Effect Of Sales Promotion On The Profitability Nigerian Brewery Plc

ABSTRACT

The study was on the effects of sales promotion on the profitability in the brewing industry, a study of Nigerian Brewery plc. The objectives of the study are to ascertain the effects of gifts in enhancing profitability in the enterprise; analyze the effects of coupon on the sales growth of the firm; determine the effect of price- offs on customer patronage; analyze the effects of refunds on customer retention in the enterprise, and to analyze the relationship between sales promotion techniques and corporate profits. Questionnaire was adopted to collect primary data for the study which were analyzed using multiple regression and Pearson correlation. The study concluded that the application of sales promotion in the brewing industry enhances their profitability; that the practice of sales promotion is based on the tools namely bonus, coupon, gifts etc enhances profitability; and that profitability which is as a result of the application of sales promotion can lead to increase in market share, sales volume and profitability indices of the firm. And thus recommend that the sales volume and profitability of the enterprise should be stated and evaluated periodically especially in relation to profitability; There should be close adoption of market segmentation and targeting as well as sales promotion research in the sales promotion activities of the firm. This will serve as a complementary strategy to the adoption of integrated marketing communication.