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IMPACT OF SALE PROMOTION ON SMALL SCALE ORGANISATION

Table of contents

TABLE OF CONTENTS

Title Page                                                                                                                    i

Certification                                                                                                               ii

Dedication                                                                                                                  iii

Acknowledgements                                                                                                    iv

Abstract                                                                                                                      vi

Table of Contents                                                                                                       vii

List of Tables                                                                                                              x

List of Figures                                                                                                             xiii

CHAPTER ONE: INTRODUCTION

1.1       Background to the Study                                                                                1

1.2       Statement of Problem                                                                                     4

1.3       Objectives of the Study                                                                                  4

1.4       Research Questions                                                                                        5

1.5       Research Hypotheses                                                                                      5

1.6       Significance of the Study                                                                               6

1.7       Scope of the Study                                                                                          6

1.8       Limitation of the Study                                                                                   6

1.9       Operational Definition of Terms                                                                    7

 CHAPTER TWO: LITERATURE REVIEW

2.0       Introduction                                                                                                    8

2.1       Conceptual Review                                                                                         8

2.1.1    Concept of Sales Promotion                                                                           8

2.1.2    Types of Sales Promotion                                                                               11

2.1.3    Impact of Sales Promotion on Organisation Performance                      13

2.2       Empirical Review                                                                                           14

2.3       Theoretical Review                                                                                        17

2.4       Historical Background of the Case Study (Fan Milk Nigeria Plc)                  19        

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction                                                                                                    22

3.2       Research Design                                                                                             22

3.3       Population of the Study                                                                                  22

3.4       Sample and Sampling Techniques                                                                 22

3.5       Research Instrument                                                                                       23

3.6       Procedure of Administration of Instrument                                                   23        

3.7       Method of Data Analysis                                                                                24

CHAPTER FOUR: RESULTS AND INTERPRETATION

4.1        Analysis of Consumer’s Questionnaire                                                    25

4.2       Analysis of Organisation’s Questionnaire                                                      34

4.3       Testing of Hypothesis                                                                                     44

CHAPTER FIVE:     DISCUSSION, CONCLUSION AND

                                RECOMMENDATIONS

5.1       Discussion of Findings                                                                                   46

5.2       Conclusion                                                                                                      47

5.3       Recommendations                                                                                          48

References                                                                                                                 49

APPENDIX I: Organisations’ Questionnaire                                              52

APPENDIX II: Consumers’ Questionnaire                                                 54

LIST OF TABLES

Table Title                                                                                               Page

4.1.1    Gender Distribution of Respondents                                                                          25

4.1.2    Age Distribution of Respondents                                                                               25

4.1.3    Marital Distribution of Respondents                                                                          26

4.1.4    Occupational Distribution of Respondents                                                                 26

4.1.5    Distribution of Respondents by Qualification                                                           27

4.1.6    I am aware of what is called sales promotion                                                            27

4.1.7    Sales promotion tools such as special sales, price off and                                         28

            coupons, stimulate consumers to repeat purchase.

4.1.8    Couponing, free samples and premiums are sales promotion                                                28

            techniques that persuade the consumers to repeat purchase.

4.1.9    Cent-off coupons stimulate consumers repeat purchase                                            29

4.1.10  If I am satisfied with the sample of a product, I continue to                                      29

            buy when promo stops.

4.1.11  Scratch and win instant type of sales promotion prompt                                           30

            consumers repeat purchase.

4.1.12  Incentive type of promotions like premium and pricing deals attract              30

            more consumers and increase the repurchase rate of occasional users.

4.1.13  An impact coupon would be appropriate for firms to create loyal user                 31

            and build up more repeat purpose.

4.1.14  Sweepstake and gifts are among the sales promotions that induce                         31

            buyers to continue to buy

 

4.1.15  The major promotion tools that lead consumers to buy repeatedly                               32

            are cash refund offer, patronage awards and free goods.

4.1.16  The use of coupon that can be redeemed on the next purchase                                    32

            occasion is believed to encourage repeat purchase.

4.1.17  Sales promotion is used to attract consumers to repeat purchase                                    33

4.2.1    Gender Distribution of Respondents                                                                          34

4.2.2    Age Distribution of Respondents                                                                               34

4.2.3    Marital Distribution of Respondents                                                                          35

4.2.4    Distribution of Respondents by Department                                                              35

4.2.5    Working Experience of Respondents                                                                         36

4.2.6    Academic Qualification of Respondents                                                                    36

4.2.7    Sales promotion tools such as special sales, price off and coupons                                   37

            are used to stimulate consumers to repeat purchase.

4.2.8    Couponing, free samples and premiums are sales promotion techniques                   37

            used by organisation to persuade the consumers to repeat purchase.

4.2.9    Fan Milk use cent-off coupons to stimulate consumers repeat purchase                      38

4.2.10  Scratch and win instant type of sales promotion is used by organisation to             38

            stimulate consumers repeat purchase.

4.2.11  Incentive type of promotions like premium and pricing deals are used                       39

            to attract new triers, reward loyal customers and increase the

            repurchase rate of occasional users.

4.2.12  An impact coupon would be appropriate for firms to create loyal users                39

            and build up more repeat purpose.

4.2.13  The major promotion tools that lead consumers to buy repeatedly are             40

            cash refund offer, patronage awards and free goods.

4.2.14  Sales Promotion is used to achieve organisation set goal.                                         40

4.2.15  Sales Promotion is used to persuade the end users to purchase a particular                     41

            product always            

4.2.16  Combination of various types of promotional strategies helps                                    41

            Fan Milk Nigeria Plc to achieve their set goals.

4.2.17  Sales promotions such as sales allowance and patronage awards                                    42

            can create immediate impact on sales.

4.2.18  Scratch and win promotion strategy affect the general buying                                    42

            behaviour of Fan Milk product consumers especially in off-season.                        

4.2.19  Sales promotion is normally used to boost sales thereby increasing the profit.   43

LIST OF FIGURE

Figure          Title                                                                                     Page

2.1                   Types of sales promotion.                                                                  13

2.2                   Organogram of Fan Milk Nigeria Plc, Ibadan Depot                         21

Abstract

ABSTRACT

            This research investigated the impact of sales promotion on small scale organisation with focus on Fan Milk Nigeria Limited. Three research questions were raise to guide the study while two research hypotheses were tested. The research employed descriptive survey research. Two sets of questionnaires was designed for the study. The questionnaires was administered on fifty staffs and fifty consumers using random sampling techniques and analysed using simple percentage for research questions and chi-square method of analysis to test the hypothesis. The findings of the study revealed that there is a significant impact of sales promotion on customers repeat purchase of a product. It also showed that there is a significant impact of sales promotion on the achievement of organisation set goals. The study concluded that sales promotion techniques adopted can determine consumers repeat purchase. It was therefore recommended that manufacturing organisations should always engage in more promotional mix strategies and should also be creative to consumers in order to enhance and boost sales revenue.

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