Assessment the impact of Sales promotion tools on increasing Consumers purchasing power toward Beverage Companies in Tanzania

Assessment the impact of Sales promotion tools on increasing Consumers purchasing power

toward Beverage Companies in Tanzania

A case of Tanzania Breweries Limited - Mwanza Plant

Prepared by: David Mwakanyamale

From Public Relations & Marketing Class

Supervised by: Mr Nkwabi

Presented in: 2014 at ST. Augustine university of Tanzania Mwanza

ABSTRACT

The main purpose of the study was to determine on how sales promotion tools influence consumer purchasing power for beverage companies in Tanzania. Specifically, the study aimed at evaluating the most preferred sales promotion tools to consumers and companies.

The study was employs same of theories to support the argumentation like Classical Conditioning theory which support sales promotion as an stimulus to the customer to buy more, and Operant conditioning theory which need to imparting new buying behavior to the customers. The approach used was a combination of secondary data, observation and in-depth interviews with customer and company employees or sales personnel.

Findings revealed that most of consumers and companies understand the concept of sales promotions and their tools. The objectives of the organizations who are the producer of beverages and prepare sales promotion for the purpose of catching customer while that not all sales promotion does not fulfils the need of customer. Also the preference of sales promotion to the customer is in high level due to fragmentation of economic level of customers.

The study concluded that in order to fulfill the needs of customer companies should use sales promotion which target and influence large group of customer to buy more. Also marketing department is required to integrate all marketing communication tools to catch all customer attention in different periods of time. Same tool are more cost to companies if applied frequently there for there is a need to look forward to use other that are less cost and profitable to companies.

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CHAPTER ONE

1. Introduction

This chapter consist background of the study, statement of the problem, significance of the study, objectives of the study, research questions, scope of the study, limitation and definition of the key terms.

1.1. Background of the study

1.1.2. Sales promotions in general

American marketing Association; state that sales promotion is the media and non-media marketing activity applied for a predetermined limited period of time at the level of consumer, retailer or wholesalers in order to stimulate trial, increase demand or improve product availability to the consumer. There for sales promotion act as a tool for marketing communication of company or organization with the targeted customers.

Marketing department in organization or company used sales promotion to create sales for the company product or services. Marketers find consumers to get the products at a reasonable price, quality and conveniently locate the products and also provide an atmosphere that will motivate entire consumers to buy and attract new consumer which in term increase the company profit.

(Axian, 2008, p.407) Shows the life of ancient Greece and Rome and application of sales promotion activities where by advertisement was attached on stones tablets, carves, trees and wall as a time changing advertising techniques also changed. Sales promotions have involved into the following classifications; discount and deals, increase industrial visibility, price based consumers, distributions and attention getting to consumers sales promotion. The marketing team for target stores do an excellence job of sale promotion through “discount and deals” to their consumers.

(Guinn, 2000, p.572) Sales promotion grows and expanded day after day and numbers of marketers in the world are transformed from mass media advertising and to consumer and trade sales promotions. In 1980, the budget allocation for packed goods in U.S.A average of (43%) for advertising, (34%) for trade sales promotion, and (23%) for consumer sales promotion. But currently the budget of sales promotion activities increases twice.

1.1.3. Sales promotion in Africa overview

An African case shows that most of small and medium size enterprises a sales organization are responsible in formulating and implementing any sale promotion which necessary to support the entire sales. Any sales promotion strategies need to include the entire distribution channel where different level of distribution are expected to promote product or service, African counties mostly prefer to use impersonal sales as alternative way of promoting product while lack communication ability (Marketing management & strategy, 2013, p.158)

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1.1.4. Sales promotion in Tanzania outlook

Sales promotion in Tanzania traced far back since in 1958 were by most of activities was done under small sales promotion agencies and musician band like in Africa band, Ulanga jazz, Morogoro jazz. During that time music band used in sales promotion and consultancy of company like; coca cola (East Africa Company), Cooper Motor company (Mwakikagile, 2012, p.361).

The sales of products and services rise up as the market respond to the artist, and the music of the artist was promoted has being associated with products or services.

(Rwabutoga, 2005.p.318) shows that in practice of sales promotion in Tanzania, operation level of marketing which designed strategies around the key set of controllable marketing variables on typically product or service, price promotion and place and most of them are subjected to the budget constraints for each marketing strategy externally and competitor environment affect enterprises.

Marketing manager utilize several approaches in developing price strategy for product and services. The issue of sales promotion effective for new product and service in small and medium enterprises based into sales volume effort and communication effort of a company to targeted customers.

(Globalization of food in systems developing countries, 2004, issue. 85. P, 142-145) In Tanzania sales promotion is more influenced by the rise and increase of foreign investors after globalization and privatization of sectors in 1990s and early of 2000. Increase of population lead into rise of demand of products which influence expanding of marketing activities, advertising and sales promotion where by food and beverage company introduce ground of promotion while most of advertising and sale promotion activities focus in urban area but later expand to rural areas.

