Sales Promotion – Effect On The Sales Of Coca-cola Soft Drink

Sales Promotion – Effect On The Sales Of Coca-cola Soft Drink

Sales Promotion – Effect On The Sales Of Coca-cola Soft Drink

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One of the major concerns of business enterprises in an environment is to identify and develop an effective marketing strategy for its products. Some companies try to improve their product package, some try to offer free products

Manufacturers, who want to win the mind of the buyers of their products and drive away the interest those consumers have over competitors products, usually adopt marketing concept that sees the interest and satisfaction of the consumers as a focal point for any reasonable promotional strategies.

Sales promotion has been the major factor stimulating sales of a product. It is one of the major parts of marketing communication mix. Apart from sales promotion, we have other promotion mix like advertising personal selling, public relations and publicity. Base on this, the question note is how effective is sales promotion in sales of products (Coca-Cola in particular).

The Nigeria Bottling Company tool up its source from Coca-Cola international. It was established by John Pemberton. He is a pharmacist and has operated in Nigeria since 1953.

The Nigerian bottling Company (NBC) was commissioned first at Apapa in Lagos. It has the largest plant of all the branches of Nigeria Bottling Company. The branches include Enugu, Onitsha, Owerri, Jos, Kaduna, Ibadan, Aba, Maiduguri etc. Together with their various Deport.

A Deport was established along Abakaliki-Enugu express was in 1980 from the branch office at Enugu. It was headed by the Deport sales services office (D.S.S.). He is the senior superintendent and assisted by another sales supervisor together with the following people. Accountant, Drivers, Store Keeper, Severity men and workers.

The duty of the Deport sales service officer is to take care of the whole activities of the Company. To see that every body focus on their activities in the Company. While his assistance, the sales supervisor as his Job implies ensue a full record of all sales of the Company. The storekeeper is in chapter of all the drinks in the Deport. His duty is when the Deport sales service office gives the loading order to the fork lift operators; he will comply with the order and make sure that all the sales truck must be loaded accordingly. They usually move their drinks from the branch office Enugu to the Deport t Abakaliki. They have six sales truck and nave seven salesmen in the Deport. Through size of them operate the vehicle to the market and the seventh person stays in the Deport in case of emergency situation to replace such driver.

The drivers or salesmen after their daily sales for proper checkup of drinks sold and unsold. They drivers usually received commission of #4.00 per crate they sell, which us paid together with their salaries. They stock different brands like Fanta, Coke, Krest Bitter Lemon, Sprite, Krest Tonik Water, and Club Soda etc. They have 25cl, 35cl, and 50cl, I like in most cases.


This era of business competition ushered most business organization to adopt the most effective promotional tools in marketing their products. The Nigeria Bottling Company has tied to adopt sales promotion, and other promotional activities in the sales of their products. Though sales promotion have been the most effective tools used of the sales force, producer and product. Sales promotion offer incentive of buying their product like giving free drinks, and other prices that could be won during their promotion period. They have been large sales of Coca Cola product due to product performance and sales promotion; they gain competitive advantage over their competitors.

Lastly, the problem of the study is to examine how effective sales promotion is in marketing and sales of Coca-Cola products. If they continue to adopt sales promotion, will it increase brand awareness, attract new users or buyers of heir product, stimulate repeat purchase of their products?


The objectives of the subject matter on the effect of sales promotion on the sales of coca-cola soft drinks include the following:

(1) to find out if sales promotion increases sales of Nigeria Bottling Company products.

(2) To find out the effect of sales promotion on sales of Nigeria Bottling Company products.

(3) To find out whether sales v attract new buyers of Nigeria Bottling Company products

(4) To examine the effect of sales promotion in new product introduction by Nigeria Bottling Company.

(5) To examine whether sales promotion can help to stimulate repeat purchase of Nigeria Bottling Company products.

(6) To examine whether sales promotion can help increase store traffic of NBC products.


