Comparative Evaluation of Coca·Cola and 7up Promotional Mix Strategies Effectiveness

Abstract

This research sets out to evaluate the Promotional Mix Strategies of Coca-Cola and 7UP bottling Companies as they affect their products communications in the market. This is with the view to identifying, assessing and recommending additional innovations to their promotional mix strategies, that could help them to stimulate more demand in expanding soft drink industry market. The study approaches promotional mix strategy synergistically, by integrating and coordinating the promotional mix tools - advertising, sales promotion, personal selling and Public Relations [publicity] to communicate products value to the target market. The study however, attracts the surveying of two types of populations. The first population is the sales management staff of CocaCola and 7UP bottling Companies. The study uses more of the closeended questions and few open - ended questions to elicit responses from the respondents. The second population is the consumers of these products in the market. The aim is to assess and evaluate the claims and the impact of these companies' promotional activities in the market. Statistical analysis of Chi-square was used to test the degree of goodness of fit and independence classification of observed and expected variables in the study. A total of five pairs of hypotheses were tested in the study. Also research questions, tables, simple percentage and graph were used where necessary to highlight the effectiveness of each tool. It is found that Coca-Cola and 7UP bottling companies have engaged 100 percent promotional mix tools, as confirmed by consumers in the market. Consumers also confirmed the positive impact of promotional activities of these companies, especially sales promotion small prize offers in the market. Advertising is confirmed as the most popular promotional mix tool, followed by sales promotion activities, and sales force. Thus, in terms of importance in relation to promotional budget appropriation, the study has revealed that, the international industry average ratio is 5:3:1. For advertising, sales promotion and sales force respectively . However, the researcher has put forward a suggested new ration of 5:2:2 or 5:3:2, for advertising, sales promotion and personal selling respectively. It is however found out that, Coca-Cola bottling company more frequently engage sales promotion tools in recent times, than 7UP bottling company. Also 7UP pricing policy presents a better element of stability in the market than the one of Coca-Cola. The retail prices of Coca-Cola products can not be controlled in the market as 7UP does. Both organization were introduced to the researcher - suggested innovations of using other new techniques to promote and stimulate their product image in the market, especially in the rural communities market. Also the researcher conceptual marketing/communication model is as a reference point to aid planners and implementers of promotional mix strategies of these companies. Based on the findings, general recommendations were made to these companies, with another specific recommendations to each to the two companies. Recommendations for further research were also made. Finally, the researcher is of the opinion that, there is no alternative to integrated and coordinated marketing communication in any given industry, if maximum efficiency and profitability is to be attained in the market. Strategically speaking, these two companies communication marketing approach is integrated as verified in the study