Sales promotion and organizational performance in the carbonated soft drinks industry in Uganda: A case of Crown Beverages Limited

Abstract

The purpose of the study was to investigate the effect that sales promotion has on organizational performance at Crown Beverages Limited. The study was guided by the following specific objectives; to assess the effect of consumer promotion on organisational performance; to determine the effect of retailer promotion on organisational performance; and to establish the effect of trade promotion on organisational performance at Crown Beverages Limited. Using a cross sectional survey design, responses were collected from 104 respondents and the data was analyzed using the Statistical Package for Social Scientists (SPSS). Frequency tabulations were used to present the results of the sample characteristics, correlation analysis was used to present the results of the study objectives and regression analysis was used to examine the predictive power of sales promotions on organizational performance. The study showed distinctive results for the effect of sales promotions dimensions; consumer promotions, retail promotions and trade promotions on organizational performance. From the findings, consumer promotions, retail promotions and trade promotions had positive significant relationships with organizational performance. The results from regression analysis showed that sales promotions in regard to consumer promotions, retail promotions and trade promotions were strong predictors of organizational performance (Adjusted R2= 0.414). In conclusion, the findings established that sales promotions were a major determinant of organizational performance at the company. The study recommended that; the management of CBL should develop strategies which support consumer promotions, retail promotions and trade promotions so as to enhance their organisational performance. The strategies will help promote the development and implementation of sales promotions which promote profitability, liquidity, sales growth, sales turnover and operational cost reduction.