The following hypotheses were set to be tested in the study.

(1) H0: Sales promotion will not lead to high sales of Nigeria

Bottling Company products.

H1: Sales promotion will lead to high sales of Nigeria

Bottling Company products.

(2) H0: Sales promotion does not attract new buyers of

Nigeria Bottling Company products.

H1: Sales promotion do attract new buyers of Nigeria

Bottling Company products.

(3) H0: Sales promotion does not stimulate repeated purchase

Of Nigeria Bottling Company products.

H1: Sales promotion usually stimulate repeat purchase of

Nigeria Bottling Company products.


This study when successfully carried out and supervised will go a long way to offer practitioners, expects and scholars in marketing communication a lot of information on promotional mix decision as well as operation of sales promotion.

This study is expected to provide information to the Nigerian Bottling Company to achieve their target goal. It will help them to know while they should continue to adopt sales promotion and its positive effect in marketing their products.

The findings of this study will become an academic input and should therefore constitute a useful and interesting text in the library.

The study will help the management of the Nigerian Bottling Company not only to know the effect of sales promotion in sales of their products but also its application in marketing.

Finally, the study is carried out as a partial fulfillment of the award of BSC degree in marketing of which without being successfully carried out will hinder degree certificate.


This study is limited to staff of Nigeria Bottling Company Abakaliki involve in promotion and marketing and consumers within Abakaliki. External bodies may not be required due to time constraints and other factors that include:

TIME: The research work is only limited to a semester, hence the problem of time is even more amplified when considered that the researcher had to attend to other aspects of his study order than the research work since both academic studies and research work run concurrently.


Low literacy level of some of the respondents was very low. As a result, problems were encountered in the completion of the questionnaire as some were properly or wrongly filled.

COST: The cost of traveling to the head office of NBC Enugu branch and other branches out side Ebonyi state was one of the factors that limited the study to NBC Abakaliki depot.



Some respondents may find it difficult to give information about themselves while others may give wrong information about themselves.



Sales promotion consist of any consumer or trade programs that add tangible value to brand of that consumer or trade program in order to stimulate sales and create more awareness of such program.


The activities involve in giving a product to a buyer for exchange of price paid on that product.


Marketing is the management process responsible for the identifying, anticipating and satisfying customers wants profitably.


A product is any thing tangible and intangible that is offer to the market for attention, acquisition, use or consumption that might satisfy a want or need.


A consumer is a person that buys goods from the producers, wholesaler and retailers for final consumption.


In this chapter, the researcher gathered and reviewed some of the available books relating to the subject matter in order to have an insight on the effect of sales promotion in sales of coca-cola soft drinks.


Sales promotion came into being long time ago. According to Okpara, Anyanwu and Inyanga (1999: 212), sales promotion had actually come a long way. In continuation, they also said that the earliest recorded example of it was in 1976. It belongs to a London haberdasher Jonathan Holder. Who gave every purchaser that spent above a guinea in his shop, a full list of items stocked by him, plus their relevant prizes.

Kotler and Armstrong (1991: 458) said that the estimate of annual sales promotion spending runs as high as 125 billion Dollar which has increase in recent years. Before sales promotion to advertising ratio is 40:60 percent, but it is about 20:30 percent now.

Several factors contribute to the rapid growth of sales promotion especially consumer market in a Company, promotion is now more accepted by top management as an effective sales tool and more product managers are qualified to use sales promotion tools. So as to increase the current sales outside the Company, they face more competition and competing brands are less differentiated competitors are using more and more promotions, and customers have become more oriented. Advertising efficiency has declined because of rising costs, media clutter, and legal restraints.

The growing use of sales promotions has resulted in promotion clutter, similarly to advertising cluster. The danger is that consumers will start turning out promotions, weakening the ability to trigger immediate purchase. Manufacturers are now searching for ways to rise above the clutter such as offering longer coupon values or creating more dramatic point-of-purchase displays.

