Impact of Promotion on Profitability of an Organisation: A Study of Nigerian Bottling Company PLC
DOI:
https://doi.org/10.53555/nnbma.v5i3.2Keywords:
Promotion, Profitability, Organization, Bottling, Company, NigeriaAbstract
The study assesses the impact of promotion on the profitability of the Nigeria Bottling Company Plc, Enugu Plant. The population of the study was made up of 56 management staff drawn from marketing, sales and accounting/finance departments of the company. Employing a census technique, the whole population of 56 management staff constituted the sample size of the study and data obtained from the 56 copies of the questionnaire were presented using descriptive statistics whereas, multiple regression analysis with the aid of the Statistical Package for Social Science (SPSS) was conducted to test both the company’s financial statement from the year 2003 to 2012 and the hypotheses. The findings from data analysis of company’s financial statement shows that, profit is slightly influenced by the variables of sales income not necessary cost of promotion, while the results of the hypotheses testing indicated that, advertising has no significant impact on profitability; sales promotion has a significant impact on profitability; personal selling has no significant impact on profitability; public relations has a significant impact on profitability. The need for an organization to properly coordinate its promotional strategies to achieve a clear consistent and competitive message about itself and its products has become an issue of concern to every result driving firm. The study concluded that, promotion is an important tool that helps companies to improve their profitability. We recommended that there is the need for organizations to increasingly integrate effective promotion in their activities to improved their profitability and competitive advantage.
References
Adekoya, E. C. (2011). Introduction to Research Methodology, (1st edn.) Africana Feb Publishers Ltd, pp. 69-72.
Ailawadi, K. & Neslin, S. (1998). The Effect of Promotion on Consumption: Buying More and Consuming it Faster. Journal of Marketing Research, 390-398. http://dx.doi.org/10.2307/3152036. Retrieved on 19/1/2014.
Alabar, T. (2007). Basic Marketing, Principles and Practice. Makurdi: Aboki Publishers.
Aren, J. (2009) “Assessing the Impact of a Very Successful Price Promotion on Brand Category Competitor Sale”, Journal of Product and Brand Management, 13(5):3-14.
Awe, A., Sholotan, S. and Asaolu, A. (2010). Consumer goods businesses to do well in Nigeria. Feature Article: Nigeria Business Stories.
Aworemi, B. Abejide, D. L, Kevin, P. H and Collins, W. K. (2008). Public Relations Strategies and Tactics. (2nd edn.), New York: Harper Collins Publishers, pp. 80-96
Bamiduro, J.A (2001). “An Analysis of Sales Promotion on Sales Volume in the Beverage Industry: The case Study Nigeria Bottling Company Plc.” J. Intellect. Scent and Cult. Interest. 10 (1):11- 19.
Banabo, E. and Koroye B.H. (2011). “Sales Promotion Strategies of Financial Institutions in Bayelsa State”. Asian J. Bus. Manage. 3(3): 203- 209.
Belch, G. E. and Belch, M. A. (2007). Introduction to Advertising and Promotion: An Integrated Marketing Communication Perspective. 3th edition. Homewood: IL: Richard D. Irwin.
Belch, G. E. and Belch, M. A. (2009). Advertising and promotion: An Integrated Marketing Communication Perspective. Eight editions. McGraw-Hill. Irwin.
Bitta, B. A. (2002). The Placement and Organization of Public Relations Function. (2nd edn.) Butterworths.
Blattberg, R. B., Briesch, R. and Fox, E.J. (1995). How Promotions Work. Marketing Science. 14(3), 122-132.
Boddewyn & Leardi (1989). General Prospects and Customers with Promotion Strategy. Retrieved from www.mgthelp.com 20/1/2014.
Chandy, D., Rajesh, C. Gerard, G, Tellis, T., Maclnnis, S. & Thaivanich, L. (2001) “What to say when, Advertising appeal in Evolving Markets” Journal of marketing Research 34, 4 (November).
Dang, P., Koshy, A., & Sharma, D. (2005). An Empirical Analysis of Different Types of Consumers Promotions in India Market. Asian Journal of Marketing, 104-122.
Dekimpe, M. G., Hanssens, D. M., & Risso, J. S. (1999). Long run effects of price promotion in scanner markets. Journal of econometrics, 89, 269-291. http://dx.doi.org/10.1016/S0304-4076(98)00064-5. Retrieved on 1/3/2014.
