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TABLE OF CONTENTS.............iError! Bookmark not defined.LIST OF TABLES...........................................ivDECLARATION...............................................vDEDICATION...............................................viCOPYRIGHT...............................................viiAKNOWLEDGEMENT.........................................viiiLIST OF ABBREVIATIONS....................................ixABSTRACT.................................................xi
CHAPTER ONE...............................................1
BACKGROUND OF THE COMPANY................................1
SERENGETI BREWERIES LTD..................................1
1.1 BACK GROUND TO THE RESEARCH PROBLEM..................2
1.2 STATEMENT OF THE PROBLEM……………………………………………….4
1.3 RESEARCH OBJECTIVES………………………………………………………..5
1.3.1 GENERAL OBJECTIVE................................5
1.3.2 SPECIFIC OBJECTIVES..............................5
1.4 RESEARCH QUESTIONS...................................5
1.5 SIGNIFICANCE OF THE RESEARCH.........................5
1.6 AREA OF STUDY........................................6
1.7 LIMITATION OF THE STUDY..............................6
CHAPTER TWO...............................................7
LITERATURE REVIEW........................................7
2.1 THEORETICAL LITERATURE REVIEW........................7
i
2.1.1 Re-launching...................................7
2.1.2 Branding.......................................7
2.1.3Promotion ,The key tool in Re-launching...........8
2.1.4 NATURE AND SCOPE OF SALES PROMOTION.............102.1.5 OBJECTIVES OF SALES PROMOTION...................10
2.1.6 SELECTION OF SALES PROMOTION TOOLS..............12
2.1.7 MANAGEMENT OF SALES PROMOTION...................16
2.1.8 DETERMINING SALES PROMOTION BUDGETS.............16
2.1.9 EVALUATING SALES PROMOTIONS.....................17
2.1.10 PRETESTING AND IMPLEMENTATION OF SALES PROMOTION......................................................17
2.2 EMPIRICAL LITERATURE REVIEW.........................17
CHAPTER THREE............................................19
RESEARCH METHODOLOGY....................................19
3.1Area of the study....................................19
3.2Research Design......................................19
3.3Units of inquiry.....................................19
3.4 Sampling of respondents..........................20
3.4.1 Probability Sampling..........................203.4.2 Non-Probability sampling......................20
3.5 Data collection methods.............................20
ii
3.6 Sample size.........................................223.7 Data analysis methods...............................22
CHAPTER FOUR.............................................23
4.0 DATA ANALYSIS, INTERPRETATION AND DISCUSSION OF THE FINDINGS................................................23
4.1 Introduction.....................................23
4.1 The History of Kilimanjaro Premium Lager............23
4.2 Why Kilimanjaro Premium Lager Re-Launch?............24
4.3 What were the tools which were used in Kilimanjaro re-launching campaign?.....................................25
4.3.1 Product upgrading...............................25
4.3.2 Promotion.......................................25
4.4. What impact does the Kilimanjaro re-launching have oncustomer’s response?....................................27
4.5 Was Kilimanjaro re-launching a threat to performancein Serengeti breweries?..................................34
CHAPTER FIVE.............................................36
5.0 CONCLUSION AND RECOMMENDATION.......................36
5.1 CONCLUSION..........................................36
5.2 RECOMMENDATION......................................36
BIBLIOGRAPHY.............................................39
Appendix 1...............................................40
iii
Appendix 2...............................................42
LIST OF TABLES
Figure 1: Proposed Distribution of Respondents in the sample...................................................22
Graph 1; The Product Life Cycle……………………………………………………….…3 Graph 2; The Gender analysis graph…………………………………………………….27
Graph 3; Age analysis....................................28
Graph 4; Age-sex analysis................................28
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Graph 5; Occupational analysis...........................29
Graph 6; Educational analysis............................30
Figure 2: Educational level..............................30
Graph 7; Profile for PSL consumers who shifted...........31
Figure 3: What people liked and dislike in the new Kilimanjaro Premium Lager................................32Graph 8; What people liked in the new Kilimanjaro Premium Lager....................................................32
Graph 9; What people disliked in the new Kilimanjaro PremiumLager....................................................33
Graph 10; Likability of the new pack.....................33
Figure 4: Sales of both Kilimanjaro premium lager and SBL brands...................................................34
Graph 11; Sales of the brands of SBL and re-launched Kilimanjaro..............................................35
v
DECLARATIONI TUMAINI JOSEPH C. declare that the research paper is my
own work and to the best of my knowledge. It has never been
submitted for the award of any degree in any University.
