AN ANALYSIS OF SALES PROMOTION ON SALES VOLUME IN THE BEVERAGE INDUSTRY: THE CASE OF NIGERIA BOTTLING PLC

ABSTRACT

A lot of beverages manufacturing companies in Nigeria are


suffering from the piling up of unsold stocks. In recent years, Nigeria


witnessed sales promotions by most beverage industries such as Nigeria Bottling


Company Plc, 7up Bottling Company, Nigerian Breweries and Guinness Nigeria


Plc., etc. Beverage industry such as NBC Plc. uses sales promotion for several


reasons: to generate quick sales bursts, to build long-term awareness and


maintain steady market shares, to gain increase in shelf space and better


in-store display, etc. Does the success of sales promotional programme really


justify the promoter's efforts in terms of time, cost and benefits?

The objective of this study is to examine the effect


of sales promotion on the sales volume of the beverage industry and suggest


ways sales promotional tools and techniques could enhance sales volume.

The data for this study was collected from both


primary and secondary sources. Questionnaire administration was the major


instrument for primary data collection. Data was collected from wholesales and


retail distributors of the product and the ultimate consumers. The data was


analyzed using frequency and chi-square statistical method to test the


hypotheses raised for this study.

The study revealed that effective implementation of


sales promotion among other promotional techniques increases the consumption


rate of soft drink products as well as the sales volume of the beverage


industry.