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SALES PROMOTION: A TOOL FOR ACHIEVING CUSTOMERS BRAND LOYALTY IN THE TABLE WATER INDUSTRY

ABSTRACT

This topic sales promotion: a tool for achieving customer brand loyalty in the table water industry was conducted to investigate the extent of relationship between effective sales promotion and customer satisfaction in the table water industry. However, to achieve the goal of the study, the survey research design was used to study the organization where 100 questionnaires were administered to the respondents in order to obtain first hand information. After a critical analysis of the data collected, there is a strong relationship between effective sales promotion and customer satisfaction in the table water industry, and that goals of table water producers are related to their performance. Militating factors were discovered to mediate between effective sale promotion and customer satisfaction. Based on the findings of this study, the fallowing were recommended. That various table water firm in the state and country at large to adopt move of sales promotional tools and educative programs. That proper communication channel and effective sales promo table should be used to inform consumers. That government agency should put in plate legislation that will guide the operations of manufactures.

CHAPTER ONE

1.0 INTRODUCTION

Sales promotion is that something extra that arose interest, create a buying desire, sprat off an immediate reaction from customers middlemen or company’s sales forces. It is the name that a is applied to special kinds of sales accelerating activities not necessary class as advertising, personal selling or publicity. It is considered as special selling efforts.
It consist of short-term incentives designed to stimulate buying action.
Sales promotional activities are directed to consumers middlemen or the firms own sales force.
The sales promotion tools could be grouped into
a. consumer promotion e.g coupons premiums samples, money refund etc.
b. trade or dealer promotion e.g free goods allowances etc.
c. sales forces promotion e.g sales contents special bouns, sales meeting etc.
therefore sales promotion is seen as a short term nature. It normally comes and go that means it is not permanent in nature and is associated with one peculiar incentive or the other.
It is usually made available at the time of purchase.

1.1 BACKGROUND OF THE STUDY

In this dispensation of creating a viable awareness that will acquaint the customer with the firm and it’s offering we can say that sales promotion as a communication mix offers a consumer a product in addition to extra value is a form of short –term incentive designed to generate immediate purchase, and the addition of extra value offered that influcces the immediate buying action of the customer, sales promotion is indeed a tool for achieving customer brand loyalty.
It is expedient to acknowledge that any promotional activity that does not fall within the premise of advertising, personal selling, public relation publicity is said to be sales promotion.
Sales promotion differs from advertising and personal selling in terms of its approach and technique.
Therefore it adopts short term, non-recuring methods to boost up sales to different ways. These offers are not available to the customer throughout the year.
During festivals end of the seasons year ending and some other occasions these schemes are generating found in the market. Thus sales promotion consist of a all activities other than advertising and personal selling that help to increase sales of a particular commodity. It is a tool for short- term inducement of sales.
The qualities of sales promotion (such as attention getting, product or image damaging) makers it a distinctive marketing communication mix which in turn brings about customer brand loyalty.
Sales is any initiative undertaken by an organization to promote an increase in sales usage or trial of a product or service (i.e initiative that are not covered by the other elements of the marketing communications or promotions mix) sales promotion are varied.
It is that something extra that can arouse interest, create a buying desire, spark off an immediate reaction from customers, middlemen or company’s sales force. It is considered as special selling efforts. It consists of short-term incentives designed to stimulate buying action. Sales promotional activities are directed to consumers, middlemen or the firms own form. The sales promotion tools could be grouped into:
a. Consumer promotion which consists of coupons, premiums, samples, money refunds, price-off, contests, demonstration.
b. Trade or Dealer promotion which consists of free goods, merchandize allowances co-operative advertising, buying allowances dealer sales, contest.
c. Sales force promotion which consists of sales contents, special bonus, and sales meetings.
Sales force promotion incentives are usually of a particular product or brand above the existing level. Sales would increases if more customers are attracted to the shop if non-brand users are attracted and if brand users are encouraged to buy more consumer promotion essentially attract the more price conscious or premium conscious buyers.
The impact varies with the type of promotion, the size of incentive, the ease of getting the offer and the amount of awareness created for the offer.
It is generally considered that the sales promotional activities are designed to break down brand loyalty while advertising is designed to build up brand loyalty. This is because sales promotion has an immediate of immediacy (the benefits are immediate) but it does not build any long-term consumer franchise in contrast to advertising. They attract mainly the deal prone consumers who are always willing to switch brands as incentive becomes available.
Sales promotion devices are usually the only promotional material available at the point of purchase. This contributes to it’s impact in stimulating the prospect. The prospects mind or they would not be there at the point of sales.
The objectives of sales promotion varies from the target audience.
For the consumers, the objectives includes increasing buying response, while for retailers objectives includes increasing selling efforts and intensity.
For sales force, objectives include increase selling efforts.
The overall objectives of sales promotion is to introduce new products, attract new customers and retain the existing ones, maintain sales of seasonal products, and also meet the challenge of competition.
Today the growth of bottled water industry is to a large extent by the careful application of sales promotion activities.
Vinuela table water is a product of Vincent Ogbulafor and son’s Limited establishes in the year 2004, located at no Aba road Old Umuahia Abia State
The consumption of vinuela table water Umuahia metropolis and beyond in increasing on a daily basis because consumers through the instrumentality of sales promotion have come to acknowledge that vinuela table water is of a god quality when compared with others compititing products like Uzzi and eva tables water.
The rate at which the consumption of this product increases depict the effects of sales promotion as a fool for achieving customer brand loyalty and brand switching.
Table water is a drinking water packaged in plastic or glass containers. The dominant from presently in Umuahia and it’s environs is water packaged in new polyethylene ere phthalate bottle and sold retail.