Field Supervisor
MR J.S. KIKULA
Signature……………………………………
Date…………………………………………
External Examiner……………………………..
Signature………………………………………
Date…………………………………………..
vi
Student
TUMAINI JOSEPH C.
Signature………………………………………..
Date…………………………………………….
DEDICATION
This research work is sincerely dedicated to my lovely
heavenly God the almighty, my entire family, relatives and
friends who devoted their ceaseless support and courage
morally, spiritually and financially. I pray that Almighty
God protect and give them success and long life.
vii
AKNOWLEDGEMENTWriting an academic report is extremely tough work to be
accomplished by a single hand. It requires help, support and
inputs from different sources. I am therefore duty bound to
express my sincere and heartfelt gratitude to whoever helped
ix
me in anyway to accomplish this work. However, whatever long
I may acknowledge the list is not exhaustive.
First of all I would like to thank the heavenly God the
almighty for his tender love towards me
I am highly indebted to express my special sincere and whole
heartedly thanks and appreciation to my field supervisor Mr.
J.S.Kikula for his appreciated ceaseless and reasonable help
fullness, support and positive criticisms which made this
work accomplishable and successful.
It’s my great concern to extend my heartfelt appreciations
to Mr.Shantanuu(Director of Marketing),Mr. Vijay
Josh(National Sales Manager),Mr. Sameer Dashputre,(National
Brand manager)Mrs. Teddy Mapunda,(Public Relation and
Communication Manager)Mr. Nico Mosha(Regional Sales
Manager)Mr. Jaffery Rashid and Mr. Yohana Manoli (Marketing
Executives)who were my host supervisors.
Special thanks to Mr. Felix and the entire Staff of
Serengeti Breweries Limited for their endless cooperation
they accordingly offered to me.
x
LIST OF ABBREVIATIONS
ABL Associated Brewery Limited.
BBL Bonite Bottlers Limited
UK United Kingdom
URT United Republic of Tanzania
PSL Premium Serengeti Lager
TTCL Tanzania Telecommunication Company limited
SEC Social Economic Class
xi
ABSTRACTIt is important that products get re-launched if in
comparison to competition. It could be that the brand is
looking tired and old fashioned that it is loosing its
relevance in consumer’s minds, so that this could be a
reason to re-strengthen the brand communication, in addition
to making changes to the product. The re-launch of such
products to customers will also increase customer’s
awareness and brand re-modification.
The purpose of this research was to find out what was theimpact of Kilimanjaro re-launching as a promotional tool tothe performance of SBL
The research report comprises of five chapters that entails
the research problem identified, the research objectives,
the methodology adopted and the results of the analysis,
which are in essence answers to the research question
developed.
xii
A sample of 230 respondents (both customers and staff) from
head office were visited and interviewed. Both probability
(stratified random sampling) and Non-probability (Judgmental
and convenience) were used. Multitudes of approaches were
applied to gather data; these included personal interview,
observation, and questionnaire administration being the
focal. Discussion and documentation were qualitative and
quantitatively analyzed.
The study recommended that – SBL should provide training toits employees.
. SBL should increase the promotion activities
SBL should increase supply and distribution of the
Premium Serengeti Lager.
SBL should add value to its employees who meet face to
face with the consumers.
SBL should consider improving the quality of their
existing products and introduce the new products to
the market.
People under marketing department should be considered
by been given more time to have access to internet to
read more on the matters related to their day to day
activities.
There should be constant feeding of information in the
organization’s website to enable more people who have
access to internet, learn more about the organization
and its functions.
xiii
SBL should also improve employees’ welfare by
providing them with improved remunerations, short and
long term courses, bursaries, e-learning, on job
training and coaching. The training should be from
both within and outside the country. SBL should
continually remain focused on finding the right
employees, developing them and treating them with
respect and equal opportunity
xiv
CHAPTER ONE.
BACKGROUND OF THE COMPANY.
SERENGETI BREWERIES LTD
In a short span of half a decade the company has seen growth
many times over. It all started in September 2002, when the
present management took over the ailing ABL (Associated
Brewery Limited) brewery and begun a revival plan.
In Jan 2003 the complete brand portfolio was rejuvenated.
The new management changed the brand portfolio, created a
team of qualified professionals, invested in infrastructure,
quality control & marketing strategy.