According to Keegan, Moriarty and Duncan (1995:594),they said that the growth of sales promotion started until the late 1960’s and early 1970’s, promotion industries veterans estimated that up to 80% of consumer goods companies, marketing communication budget went to traditional media advertising. Advertising continued to be the marketing tools of choice through the 70’s and early 80’s because its power to build strong brands. But in the mid-1980’s something significant happened in the world of marketing communication. Sales promotion beat out advertising. Even since advertising share of the market have been declining due to immediate incentive of sales promotion it took over advertising.

The shift from advertising to sales promotion also reflects tensions in the distribution channel. Trade promotion speeding increase over 15% point in less than 10 years, reflecting manufacturers effort to push their products through the channels of distribution. Because retailers were being offered larger trade incentive more frequently, they began to run more and more sales.

In Nigeria, sales promotion started with the multinational trading companies like U.T.C., leventis and Kingsway. It is not until the late1980’s that promotion took a very dramatic turn in Nigeria marketing environment. It become increasingly use by many organizations in order to drive away their competitors in the market.


Many experts in marketing have given their various definitions all tending in provision of incentives, display, shows, exhibitions and demonstrations etc in order to stimulate purchase of products of producers.

According to Bamossy and Semenik (1993: 354).They stated that sales promotion as promotional tools is defined as “the use of incentive techniques to generate a specific response within a consumer, trade, or business market.

The American Marketing Association (AMA) defined sales promotion as short-term incentive display, shows, and exhibition and demonstration designed to encourage purchase or sales of a product or service.

Kotler (2000:597) defined sales promotion “as consist of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of a particular product or service by consumers or the trader.

Keegan, Moriarty and Duncan (1995: 594) on their own hand defined sales promotion “as any consumer or trade program that adds tangible value to the brand during a certain time period (such as incentive to buy), in order to stimulate trial, increase consumer demand or increase product availability.

Kotler and Armstrong (1991: 457) said that sales promotion consist of short-term incentives to encourage purchase or sales of a product or service.


Sales promotion objectives vary widely. Seller may use consumer promotion to increase short-term sales or to help build long-term market share. The objective may be to entice consumers to try a new product, lure consumers away from competitors’ products, get consumers to load up on a mature product.

Objective of trade promotion include getting retailers to carry new items and more inventory, getting them to advertise the product and getting them to buy a lead.

Sales force objectives include getting more sales force support for current or new product or getting sales people to signup new account.

Sales promotion should be consumer franchise building. They should promote the products positioning and include a selling message along with the deal. Really, the objective is to build long-run consumer demand rather than to prompt temporary brand switching. If properly designed, every sales promotion tools has consumer franchise building potential.

Kotler and Armstrong (1991: 459) said that sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial. Sellers use sales promotion to attract new tryers, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion often attract the brand switchers because nonusers and users of other brands do not always notice or act on a promotion. Brand switchers are mostly looking for how price or good value. Sales promotions are unlikely to turn them into loyal brand users.

Okafor (1995: 241) said that advertising tends to be carried in media by people who are not the advertisers, sales promotion messages are features in media controlled by the Company. Unlike advertising which is used strategically with a long-term objectives to create a brand preference, sales promotion is usually used to achieve a short-term limited objective within a limited area. Sellers use sales promotion to attract new tryers, to reward loyal customers and to increase the repurchase rate of occasional users.

Semenik and Bamossy (1993: 355) on their own hand observed some basic objectives that can be achieved with sales promotion as follows:

(a) Attract New users

(b) Stimulate Repeat purchase

(c) Stimulate large purchase

(d) Increase store Traffic

(e) Introduce a New product.


When a firm introduces a brand to a new segment or attempts to convert nonusers of a product category to users, sales promotion tools can reduce consumer risk of trying something new.

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In package coupons goods for the next purchase or the accumulation of points with repeated purchase can keep consumers loyal to a particular brand.


