The impact of advertising on sales: a case of Fan Milk Ltd
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Date
2008-09-13
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Abstract
The essence of this study was to find out the impact of adverting on sales in a fast moving consumer goods industry using Fan Milk Limited as a case study quota instruments employed in this study were questionnaire and unstructured interviews to solicit response from respondents who consisted of consumers of Fan Milk Ltd’s products on what prompted their first and subsequent purchases of such products. Employees of the company were also asked among others on what drives the sale of their products.
Secondary data consisting of the advertising budget as well as pricing strategies of Fan Milk staff felt is was advertising that drove the sale of their products: consumers were of the opinion that their first taste of Fan Milk products was motivated by family members and friends. However, respondents further claimed that their subsequent purchases were driven by frequent advertising of the products. Again, it was found from the secondary data that the consumption of Fan Milk products really thrived on affordable prices and with the little increase in prices of these products no amount of increase in advertising budget could bring back lost sales. It was therefore recommended that Fan Milk should continue to advertise its products to be able to keep its consumers and also source for local raw materials to help keep prices at affordable levels for longer periods than no depend solely on imported raw materials whose prices are dollar related and fluctuates by the day.
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A thesis submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the degree of Executive Master of Business Administration (EMBA) School of Business, 2008