Sales Promotion Is Important To Nigerian Economy. Case Study Of Coca-cola Plc.

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This research work titled sales promotion is important in Nigeria economy. Case study Coca-cola was carried out with the following objectives.

          To find out the impact of effective sales promotion on increasing coca-cola market share.

          To find out the extend sales promotion has contributed to the economy. Based on these existensive literative review on textbook, Journals, and material on the area of the sudy was carried out. The research came up with the following findings.

-         Sales promotion encourges customer’s purchase of coca-cola and equally creates customersattention and desire for the product.

-         Sales promotion equally contribute to the development of the economy Based on this findings the researchers recommend the following.

-         The company should not only define it target for appropriate choice of promotional tools that suit the audience but should make sales promotion cost effective to be able toachieve it’s objectives.

The government should monitor the sales promotional activities of the companies because some of them are deceptive.

          These recommendations if properly carried out we booost the company’s position in soft drink industries and equally contribute to economy of the country. It was equally discovered that most of Nigeria companies that engages in sales promotion activities are very difficult for customers to win the reward and even when the reward is won, it is difficult to be collected by the winner.















Title page                                                                                          ii

Approval page                                                                                  iii

Dedication                                                                                         iv

Acknowledgement                                                                                      v

Abstract                                                                                            vi

Table of contents                                                                              viii


1.0.         Introduction                                                                                      1

1.1.    Background of the study                                                                   1

1.2.         Statement of the problem                                                                  3

1.3.         Objectives of the study                                                            3

1.4.         Research question                                                                             4

1.5.         Significance of the study                                                                   5

1.6.         Scope of the study                                                                            6

1.7.         Limitation of the study                                                            6       


2.0.         Literature review                                                                     9       

2.1.    What is promotion?                                                                9

2.2.         Components of promotion                                                      12

2.3.         Nature of sales promotion                                                       18

2.4.         Difference forms of sales promotion                                       22

2.5.         Effectiveness of sales promotion                                             25

2.6.         Objectives of sales promotion                                                 27

CHAPTER THREE             

3.0.    Detail of discussion                                                                 29

3.1.         Sales promotion in brewery industry                                                29

3.2.         Critisms of sales promotion                                                    31

3.3.         Contribution of sales promotion in the economy                    33

3.4.         Company profile.                                                                    35

CHAPTER FOUR                          

4.0.         Summary of finding recommendation and conclusion.            37

4.1.    Summary of finding                                                                37

4.2.         Recommendation                                                                     38

4.3.         Conclusion                                                                              40

Bibliography                                                                           42




1.0.         INTRODUCTION


          Ebue B. (2000: P. 339) sees sales promotion as something that can arouse interest, create a buyer desire, spirit an immediate reaction from customers middlemen and company’s sales force. It is the name trhat is applied to special kind to sales accelerating personal selling or publicity and also its activities are directed to consumer middlemen or the forms sales force.

          In order to achieve sales promotion objective certain thing are added to the company’s product so as to have more customers to purchase the product while existingcustomers are encouraged to be patronizing sales promotional activities are directed to customer’s, middlemen or the firm own sales force. It is considered as a social sselling effort incentive designed to stimulate buying action. However, sales promotion consists of coordinated seller imidiately effort to establish channels of information and persuation to faster the sales of goods and services, to the people from the stage of unawareness to the stage of awareness.

          Sales would increase if more customers are attached. Sales promotion are grouped into three size. Consumer protection which contails coupons, premium, consist demonstration etc. Trade or dealer, promotion which consists of tree goods merchandize allowances, buying allowance etc. and sales force promotion which involves sales contests specials bonus, sales meeting. Consumer promotion has enhance the immediate, that is to say that benefit, we immediately, but it does not build any long term consumer framerlise and contrast to advertising sales promotional devices usually only the promotional materials available at the point of purchase, therefore sales promotion which is one of the promotional tools are feared towards the target market.

          Eloga and Ani (2000.279) maintained that sales promotion has not contributed to the growth of company butalso the Nigerian econmy as a result of this the research or critically look to the importance of Nigeria Economy with special interest on coca-cola drink.