1.1.5. Back ground of organization

In 1933 TBL was established and 1963 merged to form East Africa Breweries, the government buys (45%) of the total shareholder. 1979 during the nationalization TBL was nationalized become under the control of government, 1993 TBL become under equal shareholder with Tanzania and South Africa breweries company and Mwanza plant opened in 1995 by the president Ally Hassan Mwinyi but official brewing stated in 1996.

Safari larger was the first brand to be produced and later other brands imported from abroad like castle larger, castle lite, and other local brand like Kilimanjaro, Faru, Balimi,Bingwa, and Grand malt for non-alcoholic users.

1.2 Statement of the problem

Consumers of both industrial and consumers of goods exhibit varies attitudes and behavior toward the products and service offered to them. Because present consumer’s income is very low due to the economic difficult and other environmental factors that influence their purchasing habit many consumers preferred to spend their income on essential goods like; food stuff, clothes, shelter. It is not enough for manufactures to just produce and expect consumer will buy their product or

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services without considering what they will benefit from it, the issue of competition and fragmentation of consumers become a big problem. So for that reason many manufactures now attempt to stimulate and get consumers attention by using sales promotion tools on goods and service which result into increase of consumer loyalty, market and brand recognition.

The problem of many competitors, low sales and low demand have promoted producers to use sale promotion to compliment with other promotional mixes like advertising personal selling, publicity and public relations. However, it has been observed that some producers do not employ the use of appropriate sales promotional tools and methods, to enhance the achievement of stated goals .Some of questions the study answer are what impact does sales promotion tools has on the sales performance of an organization, the preferred sales promotion tools.

1.3 Research objectives

1.3.1 General objective

To assess the impact of sales promotion tools on increasing consumer purchasing power towards beverage companies.

1.3.2 Specific objectives

To identify various sales promotion tools in influencing consumer purchasing power. To assess most preferred sales promotional tools in increase consumers purchasing. To determine the impacts of sales promotion tools to company.

1.3.3 Research questions

What are the various sales promotion tools on influencing consumer purchasing? Which sales promotion is more applicable by beverage companies rather another? Which sales promotion tools are more preferred by customer in purchasing? What are the impacts of sales promotion tools to the company productivity?

1.4 Significance of the study

To the company, the study will help to determine the impact of sales promotion campaign on increasing consumers purchase and sales volume to the company.

To the new company in market, the study will help to identify the effectiveness of sales promotion in a company.

To the future researchers and society, this study will help and guide researcher in sales promotion issues and giving knowledge customer on using opportunity of sales promotion discount, price off, and display contest which help to save their income.

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1.5 Scope of the Study

The study will focus on determining the impact of sales promotion tools used by Tanzania breweries on increase customer purchasing power. Also has been limited to Ilemela district especially in a small area called Pasiansi and including (52) respondents from consumers, sales point (10) and (8) staffs in sales department.

1.6 Limitation of the study

The study was limited with many problems during conducting it like; funds, on accommodation and facilitating a process of data collection. Limited of time, since data collections needs interview to some of respondents, observation of other things from respondents which needs time and questionnaire from company delayed due to the larger number of students who conducting researches and result into delay in data analysis.

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1.7 Key terms

Sales promotion

This is a short term activity which includes, creating awareness, motivating and selling of your product or services to the target customers in the specific period of time.

Non media

Is the process which does not need any communication channel or tool like radio, TVs, newspaper during communication.

Predetermined

Is a short term period of time which allocated for accomplishing a certain activity specifically with their goals and objectives.

Sales promotion tools:

These are all promotional tools like price packs, rebates, offers, premium, contest used during sales promotional activities.

Beverage Company

This is to the companies dealing in a production of drinks which is alcoholic or non-alcoholic type.

Purchasing

This is the process of using money to exchange with other goods from sellers for domestic or business use.

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CHAPTER TWO

Literature Review

2.0 Introduction

This chapter consists of; theoretical Frame work, Review of related research/ Empirical Literature review and research gap.

2.1. Theoretical Frame work

This study is guided by using two social learning theories of human behavior, classical and operant conditioning.

2.1.1. Instrument conditioning/ Operant conditioning theory

The theory was described by Ben F. Skinner a psychologist from Harvard University in 1976, this theory are based on explain voluntary behavior leading into rewards or consequences. Skinner explains that if the behavior is reinforced, it is more likely to occur with same outcomes.

In consumer behavior the term purchasing behavior that results in more favorable outcomes are likely to persist due to same inducements added to consumers. Favorable experience as the outcome become as an instrumental in encouraging the consumers to repeat the behavior of purchasing or not purchasing a certain product in future.

The theory focus on imparting new behavior to individuals were by marketer are responsible or wish to teach consumer to purchase a particular product or accept it, sales promotions in marketing refer as an instrument of emphasize customers to repeat purchase due to presence of premium, coupons, sample, and prices become reinforce tool influencing customers buying behavior. The aim and purpose is to apply or use sales promotion to influence customers purchasing a product frequently, but in a manner that would considerable reduce the probability of extinction effects.

