CHINHOYI UNIVERSITY OF TECHNOLOGY
MASTER OF SCIENCE IN STRATEGIC MANAGEMENT
ASSIGNMENT 1 Conduct a five page Literature Review on the following topic “Sales promotion and Organisational Effectiveness in the beverage industry in Zimbabwe”
Objectives of the research study
To see how much the promotional activities are successful in popularising the Coca Cola and pulling the consumers towards the company.
To compare the effectiveness of Coca Cola promotional activities with other beverage companies in Zimbabwe.
To see that whether the final consumer of Coca Cola and intermediaries are getting proper benefits from sales promotion activities or not.
To suggest measures to further improve the promotional activities of Coca Cola and make it more competitive.
To find out if sales promotion techniques to be adopted at a given time affect the company’s sales volume and also to look at the effect of sales promotion on organisational l performance.
According to Philipp Kotler (2011-2013) sales promotion is any initiative by an organisation to promote an increase in sales, usage or trial of a product. He added that sales promotion includes incentive offering and interest creating activities which are generally short term marketing events other than advertsing,personal selling, publicity and direct marketing.Kotler identified the function of sales promotion as to stimulate, motivate and influence the purchase and other desired behavioural response of the firm’s customers. Writing about sales promotion tools,Prof Phillip Kotler observes sales promotion having these three distinctive characteristics. •
Communication-They gain attention and usually provide information that may lead the customer to the product •
Incentive-They incorporate some concession,inducement or contribution that gives to the customer. •
Invitation-They include a distinct invitation to engage in the transaction(offer valid till…or till stocks last) According to the American Marketing Association “Sales promotion refers to marketing activities other than personal selling, advertising and publicity, which stimulate consumer purchasing and dealer effectiveness, such as displays, shows and demonstrations, and various selling efforts which are not taken in ordinary route. The sales promotion strategies are there to increase the image of the company and product in the minds of the customer. Sales promotion is an important element of Promotional Mix. Promotion Mix is a combination of promotional tools used by a business unit to communicate with target audience. According to Bruce Jewel (2009) there are six major promotional tools, advertising, internet marketing, personal selling, sales promotion, direct marketing, and publicity. Sales promotion includes tools that are aimed at customers such as samples, coupons,contests,cash refund offers, free trilas,price offs and those aimed at retailers/dealers such as displays, sales contests, free-ad materials, free tour, buying allowance, dealer gifts and others for the sales persons like bonuses,contests,free tour and many more. According to P Kotler (2012) the sales promotion strategies have the following major objectives:- •
To support the advertising program
To support the sales team drive
To support the sales channels-trade
To accelerate the sales
To drive the people traffic to the point of sales
To stimulate the people to make the buying decision
To influence the people to choose a particular brand
To help to liquidate the stocks
To help to overcome the competition
To help to gain the market share
To draw the...
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