EFFECTIVE PROMOTIONAL STRATEGIES FOR THE COSMETICS INDUSTRY

(A CASE STUDY OF CHOKI LABORATORY)

ABSTRACT.

This study on effective promotional strategies for the cosmetic industry with particular note on Choki Laboratory Enugu was carried out with some of the following objectives. To determine the impact of promotional strategies adopted by Choki Laboratory on increasing profitability of the company.

 To determine the promotional strategy of Choki Laboratory on creating awareness of the company product. In order to achieve the above objectives, three sets of questionnaires were prepared and administered to a population comprising staff/management, distributors and customers of Chuki cosmetics Laboratory within Enugu Metropolis. For additional information extensive literature review was conducted.

            The sample size for the study was determined using Topmans formular for distributors and customers, while census survey were used for relevant staff and management.

The data collected were presented on statistical table, analyzed and interpreted. Hypothesis formulated was tested using Chi-square based on analysis the following findings were made that promotional strategies have impacted on the customer disposition and patronage. That Choki Laboratory  have fully designed an optimal combination of promotions to enhance their  performance most importantly within their area of operations.

            In view of the above findings the researcher recommend among others that, the company should only improve on it product quality, but clearly define its promotion objectives and allocate enough funds for its promotional tools like public relations, trade fairs in achieving the company promotional objectives. It is the researchers believe that if the management give due attention to those recommendations, Choki Laboratory will be one of the companies to beat in this millennium.

TABLE OF CONTENT

Title Page

Abstract                                 

Table of Content                                

CHAPTER ONE

Introduction               

1.1              Background Of The Study

1.2              Statement Of Problem

1.3              Objectives Of The Study       

1.4              Formulation Of Hypothesis

1.5              Significance Of Study           

1.6              Scope Of The Study

1.7              Limitation Of The Study       

1.8              Definition Of Terms  

CHAPTER TWO

Literature Review.                 

2.1              Meaning Of Marketing Promotion

2.2              Objectives Of Promotion       

2.3              Importance of Promotion in Marketing

2.4              Components Of Marketing Promotion

2.5              Achieving Promotional Synergy

2.6              Promotional Strategies for The Cosmetics Industry. 

2.7              Promotional Strategy Used By Choki Laboratory.

CHAPTER THREE

3.0              Research Methodology          

3.1       Sources of Data         

3.2              Research Instruments Used.  

3.3              Population Of The Study

3.4              Determination Of Sample Size          

3.5              Sampling Techniques

3.6              Method Of Questionnaire Administration And Distribution

3.7              Method of Data Analysis and Treatment.     

CHAPTER FOUR

4.0              Presentation, Analysis And Interpretation of Data

4.1       Presentations and Analysis of Data

4.2              Test of Hypothesis

CHAPTER FIVE.

5.0              Summary Of Finding, Recommendation And Conclusion.

5.1       Summary of Findings

5.2              Recommendations

5.3              Conclusion     

Bibliography

Appendix

CHAPTER ONE

1.1              BACKGROUND TO THE STUDY.

The establishment of business including cosmetics industry requires that the firms make key decisions. These decisions affect the total marketing programmes of the firm, simply out the marketing strategy. However, one of the vital area of such decision. Which demands proper attention is the promotional strategies of cosmetics industry must initiate promotional policies and programmes to inform, persuade and educate its target audience of the existence of the organization and their products.

            Although creation of demand for a firm’s product may be the ultimate objective of a company’s marketing promotion, this objective is never achieved at one fell swoop. The firm must put in place a set of activities aimed at stimulating demand for their product. This may involve determining the optional combination of the promotional mix, advertising, sales promotion, personal selling, publicity/public relation, direct/marketing and packaging to achieve its promotional objectives. This optional blend is a function of the promotional resource, nature of the product, product just to mention but a few.

            Adirika, Ebue and Nnolim (1996: 35) see promotion as the component used by the organization to inform, educate and persuade the market regarding the company’s offering, advertising, personal selling, sales promotion, publicity and public relations are the major variables of promotion.

            Promotion is a vital ingredient of survival and development, without adequate promotion product may not sell, adequate promotion product may not sell, where they sell, their continuity is in doubt. The art and science of marketing promotion, which comprises advertising, personal selling, sale promotion, public relations and direct marketing is often associated with glamour and flamboyance.  Infact, most of the budget of some companies is spent on promotion because of the need to survive in the competitive marketing environment.

            Edoga and Ani (2000: 243) noted marketing success does not just depend in good product relations, publicity and direct marketing can be used to inform prospective buyers about the benefits of their products, persuade them to try it and remind them later about the benefits of their product, persuade them to try it and remind them later about the benefits they will desire by using the product.