Today, it has a portfolio of one of the most popular and
fastest growing Premium Serengeti Lager, a strong beer
called The KICK, the international powerhouse brand Stella
Artois which is produced locally, and a non – alcoholic malt
drink Vita malt plus.
A new Greenfield brewery at Mwanza was built recently to
meet the growing demand. A strong team of more than 350
employees are raring to deliver more.
At a glance
Two breweries within 4 years
Premium Serengeti lager is among the top 3 beer brands in
Tanzania.
1
Market share of 15%
Countrywide distribution network.
Portfolio of successful brands in each category
Main sponsor of Tanzania’s National Football team.
Licence partnership with InBev world’s largest brewer by
volume. Only the 4th company to brew Stella Artois outside
of Europe.
Licence partnership with Denmark’s 2nd largest Brewery
- Royal Unibrew for Vitamalt Plus.
Achievements:
Won the International award for Best On & Off – trade
sales promotion for Stella Artois in 2004 across
America & African zones from InBev.
Won the DLG Bronze medal for premium Serengeti Lager in
2006.
Won the Monde selection 2006 & 2007 silver medal for
premium Serengeti Lager.
Won two silver medals for “The KICK” at the prestigious
DLG international beer quality competition held in
Germany in 2006 and 2007.
Successfully exported Premium Serengeti Lager to Kenya,
Australia and the UK.
SUPERBRAND status for premium Serengeti Large in 2007
2
Corporate social responsibility fuelling the Football
Passion
Football is much more than just a game in Tanzania.
Serengeti Breweries identified this as a way to nurture
local talent, direct youth energies and bring opportunities
to the masses.
The company is committed to the improvement of the national
football team of Tanzania.
By this, the company intends to raise the game to
international levels and bring about a high level of
professionalism in the game. In turn, the talent can go to
places over the world. This will make football a viable
career option to the youth of the country.
Serengeti Breweries is also nurturing the talent at the
grass root levels by sponsoring local football clubs.
1.1 BACK GROUND TO THE RESEARCH PROBLEM.
In really situation if customers are left alone, will
ordinary not buy enough firm’s products. The firm must
persuade the customers to buy and consume the products,
therefore undertake aggressive promotion efforts.
As a result of increasing competition, most of the business
firms are trying to differentiate their marketing strategies
3
from competitors on the basis of branding, advertising and
packing.
It has been established that every product has a life cycle.
It is launched, grows, matures and may at some point die. A
fair comment is that-at least in the short term- all
products are not expected to die. Most products follow a
sort of life cycle, brands behave like wise. From the launch
they grow rapidly, and then level off as they reach
maturity; after a time, they begin a slow decline, which
becomes more rapid as they reach obsolescence. Profits
follow the same pattern, after a suitable lag. In general,
sales growth is easier in the growth stages of the market.
However, these stages are characterized by intensive
competitive entry and profits may be hard to earn. In mature
markets, brand positions become established and there is
normally a shakeout of weaker competitors. Those who survive
can earn good profits. Decline can lead to over capacity and
downward pressure on the prices and profitless competition.
However, the product life cycle can only be used as a rough
guide as it is often to re-launch a product. A company find
the previous positioning faulty or ineffective, as a result
might want to reposition the brand. Here will be, of course,
the fact that the brand will not have that much of equity to
boost of. In case of a strong brand repositioning itself,
the new positioning will make less sense.
4
Graph 1; The Product Life Cycle.
Source; www.netmba.com(2007)
In recent years firms are facing more competition than in
the past years due to globalization, free trade, change in
life styles, exposure etc. This has created higher demand
for more product options than those produced by individual
companies.
On the other hand, consumers tend to try any new brand
offered into the market, hence different measures and
strategies must be used to remind them of a brand and
capture their taste and preference.
In brewery industry there are substitute products
specifically traditional beers such as Ulanzi and Kimpumu,
Mbege etc which are sold at a cheaper price leading
customers who have low income, to demand these drinks more.
5
It is perhaps this reasons that has led Tanzania Breweries
Ltd to re-launch their Kilimanjaro brand in order to
increase its market share in the beer market. As a result,
Serengeti Breweries Ltd experiences a challenge to asses the
impact of this re-launching and minimize efforts made by the
competitor. Meanwhile SBL is trying to maximize their market
share.
