Impact of Sales Promotion on the Performance of Guinness Ghana Breweries Limited

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Date
SEPTEMBER, 2016.
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Abstract
The growing managerial importance of sales promotion has generated a great deal of research on how sales promotion affects profitability. In Ghana, sales promotions expenditures by various companies is estimated to be in thousands of Ghana Cedis and the emphasis on sales promotion activities by the various industry players continue to increase year on year. Although several sales promotions are conducted each year by brewery companies, promotion managers are frequently confronted with the challenge of defending the question of the impact of sales promotions activities on the profitability of the firm. This study generally sought to examine the effect of sales promotion on the performance of Guinness Ghana Brewery Ltd. The specific objectives include to; examine sales promotional activities used by Guinness Ghana Brewery Limited (GGBL), examine the relationship between sales promotion and financial performance of GGBL, examine the effect of sales promotion on non-financial performance of GGBL and finally, identify challenges facing sales promotion activities undertaken by GGBL. The study adopted a descriptive research design. The population of the study was estimated at 865 (management, staff and key distributors) out of which a sample of 160 was used (primary data). The main sources of data were secondary and primary. Questionnaires were used to collect primary data whilst secondary data was taken from financial statements of GGBL from 1985 to 2014. STATA 13 was used for the analyses. The study found a positive and significant relationship between sales promotion and profitability. Thus, 1 percent increase in sales promotion was associated with 0.44 percent increase in sales turnover. There was however no significant relationship between sales promotion and non-financial performance. The study recommends that management of GGBL involves key distributors and supply chain members in sales promotional activities. Management of GGBL also needs to integrate all promotional tools to ensure that all promotional goals are achieved.
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A thesis submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Business Administration (Marketing Option),
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