PROMOTIONAL STRATEGY OF MR BIGGS KADUNA BRANCH AND ITS IMPACT ON SALES TURNOVE

CHAPTER ONE

INTRODUCTION

1.0  Introduction

The promotion is considered as a starting point, and the first step, the producers followed to communicate and contact with their customers, in both local and foreign markets alike, where it paves the road to another marketing efforts such as presentation of companies’ product, its features, specifications, distribution of the product, and what distinguishes it from other producers’ competing products in the target markets.

Sales promotion, a key ingredient in marketing campaigns; the need to promote a product, service or an idea cannot be over emphasized. Obi (2002) described sales promotion consists of the related promotional activities that are necessary to supplement personal selling. Some of these include distribution of sample products to customers, exhibitions, or demostration of  products at stores or trade fairs or shows and preparation of printed materials used by sales people or for point-of sale displays. A combination of the above variables defines a firm’s promotional programme that hopes to influence consumers to patronize and become loyal to the organizations offering.

Hence, promotion in marketing represents those tools that companies used to persuade their prospective consumers to buy their product or service. The determination of the most appropriate, effective, and influential promotional elements on the consumers’ purchasing decision making, which achieve the producers’ objectives may have a strong, important, and useful indications for both decision makers, and marketing planners in fast food firms such as Mr Biggs who are confronted with issue arising from competition from other numerous fast food firms in Kaduna.

1.1 Background of the Study

Promotion became an essential motivating factor in the area of marketing in any organization especially in fast food firms. The element in the promotional mix that is rapidly gaining additional recognition in most industries especially in the fast food industry in Nigeria is the sales promotion. It is not enough mostly in developing countries like Nigeria and particularly in fast food industry to merely trust that consumers will become aware of services. The firm has to engage in promotional activities. Over the year some notable author have regard sales promotion as having such roles as the development of  small and medium scale enterprise such as eateries, besides, increasing sales which leads to the ability of competing for a large market share, producing companies has interested and make more attention to promotional activities. The promotion is considered as a starting point, and the first step, the producers followed to communicate and contact with their customers, in both local and foreign markets alike, where it paves the road to another marketing efforts such as presentation of companies’ product, its features, specifications, distribution of the product, and what distinguishes it from other producers’ competing products in the target markets.

This is so because it has been established by Nagar (2009) in literature that only consumers with repeat purchases are profitable. It is not every repeat purchase that is connected to consumer’s commitment of a brand.

However, consumer’s commitment is important for a repeat purchase. Therefore, business operators need to develop marketing program that will not only reinforce customer’s commitment but also encourage repeat purchases. A part of the functions of sales promotion is not only to reinforce commitment of consumers but to encourage repeat purchase. Sales promotion has effects on various aspects of consumer’s purchase decisions such as brand choice, purchase time, quantity, and brand switching. Thus, sales promotion becomes an integral part of the marketing strategy for reaching the target market and it is the responsibility of marketing managers to combine elements of promotional strategies, which is promotional mix into coordinated plans. Sales promotion efforts are directed at final consumers and designed to motivate, persuade, and remind them of the goods and receives that are offered.

Sales promotion which is a major force in marketing is widely adopted by beverage drink industries in Nigeria, but as Nigeria is witnessing an economic down turn, there is increase in prices of consumer goods that also lead to an increase in prices of products in fast food Firms.

The importance of the excessive promotion in a competitive market environment has generated a lot of interest in marketers and firms to develop numerous and comprehensive promotional approaches. The objective of this study therefore is to survey the extent to which sales promotional strategies affect the effectiveness of Mr Biggs Fast food.

Hence, the researcher intends to analyze the impact of sales promotion al mix elements on the choice of fast food outlet in Kaduna metropolis.

1.2.   Statement of the Problem
In a developing economy like Nigeria, it is not enough for fast food firms to expect that  consumer will buy their product or services without considering what they will benefit or deprive from it. Hence sales promotion becomes inevitable.  Organisations who operates fast food outfits are faced with the problem of products substance and competition. So for that reason many fast food firms now attempt to stimulate and get consumers attention with customer loyalty, increase market share by using sales promotion tools on goods and service.   Organizations usually encounter problems such as lack of management known how not appointing the right and experience marketers or sales promotion experts. More sales promotions carried out by organizations are usually badly organized and implemented which leads to the aim being defeated thereby having a direct effect on sales volume and profit.

