The use of premiums in consumer sales promotions and its effect on the sales performance of an organization. A case study; the Mukwano Industries, Kampala, Uganda
Loading...
Files
Date
2007-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, School of Business and Management
Abstract
The study was aimed at establishing the effect of using premiums in consumer sales
promotion on the sales performance of an Organization taking Mukwano industries as a
case study. The main issue was the fact some product lines still experienced sales
fluctuation despite the fact that Organizations used some of the best methods of
promotion and thus there was a need for the Organization consider the intervention of
premiums as a new sales promotion tool in order to improve sales performance.
The purpose of the study was therefore to find out whether Companies incorporated
premiums as a sales promotion tool, establish the type and quality of the premiums they
offer as well as find out which products were promoted using premiums.
In addition, the study was also aimed at finding out the effect of using premiums in sales
promotion on the sales performance of the Organization.
Fmiher more the study addressed questions such as; which companies used premiums in
their sales promotion? What type and quality of premiums were offered? Which products
were promoted using premiums? What was the relationship between premiums and sales
promotion?
The study was Cross sectional since it targeted the views of the people who were most
informed about the Organization's activities and operations Thus the Respondents
comprised of consumers of the Organizations' products, the employees and sales
managers as well as the Distributors of the Organizations' products.
The study was conducted in Kampala, Uganda and the data collection instruments and
methods included interviews, questionnaires, and observation and past records. The
analysis of the data was done using both qualitative and quantitative methods
The findings revealed that some Companies like Mukwano industries incorporated
premiums in their sales promotion and the type of premium that were offered included
the On-pack type, In-pack type and the Gift-with-Purchase type. In addition the type of
products promoted using these premiums were the Soaps and Detergents, Body and Skin
care products and the Households products.
The findings also revealed that premium had a positive effect on sales performance when
appropriately incorporated this was evident in the increased popularity and distribution of
the product resulting to increased sales performance.
The study therefore recommended that companies should consider the use of premiums in
their sales promotion since it can positively influence the sales of a product However ,
before incorporating this tool, the Company should carefully consider all the factors
involved like the costs involved, Competitors promotional activities, type of product to be
promoted as well as the choice of premium in accordance with the type of product in
order to make the promotion a success.
Description
A research report submitted to School of Business and Management as a partial fulfillment for the Award of Bachelor's Degree in International Business of Kampala International University
Keywords
consumer, sales promotions