1.2 STATEMENT OF THE PROBLEM.
In today’s competitive business environment firms are
competing for their market shares. Different marketers look
for different strategy for capturing the same, but at the
same time only few succeed in their goal. In this regard
different marketers start raising questions on possible
business strategies and one of them is “re-launching of
product” Brand re - launch thus
incorporates research that identifies the elusive
motivators among brands target group (Customers) that will
motivate them to use the brands rather than those of the
competitor. It can identify the most valued attributes and
why are valued, provide perception, advantage and
disadvantages of the brands compared to competing brands.
The introduction of new companies as well as the free
movement of trade has increased competition between
products thus contributing to the poor performance of such
products in the market.
6
Bearing the stiff competition in the brewing industries,
Tanzania Breweries Ltd is placing promotion as the major
aspect of bringing the customers to the brand awareness;
make a company be competitive in the market by conquering
the major distribution channels of the services offered by
Tanzania Breweries Ltd, thus raising the sales volume. The
researcher found that there is a need of carrying out the
research on the effects of re-launching of Kilimanjaro beer
on the Serengeti breweries Ltd`s sales as recently there is
no study conducted to asses the impact of re-launching of
Kilimanjaro beer as a promotional tool to the performance
of Serengeti breweries ltd.
1.3 RESEARCH OBJECTIVES.
The objective of this report is two folds, general and
specific objectives.
1.3.1 GENERAL OBJECTIVE.The general objective was to asses the impact of re-
launching of Kilimanjaro beer as a promotional tool to the
performance of Serengeti breweries Ltd.
1.3.2 SPECIFIC OBJECTIVES. To examine the reasons for re-launching of Kilimanjaro
Premium Lager.
To identify the tools in the re-launching of Kilimanjaro
Premium Lager
7
To assess influence of the Kilimanjaro re-launching on
customers response.
To examine whether Kilimanjaro re-launching has been a
threat to performance in Serengeti breweries.
1.4 RESEARCH QUESTIONS.
What impact does the Kilimanjaro re-launching have on
customer’s response?
Are there reasons that forced the organization to re-
launch its product?
What were the tools which were used in Kilimanjaro re-
launching campaign?
Was Kilimanjaro re-launching a threat to performance in
Serengeti breweries?
1.5 SIGNIFICANCE OF THE RESEARCH
The study as part of the researcher academic course, as
it provides opportunity to practice the research theories
of what has been leant in classes, also it will enable
the researcher to qualify for award of degree in Bachelor
of Business Administration at Mzumbe University.
The findings will help Serengeti Breweries on the best
way of competing with their competitors and increase
their market share.
The research findings, suggestions and recommendations
will assist the organization to know its strength,
8
weakness so that they can develop a mechanism to increase
organizational performance.
1.6 AREA OF STUDY.
The study was conducted at Serengeti breweries limited (SBL-
Tanzania Ltd), Dar es Salaam.
1.7 LIMITATION OF THE STUDY.
The researcher lacked enough experience on research which
may have resulted to improper conducting of the study.
Some of the people refused to provide appropriate data
when asked by a researcher hence resulted to
insufficiency of data and lack of proper information.
The time which was used was very limited hence the
researcher was not able to cover all the areas of the
study.
The researcher lacked enough fund for support during data
collection which required the researcher to travel in
different areas in collecting data.
Employees in the Marketing department have limited rights
to give important sources of information due to the
Company’s policy.
9
CHAPTER TWO.
LITERATURE REVIEW
2.1 THEORETICAL LITERATURE REVIEW.
Introduction.
It provides meaning of different key terms on the topic
researched by different authors of different
literatures. The researcher went through different books and
came up with following information.
2.1.1 Re-launchingRe-launching of product can be defined as the process, when
an existing brand changes or modifies the key element of the
marketing mix without materially changing its target
consumer group (www.mktwire.com).
Re-launch means that the product, perfume and packaging have
been modified or even changed substantially and the change
is communicated through media advertising and at the point
of sale (www.mktwire.com )
Re-launch means reintroducing a product into specific
market. The term implies that the company has previously
marketed the product but stopped marketing it a re-launched
10
product has usually undergone one or more changes. It may
for example, be technically modified, re-branded, or
repositioned. (www.brandchannel.com).
2.1.2 Branding According to Evans, Joel R (1990), branding is defined as
the process that involves researching, developing and
implementing brand names, brand marks, trade characters and
trademarks. It is an important part of product planning; the
procedure a firm follows in researching, developing and
implementing its brands. By establishing well-known brands,
companies are usually able to obtain acceptance, extensive
distribution and higher prices.