Modern marketing companies are increasingly recognizing the value of an effective communication and promotion programme for their entire public, this includes cosmetics. Ebue noted that modern marketing does not stop at developing a good product, pricing it attractive and marking it really available to target customers. The company must communicate to its target audience, tell good stories, and disseminate information about the products existence, features terms and benefits to the target market.

            Coppo .J. (1972: 201) confirm that the promotional tools serve as supreme vehicles in competition and provides the only way a market richer can hope to penetrate an established market. He went further to state that for a company to excel above others in the competitive market such a company must value important of promotion.

            Choki laboratory came into operation in 1985. It is a cosmetics manufacturing company. It is located at No 3 first Avenue Independence Layout Enugu, with Mr. M.I Onuigbo as the managing Director. The company product has stood the test of time one of their product is Cee-sheen. The company have staffs strength of forty-five (45) with six (6) leaders as casual workers.

            Choki laboratory engage in promotional activities in order to increase sales. Choki laboratory which is one of the  leading  cosmetics industry in Enugu  Metropolis is facing a lot of competitors from cosmetics industries and open market this has seriously threatened their position in the market.

            With the proliferation of cosmetics Industry and attitude of most people in Enugu Metropolis in patronizing open market, there is the need to appraise the promotional strategies used by the company, which is becoming keener everyday. Manufacturers and producers of goods and services  are now aware that promotion does not only inform and persuade, but can strive towards profit making through increased sales to look at effective promotional strategies for the cosmetics industry in Enugu Metropolis with particular interest on Choki Laboratory.

1.2              STATEMENT OF PROBLEM.

Inadequate sale are often given by entrepreneur as major causes of their failure. A careful review of their circumstances often revels abnormal ignorance of the need for promotional skill or deliberate neglect of the necessity for co-ordinated promotional strategies.

            Quite often marketers are very optimistic about sales (patronage) they conceive the wrong notion that their goods will sell themselves, for getting that even the best product/services still need to be stimulated in order to move out of the stores. Infact, the creation of effective promotional strategies is an essential move towards creating a cosmetics industry. The above statement applies equally to cosmetics industry. Despite the numerous advantages inherent in effective promotion, the availability of promotional facilities, the need to use promotion to fight competition in this industry, the use of co-ordinated effective promo-tools by Chuki Laboratories operation is inadequate and has its negative impacts on their operation. It is in the light of the importance attached to promotion that the researcher seeks to find out the best promo-tools strategies that could be used by cosmetics industry, like Choki Laboratory for improved performance.

1.3              OBJECTIVE OF THE STUDY.

1.                     To determine the effectiveness of promotional strategies of Choki laboratories.

2.                     To determine the impact of promotional strategies on customer patronage of Choki laboratories in Enugu Metropolis.

3.                     To determine the impact of promotional strategies in creating consumerr awareness of Choki laboratories in Enugu Metropois.

4.                     To appraise the promotional strategies adopted by Choki laboratories in Enugu metropolis in increased profitability.

5.                     To determine the impact of promotional strategies on increasing sales volumes of Choki Laboratory.

6.                     To determine the impact of promotional strategies on customers attention for Choki laboratory product.

1.4              FORMULATION OF HYPOTHESIS.

Ho:  Promotional strategies adopted by Choki laboratory in Enugu metropolis do not create consumers awareness of their product.

Hi:  Promotional strategies adopted by Choki Laboratory in Enugu Metropolis create   consumers awareness of their product.

Ho2; Promotional activities of Choki laboratory do not encourage customers patronage.

Ho3:   Promotional activities of Choki laboratory do not lead to increased sales volume for the organisation.

H3:  Promotional activities of Choki Laboratory lead to increased sales volume of the organization.

H04:   Promotional strategies of Choki laboratory impact negative on the profit of the organization.

H4:  Promotional strategies of Choki laboratory impact positively on the profit of the organization.

1.5              SIGNIFICANCE OF STUDY.

This study is not a mere academic exercise. It holds immense benefits, it will be of significance to the following.

 Firstly marketing firms and cosmetics industries will gain immensely from the study as it will explore the impact of promotions on the performance of their products and suggest more success –oriented ways of enhancing the promotional impacts.

Secondly operators of cosmetics industry will gain immensely from the study. This is because it will not only measure the effectiveness of each of the promotional mix variables on the performance of cosmetics industry but also recommendation of measures to be taken in desiring and determining the right combinations of the promotion in a more result oriented manner will be made.

Finally both the researcher and reader will benefit from the study as the information contained would widen their scope of understanding and knowledge in the area of study which will stir up further investigations.

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