The relationship between sales promotion techniques and consumer off-take and attitude within the SA non-alcoholic ready to drink market

• Main Author: Mattheus, Jared Cameron
• Format: Others
• Language: English
• Published: Nelson Mandela Metropolitan University 2016
• Subjects: Sales promotion; Consumer behavior; Advertising
• Online Access: http://hdl.handle.net/10948/11586

Over the past decade there has been a shift in marketing spend from above the line advertising, to below the line advertising commonly referred to as promotions. This has been brought about by recessionary economic conditions, increased competition, rising media costs and long term profitability prospects. Many fast moving consumer goods’ (FMCG) companies are shifting a large portion of their marketing spend from advertising to sales promotion. This has occurred because of consumers becoming more prone to deals, declining brand loyalty and the growing power of major retail chains. Sales promotion spend can comprise of as much as 50% of the marketing budget in certain industries and the majority of the marketing budget for most FMCG companies. This has been heightened further by the global financial recession which has both direct and indirect effects on South Africa. Approximately 70% of purchasing decisions are made in store by understanding how these decisions are made and how to influence them is essential in developing an effective marketing strategy. Besides product characteristics, promotional techniques are among the most popular instruments used by marketers to influence this process. Global trends show that 83% of all senior marketers increase or maintain spend on promotional merchandise year on year. However, they had limited insight into how to best spend the funds or if they even achieved their intended purpose. Despite the rise in promotional activity, especially in the FMCG sector, limited research has been conducted on the influence and effectiveness in South Africa. The purpose of this treatise, then, is to examine addresses the paucity in research with regard to consumer sales promotions in the non-alcoholic ready to drink (NARTD) market, particularly within South Africa. By developing a relationship model to measure the influence and effectiveness of selected sales promotion techniques on consumer off-take and attitude. That can be used by organisations to retain consumers, grow market share, improve brand equity and achieve higher profitability. Equipping marketers with an improved understanding of the impact of sales promotion techniques and consumer buying patterns within the South African NARTD market and delivering value to consumers through targeted promotions. In order to achieve this goal a thorough literature review was performed which drew on both academic- and industry-based research. This led to the development of a conceptual relationship model which was tested using rigorous measures incorporating questionnaire-style, quantitative data collection and statistical analysis. The research revealed that sales promotion techniques are an important element of a successful marketing strategy and when correctly executed deliver positive business results. FMCG companies operating within the NARTD market need to ensure that they incorporate sampling and premiums into their marketing mix even if this requires them to reduce their spend on above the line marketing activities. Ultimately, sampling and premiums were found to be effective sales promotion techniques within the South African NARTD market and have the ability to positively influence consumer off-take, brand love and buying behaviour.