In this first chapter of introduction, there were a few of journals and articles previewed to gain and understand on ‘The Impact of Promotional Strategies on Sales Performance of Nestlé. In analyzing the introduction, the researcher is focusing on the following aspect such as background of study, problem statement, researcher objectives, researcher questions, significance of study and also the organization of chapters.
1.2 Problems Statement
Promotion strategy includes of planning, implementing and controlling of communication from an organization towards their customers and also other target audiences. The most important responsibility of marketing is to plan and coordinate well promotion strategy and also select specific strategies for some components of promotion (Cravens, D. 2000). A well promotion strategy can boost up a firm’s sales (Gitman, L. and Mcdaniel, C. 2008). While selecting the specific strategies of the promotion, the organization need to know what best suits strategies of promotion they need to use in order to achieve their goal as those strategies gives impact to their organization itself. Every organization faced a lot of problems and challenges on promote their products or services. According to Simkin, D. and Dibb, S. (2001), Nestle faced a challenge as to achieve a critical stage for distribution coverage to guarantee the promotional spend that required to achieve the brand awareness as to compete with leading competitors. Without promotion and brand building, Nestle sales are accordingly weak. For example, Nestle products of Kit Kat bar are hit in all over the world but in Japan, Nestle have much luck selling them until it figured out how to influence teenagers as their target audiences in the market (Lamb, C. et al. 2008). Nestle has success in their promotion strategies in Japan in order to promote the product to the market audiences in Japan even the first trial are not done well but they manage to figure out what best strategies that they need to use. This shows that it is important to use proper strategies in influence their target and those strategies will influences on the sales performance. According to Timesofmalta.com (2013), currently Nestle Malta has launched a new promotion as customer can get a toy monkey that holding blanket for babies as when they buy three tins Cerelec infant cereals or NAN3 growing-up milk. Ineffective strategies of promotional will result in low brand awareness of consumers and that will be a problem for Nestlé. When customer perceptions are low, it can be result of incompetence employee, ineffective design, ineffective marketing, and wrong advertising (Cheung, G.W., & Rensvold R. B. 2009).
1.3 Research Topic
The researcher has highlighted the research topic as: The Impact of the Promotional Strategies on Sales Performance of Nestlé.
1.4 Conceptual Framework
Promotion Strategies (Independent Variable) Advertising
Examples: Television, radio, magazine, newspaper, direct mail, outdoor advertising, etc
Examples: Trade shows, contest, samples, coupons, point of purchase display, etc.
Word of Mouth
Examples: Buzz, Facebook, blog, and any other social media marketing.
The conceptual framework provides clear concept of the areas that exists meaningful relationship as it works in order with goals to justify the research study (Cargan, L. 2007). Based on the framework that the researcher had highlighted, there are two variables that are Dependent Variable and Independent Variable. The dependent variable in the framework above is the...
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