Price reduction or two-for-one sales can motivate consumers to stock up on a brand thus allowing firm to reduce inventory or increase cash flow.


Retailers can increase store traffic through special promotion or events. Door prize drawing, parking lot sales, or live radio broadcasts from the store are common sales promotion traffic builders.


Because sales promotion can attract attention and reduces consumers’ risk of purchase, it is a commonly used technique for new product introduction.


According to Okpara, Anyanwu and Inyanga (1999: 212) sales promotion may be classified into consumer’s sales promotion, middlemen’s sales promotion and sales force promotion.

1. The consumer sales promotion include: sample, coupons, price-packed (kobo-off deals), premiums, Trading stamps, contests, sweep stakes, Trade fairs/exhibitions.

2. Middlemen’s sales promotion include: Point-of-purchase (pop) materials, buying allowance, promotion allowance, specialty advertising, sales contests, Dealer listings, co-operative advertising, Trade shows/Exhibitions, missionary selling and customer forum.

3. Sales force promotion include the sales meetings, contest, spliffs, etc arranged for or given the sales people of a Company they motivate these sales team, and bring out the best in them.

Okafor (1995: 242) said that sales promotion techniques or devices ranges from immediate consumer incentives to delayed consumer incentives. It also includes all those devices use as trade incentives, industrial incentives, point of sales (pos) and merchandising exhibition and sponsorship.

(a) Immediate consumers incentives include: free samples, multiple packs, free gifts, and premiums children contest, cash refund offer (Rebates), cash award for use of product, advertising specialties etc.

(b) Delayed consumer incentives include; coupon, cash refund on mail-in Basis, premium/Give away offers on mail-in Basis, charitable offers on mail-in Basis and self liquidating offers.

2. Trade promotion Tools: They are the ones given to wholesalers and retailers to carry a brand, given it shelf space, promote it in advertising and push it to consume

3. Industrial incentives

Industrial incentives are usually utilized within the industrial market. The sales promotion technique commonly found usually take the form of performance related incentives. They include:

(a) Performance-related bonus

(b) Performance-related competitions

(c) Performance-related supply bonus

4. Point of sales display (POSD) and Merchandizing

Merchandizing are all (POS) display strategies that attract customer attention, encourage the potential buyer to approach, inspect and touch the product and assist the customer in making the final product selection and purchase decision.

5. Exhibitions

Exhibitions are a form of promotional activity that enables firms to personally show and demonstrate their product to prospect without the assistance of channel intermediaries.

6 Sponsorship

Here several organizations like to sponsor a particular event so that they will be known national and even international. Examples of companies that sponsor event include coca-cola, Pepsi, Philips, Panasonic etc. They usually sponsor football match and other games.

Nwokoye (2000:230) said that sales promotion can classified into consumer promotions, Trade promotion and sales force promotions.


Consumer promotions are directed at the general consuming public. They include:


An offer of a free sample or trial of a product to the consumer. The offer is usually a miniature size of the product and is expected to last a much shorter time than the regular package. Sampling is the most effective and most expensive way to introduce a product. Manufacturers of established products regularly give free goods to some of their favoured customers to maintain good will.


Price-off promotion refers to various ways of reducing the price of a product regular package, such as by stating the price reduction on the package itself or by selling three packages at the price of two. Special sales are conducted by retail establishments at specific time in the year and feature attractive price reductions on various items of merchandise. The offer last for a few weeks only.


A low-value item of merchandise that is offered as a bonus to purchases of a particular product. It may or may not be separate from the product’s package. Examples of those that are part of the product’s package are:

(1) A whistle inserted in a cereal box.

(2) A re-useable container, such as a plastic cup or bowl in which the product is put.


Consumers are invited to participate in a sweepstake or contest in which a small fraction of them win cash prizes, goods or free trips some where. In a sweepstake, consumers merely submit their names to be included in a draw to determine prize winners. A consumer test calls for the consumers to submit an entry, such as completing a quiz advertised in the newspaper to be examined by a panel of judges.