The Nigeria bottling company PLC is the leader in the soft drink market in Nigeria, the company has different of several brands of soft drinkwhich are marketed to customer’s or consumer like tanla, sprite, tonic water,bitter lemons and coke product which the coca-cola is it’s trade mark has been in Nigeria market for many years. How effectively is the application of sles promotion tools in the company?

In as much as the effective application of sales promotion, what is the level of increase in sales turn out?

Many people have come against sales promotion, trhat most often what was promised was not given and even the companies makes it difficult to win. But many believed that it has enhance the walfare of the people. In the view of the researcher will ensure the asone question.



To find out the impact of effective sales promotion on increasing coca-cola market-share.

To find out whether sales promotion increase the profit of the company.

To find out whether the sales promotion has any default with regards to the competitor

To suggest how to use sales promotion as an effective tool for increasing market share

To find a means of maintaining and improving the quality of sales promotion and improving it to ensure maintainace marketing.

To suggest and recommend waya of using sales promotion for better company performance.

To find out the extend sales promotion has contributed to the economy.



i.                   Are sales promotion adopted by coca-cola lead to customer increased desired for their product.

ii.                 Does sales promotion activities of coca-impacts positively on the profit of the company.

iii.              How has trhe sales promotions helped on consumer satisfaction

iv.              Are sales promotion adopted by coca-cola help in managing the sales of product.

v.                 Has sales promotion contributed to the Economy growth of the country.



In this study the company benefits a lot because  through the study the company will know sales promotion has favoured them. In case, if there is any fault the study will help them improve the sales promotion in order to be more attractive and beneficials to the consumers or target market.

The compeling company take advantage by reading through it and allowing how it has favoured their competitor’s and try to improve them sales promotion techniques and tools to enchance sales for the company

The readers as well benefit in the sense that when one is writing on related issue, one has to study the alreay written project to collect some fact which will help him or her put things together, also reveal to the reader how far other researcher have gone in that issue and start from where they stopped.

Moresore the consumers will be aware of how and quality of the product or commodity consumed. It will enable the consumers to patronize more because the will be improved in the quality of sales promotion used and the quality of coke itself.


1.6.         SCOPE OF THE STUDY

This study concentrated on the importance of sales promotion to the economy of the country but emphases was heard on coca-cola drinks in Enugu



Sales promotion is defined as the broad name for special kind of sales stimulating activities other than advertising, personal selling and publicity, it is a special selling incentives. Anything that would move sales above the existing level is a sales promotion it has the quality of attention getting and stimulating sales in off seasons. The sales promotion tools are consumer promotion it, samples,coupon premiums, price discounts, demonstration etc.

Also trade promotion e.g. dealers contest; free goods, merchandising allowance etc. and also sales force p[romotions e.g. Bonus, sales force contest etc. product sampling and demonstrations. Demontrations are very important when the dicision to buy is influenced by seeing the ptoduct in use, frequently purchased and not to expensive goods. Sampling also has to do with a situation where customers get the products free or allowed to use it free of charge. It is more effective in getting the customers to actually try the products.


Are leaflet given to customers which enable them to buy a product at a cheaper price. it is used to produce trust, convert into regular users and to attract many prospects to the product.


Are to boost sales by creating product awareness and  trust. The free-in-mat and self liquidating premium offer better incentives that are related to the product concerned.


It is a mark down in the retail price of the product to enable consumers to put more and more consumer to buy the product. It is a non selective form of promotion. The benefits are extended to the consumers who normally would have purchased the product without the price reduction.


It is a special consumer deal that is used to encourage customers to buy and to reineforce brand loyalty. It creates interest and provides good sales atmosphere or taking point for the sales people and are often used to attract special attention to the product package. Considerably, these sales promotionaltools are geared towards making customers have assets to the product and company creating good relation between the public, the company and the prosuct. To ensure that customers are satisfied at the profit of the company.

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Sales Promotion Is Important To Nigerian Economy. Case Study Of Coca-cola Plc.