2.1.2. Classical Conditioning theory

This theory described by Ivan Pavlov in 1927, he was a Russian psychologist Pavlov found that the shorter the time between the stimulus and a conditioned response could be developed this theory guide on responding on the stimulation that would not always product such respond. Pavlov conducting an experiment with dogs, he demonstrates that hungry dog would always salivate in the presence of food. And when bell was sounded almost immediately following with food, after sufficient number of times sound of bell alone caused the dog to salivate.

Dog had lent that the sound of bell is an indicators of food, the dog associated with presence the sound of bell which act as condition stimulus with food act as unconditioning stimulus while salvation as response of action.

This theory shows that many sales promotion techniques make the use of this classical condition theory in practice to their customers. A brand associated frequently with premiums, and contest may serve as the unconditioning stimulus and the resulting response could be excitement in

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customers and development of favorable brand attitude and hopefully customer purchasing behavior.

Special offers from displays may induce brand switching because they save a conditional stimulus associated with price reduction. This due to consumers trained that special sales promotion displays with price reduction and consumers will respond to the displays even if the price not redacted.

2.2. Review of Related Research

2.2.1. Sales Promotion

(Blatatberg & Neslen, 1999.p.113) argue that sales promotion strategies if is practiced effectively it increase brand switch due o that the present offering of price discount force consumers overall attitudes buy the brand on sale. The degree of this occurred are depends on the size of discount which influence consumer believing that brand on sales is normally lower priced and important to them in making their decision on buying.

(Koen. P, 2002) has examined the permanent impact of sales promotion on accumulative annual sales for two products categories; storable and perishable products. It was found that perishable and storable products lack permanent effects of sales promotion, further more show that effects of sales promotion are short lived and persist only on average of two weeks and eight weeks and confirming short term impact of sales promotion.

(William. A. 2002, p.322 -323) argue that sales promotion in any company has been affected by two sides; negatives and positive sides. Positive side include adding extra value to the brand due to immediate responses of consumer to the product, maximizing of sales volume due to short term price cut or rebates and boosting sales volume of company when brand appear to be equal in the market situation. Negative effect of sale promotion the main effect of sales promotion is short term to the consumer which affect brand attitudes and long term marketing share, sales depend on short term effects while customer are still existing day after day in the marketing environment and being affected by sales promotion. Also sales promotion is considered cost fully due spending allots of fund for a short period of time.

(Roddy, M. 2010) state that customers mostly affected by their background and their social or cultural influence each one consider and think of matter in different ways, they have varied economic purchase power and different level of intelligence. Has a marketer you need to understand existing and potential customers make sure that you find out all about them to serve them a better service, retain and persuade them effectively.

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2.2.2. Scope, Nature& Roles of Sales Promotions

(Etzel, 2001, P.557) argue that sales promotion is distinct from advertising or personal selling, But those three forms are often used together in an integrated fashion and this include two types of sales promotions; consumer sales promotion and trade sales promotion.

Consumer sales promotion

Type of sales promotion which dealing direct with consumer and aimed at offering consumer some added benefit to reinforce him or her to buy product on sales, also done in addition for advertising. While advertising target for long term effect to customer purchasing behavior, and it include things like; samples, winning contests, price-off and sweep stakes.

Trade sales promotion

Type of sales promotion where by company is focusing direct on wholesaler, retailer trade and sales points which require quick response. This trade promotion can be done when company introducing a new product to ensure enhancing proceeding or to block competitors, include point of sales materials, shop board painting, dealer gifts, display contest and on-consignment sales.

(Neslin,1998) argued that effective practice of consumer sales promotion affect the consumer purchasing behavior and lead into high purchasing of goods or service being offered and consuming allot which causing an increase of sales and ultimately profitability to company.

(Batra, Rajeev, & David, 1996. P.81) argue that sales promotion used by manufacturing company to discriminate between different segmentation of their consumers categories for those who deserve a lower price product or services, age, gender and status of the targeted customer by company. And conclude by integrating sales promotion and advertising impact on the consumer and finally to reach company goals effective.

2.2.3. The growth of Sales Promotion

(Belch, 1998, p.472-475) Argue that sales promotion grow when companies allocate enough fund on sales promotion than on media advertising. There is no specific allocation of budget for sales promotion but it depends on a specific objective of sales promotion, marketing competition and brand stage in the product life cycle. In introduction stage sales promotion spend allots of money, while in growth stage advertising spend allots of fund, but in maturity both promotion mix used, but in decline stage promotion activities are removed out in practiced. Sales promotion is increased in many companies due to the following reasons.

Growth the power of retailers

Market place is shifted from manufacturers to retailer, for many years ago brand manufacturers had the power and influence. While in the recent year, however several developments have helped on transfer power from manufacturers to the retailers. Now days retailers gained access to data concerned how quickly products turnover, which sales promotion are more influence to the customers and which product make more money.

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Decline of brand loyalty

Consumers are becoming less brand loyalty and purchase more on bases of price, value and convenience, brand loyalty is under (50%) for most products categories and mostly is purchasing whatever brand is on special or for which they have a coupon and offers to the consumers.

Increase of promotion sensitivity

Marketers are using sales promotion because consumers respond favorably on it. The number of purchases made conjunction with some sort of sales promotion offers. Consumer increase sensitively to sales promotion due to that, they save money and purchasing decision are made at the point of purchase by the consumer who are increasingly sensitive and facing too many choices.