Trade promotions are directed at middlemen.


A short-term offer of cash reduction on the price of each case, bale, or other quantity of product. This encourages the middlemen to buy an item or a quantity of an item that he might not ordinary buy. It is often offered during the introduction of a new product.


An offer of a certain amount of a product to wholesalers and retailers at no cost to them but conditional on the purchase of a stated amount of the same or another product.


A manufacturer agrees to pay all or part of the cost of advertisement placed by a dealer in his local media and which feature the manufacturer’s product. This encourages the dealer to stock and push the sales of the product.


This are arranged for distributors, retailers, and the salesmen, and designed to stimulate and motivate them to greater performance. Prizes awarded may be cash or non-cash, but must be attractive enough to induce participation by all sellers.


This includes the sales meetings, contest, spliffs, etc arranged for or given the sales people of a Company. They motivate these sales team and bring out the best in them.


Onyeka and Nebo (2000: 245) citing Dummermutu (1989: 45) said that the advantage of sales promotion arises from its two basic features including flexibility in timing and its broad creative possibilities. Sales promotion is generally used only for short period or on an intermittent basis. This help to reduce the total cost incurred in it but does not reduce its effectiveness since it comes timely when it is needed and does not last longer than necessary.


Keegan, Moriarty and Duncan (1995: 595) said that the reason sales promotion is such a growth area is that it has certain strength that it has impact directly on sales. In economic downturns, sales promotion is a particularly effective tool in the marketing communication mix. Sales promotion possesses certain characteristics which is different from any other marketing communication function.

There are nine (9) in number and usually apply to all types of sales promotion; consumer promotion, trade promotion, institutional promotion and business to business promotion. They provide the framework of setting sales promotion strategy. They include:

(1) Sales promotions add tangible value.

(2) It reduces risk.

(3) Sales promotion stimulates immediate response.

(4) Sales promotion adds accountability.

(5) Sales promotion adds continuity of purchase.

(6) Sales promotion increase purchase frequency and quantity.

(7) Sales promotion builds data base.

(8) Sales promotion adds excitement.

(9) Sales promotion adds involvement.

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Okpara, Anyanwu and Inyanga (1999: 224) said that sales promotions in Nigeria today are usually bedeviled by the following problems.

(1) SHORT-TERMS: The duration and in the fact patronage of sales promotion are ephemeral. It is seen by the business firms as a stopgap. Consumers play along with products simply to win or earn a sales promotional incentive. In other words, consumers are lured to products only for the duration of the promotion. This is an unfortunate development.


Sales promotion is meant to up grade sales, at least in the short-run. It is ironic that the more efforts are made to increase sales through sales promotions, the more the concerned product loses popularity and therefore sales in the market place. This is mainly because consumers look askance at product so frequently promoted. They actually demand the product.


There is hardly any sales promotional effort in Nigeria today that consumers will not cry wolf about. It is believed that incentives are either not given out at all or are given to favoured predetermined person(s).

This consequently elicits but a lackluster attitude from consumer and the general public to sales promotion in Nigeria.


Most Nigeria sales promotions stress economy. How consumers can benefit from reduced prices and more customer savings. This may be understandable, given the nations economic straits. But these promotions may do better than simply and solely stressing economic appeals.

In continuation Cohen (1991: 529) said that with all the advantages of sales promotion, it still posses some disadvantages.

(1) The difficulty of measuring effectiveness, or return on the marketing dollars spend.

(2) The difficulty of measuring efficiency or how well one sales promotion device works versus another.

(3) Rising costs of use in some of the categories of promotions, such as trade shows, demonstration etc.

(4) Clutter in which the consumer is presented with so many different choice that it becomes difficult for a specific offer to stand out against the others.

(5) The added expenses of sales promotion when establishing new brands.

(6) Heightened consumer sensitivity to price.