Economic Times, (June 15, 2003). Sector Insight: Bottled Water Beyond the Functional Marketing. Retrieved 18 August 2004 from Brand Republic at http//www.brandrepublic.co.uk/news/newsArticle
Fisher, F. (1932). Foundation of Behavioural Research. (4th edn.), Edinburgh: Gate Pearson Education Ltd, pp: 46-65.
Hunt, Z. (2002). The Dynamic Effect of Discounting on Sales: Empirical Analysis and Normative Pricing Implications. Marketing Science, 18, 3,317-332. http://dx.doi.org/10.1287/mksc.18.3.317. Retrieved on 1/3/2014.
Israel, G. D. (2013). Determining sample Size. A Publication of Department of Agricultural Education and Communication, Institute of Food and Agricultural Sciences (IFAS), University of Florida, Gaines Ville. Retrieved from http://edis.ifas.ufl.edu/pd006 on May 4, 2014.
Jefkins, F. (1990), Advertising. 3rd Edition. London. Pitman Publishing Company.
Kamel, W., Carl, J. and Sunil, S. (1999). Advertising Principles and Practice (4th edn). New Jersey: Prentice-Hall, pp: 68-71.
Karim, J. (2005) Towards a new definition of Integrated Marketing Communications – IMC, International Journal of Advertising, 24(1):7-14.
Kitchen, P.J., Brignell, J., Li, T. and Jones, G.S. (2004). The Emergence of IMC: A Theoretical Perspective, Journal of Advertising Research, pp.19-30. (The promotional process Model – adopted from Duncan, 2002).
Kokemuller, E. (2004). Monitoring Marketing and Communication Performance. www.penetrace.com. Retrieved on 1/3/2014.
Kotler, P. (2003). Marketing Management. Analysis, Planning, Implementing and Control: 8th edition. Prentice Hall.
Kotler, P. (2004). Marketing Management. (11th ed.), New Delhi, India: Prentice Hall International Edition.
Kotler, P. and Armstrong G., (2006). Principle of Marketing; 11th Edition New Jersey.
Luca, B. (1999). Analysis of the Relationship Between Advertising, Concentration and Profitability in the U.S Manufacturing Industry. University of Brescia Italy.
Maddala, H. and Wu, J. (1999). Marketing Communication: Thinking outside the Box and Moving Beyond Promotion Mix. Asian Journal of Technology & Management Research 1(2):34-39.
Mahmud, P. Alma-hirah, K., Said, W. & Freihat, M. (2014). Perceptions of integrated marketing communications among marketers and ad agency executives in New Zealand. International Journal of Advertising, 18(1):98-109.
Makale, R. (2004). Manufacturer Trade Deals and Retail Price promotions, Journal of Marketing and Research, 27(4):28-34.
McNamara, D. S. (2001). Reading both high and low coherence texts: Effects of text sequence and prior knowledge. Canadian Journal of Experimental Psychology, 55, 51–62.
Mehir, B., Bipasha, O. and Kamel, J. (2008). The Impact of Sales Promotion on Organization Effectiveness in Nigerian Manufacturing Industry. Universal Journal of Marketing and Business Research (ISSN: 2315-5000) Vol. 1(4) pp. 123-131, October, 2012
Nagar, R.M. (2009). Assessment of Effectiveness of Marketing Communication Mix Elements in Ethiopian Service Sector, Journal of Business Management, 2(3):59-64.
NBC plc. (2012). Nigerian Bottling Company. Retrieved from Coca-cola: http://www.nbcplccareers.com/aboutus.php. Retrieved on 12/4/2014.
Obi, M. (2002). Performance Auditing Of Integrated Marketing Communication (IMC) Actions And Outcomes, Journal of Advertising, 34(4):41-54.
Odunlami I.B, and Ogunsiji, A. (2011). Effect of sales promotion as a tool on organizational performance. J. Emerg. Trends in Econ. And manage. Sci. (JETEMS). 2(1):9-13.
Okoli, P. (2011). Consequences of perceiving oneself as responsible for obtaining a discount: evidence for smart-shopper feelings, Journal of Consumer Psychology, 7(4):371-382.