Short term focus

Many business people believe that the increase of sales promotion is motivated by marketing plans and rewards systems geared to short-term performance and the immediate generation of sales volume. Brand managers use sales promotion routinely, not only to introduce new products, or to defend against the competitors but also to meet quarterly or yearly sales and market share-goals of company.

Competition

Manufacturers depend on trade and consumer sales promotion in order to gain or maintain competitive advantage. The marketers of many products are mature and stagnant, and it is increasingly difficult to boost sales through advertising. Creative ideas are difficult to come and consumer attention to mass media advertising continue to decline rather than allocation large amount of money to run dull advertisement, many market5er have turned to sales promotion.

(Etzel, 2001, p.508) argue that sales promotion budget should be established as a specific part of the budget for the total promotional mix. If the sales promotion is included in advertising, PR and direct sales it may overlook or poorly integrated with other components of promotion, separating budget for sales promotion it forces a company to recognize and manage effective and force company to identify specific objective and sales promotion that will be used to accomplish them.

2.2.4. Sales Promotion Strategies

(Arens, 2002, p.324) Argue that sales promotion use different strategies to move their products through the distribution channel from the point of manufacturing to the point of sale or consumption, marketer apply two different types of strategies pull and push

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Push sales promotion strategy

The process of sales promotion were by company promoting their goods or services to retailer who also sending that message to the consumers. Push promotion strategy make use of company sales force and trade sales promotion activities to create consumers demand for a product, the producer promote service or product to wholesaler, and wholesaler promote to retailers and retailers promote to the consumers.

Pull sales promotion strategy

This varies by focusing on the consumers directly to introduce new goods or services and encourage direct purchase. A pull selling strategy is the one required high spending and consumer promotion to build up demand for product; if the strategy is implemented effective consumer will ask to the retailer for the availability of goods and retailer sending message to wholesalers and wholesalers to the company or producers.

2.2.5. Sales Promotion tools/ techniques

(Etzel, 2001, p.557) Argue that selecting appropriate sales promotion technique or tools is a key step in marketing team and sales promotion management which deciding device for helping company to reach their promotion goals which including the following factors;

Understand the nature of targeted customers or audiences

Is the target group loyal to a company brand? Understand if there is a need of using coupons, price-off, and dealer gift and if there is a purchasing pattern to those brands available in your company.

Understand consumer economic level

There is a need to determining and understand current income of the targeted audiences or customers before to decide which sales promotion tools will be used in a campaign like lower, medium and higher level consumers income. This help marketer in planning effective sales promotion campaign and to ensure that are targeted customers are reached within a specific period of time.

Understand nature of product or service

Understand the nature of product or service if it is lend itself to sample demonstration or it need any other multiple supporting materials.

(Shah, 2009, p.579) shows different tools or techniques used in sales promotion to induce brand switching and customers buy behavior if will implemented effectively such as;

Sampling

The technique of sales promotion were company provide same products to the consumers for pre testing before to put it into the market. This tool normally used when company introduce a new

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product or new packaging of product and aim to consumers provide their views based on the product which available for testing.

Price off offer

Product sold under low price than the original one of the new product designed to boost sale during off-season or when introducing a new brand or services to the customers. Marketers reduce the price of brand to the targeted consumer in order a product to get more customers for a short period of time and recognize that products.

Dealer gift

Companies provide gift to their dealers in order to maintain good relations with them. This could be wall clock, calendar, and other items of personal user and is common during festival seasonal.

Point of sales materials

Companies provide good and attractive different materials to sales points which represent name of brand or company and for reinforce their customers. It include; refrigerator, opener, chair, tables, umbrella, and shelf posters.

Display contest

Display contest provided by companies to the customers in order to get good exposure for their product during the seasonal period. Dealers are expected to buy a minimum during a certain period of time and this particular are displayed in shops, events and open space area.

Sweepstake

This sales promotion tool gives the consumer a chance to wine longer prize through luck. It is usually involving a lucky draw or scratch cards based on which the winners re decided. The prize offered on this sales promotion can be broadly classified into two types first is a trip to visit foreign country or place like world cup, USA, London and second include durable goods from a company to consumers such as bike, car, Television, and Radio.

Buy more and save/ gate

This sales promotion tools require a consumers to buy two or more products in sales promotion campaign. The benefit of this is for saving money resulted to buy two or more products at the same time for same products like buy printer and scanner get price discount.

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2.3 Research Gap

The study aim to add some information based on the impact of sales promotion tools used by Beverage Company to increase customers purchase power and sales volume to the company in Tanzania. The information collected from unique peripheral and remote areas of rural Tanzania which is Pasiansi Mwanz. Therefore this take only one beverage company as a sample of case study during data collection and it specify in small area at Mwanza.

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CHAPTER THREE

Research Methodology

3.0 Introduction

This chapter present the introduction, research design, location, sample technique, sample size, methods of data collection/research tools & data analysis.

