The impact of sales promotion on sales volume of manufacturing companies

Abstract

The broad objective of the study was to establish a relationship between sales promotion and sales volume of a company case study of century bottling company limited at Namanve industrial area. The specific objectives of the study were to establish the relationship between price discount and sales volume, to examine the role of bonus pack on sales volume and to find out the role played by free issues on sales volume of Century bottling company limited. A case study design with both qualitative and quantitative approaches was used in the study which involved a sample of 63 respondents drawn from the study population of 75 workers. SPPS was used to analyze the quantitative data to develop tables and a figure. The time frame of the study was cross section. The major findings of the research indicated that the company uses sales promotion so as to attract new customers hence an increase on the sales volume. Price discount influences the customer in the buying process at the time to purchase. Bonus pack saves the product from having reduced prices in order to gain a competitive advantage since price reduction may erode brand’s equity and free issues determine the purchase intensions of the customer by creating a first impression. The result also revealed that there is a positive correlation between sales promotion and sales volume with (r=.01, and p=.446) meaning that there is a relationship between sales promotion techniques and sales volume. Recommendations of the study included that century bottling company limitedshould carry out market research so as to come up with the right sales promotion techniques which can lead to an increase in the sales volume of the company, the company should also improve on its stages of production so as to reduce on the production costs and this will lead to a decrease in the prices of the products and the company should also adopt other sales promotion techniques like samples and coupons so as to increase on the sales volume.