ABSTRACT

Sales promotion is a strategy adopted by many organizations to boost corporate performance to maintain or increase the market share of their productions. This study was carried 0111 to empirically examine the effect of sales promotion on the performance of Nestle Nigeria Plc. it covered the period between 2007 and 2013. The specific objectives are to, ascertain the sales promotion on shareholder return, determine the impact of sales promotion on sale volume, estimate the impact of sales promotion on profitability of the company, evaluate the impact of sale promotion on market share, analyze the determinant of sales promotion in the company. The study adopted secondary data. Secondary data was sourced from the financial statement of Nestle Nigeria plc. The data covered from 2007 to 2013. Six regression models specified for the study were estimated using secondary data taken from the annual financial statements of the company. The results indicated that there was a positive and significant relationship between shareholder return and sales promotion, also there was a positive and significant relationship between sales promotion and sale volume, there was a positive and significant effect of sales pro/notion on profitability and there was a positive kind significant effect of sales promotion on market. Finally, there was positive and significant effect of size of market, budget on sales promotion while there via a negative and significant effect of cost of production on sales pro/notion and there was a negative and significant effect of sale promotion on inventory. It was suggested that Nestle Nigeria P/c should sustain or even increase the current tempo of sales promotion activities. The findings from this study indicated that sales promotion has a positive and significant impact on corporate performance and other indicators of profitability.