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Sales performance and outlet age

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    CHAPTER ONE 1. 0 Introduction……………………………………………………………………13 1. 1 Background of the study……………………………………………………….. 13 1. 1. 1 Profile of the company……………………………………………………….. 14 1. 2 Statement of the problem…………………………………… …………………. 15 1. 3 Objective of the study……………………………………………………………15 1. 3. 1 General objective ………………………………………………………………16 1. 3. 2 Specific objective………………………………………………………………16 1. 4 Research Questions………………………………………………………………16 1. 5 Significance of the study…………………………………………………………17 1. 6 limitation of the study……………………………………………………………. 17 1. 7 Scope of the study……………………………………………………………….. 18 1. Theoretical Framework…………………………………………………………18 CHAPTER TWO 2. 0 Literature Review ………………………………………………………………20 2. 1 Introduction ……………………………………………………………………20 2. 2 Review of past studies………………………………………………………….. 20 2. 3 Critical Review………………………………………………………………….. 30 2. 4 Gaps in the study……………………………………………………………. 32 CHAPTER THREE 3. 0 Research design and methodology…………………………………………33 3. 1 introduction …………………………………………………………………33 3. 2 Design of the study ………………………………………………………….. 33 3. 3 Target population……………………………………………………………33 3. 4 Sampling design…………………………………………………………….. 34 3. 5 Data collection ………………………………………………………………. 4 3. 6 Data analysis …………………………………………………………………35 CHAPTER FOUR 4. 0 Data analysis and presentation………………………………………………36 4. 1 Introduction…………………………………………………………………36. 4. 2 Customer demographic characteristics………………………………………36 4. 3 Retailer characteristics………………………………………………………40 4. 4 product characteristics………………………………………………………42 4. 5 Sales performance and sales promotional tools…………………………….. 43 4. 6 Sales performance and outlet age……………………………………………44 4. 7 sales performance and price……………………………………………………46 CHAPTER FIVE 5. 0 Conclusions and recommendations……………………………………………47 5. 1 Conclusions ……………………………………………………………………47 . 2 Recommendations………………………………………………………………48 References Work plan Budget Questionnaires List of Tables Table 3. 1 Target population…………………………………………………. 33 Table 3. 2 sampling techniques…………………………………………………34 Table 4. 1 – Consumers preference by occupation………………………………37 Table 4. 2 – Results of the analysis of age as a factor in awareness, point of purchase and Coka Cola size………………………………………………………………38 Table 4. 3 – Retailers Participation in sales promotion …………………………41 Table4. 4 – Consumers’ responses………………………………………………43 Table 4. 5 Effects of sales promotion and sales Performance……………………45 List of Figures

    Figure 1. 1 Theoretical Framework…………………………………………19 Figure 2. 1 Kotler’s Model of communication (cim Study text, June 1999….. 24 Figure 2. 2 5ws model of communication (Belch& belch, 1993)……………25 Graph 4. 1: Awareness of Sales promotion…………………………………40 Graph4. 2 – Changes on sales and age outlet………………………………47 ABBREVIATIONS CCS………………………………………………………Current Coca Cola Sabco CIM…………………………………………………Chartered Institute of Marketing SSDs……………………………………Supermarkets and Strategic Sales Depots ABSTRACT Sales promotion refers to those marketing activities that stimulate the consumer purchasing and dealer effectiveness.

     

    In as much as promotion is good it needs to be carefully planned otherwise it may lead to numerous losses or may lose sight of its initial goals. Sales also are a technique that most manufacturers use during the same times hence its best for items that do not have brand loyalty preference. CHAPTER 3 3. 0 RESEARCH METHODOLOGIES AND DESIGN 4. 11 Introduction This chapter will present the methodology to be used to attain the study objectives. We will discuss the approach used of the study. After we look at the target population, sampling size, data collection methods and conclude with the methods of data analysis 4. 2 Design of the study This study will use a descriptive research design with the objective of establishing the effectiveness of sales promotion on the behavior of consumers of coke. 4. 13 Target Population Table 3. 1 Population CATEGORY| TARGET POPULATION| PERCENTAGE| Consumers| 130| 72. 2%| Retailers| 50| 27. 8%| TOTAL| 180| 100%| | Source: Author (2008 The study will target two types of population for the survey: One, direct consumers of coke within Nairobi; and two, the point of purchase outlets of coke such as Kiosksshops, Supermarket and Strategic Sales Depots (SSD).