3.1 Research Design

(Kothari, 2004.p31) Research design is the arrangement of conditions for collecting and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

The study employed both methods, qualitative and quantitative research methods during data collection. The reasons of using qualitative and quantitative methods, it is allow numerical and descriptive form of data from the respondents targeted by researcher in the study.

3.2 Description of Area of the Study

3.2.1 Location

The study was conducted at Pasians iIlemela district in Mwanza city, this is a target area where study was conducted based on the impact of sales promotion to increase consumers purchase power towards TBL products in Mwanza plant.

3.2.2 Population

According to (Mugenda.1999,p.45) population is a complete set of individual’s cases or objects with same common observable characteristics to which a researcher want to generalize the result of a study .

The target population was sales department of TBL, consumers and other sales point around Pansiansi iIlemela district because are the one who conducting every day sales promotions activities of the company and points of sales were company products are distributed.

3.3 Sampling

3.3.1 Sampling Technique

(Mugenda, 1999, P.11) Sampling technique is the process used to select a sample from large group to gain information about a particular population. The study used simple random sampling and purposive sampling.

3.3.1.1Simple random sampling

(Mugenda, 1999, p.45) is a technique used to pick members accessible population at random. It helps to generalize the data to a large population. The study selected random individuals who are

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consumers of TBL products in pasiansi area as the respondents for questionnaires based on the impact of sales promotion to increase consumer purchasing power, random selections included, consumers and sales points around pasiansi area.

3.3.1.2 Purposive sampling

(Mugenda, 1999, p.50) is a technique that allows a researcher to use a case to explore the required information with a respect to the objectives of his or her study. This study used a case of TBL specifically in sales department by including sales managers, sales representative for a specific purpose of assessing impact of sales promotion campaigns to increase consumers purchase power toward beverage companies.

3.3.2 Sample Size

(Kothari, 2004.p.56) is the total number of units, elements and individuals selected from the universe to constitute a study.

The sample size of the study was 60 where; 52 are consumers and sales points, while 8 sales manager, sales representative and account development officers from TBL. Reason of selecting few sales department staff is due to this group is the targeted group by research to answer and respond all required questions from a researcher.

3.4 Data collection

3.4.1 Collection Methods and Tools

(Kombo &Tromp, 2004.p, 99) Data collection refers to the process of gathering specific information which aimed at providing some fact. The study used questionnaire, interview and observation as source of data and collection techniques in this study.

3.4.1.1 Questionnaire

According to (Kombo& Tromp, 2006, 89-8) questionnaire is a research instrument that contains in-depth writing of questions and distributed to respondents in a field of study by the researcher. The researcher distributes fifty two (52) questionnaires to consumers and sales point at Pasiansi and eight (8) to sales department of TBL Mwanza plant.

3.4.1.2 Interview

(Kothari, (2004.p.97) is the method of collecting data that involve presentation of oral verbal communication and respond into oral verbal communication. This research will use interview as one of the most effective way of quoting answers from the reliable respondents.

The researcher conduct interview to among eight (8) respondents from sales department who are sales manager and few sales representatives and of Tanzania breweries limited mwanza plant.

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3.4.1.3Observation

Data collection method allows the researcher to observing an ongoing events, behavior, perception and actions from respondent that are occurred in naturally contexts through participant, case study and archival. Researcher used observation to sales manager, marketing manager sales representative of TBL and same features in consumers.

3.5 Data Analysis.

Data analysis refers to examining what has been collected in a survey or experiment and marking deductions and inferences. It involves scrutinizing the acquired information and marking inferences.

The study used two approaches in data analysis: The qualitative approach where data presented thematically from the questionnaires and interview and quantitative approach where the data presented in statistical form responses obtained from respondents. The study used both approaches for clarification of answers obtained from the respondents.

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CHAPTER FOUR

RESEARCH FINDINGS AND DATA ANALYSIS

4.0. Introduction

This chapter presents the discussion on assessment the impact of sales promotion tools on increasing consumer purchase power towards Beverage Company in Tanzania and particularly to Tanzania Breweries Limited Mwanza plant. The findings are categorized into two faces; findings from department and findings from consumers.

4.1. Respondent involved in the study

In assessing the impact of sales promotion tools on increasing consumer purchase power towards Beverage Company in Tanzania, Tanzania breweries limited Mwanza plant taken as a case of and include staff of sales department who interviewed and answer written questions and TBL customers at Pasiansi Ilemela district Mwanza. The target sample was 60 respondents where by 52 were consumers and 8 sales department staff of TBL Mwanza.

4.2. Profile of the respondents

This section gives brief demographic characteristics of the respondents who participated in assessing the impact of sales promotion tools on increasing consumer purchasing power towards TBL products and particular in Pasiansi Ilemela Mwanza.

4.2.1 Demographic characteristic of respondent from TBL sales department

Figure 1: demographics characteristics of sales department

Age No: of respondents Male Female Percentage%18 – 25 0 0 0 0%26 – 35 1 1 0 12.5%36 – 45 3 2 1 37.5%46+ 4 3 1 50%Total 8 6 2 100%

Source: Research findings 2014

The above figure shows respondents from sales department of TBL Mwanza plant were by male are 6 related to 72% and female are 2 related to 28%, total of all sales department respondent are 8 equal to 100%.