(7) The fact that a trade buyers may respond to a promotional deal by purchasing only for normal inventory purchasing above their own current requirements to other retailers at a profit, and taking advantage of trade, but failing to pass on price reduction to consumers.

(8) The danger of having a short-term sales promotion tactic is adamantly at odd with the strategy leading to long-range objectives.


Sales promotions are important factor of the communication mix. Besides being useful for the special situations mentioned at the beginning of this study, they make valuable contributions to marketing effectiveness by supporting the advertising and personal selling activities.

Many researchers have carried out research too find out the nature of the effectiveness of sales promotion, whether it has short-term or long-term effect, it effect on existing and new buyers and the effect of sales promotion during and after sales promotion period.

Kotler (2000: 605) said that manufacturers can use three methods to measure sales promotion effectiveness which includes sales data, consumer surveys and experiment.

Boone and Kurtz (1998: 635) they noted that because many sales promotion especially consumer-oriented techniques result indirect consumer responses, marketers can relatively easily track their effectiveness. As with other elements in the promotional mix, they must weigh the cost of the promotion against its benefits. They can measure the redemption rate of cent-off coupons, for example coupons often carry printed codes indicating their sources to let manufacturers and retailers know which media provide the highest redemption rate.

To evaluate sampling, marketers want to know how effectively it induces consumers to actually buy the product once they try the sample.

Foster (1984: 209) concluded that the basic aim for sales promotion is much more limited. The effect is short-term in concept and reality for example, they help to launch a new product, revive demand for an ailing one or boost sales during peak sales periods. However, when the campaign ends, sales normally drop, often below previous level and may take some time to pick up again. The effect is shown in the figure below.


In the previous chapter, the researcher tried to analyse data gotten through the questionnaire distributed and tested and the earlier stated hypothesis.

In this chapter, our findings from the last chapter would be stated followed by recommendations by the researcher on the findings and conclusion. On the study “The effect of sales promotion on the sales of Coca-Cola soft drink”


Due to analysis of the various data generated from the study and the hypothesis duty tested, a number of findings have been made as summarize below:

(1) Sales promotion leads to high sales of NBC products.

(2) Sales promotions usually help to stimulate repeat purchase of NBC products.

(3) Sales promotions usually attract new buyers of NBC products.

(4) NBC frequently use sales promotion.

(5) Sales promotion do increase store traffic.

(6) Sales promotion is very effective in marketing NBC products.

(7) There is direct relationship between sales promotion and other promotional tools.

(8) Sales promotion made consumers to buy the last NBC new product.

(9) Sales promotions have a positive impact on the introduction of new NBC product.


Base on the findings from the study Effect of sales promotion on the sales of Coca-Cola drink. The researcher made the following recommendations:

(1) Since sales promotion usually increase sales, NBC should seriously embark on it so that they will be earning more return.

(2) Since sales promotion stimulates repeat purchase, NBC should not relent so that more people will be coming for their products and other current ones.

(3) Sales promotion attracts new buyers of NBC product. So they should see the need of always practicing sales promotion in order to increase their market sales.

(4) Since sales promotion usually make consumers to buy new product, they should not relent so that as they bring in the product it will follow with its promotion. It may be inform of free gift or rebate.

(5) However, NBC should also pay serious attention to other promotional tools. So that they will be a direct relationship between sales promotion and them


This study was carried out to ascertain the Coca-cola soft drinks. It shows the effect of sales promotion in sales of NBC product. The study also highlighted how sales promotions do attract new buyers of NBC product, how it also helps to increase sales, together with how it helps to stimulate repeat purchase.

The study also shows the benefit of sales promotion to both the organization and the consumers. This benefit may come inform of free gifts, discount on purchase, repeat and product information.

However, the researcher concluded by saying sales promotion should be paid serious attention by the management of NBC products so that they will not be decline in sales of their products.

Sales Promotion – Effect On The Sales Of Coca-cola Soft Drink

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