    Considering the numerous Consumers of coke, the survey will adopt random selection criteria that will capture about 122 consumers and 45 outlets of coke. Table 3. 2 Sampling size CATEGORY | TARGET POPULATION | SAMPLE SIZE | PERCENTAGE | consumers| 130| 122| 73%| Retailers| 50| 45| 27%| TOTALS| 180| 165| 100%| Source: Author (2008) 4. 14 Sampling Design The researcher will use random sampling method. Specifically the stratified random sampling method. From the method the researcher is meant to get a population comprising all the respectful age level and brackets for more depth in data .

    Also simple random sampling method will be used to get the actual percentage of respondents from the group chosen. 4. 15 Data Collection Method To execute the project, both primary and secondary data will be used as described overleaf: 4. 16. 14 Secondary Data The researcher will relay on the secondary data obtained from the files of Coca Cola Company. Also information from various studies carried out before. As a rejoinder information will include sales trends, nature and types of point of purchase outlets and stock level. 4. 16. 15 Primary Data.

    Will be obtained chiefly from questionnaires and casual probing of the consumers and the company’s major outlets and managerial staff. The. These respondents will be well recorded. The questionnaires will be assigned in a pre arranged order to allow respondents to choose from the predetermined answers. The survey will also administer personal interview to a selected senior executives of the company. The questionnaires will be edited and pre tested before use. 4. 16 Data Analysis Method. Out of the 130 questionnaires sent out for the consumers and 50for retailers, 122 and 45 will received from each respective group.

    The researcher will edit and correct any ambiguities, error and inconsistencies, the responses will be coded and into a computer for analysis. The analysis will use the following analytical tools: Descriptive statistics namely range, mean, standard deviation and variance to determine central tendencies. Secondly frequencies were used to determine the commonness mentioned by the two groups. Lastly, cross tabulation will be used to check the differences between respondents groups and between central tendencies. The data will be analyzed and interpreted in diagrams and table using Microsoft Word 2003.

    CHAPTER 4 4. 0 DATA ANALYSIS AND PRESENTATION.

    Further, the results showed that awareness among consumers increased with age, notwithstanding the fact that5 the proportion of the respondents who purchased Coke decreased with the increasing in size. This was confirmed by the 89 % indicating preference to 300 ml, the rest shared between 500 ml and 1000 ml Table 3 – Results of the analysis of age as a factor in awareness, point of purchase and Coka Cola size AGE| AWARE | PLACE| SIZE| | YES (%)| Kiosks (%)| Supermarkets(%) | Hotels(%)| Others(%)| 300 ml(%)| 500 ml(%)| 1000 ml(%)| 15-20| 26. 6| 18. 9| 3. 3| 3. 3| 5. | 18. 0| 9. 8| 3. 3| 21-25| 16. 4| 16. 4| 1. 6| 1. 6| 0. 8| 12. 3| 7. 4| 0. 8| 26-30| 12. 3| 5. 7| 6. 6| 2. 5| 2. 5| 8. 2| 7. 4| 1. 6| 31-35| 6. 6| 7. 4| 1. 6| 4. 1| 0. 0| 7. 4| 4. 1| 1. 6| * 36| 10. 7| 9. 0| 1. 6| 7. 4| 0. 0| 7. 4| 6. 6| 4. 1| TOTALS| 72. 6| 57. 4| 14. 7| 18. 9| 9| 53. 3| 35. 3| 11. 4| It was noted that the highest level of awareness in sales promotion was recorded within the age bracket of 15-20 years, attributed to the claim of high participation of this age group and the fact that product advertisement are undertaken by those in this bracket.

    However, the study showed that no relationship between age and the favorite size of coke. Analyzed by gender, there was no significant difference in preference by males or female 66 % of both sexes preferred the bottle. The majority (31 %) of male consumed the drink from kiosks while most supermarkets purchases of the drink were females (10&) overall all sexes at 66. 4 % preferred it packaged in a bottle (Table 5) Table 5- Consumers’ responses Gender | Awareness| Point of purchase| Cup as packagePreferred (%)| Psp(%)| | | Supermarkets(%)| Kiosks(%)| | | female| 37. 7| 9. 8| 26. 2| 6. 6| 16. 4| male| 32. 8| 4. | 31. 1| 5. 7| 25. 4| Total | 70. 5| 14. 06| 57. 3| 12. 3| 14. 8| 4. 5 Sales performance and sales promotion tools Evidence from the study indicate that 86 % of the consumers agreed they were aware of sales promotion ,even then 64 % of these people had learnt of it through advertising while 7. 4 % was through observation. Observation is only possible when sampling (which is a sales promotional tool) is incorporated into promotional process. Our study revealed that 45. 9 % of the respondents had not participated in any sales promotion contest while only 4. 1 % has participated in both sampling and sales contest.

