Evaluation of Profit Impact of Marketing Strategies on Firm’s Sales Performance: A Study of Branded Soft Beverage Drinks in Lagos
- January 2, 2021
- Posted by: RSIS Team
- Categories: IJRISS, Marketing
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue XII, December 2020 | ISSN 2454–6186
Adebola O. Lukmon1 & Iheanacho O. Albert2
1 Department of Marketing, DS Adegbenro ICT Polytechnic, Itori, Ogun State, Nigeria
2, Department of Marketing, Faculty of Business Administration University of Nigeria, Enugu Campus, Nigeria
ABSTRACT: This paper is an evaluation of profit impact of marketing strategies on firm’s sales performance using branded soft beverage drinks in Lagos. Specific emphasis is laid on products of Nigeria Bottling Company (NBC, Plc). The objectives were to determine the profit impact of product strategy on organisations sale volume, to assess the profit impact of pricing strategy on organisations sales market share, to determine the profit impact of distribution strategy on consumers purchase decision. Survey research design was adopted for this study. A primary source of data was used. Product moment correlations coefficient analysis was used to test the hypotheses with the aid of statistical package for social sciences (SPSS v. 20). The study found a significant relationship between marketing strategies adoption and sales profit in Nigeria Bottling Company Plc; there is a strong, positive correlation between product strategy of NBC Plc and profit impact on the organisations sales which was statistically significant. The finding of this study led to the conclusion that marketing strategies adopted by Nigeria Bottling Company has profit impact on the organiation’s sales performance; product strategy of Nigeria Bottling Company has significant profit impact of on organisations sale volume. The study recommend that Nigerian Bottling Company need not to restrict their strategy areas to Marketing mix variables but must ascertain what kinds of strategies (e.g. quality, pricing, vertical integration, innovation, advertising) amongst other that best impact on the sales performance and profit of the organisation.
Keywords: Distribution, Product, Price, Profit Impact, Performance, Sales Volume, Strategy.
I. INTRODUCTION
A marketing strategy is a method by which a firm attempts to reach its target markets. Marketing strategy starts with market research, in which needs and attitudes and competitors’ products are assessed and continues through into advertising, promotion, distribution and where applicable, customer servicing, packaging, sales and distribution (Chiliya, Herbst and Roberts-Lombard, 2009). Marketing strategy must focus on delivering greater value to customers and the firm at a lower cost. However, quantifying the return on investment from marketing expenditure on activities such as advertising, promotion and distribution is one of the most complex issues facing decision makers. Marketing performance is central to success in today’s competitive markets, and measuring marketing’s performance is critical to managing it effectively (Anonymous, 2006).
