CONSEQUENTIAL EFFECTS OF ENVIRONMENTAL FACTORS ON SMALL AND MEDIUM SCALE BUSINESS PERFORMANCE (A STUDY OF SURULERE LOCAL GOVERNMENT AREA)

This research work examined role of sales promotion on organization profitability (A study of Nigeria Breweries). Both primary and secondary sources of data were utilized. Questionnaire was mainly used as the research instrument for collecting primary data. Relevant questionnaires were administered to the selected sample size of two hundred and one hundred and ninety six was returned.  Responses were presented in tabular form using simple percentage method.  Simple regression analysis and Pearson Product Moment Correlation Coefficient were used as the statistical tool for testing the postulated hypotheses with the aid of Statistical Package for Social Science (SPSS).  The result of the findings showed that that there is correlation between the financing sales promotion and sales revenue at r =0.793). Also, the result revealed that there is significant impact of financing sales promotion on the profitability. The results further revealed that the short term incentives offered by Nigeria Brewery stimulate consumers to purchase the company brands for the first time. The findings also revealed that offering short term incentives to consumers and middlemen has more positive impact of retaining existing customers and sales outlets. It was therefore recommended that there is need to adopt consumer and trade sales promotion activities that will not only induce the final consumers to purchase the firm’s brand but also motivate the middlemen to sell the firm’s brand aggressively. Also, the organization need to keep abreast with the competitors promotional programmes in order to creates sales promotion programmes that will outwit the competitors. There is need to pursue strong business relationships with its distributors to ensure that the company does not lose their distributors who have strong links with the retailers to any inducements by the competitors.