.

 IV
Interview Check List

This interview questions are prepared for the management group,

Wholesaler and retailer of MOHA soft drink Industry S.C.

 As wholesaler how do you measure the performance of the current

promotional way?
 What improvement do you suggest with respect to your promotion?

 As wholesaler & retailer which Soft drink product consumed more? Why?

 What method are you utilizing most for promotion budget?

 Which media do you utilize most for promotion?

 Do you think that promotion affects the sales of your product?

 How do you measure the impact of promotion on your sales Volume and
customer satisfaction?
 Do you think the current promotion associated with society?

 How do you update your promotion?

 Do you think that the current status of promotion is quite?

 Enough to sustain the sales rate of your product?

THANK YOU FOR YOUR CO-OPRATION.

V