The Impact of Sales Promotion Programs on The Performance of Soft Drinks Business

Abstract

Sales promotion programs play a crucial role in the competitive business world, especially in the fast-growing beverage industry. This study aims to assess the Impact of sales promotion on the performance of soft drinks business, with a specific focus on Bonite Bottlers Company L.t.d in Arusha, Tanzania. The research problem arises from the need to understand the impact of various sales promotion strategies and their impact on sales volume, brand image, and consumer loyalty. The study employed a case study research design, utilizing a mixed-method approach to collect data from employees and customers of the company. Data were gathered through questionnaires, interviews, and focus group discussions, involving 200 respondents, including employees and customers of Bonite Bottlers Company Ltd. Descriptive analysis was used to present socio-demographic data, and multiple linear regression analysis was employed to determine the relationships between sales promotion programs and business performance. The study at Bonite Bottlers Company Ltd. yielded significant findings, indicating that sales promotion programs, encompassing elements like Sales promotion, Digital marketing, Price discount, and Trade exhibition, have a substantial impact on business performance, explaining approximately 29.1% of its variance. To enhance these programs, Bonite Bottlers should strategically reallocate resources, prioritize promotions with high ROI, and explore partnerships to address budget limitations. Additionally, a continuous assessment of the competitive landscape, consumer preferences, and innovative promotions is advised to counter competitive pressures. Implementing advanced inventory management systems to prevent overstock and understock situations is essential in addressing stock management issues