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4.2.2 Demographic characteristics of TBL customers

Figure 2: number and characteristics of TBL consumers

Age No: of respondent Male Female Percentage%18 – 25 16 9 7 31%26 – 35 17 12 5 33%36 – 45 11 9 2 21%46+ 8 7 1 15%Total 52 36 16 100%

Source: Researcher 2014

Above figure shows the demographic characteristics of TBL customers were by male aged from 18 up to 46+ are 36 who related to 69% of all respondents and female aged from 18 up 46+ are 16 related to 31% make a total of 52 respondents and equal to100% of all respondents who targeted by the researcher in a case study.

4.3. Discussion of research findings

This part categorized into two sections which is face one and face two; This is due to categories of respondents data which include data from TBL sales department staff members and customers of TBL from Pasiansi area Mwanza.

4.3.1 Findings from TBL sales department staff members

This section aim to show the findings and opinions collected from TBL staff members and especially in sales department were the study based.

Question 1: Do sales promotion tools work to increase customer purchasing power in your company?

Figure 3:

Respond No; of respondents Percentage %Yes 8 100%No 0 0 %Total 8 100%

Source; Researcher findings 2014

According to data collected from the TBL sales department, on above figure shown that sales promotion tools work appropriately to increase customer purchasing power of product produced by the company were by 100% says yes sales promotion perform very well on influencing consumer purchasing power. These show that companies recognize the impacts of sales promotion campaign to make consumer purchasing decision on those brands produced by the beverage companies.

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Question 2: What types of sales promotion tools are undertaken by your company to increase customers purchase?

Figure 4:

Sales promotion tools No: of respondents Percentage %Price off 2.5 31.25%Dealer gift 2 25%Sweepstake 2 25%Sampling 0.5 6.25%Event sponsoring 1 12.5%Total 8 100%

Source; Researcher findings 2014

From the above table, 31.25% of respondents say price off preferred more than other and the remaining are dealer gift, sweepstake, event sponsorship and sampling as shown in the chart above.

Question 3: Which brand come up with many sales promotion compaign freequently?

Kilimanjaro Lager Safari Lager Caastle Lager Ndovu Special Castle Lite0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Figure 5: Brand which experience more sales promotion campaign

Source:Researcher finds 2014

Above figur show that 40% of respondents says Kilimanjaro beer experince more sales promotions compaign, safari lager 33%, castle lager 13%, Ndovu special 10% and the rest is castle lite beer 4% which experience few sales compaign. The findings state that kilimanjaro beer and safari are experiencing more sales promotion compagin rather than other brands due to their engagment in different social activities and sponsoring sports and games. According to consumers experience findis shows that kilimanja and safari lager experience to came up with many sales promotion

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campaign while the rest brand does not isolate sales promotion but applied in different environments.

Question 4: When does your organization use sales promotion activoties?

All seasons around the year sales promotion activities are conducted for the purpose of retaing customers. But sales promotion campaign depending to brand management planning, goals of the departiment. Brand like kilimanjaro larger conducting sale promotion compaign by sponsoring football clubs and kilimanjaro music awards (KTMA) while safari paricipate in pool table competition and events like nyama choma. During this event company use both sales promotion tols or techniques in ordre toremind consumer to continue recognizing TBL brands and their service provided to the customers.

The findings shows that due to competitive and dynamism of consumers in the market, company prepare sales promotion compaign many times by loocking on customers need, and what others are doing to the present customers in market.

Question 5: What are the succsess and challenges of sales promotion compaign to increase customer purchasing power?

In any activity conducted under the world especialy in this competitive market industry. Successfully must be acompanied by same of challeges, Sales promotion tools has sucssefully and challeges in their application to the company by depending on team preparation.

Increase short-term customer purchasing power

Sales promotion in the company help to increase short term customers purchasing power who mostly influenced by different kinds of sales promotion which used by company tomotiuvate their customers like price offer, dealer gift, sweepstake and extra product offers.

Boosting company sales volume

Findings show that, sales promotion help to boost sales volume of the company due to increasing larger number of customers to perchase product and mostly are inluenced by the techniques used like price off, sweepstake and sales material.

Compititive advantage

Company conducting sales promotion in order to ensure that customers are recognising the product or service provided by company also to compete with others in the same industry or service providers on beverage productions.

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The findings state that, sales promotion activities came across with challenges which hindering the whole activity of sales promotion; Sales promotion deals for specific period of time while customers are still existing day after day in the marketing environment. Short term purchase of customers affecting brand attitude and long term marketing share of the company while focus of company to maintain sales and marketing any time. The cost used in sales promotion activities constituteto the customers need of price off, sales matetials, sweepstake, extra product all affecting company financially.

4.3.2 Findings from TBL Customers

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Question 1: Are they any sales promotion tools used by TBL infuencing you?