N.A Saleemi and E.K Njoroge (1997), defines branding as the
management process of branding a name to a product,
designing a brand mark, establishing it as well as
popularising it.
2.1.3 Promotion, The key tool in Re-launchingThe brand of a product, a service or a business is more than
a name. It is a statement to the company’s customers,
shareholders, employees and trade partners. Not only must
the statement be clear, it must also incorporate something
distinctive that marks out the sustainable competitive
advantage of the company or the product.
Effective branding can be valuable source of strategic
competitive advantage but it needs to be properly managed.
Brand management requires regular and systematic measurement
11
of the market place. Decision to invest in “brand building”
should not be driven by short-term opportunism; such
investment should only be taken if the expenditure will help
to ensure a longer-term contribution to sales and
profitability (according www.allabout branding .com)
Bigger and faster growing companies pay more attention to
branding strategy. They view marketing expenditure as an
investment, and invest time and effort into establishing a
long-term strategy for their marketing. Branding is viewed
as a source of strategic competitive advantage. So branding
issues are regularly discussed, the value of its brands is
widely recognized within the company and there is less
reluctant to spend money on marketing and promotion.
Building a brand requires promotional activities. In many
companies, senior managers make decisions about the best
forms of promotions on a subjective basis. Bigger and faster
growing companies take decisions about the promotional mix
on a much more scientific basis. They formally assess the
relative importance of the various promotional tools, track
the success of promotional activity and operate a carefully
integrated marketing and communication strategy.
Marketers on the other hand have different concerns.
Marketers help consumers understand the benefits of a
product. Marketers are closer to the front line of
competition, charged with making good products – and even
some not so good products successful. David Ogilvy, a U.S.
12
advertising executive, once said; “It has taken more than a
hundred scientists two years to find how to make the product
in question; I have been given thirty days to create its
personality and plan its launching. If I do my job well, I
shall contribute as much as the hundred scientists to the
success of the product”.
Peterson (1997:436) defines promotion as any marketing
effect whose function is to inform, or persuade actual or
potential consumers about the merits of a product or service
for the purpose of including a consumer either to continue
or to start purchasing the firms product or service at some
(given) price.
(Baker 1991) defines sales promotions as a facet of
marketing which is adding value, usually of a temporary
nature, to a product or service in order to persuade the
user to purchase that particular brand.
Sales promotions objectives are to stimulate product demand
and improve the marketing performance of sales people
(Clancastec et al 1993) defines sales promotions as
immediate or delayed incentive to purchase expressed in cash
or in kind and having only a short term or temporary
duration. Its objective is to encourage customers to switch
brands, encourage customers to try a new product and
encourage behavior purchase. Major forms of sales promotion
are contest games, sweepstakes premiums, rebates, coupons,
exhibitions and tradeshow and free sample.
13
Stanton j. et al (1991:Pg 400 defined promotion as the
element in organizations marketing mix that services to
inform, persuade and remind the market of the organization
or/ and its products.
But in his new edition (1994:Pg 666), he defined promotion
as the element in an organization marketing mix that
services to inform, persuade and remind the market of
product and organization selling it in hopes of influencing
the recipient’s feeling or behavior.
Basically, promotion attempts to influence recipients’
choice or response. And this is done through the promotion
mixes which are:-
Advertising
Personal selling
Sales promotion.
Public relations
Sponsorship, and
Trade fairs and exhibitions.
Thus we refer to promotion as one of the marketing mix or
elements-sometimes called 4 P’s-aimed at increasing sales
and market share by informing, influencing, persuading and
reminding the market about the product through media of
communication and it can be done through the promotion mix
or elements, that is; advertising, personal selling, sales
14
promotion, public relations, sponsorship and trade fairs and
exhibitions.
2.1.4 NATURE AND SCOPE OF SALES PROMOTION.As with Neil H.Borden's marketing mix, marketing
communications has its own 'promotions mix.' Think of it
like a cake mix, the basic ingredients are always the same.
However if you vary the amounts of one of the ingredients,
the final outcome is different. It is the same with
promotions. You can 'integrate' different aspects of the
promotions mix to deliver a unique campaign
There are several factors in the marketing environment which
contribute the loosing popularity of sales
promotion. The following represent some of them,
Buyers’ expectations. Once they are offered purchases
incentives, consumers and channel members get used to
them and soon begin expecting them.
Competitive pressure. If competitors are offering buyers
price reductions, contests, or other incentives, a firm
may feel forces to retaliate with its own promotion.