This problem of low sales and low demand have promoted producers to use sale promotion to compliment the use of other promotional mixes like sale promotion personal selling, publicity and public relations. Some of the questions the study will answer are what impact does sales promotion has on the sales performance of an organization.

1.3.    Objective or Purpose of Study
The main objective of this study will be to analyze the impact of sales promotional mix element on the choice of fast food outlets in Kaduna metropolis. Other specific objective include:

i. Identify the extent to which  fast food outlets in Kaduna metropolis use of promotional mix elements.

ii. Identify the effect of promotional mix elements that is used fast food outlets in Kaduna metropolis on consumers purchasing decision making.

iii. Assess the contribution and efforts of sales promotion to improve the sales of fast food outlets in Kaduna metropolis.

iv. Examine the constraint militating against sales promotion in fast food outlets in Kaduna metropolis.

1.4. Research Questions

i. To what extent are fast food outlets in Kaduna metropolis using promotional mix elements?

ii. What are the effect of promotional mix elements that is used fast food outlets in Kaduna metropolis on consumers purchasing decision making?

iii. What is the contribution and efforts of sales promotion in  improving  the sales of fast food outlets in Kaduna metropolis?

iv. What are the constraint militating against sales promotion in fast food outlets in Kaduna metropolis?

1.5 Significance of the study

The importance of this study is basically to addressed promotional mix as primary marketing element, which is responsible for communicating with consumers, under a certain conditions its effectiveness and success depend heavily on the rational choice of the appropriate promotional element, and for this reason, promotional mix elements has a special significance importance in effecting consumers purchasing decision.

The importance of using marketing communications increases with the amount of competition and its intensity, the diversity of economic and social activities, the increasing in consumer awareness, and the consumers multiplicity of options, so it is very important to choose the promotional communication means, which has the ability to reach the target consumers and persuading them to take the purchasing decision.

Hence the study will be useful to fast food firms in formulate their marketing strategies especially in the area of promotion. The study will also be useful to students especially as they utilize this finding as a spring board for further research. The study will also add to existing knowledge in promotional mix.

1.6.   Scope of the Study
This study will cover an analysis of the impact of promotional mix element on the choice of fast food outlets in Kaduna metropolis. Hence, the study will identify the extent to which fast food outlets in Kaduna metropolis use of promotional mix elements as well as identify the effect of promotional mix elements that is used fast food outlets in Kaduna metropolis on consumers purchasing decision making and assess the contribution and efforts of promotion to improve the sales of fast food outlets in Kaduna metropolis. The study will equally examine the constraint militating against sales promotion in fast food outlets in Kaduna metropolis.

1.7    Definition of Terms

Sales Promotion: May be described or defined as the use of short term incentives periodically to stimulate or encourage consumers to buy product

Consumer: One who buys and uses goods and services to satisfy personal or household ants or for resale.

Sale promotion: Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor in the Radio Television or cinema

Consumer Goods: goods destined for use by the infinite consumer or a household.

Marketing: Is the management function that is concerned with the identification anticipation and satisfaction of customer wants. It organises and directs all the business activities involved in accessing and converting consumer purchasing power into effect demand for a specific product or service and in moving the product or service to the final consumer to achieve the profit target get by the organization.

Public relations: Conscious effort to improve and mention a good corporate image and relationship with pubic and employee and customers, shareholders, local communities, trade union etc.

Personal selling: The process of making oral commercial representation during a buying / seller interview situation. This is collegially referred to as face to face selling or known as buyer / seller interface

Promotional mix: This is the set tool used by manufacturers to persuade consumption habit. They are sale promotion, personal selling, sales promotion, publicity and public relations.

Marketing communication: Conveying of information from the marketing to the market with the aim of creating awareness and obtaining favourable attitude toward the company and its products or service.

Marketing mix: This is a concept of marketing strategy which is based on product, price promotion, distribution, processing and pack gaining in an integrated marketing programme.

Competitors: These are business rival usually in charge of sales who sell or persuade buyers to buy the company’s products or service who are controlled by the national or regional sales manager.

Dealers: Middlemen in distribution channels who buy goods in order to resell them, but not always to the general public. This is general synonymous with retailers but it is often referred to the large distributors.

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