Okwo, D. E. and Ugwunta, P. J. (2010), Integrated Marketing communications in Nigeria. Journal of Advertising Research, 37(5):7-18.
Ozor, S. J. (2000) The State of IMC Research and Application. Journal of Advertising and Research. 40(5):22-43
Pauwels, K., Hanssens, D. M., and Siddarth, S. (2002). The Long Term Effects of Price Promotions on Category Incidence, Brand Choice and Purchase Quantity Journal. 3(5):22-26.
Preko, A. (2012): The Effect of Sales Promotion on TV Advertising Revenue: (A Case Study of TV Africa, Ghana). J. Emerg. Trends in Econ. and Manage. Sci. (JETEMS) 3 (2): 141-146
Rizvi, S.M, & Malik, G.M (2011). Effective Public Relations. (2nd edn.), Englewood Cliffs, New Jersey: Prentice Hall.
Rotimosho, A. (2003). Practice of Marketing. 1st Edition. Lagos: Global Annuals.
Shimp, T. (2003). “Countries and Their Products; A Cognitive Structure Perspective,” Journal of the Academy of Marketing Science, vol.21:4, pp. 323-330.
Shimp, T. (2000). Advertising, Promotion, and Supplemented Aspects of Integrated Marketing Communication. 5th Edition, New York: Dryden Press.
Shira, S. R. (2003). Marketing. 1st Edition, Delhi: A. H Wheeler and C. Ltd.
Stanton, W., Etzel, M.J., and Walker, B.J.(2001). Marketing. 12th Edition. New York: McGraw-Hill Inc.
Sweney, M. (2004). IMC Using Advertising and Promotion to build brand (International Edition) New York: The McGraw-Hill Companies, Inc.
Syeda, N. Z., Sadia, M., Lahre, P. & Syeda, F. B. (2012). “Short Term and Long Term Impact of Sales Promotion on Organizations’ Profitability: “A Comparative Study between Convenience and Shopping Goods”. Int. J. Bus. And Manage. 7(5): 247-255.
Tahir, H. (2007). Sales Promotion Dissertation. Homewood: IL: Richard D. Irwin.
Wright R. (2000) Advertising; First Edition, Harlow Pearson Education Ltd. Yin, R. K. (1994) “Case Study Research: Design and Methods”. Thousand Oaks, Sage Publications.
Wise-GEEK.(2003). Understanding Profitability. www.extension.iastate.edu/agdm/whol. Retrieved 22/6/2014.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Terms & Condition
Submission -
Author can submit the manuscript through our online submission process or email us at the designated email id in contact details.
The other mode of submission not accepted than online and email.
Before submission please read the submission guidelines.
NN Publication accepts only article submitted in pdf/doc/docx/rtf file format. Another format except given file formats will no be considered .
Author will be responsible for the error mistakes in the submission files. The minor changes can be done without any cost after publication. But for major changes NN Publication may charges you the editing charges.
Publication (Online) -
The online publication is scheduled on last date of every month, but it can be delayed by 24 to 48 hours due to editorial process if huge number of articles comes to publish in single issue.
Automatic notification email will be sent to the all users on publication of an issue, so its author’s duty to check their email inbox or SPAM folder to get this notification.
After publication of article author can not withdraw their article.
If editor’s found any issue after publication of article then the NN Publication have the authority to remove the article from online website.
No refund will be provided after online publication of article.
Publication (Print) -
The print copy publication are sent as per the author’s request after 2 weeks of online publication of that issue.
NN Publication will ship the article by India Post and provide the consignment number on dispatch of print copy.
NN Publication follows all the guidelines of delivery provided by India Post and hence not responsible for delay in delivery due to any kind of reasons.
Refund of hard copy will not be provided after dispatch or print of the journal.
NN Publication will be responsible for raise a complain if there is any issue occurs in delivery, but still will not be responsible for providing the refund.
NN Publication will be responsible to resend the print copy only and only if the print copy is lost or print copy is damaged in delivery / or there is delay more than 6 months.
According to India Post the delivery should be completed with in 1-3 weeks after dispatch of articles.
Privacy Policy-
NN Publication uses the email ids of authors and editors and readers for sending editorial or publication notification only, we do not reveal or sell the email ids to any other website or company.