Figure 6:

Position of sale promotion No: of respondents Percentage%So many 27 52%Many 16 31%Not real many 9 17%There is no 0 0%Total 52 100%

Source: Researcher finding 2014

The above figure, 27 respondent say there is so many sales promotion used by TBL equl to 52%, 16 respondents 31% say there is many, 9 respondents 17% say there is sales promotion tools but not real smany and who don’t know 0%. Consumers responds that in the beverage manufucturing there are presence of so many and many sales promotiontools used in order to influence customers purchase power towards products produced by that company.

Question 2: Did you purchase TBL product during sales promotion only?

Figur 7:

Price off Dealer gift Event sponsoring Point of sales materials0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Source:Researcher findings 2014

According to the above figur shows that most of customer influenced to purchase a particular brand due to price off 39% of respondents, Dealer gift 29%, Event sponsoring 19% and sales mateals merchandise 13% of respondents. Price-off influencing more number of customers to purchase

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fowlled by dealer gift while event organizing also plays a certain part in consumers ourchasing power.

The findings shows that sales materials mostly are more preferred by trade sales promotion where by whoesaler are,retalers and sales point provided same mechandise like, sample products, board paints, tables, refregrators and chairs for supporting their business.

Question 3: Do TBL sales promotion satisfy the your preferences?

Figure 8: Satisfaction of customers from sales promotion campaign

42%

31%

19%

8%

more satisfy

satisfy

Somehow

its boring

Source: Researcher finding 2014

According to the above figure findings show that, majority of customers are more satisfied with sales promotion activitie conducted by TBL for 42%, while 31% satisfy with sales promotion compaign, 19% say samehow satisfied and 8% rerespondents says that sales promotion compaign same times are bored. The findings revealed that sales activities is a very prominent tool of marketing communication and consumers are more aware for sales promotion conpaign coducted by TBL in the market environment.

Question 5: Which kind of sales promotion from tbl did you prefer?

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Figure 9

Preferred sales promotion tools No; of respondents Percentage %Price off offers 3 37.5%Dealer gift 2 25%Sweepstake 2 25%Event sponsoring 1 12.5%Total 8 100%

Source: Researcher findings 2014

Majority of respondents in a study shows that consumers of TBL are influenced by the following sales promotion campaign; price-off which is 37.5% of respondents, both dealer gift and sweepstake with 25% while the rest is event sponsoring which is 12.5%. Therefore price off offer to the consumers plays a greater role to ensure are more motivated to purchase a particular brand which promoted on that time. This is due to most of them want to save same amounts of their income during purchase period. The figure show that consumers are more preferred to come across price discount sales promotion campaign also sweepstake and dealer gift preferred by consumer to make purchasing decision on a particular brands.

Question 6: Do you consider only sales promotion compaign to make purchasing decision?

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Figure

Quality of Brand 25

Other Promotion campaign

Quantity of Brand 7

Only Sales promotion 5

0% 10% 20% 30% 40% 50% 60%

Figure 10: Customers purchase consideration

Source: Reseacher findings 2014

The above figure 11 shows that there is different factors that inlucing customers to marke a purchasing decision were by 25 respondents says quality of brand 48%, 17 respondents says other promotion activities 29%, 7 respondents says quantity of brand 13% and finaly 5 respondents who perchase due to sales promotion only 10%. There for findings show most of consumers perchasing a particular brand due to the different factors and not only sales promotion factor like quality of brand, and other sales promotion activities enfluence consumers to purchase company products rather than sales promotion only.

Generally findings show that, sales promotion activities in the company act has a linkage between customers and company due to many companies use sales promotion tools as a marketing communications with the targeted customers and specific period of time. The customers use those information from different sales promotion campaigns to make their decision in purchasing process of particular brand. Findings from consumers responnds that, instead of many brands from TBL kilimanjaro beer experience more sales promotion campaigins followed by safari lager and staffs sates the same due to their experience in sales departiment and this are local brand from home orgin.

CHAPTER FIVE

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DISCUSSION, CONCLUSION AND RECOMMENDATIONS OF FINDINGS

5.0 Introduction

5.1. Discussion

The study was conducted in Mwanza city particular at a small area Pasiansi Ilemela district the targeted was TBL customers and sales department by including sale managers, sales representatives and distribution personnel. The study shows that sales promotion activities are very prominent tool in Tanzania beverage industries and most of customers are aware on it and enable to identify one after another like dealer gift, price offers, sweepstake, event sponsoring, extra product offer, buy more and save and sales merchandise.

5.1.1 Objective one: The various sales promotion tools used in influencing consumer purchase

The findings was enables to show various sales promotion tools which used to influence consumer purchase like price off, dealer gift, sweepstake, event sponsoring, sales material, extra products and sampling product. Generally findings revealed that companies recognize the role of sales promotion activities on influencing consumer purchase power of TBL products and gives company opportunity to meeting with targeted customers in the market place.

Company use limited-time offers such as price offer, dealer gift and sweepstakes to retailers or coupons with an expiration date to accelerate customers purchasing process also sales promotion attempt to maximize sales volume of company by motivating customers who have not respond to advertising.

There are significant influences of sales promotion on consumer behavior. Improvement of sales promotion tools and campaign will lead to a corresponding improvement in the consumer buying behavior towards beverage products at least in the short term retain the new one customer. Sales promotion plays a significant role in influencing the consumer decision process by shortening the decision process during purchase.

