Assessment of Sales Promotion Practice at Kality Food S.Co. in Addis Ababa

Abstract

This study assessed the sales promotion practice of Kality Food S.Co. A descriptive research design was used. The study respondents were marketing manager, as well as retailers of Kality Food S.Co. The student researcher employed a convenience and accidental sampling technique. Primary data from the sample respondents and informants using structured questionnaire and interview guide respectively were collected. The study found out that Kality Food S. Co. offers sales promotion for all participants, such as trade allowance, free merchandise, trade show and push money, but not store demonstration at all. However, the customers are not loyal to the Company. Thus, they purchase low level quantity of its product as the customers are not attracted enough by the sales promotion activities of the Company when compared with its competitors. Besides, the discount provided to customers does not initiate them to purchase its product. The majority of customers are not satisfied by sales promotion of Kality Food S. Co. Therefore, the retailers do not recall the Company’s product when final customers visit their outlets. Its sales promotion is poor when compared to its competing companies in that the retailers does not accept its promotion and thinks that it has no benefit for their retailing businesses and study. The company’s sales promotion does not attract retailers, and they do not give priority to the Company’s product over others by its sales promotion activity. The Company is generally weak in gathering relevant pieces of information on its trade sales promotion from customers as feedbacks to be used for management purpose. It is recommended that the Company should be welldesigned to match the rivals’ sales promotion activities to attract more customers and to gain market share, as well as competitive position should give a better amount of discount than it has offered currently to attract new customers and serve current customers, it should participate in trade show more than before, and the Company should look forward to improve its sales promotion practice and make customers loyal.