The Effect of Sales Promotion on sales volume: the case of St. George Beer
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Date
2019-06
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Addis Ababa University
Abstract
The purpose of this study was to examine the effect of sales promotion on sales volume of St. George
Beer which is one of BGI Ethiopia Beer brands. The researcher found out various ways through which
the company employed sales promotion to raise sales volume of its product, stimulate and arouse
customers and dealers favorable behavior towards the company and its brand. This study showed the
relationship between sales promotion effect and sales volume of St. George Beer. For the study,
empirical data was gathered from 255 respondents using self-administered questionnaire and analyzed
using correlation and regression analysis to examine the relationship between variables. The study also
used mixed approach since both quantitative and qualitative data were gathered. The findings of the
study revealed that all the independent variables influence the dependent variable, sales volume
positively and significantly.
Based on the objective of the study, four hypotheses were formulated and tested and the result showed all
were supported. The populations of the study were channel distributers of the company’s product at large
and selected employees of the company itself. Taro Yamane formula was used to determine the sample
size. The researcher made use of both primary and secondary data, structured questionnaire and
personal interviews were used to elicit data from the respondents. Simple tables and percentage were
used to analyze the collected data. Based on the analysis, the sales promotion message of BGI Ethiopia
influence sales of the product, and dealers confirmed that they sell more St. George Beer during
promotional periods.
The researcher recommended that the company should maintain and improve its sales promotion
campaign and more sales promotional activities should be integrated with other promotional tools. In
conclusion, the promotional activities on St. George beer influence channel distributers/customers to sale
more of the brand and hence the sales volume increases as well.
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Keywords
Promotion, sales volume, sales promotion