A Study on Promotional

activities & Brand Loyalty of

Century Bottling Company




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TABLE OF CONTENTS
1. INTRODUCTION..............................................................................03
1.1 Background of the Research...03
1.2 Rationale of the Research .........................................03
1.3 Purpose of the Research..04
1.4 Objectives of the Research..04
1.5 Research Question........04
2. LITERATURE REVIEW05
2.1 Promotional Activities......05
2.1.1 Sales Promotion......................................................................................06
2.1.2 Advertisement.........................................................................................06
2.1.3 Publicity and Public Relation................................................................06
2.1.4 Direct Selling...........................................................................................07
2.2 Brand Loyalty..................................................................................................07
3. METHODOLOGY OF RESEARCH......08
3.1 Research Design.........08
3.2 Sample and Population....................................................................................08
3.3 Data Gathering Methods.................................................................................08
3.4 Ethical Consideration......................................................................................09
3.5 Data Analysis....................................................................................................09
4. TIMETABLE OF THE RESEARCH..09
5. CONCLUSION..10
6. REFERENCE.11
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1. Introduction

1.1 Background to the Research
Promotions refer to communication involved with convincing others to accept their ideas,
concepts and things (F. ENGEL,et al , 1994).It is one of the four elements of marketing mix.
Brand loyalty is the consumers commitment to repurchase or continue using a brand or other
positive behavior towards the brand.
Century bottling company is a soft drinks company in Uganda started in 1988 in partnership
with coca-cola. Despite of launching various themes of promotional activities, consumers
degree towards the brand has remained low. This study will focus on promotionl activities are
integral element to establish a relationship between promotional activities and brand loyalty.

1.2 Rationale of the Research
The contribution of brand coca-cola to the total sales has reduced over the past two decedes.
Though the company launched various promotional activities, the degree of brand loyal
consumer was still unsatisfactory. This study will seek to explore and establish a relationship
between promotional activities and brand loyalty.



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1.3Purpose of the Research
The purpose of the study is to establish a relationship between promotional activities and
brand loyalty in Century botting company ltd.

1.4Objectives of the Research
1. To seek out how Century bottling company conducts promotional activities.
2. To determine how Century bottling company manages loyalty programs.
3. To determine the relationship between promotional activities and brand loyalty.


1.5Research questions
I. How Century bottling company conducts promotional activities?
II. How Century bottling company manages loyalty programs?
III. What is the relationship between promotional activities and brand loyalty?







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1. Literature Review

2.1 Promotional Activities

FIGURE: A Conceptual Framework

Promotional activites

Brand loyalty

Advertising
sales promotions
Publicity and public
relations
personal selling
direct marketing


commitment
perceived value
brand trust
satisfaction


Extraneous variable
Price
Peer influence
Satisfaction
Relationship


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2.1.1 Sales Promotions
Sales promotion is set of marketing activity which persuades buyers to purchase the product
(JAMES F. ENGEL, et al 2005). Promotional activities such as advertising, personal selling
describe the reasons to buy a product whereas sales promotions describe the reasons to buy
now (P. KOTLER, G. Armstrong, 2001).

2.1.2Advertising
Advertising is form of communication which persuades the audience to purchase the
products, ideas, concepts. The purpose of the advertising to get the consumer to think or react
to the product or company(Philip Kotler, 2001).
Different types of advertising including digital advertising, Radio advertising, online
advertising, bill board advertising, celebrity branding etc. is available.

2.1.3Publicity and public relation
According to Philip Kotler, a public consists of any group which has an actual of potential
interest in or impact on a companys ability to achieve its objective. Public relations is
designed to various programs to promote or protect the company image.



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2.1.4 Direct marketing
Direct marketing refers to reach to the audience without using traditional formal chennels of
advertising such as tv, newspaper. The company straight communicate with the audience
catalogue distribution, promotional letters, street advertising.