    RETAILERS QUESTIONNAIRE 1) Nature of business? I) kiosks/ shops ii) Supermarket iii) SSD 2) Location in Nairobi I) North ….. ii) South …… iii) west ….. iv) East …… 3) How long has the business been in existence: i) < 2 years ii) 3-5 years iii) 6-10 years iv) > 11 years 4) Which is the most favorite size of Coke for consumer: i) 300 ml ii) 500 ml iii) 1 liter 5) How many cases of above did you sell in December 2007 i) 300 ml………. ii) 500 ml……… iii) 1 liter……………. 6) Again how many of the above mentioned were sold in January 2007 i) 300 ml…………… i) 500ml……………. iii) 1 liter ……………. 7) How many cases of each of the following do you have in stock? Bottles (cases) I) 300ml ……….. ii) 500 ml …………. Iii) 1 liter ………… 8) Which of the following sales promotion are you involved in? i) Promotional allowance ii) Point of purchase display iii) Sales contests iv) None v) Others (please specify) …………………………….. 9) On a scale of 1-5 could you please rank each method with respect to effectiveness on sales Very Effective not at all effective ………… ……………… …………………. ……………… …………… 543 2 1 i) Promotional allowance ………………… ii) Point of purchase display ……………. iii) Sales contest ………………… 10) When coca cola uses sales promotion for consumers e. g. competitions, what has been the effect on sales and by what %( Tick one) I) Sales has doubled II) Slight increase of sales III) No effect IV) Slight decease of sales V) Decease of sales by more than half 11) Please pick on a scale of 1-5 | StronglyStrongdisagreeAgree| 5| 4| 3| 2| 1| I would stock coke regardless of whether there is a sales promotion or not | | | | | | | If the price of coke is increased I will still continue stoking it| | | | | | | I also stock soft drinks not manufactured by coca cola| | | | | | | I sell coke more than any other soft drink| | | | | | | Coke is the easiest brand to sell among the coca cola products. | | | | | | | Sales promotion on coke is well organized. | | | | | | | The discounted rates on coke encourage me to stock more coke. | | | | | | | The displays on coke encourages more consumers to purchase coke| | | | | | i) | Distribution of coke is good. | | | | | | 2) Have you ever tried selling other soft drink not produced by coke because of their attractive sales promotion? Yes……………………. No …………………. If yes, from which companies i) Kuguru foods (Softa) ……………….. ii) Schweppes ………………. iii) Other…………………… iv) Not applicable……………….. 13) In your opinion under which of the following circumstance should Coka Cola Company use sales promotion? i)When sale are down ii) When introducing a new product iii) When clearing dead stock iv) When competition is most stiff v) Other (please specify) …………………… 14) Please identify any aspect of sales promotion methods carried out on Coke that you would like improved? ) Promotion allowances: …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. ii) Point of purchase display: ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… iii) Sales contest: ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

    Are there any aspects of coke you would like improved?………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

    Reference ACCA study Text, (1998), “professesional paper 12- Management and Strategy”BPP publishing Ltd, London Arens, W. F. (1996), “Contemporary Advertising”, 6th Ed. , Irwin / McGraw-Hill, USA Coca Cola, (1999), “news” Vol 27 No 3 June Daily Nation, Monday, December 21, 1998-Areticle on “Coke in Kenya” Daily Nation, Friday, March 31, 2000-Article on “Coca-Cola enjoy” Donaldson, B (1998), “sales Management”-theory & practice”, 2nd Edition, Macmillan press Ltd, UK KOTLER, p. (1994), “Marketing Management-Analysis, planning, implementation and control”, 8th Edition.

    Prentice, ND, India Marketing Intelligence- The Business and finance Journal –March 2000 Issue Fig. 3. 1 Work Plan Nov 2008 __________________________May 2009 Nov – 08| Dec | Jan| Feb| March| April| May | | Questionnaire Drafting | | | | | | | | Issuing of Questionnaire | | | | | | | | Data Collection| | | | | | | | Data Analysis Chapter 4| | | | | | | | Compiling Findings Chapter 5| | | | | | | | Project Report Writing| | | | | | | | Making Final Copy| | | | | | | | Source: Author (2008) Fig 3. 2 Budget Data Collection | 8,000| Typing and Printing | 7,000| Final Copy and Binding | 3,000| Total | 18,000| Source: Author (2008)

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