The Effects Of Sales Promotion Strategies On Company Perfomance: A Case Of Telone Zimbabwe

ABSTRACT

The study was to determine the effectiveness of sales promotion strategies on company

performance with special reference to TelOne Zimbabwe. The aim of this study was to measure

sales promotion strategies effectiveness in terms of profitability (ARPU), sales volume and

market share in terms of subscriber growth. The study was guided by the following objectives, to

determine the effects of contests and sweepstakes on profitability, to determine the effects of

bonuses on subscriber growth and to establish the effects of price-offs on sales volume. Sales

promotion was defined, its scope and objectives and effects of the techniques on company

performance are presented in this study. The main sources of data used in the research are

primary and secondary data. Two research designs were used which are explorative and

descriptive research designs. A sample size was calculated using the Lucy model of determining

sample size. The sample frame consisted of employees, management and key subscribers.

Stratified random sampling was used in drawing samples from the target population.

Questionnaires were administered to employees and key subscribers and management interviews

were conducted. The results of the research tools indicated that sales promotion strategies were

effective with contests and sweepstakes being the most effective and price discounts contributing

a minimal of the three strategies employed. The study concluded that sales promotion induced

subscribers to consume TelOne products on the market thus increasing consumption rate,

profitability and sales volume.Major findings are that TelOne widely used contests and

sweepstakes as the main promotion activities to stimulate their profitability, bonuses increased

sales volume and lastly price discounts enhanced market share growth. It was also found that

there is a very strong positive relationship between sales promotion activities and company

performance measured in relation to growth to profitability, sales volume and market share. The

study concluded that sales promotion activities induce customers to consume TelOne products on

the market thus increasing consumption rate and the sales volume. The researcher recommended

that TelOne need to understand the promotion activities and which media to communicate to

consumers. It should put a lot of emphasise in planning promotional programs, set promotional

goals and strategies. The company need to carryout period evaluation in the course of the sales

promotion and control of promotion and make adjustments where possible. Public relations and

advertisingare further area of study are critical and give the organization a competitive edge in

the ever evolving telecommunication sector