2.2 Brand Loyalty
The history of loyalty marketing was advanced in 1929 when Betty crocker issued coupons
that could be used to reedem for items (REICHHELD, Frederick F, 1999). brand loyalty is
a deeply held commitment to rebuy or repatronize a preferred brand consistently in the future,
despite situational influences and marketing efforts having the potential to cause switching
behaviour (OLIVER, Richard L., 1999). Therefore brand loyalty is a significant consideration
when evaluating the value of brand as loyalty can translate into profit (AAKER, David A.,
1991). Brand loyalty also encourages repeated purchase behaviour from consumers, and
discourages them froms witching to competitor brands ( YOO, Donthu,Lee, 2000).






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3. Methodology of the Research

3.1Research Design
The research will be accomplished by gathering quantitative and qualitative data.
Quantitative data involves numerical data to measure presumed variable. Qualitative data
involves data forming of words to use in evaluate the research.

3.2Sample and Population
Population is set of all the apparatus with the same features which is used for getting solution
for the marketing research problem (DASH, Malhotra, 2011). By using sample, the data of
population can be gathered. Sample is a portion of the population. The study of sample is
more efficient rather than to study population.

3.3 Data Gathering Methods
To get accurate information, the researcher can drive two approaches such as secondary data
as well as primary data.




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I.Secondary Data
The secondary data are those that were obtained in previous research for some other reasons
(ZIKMUND, WG, 2000). The use of secondary data is less time consuming as well as cost
effective.
II.Primary Data
The primary data is needed when current information is needed. In spite of some advantage,
the secondary data may become ineffective.

3.4 Ethical Consideration
As the study is based on human participation and obtaining confidential company data,
ethical consideration must be prioritized. For getting the consent of marketing staffs a secured
permission is needed from the two companies.

3.5 Data Analysis
To make data more reliable, it is necessary to scrutinize the collected data. There are various
approaches to analyze the data such as SPSS software, Microsoft Excel. The collected data
from Century bottling company will be analyzed with SPSS software.
4. TIMETABLE OF THE RESEARCH
The timetable that is required for conducting the research has been given below with gantt
chart:
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5. Conclusion
There is a positive relationship between promotional activities and brand loyalty. A Well
designed promotional activity helps a company to build brand loyalty for its products. These
promotional activities will be designed to build brand loyalty among the consumers and this
can be obtained through well-managed loyalty programs.

Activities
Weeks
1 2 3 4 5 6 7 8 9 10 11 12
Agreement of the Topic
Development of Aims &
Objectives
Sanction of Ethics
Building Literature Review
Collection of Secondary Data
Collection of Primary Data
Preparing the Analysis of Result
Essential Discussion
Drawing the Conclusion
Proofread/Review/Correction
Binding & Final Submission
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6.References
I. AAKER, David A. 1991. Managing Brand Equity. Simon and Schuster.
II. BOONGHEE YOO, Naveen Donthu, Sungho Lee. 2000. An examination of selected
marketing mix elements and brand equity. Journal of the Academy of Marketing
Science. 24(2), pp.195-211.
III. DASH, Malhotra. 2011. Marketing Research (6th edition). India: Dorling Kindersley.
IV. JAMES F. ENGEL, Martin R. Warshaw, Thomas C. Kinnear. 1994. Promotional
strategy: managing the marketing communications process. R. D. Irwin.
V. JAMES F. ENGEL, etc., R.D. Blackwell, P.W. Miniard. 2005. Consumer Behaviour.
South-Western College Pub.
VI. OLIVER, Richard L. 1999. Consumer Brand Loyalty. John Wiley & Sons.
VII. PHILIP KOTLER, Gary Armstrong,Prof John Saunders, Prof Veronica Wong. 2001.
Principles of Marketing. Prentice Hall.
VIII. RAJAGOPAL. 2007. Dynamics of International Trade and Economy: An Inquiry Into
Emerging Markets. Nova Publishers, 2007.
IX. REICHHELD, Frederick F. 1999. The Loyalty Effect: The Hidden Force Behind
Growth, Profits, and Lasting Value. Harvard university press.
X. ZIKMUND, WG. 2000. Business Research Methods( 6th Edition). Sydney: Dryden
Press.