The effects of sales promotions on the performance of cosmetics industries in Uganda

Abstract

The study established the effect of sales promotion and Organization performance in cosmetics industries in Uganda using Sanyu Moving Shop Natete (SAMONA) as a case study. The study was guided by the following objectives; assessing the effect of consumer sales promotion on organizational performance; to determine the effect of sales force promotion on organizational performance and establishing the effect of trade sales promotion on organizational performance. The study used a cross-sectional case study approach adopting both qualitative and quantitative approaches. A sample size of 74 respondents comprising of department managers, marketers, sales agents, and sales representatives selected using purposive sampling and simple random sampling. Data was collected using self-administered questionnaires and in-depth interviews. The data was analyzed using SPSS version 20. The research revealed that the impact of sales promotion on organizational performance in Samona is intense. Also, from the management perspective most of the respondents agree that sale promotion provides extra incentives to purchase as well as stimulating resellers demand and effectiveness. The study devoted to conclude the relationship between sales promotion and the organizational performance, most sales promotion provide extra incentives to purchase as well as stimulating resellers demand and effectiveness. It revealed that effective sales promotion increase sales in respect to trade sales promotion on performance (r=0.195**; p<0.001). The researcher therefore recommended that, management of Samona Uganda Ltd should embark on more strategic sales promotion, like trade promotion in order to increase their market share and profitability.