THE ROLE OF SALES PROMOTION ON THE PROFITABILITY OF A FIRM’S PRODUCT IN A DEPRESSED ECONOMY

ABSTRACT

The aim of this study is to evaluate the impact of sales promotion on the profitability of a firm’s product in a depressed economy. The challenges that propelled this study revolved around the fact that some organizations are not worry of the impact of sales promotion on alcoholic drink industry in Nigeria and a downward economic trend. Failure on the part of the organization to assess consumers attitude towards sales promotion can be seen as catastrophic, since it is difficult to forecast the demand for the products, other organizations have not been able to unearth the sales promotional strategy that can be utilized to increase profitability and sales volume in the organizations during economic recession. There is also a mono-strategy syndrome by organizations who concentrate solely on one type of advertising method while failing to realize the potentiality of sales promotion on turnover relative to other forms of advertising. The study population consisted of all the employees and customer. The Nigeria Brewery Company Plc, Edo State, from which a sample of 150 cutting across all levels and department within the organization were selected for the purpose of investigation. Questionnaire formed the major instrument of collecting the data from the staff, it was structured using 5 – point likert scale, 200 respondents were served with questionnaire representing 100%. The data were than tested using the chi-square test statistics. From the analysis it was revealed that sales promotion have helped to increase the market share, of the organization sales during recession. The product must be right in terms of acceptability, availability and affordability. The publicity of the sales promotion must also be adequate, more so the size of the incentive must be attractive but not two attractive.