5.1.2 Objective two: The most preferred sales promotion tools on increasing consumers purchasing power.

The main theme was to access if there is a most influencing sales promotion tools on increase consumers purchasing and the following conclusion was researched from the findings of the study. When company use event sponsor it gain recognition from that community, Trade shows sales a product at other side promote it and sales material increase brand visibility to the consumers.

Also findings from customer in Ilemela reveals that are more influenced by price off, sweepstake and discount because it and an advantages to the when they appear to their place. Sweepstakes allow customer to get gift and also a trip to another place or abroad from their home country

5.1.3 Objective three: The impact of sales promotion tools on company.

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Respondents were indicated the importance of using sales promotion to influence customers purchase and their challenges. The discussion below shows the conclusion from question which targeted staffs of sales department to provide the importance of sales promotion tools to influence customers purchase.

Findings shows that, sales promotion increase short term consumers purchase power due to availability of techniques used by marketers to motivate and influence consumer to purchase their brand accompanied with same fever like price off, sweepstakes, dealer gift, points of sales materials, event sponsoring and extra brand. Also to win competitive advantage sales promotion activities conducted by company as defense mechanism to their opponents in the marketing industry by motivating consumer to recognize and not pay attention to other companies produce and provide the same service. Therefore due to the increase of consumer purchasing in a larger amount lead to increase sales volume of company ant finally expansion of marketing share in the market.

Finding shows that although sales promotion activities being used by company there are same challenges facing the process on influencing consumers purchase; The campaign always need enough capital to be invested in order to make it effective, company combine budget of advertising and sales promotion which lead into un effectiveness in applications. Sales promotion focus on a specific period of time and target a particular customers while in the marketing environment customer are still existing every day, therefore there is a need of making sales promotion available any time to increase long term consumer influence rather than short term.

Although sales promotion plays a big part in influence consumers purchase but quality of brand still number one factor to the consumer purchasing decision of a particular brand and other factors like price, quantity has their important in purchasing decision of consumer.

5.2 CONCLUSION

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Beverage companies have a lot of services and products that they make available to consumers through their various communication tools and one of the key promotional tools used in marketing these services and products is sales promotion.

5.2.1. Objective one; the various sales promotions in influencing consumer purchasing power.

The study reveals that sales promotion has power of influencing consumers in making purchase decision to the available brands or products produced by company. It was realized that the consumer may not go through the entire decision making process any time they want to purchase a beverage brand but the evoked sets to the consumers will established alternatives may inform consumers judgments in deciding which brand to buy.

It reveals that the consumers would mostly consider beverage producing company offering the best discounts or any other motivation that satisfies their needs. Sales promotion activity is an inevitable promotion tools in the beverage manufacturing companies in Tanzania.

5.2.2 Objective two; to assess the most influencing sales promotion tools on consumers purchasing power.

There are different sales promotion tools or techniques used in marketing by several companies. Depending to company and sales promotion goals, target and plan of the sales team but price off, event sponsoring and dealer gift are sales tools seems to appear at a frequent time. Integrating of marketing communication tools also is applicable for the purpose of ensuring effective communication with target customers in the competitive market.

5.2.3. Objective three; to determine the impacts of sales promotion tools on increasing consumer purchase power.

This study demonstrate that, the consumer received information about company brands or service from sales promotion campaign around him and are always looking forward to take advantages of the sales promotion which conducted within their place and this become an advantage to the company.

Sales promotion tools or techniques increase short term consumers purchasing power towards the brand which produced by TBL due to their more influenced with same of inducement provided during sales promotion. Also due to short term increasing of consumer purchase Company prefer sales promotion to make awareness of consumer on products and service from TBL to ensure effective impact of this activity to the consumer. Company should specify sales promotion from advertising and increase budget allocation for conducting campaign throughout the year for defeating others competitors in market.

5.3 RECOMMENDATIONS

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Based on the findings of this study the following suggestions can be put forwarded for the improve practice of sales promotion activities in beverage companies company in order to increase more influential on consumer buying behavior effectively. The following may be noted;

Understand the sales promotion tools that have a power to consumers

Marketing managers must ensure they use sales promotion tools that have a great interest, power and highly recognition to the large number of consumer like price off, sweepstake, dealer gift and event sponsoring by that company.

Avoid the use of one tool every time

Marketing managers should be carefully on apply sales promotion tools that will lead company into reducing profitability while influencing consumers to purchase the products like double bonus, more price discounts frequently. Therefore it may be used in integrated with other sales promotion tools example coupons, Product displays, event sponsoring which integrated with direct selling in order to reduce using the same tool on campaign.

Short-term impacts of sales tools promotion

There should be an effort for service provider to do a continuous sales promotion campaign which result into establishing a long –term relationship with the new customers acquired during sales promotion and maintain them effectively with good service, quality and retain previously existing consumer in the market.

Customers are faced with many problems, complaints and more expectation.

This should be solved by the company to engage in continuous conducting of research to approximate their expectation, good plan and meet customer requirements. This will help a consumer to recognize company positively rather than negative side.

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