1.2 STATEMENT OF PROBLEM:
In the contemporary market, the uses of short-term incentives to induce sales of a firms offering are faces 3with some challenges which are thus:
1. sales promotion since using a short-term incentive would discourage purchase especially when the size of incentive is too small and may impinge on the company’s ability to achieve it’s objective if the incentive is too large.
2. wrong timing of the sales promotional programme.
3. use of inappropriate promotional vehicle by vinuela table water.
4. Directing the sales promotional programme to a wrong audience.
1.3 OBJECTIVES OF THE STUDY
The purpose of this study is to generally appraise the promotional programmes of vinuela table water with a view to determining how effective management of it’s sale promotional programmes can help it achieve customers brand loyalty. The other specific objectives are as follows:
1. to appraise the sales promotional programmes of vinuela table water.
2. to identify the defects in the current sales promotional programmes of vinuela table water.
3. to identify the problems militating against effective sales promotional programmes of vinuela table water.
4. to establish the relationship between effective sales promotional programmes of vinuela table water and cus6tomers loyalty.
5. to determine how effective sales promotion strategies of vinuela table water can bring about increased market share.
6. to also establish how vinuela table water can use sales promotion to improve it’s customer service and also achieve customer satisfaction.
7. To recommend the most appropriate sales promotion programmes that will result in customer loyalty and increased market share.

1.4 STATEMENT OF RESEARCH QUESTIONS
In consonance with the on-going, bases strictly on the objectives of this study, the following will serve as research questions:
1. How does sales promotion serve as a tool for achieving customer brand loyalty.
2. How do sales promotion activities influence customer brand loyalty?
3. To what extent can sales promotion as a tool for achieving customer brand loyalty help achieve increased market share.
4. To what extent can sales promotion as a tool for achieving customer brand loyalty counter competition?
5. What are the likely problems encountered in applying sales promotional strategies.
6. What are the most appropriate sales promotional strategies that will help a firm achieve increased sales volume?
1.5 STATEMENT OF HYPOTHESIS
The following hypothesis are proposed for testing:-
H1 There is significant relationship between effective sales promotion strategies and customers brand loyalty.
Ho There is no significant relationship between effective sales promotion strategies and customers brand loyalty.
H1 There is significant relationship between effective sales promotion and customer’s satisfaction.
Ho There is no significant relationship between effective sales promotion and customers satisfaction.
1.6 SIGNIFICANCE OF THE STUDY
(A) IMPORTANCE TO THE RESEARCH
1. This study will acquaint the Researcher with various sales promotion strategies that will be used to actualize customer brand loyalty.
2. This study will help the researcher be knowledgeable about how effective. Sales promotion can help counter competitive activities.
3. By carrying out this study, the researcher will become familiar with the problems encountered during the application of sales promotional strategies.
(B) IMPORTANCE TO THE COMPANY
1. This study will aid the company to strategically position their sales promotion message in such a way and manner that will help them achieve customer brand loyalty.
2. This study will help the company take into cognizance those factors that could impinge on the actualization of customer brand loyalty.
3. This study will help the firm understand the relevance of sales promotion on the achievement of customer brand loyalty.
(C) IMPORTANCE TO THE PUBLIC
1. The study will he4lp the general public understand sales promotion and it’s relevancy.
2. This study will acquaint the general public with the extent to which sales promotion can induce and influence them to be coming brand loyal.
1.7 SCOPE OF THE STUDY:
Because of lag in time, the scope of this study covers the consumers in Umuahia city, such as Olokoro, Ibeku, Umuopara, ahuhu, Ubakala, Umudike, Old Umuahia etc.
The scope also covers staff of marketing purchasing, accounting and product branding department.
1.7 LIMITATIONS OF THE STUDY
Due to time and financial lag, the limitation of this study was in Imo State.
In carrying out this study, the researcher was faced with times, financial constraint and academic pressure.
1.8 DEFINITION OF TERMS
(A) Market: can be defined as actual and potential buyers of a firms offering.
(B) Customer: they are individuals or group of individuals who purchase of firms offering.
(C ) Sales promotion: the use of short-term incentives to induce sales.
(D) Brand: is a name, symbol or special design or some combination of these elements that is intended to identify the goods and service of one company and differentiate them from those of competitors.
(E) Brand loyal: customers who have developed a strong conviction about particular product or brand and are not ready to patronize any other brand.
(F) Bottled Water: is a drinking water packaged in Plastic or glass containers.

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