Short-term result. Sales promotions such as coupon and
trade allowances produce quicker and more measurable
results. The critics of this strategy argue that these
immediate benefits come at the expense of building brand
15
equally; they feel that an overemphasis on sales
promotion may undermine a brands future.
2.1.5 OBJECTIVES OF SALES PROMOTION.
The most obvious objective marketers have for promotional
activities is to convince customers to make a decision that
benefits the marketer (the marketer believes the decision
will also benefit the customer). For most for-profit
marketers this means getting customers to buy an
organization’s product and, in most cases, to remain a loyal
long-term customer. For other marketers, such as not-for-
profits, it means getting customers to increase donations,
utilize more services, change attitudes, or change behavior
(e.g., stop smoking campaigns).
The objectives are as follows:
Build Awareness
New products and new companies are often unknown to a
market, which means initial promotional efforts must focus
on establishing an identity. In this situation the marketer
must focus promotion to: 1) effectively reach customers, and
2) tell the market who they are and what they have to offer
Create Interest
As consumer and business buying behavior, customers must
first recognize they have a need before they actively start
16
to consider a purchase. The focus on creating messages that
convince customers that a need exists has been the hallmark
of marketing for a long time with promotional appeals
targeted at basic human characteristics such as emotions,
fears, sex, and humor
Provide Information
Some promotion is designed to assist customers in the
search stage of the purchasing process, explain what the
product is, and in competition it helps with a product
positioning strategy.
Stimulate Demand
The right promotion can drive customers to make a
purchase. In the case of products that a customer has not
previously purchased or has not purchased in a long time,
the promotional efforts may be directed at getting the
customer to try the product. For products with an
established customer-base, promotion can encourage customers
to increase their purchasing by providing a reason to
purchase products sooner or purchase in greater quantities
than they normally do.
Reinforce the Brand
17
Once a purchase is made, a marketer can use promotion to
help build a strong relationship that can lead to the
purchaser becoming a loyal customer.
2.1.6 SELECTION OF SALES PROMOTION TOOLS
Marketers have at their disposal six methods of promotion.
Taken together these comprise the promotion mix. In this
section a basic definition of each method is offered while
in the next section are issues to be considered in selecting
the particular method of promotion.
Advertising.
Advertising is a 'paid for' communication. It is used to
develop attitudes, create awareness, and transmit
information in order to gain a response from the target
market. There are many advertising 'media' such as
newspapers (local, national, free, trade), magazines and
journals, television (local, national, terrestrial,
satellite) cinema, outdoor advertising (such as posters, bus
sides).
Personal selling.
Personal Selling is an effective way to manage personal
customer relationships. The sales person acts on behalf of
the organization. They tend to be well trained in the
approaches and techniques of personal selling. However sales
18
people are very expensive and should only be used where
there is a genuine return on investment.
Public Relation.
Also refers to as publicity, this type of promotion uses
third-party sources, and particularly the news media, to
offer a favorable mention of the marketer’s company or
product without direct payment to the publisher of the
information.
Trade Fairs and Exhibitions
Such approaches are very good for making new contacts and
renewing old ones. Companies will seldom sell much at such
events. The purpose is to increase awareness and to
encourage trial. They offer the opportunity for companies to
meet with both the trade and the consumer.
Sales Promotion.
Sales promotions tend to be thought of as being all
promotions apart from advertising, personal selling, and
public relations. For example the BOGOF promotion, or Buy
One Get One Free. Others include couponing, money-off
promotions, competitions, free accessories (such as free
blades with a new razor), introductory offers (such as buy
19
digital TV and get free installation), and so on. Each sales
promotion should be carefully put under cost evaluation and
compared with the next best alternative.
Sponsorship.
Sponsorship is where an organization pays to be associated
with a particular event, cause or image. Companies will
sponsor sports events such as the nation’s football team.
The attributes of the event are then associated with the
sponsoring organization.
The elements of the promotional mix are then integrated to
form a unique, but coherent campaign.
The selection of the appropriate tools must ensure the
effectiveness of tools in communicating set in terms of
sales and consumers ability to recall that particular brand.
(Paliwoda, S, 1993)
For effective sales promotional campaigns, the following
issues are to be considered:
(1)Promotional Objective
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There are several different objectives a marketer may pursue
with their promotional strategy. Each type of promotion
offers different advantages in terms of helping the marketer
reach their objectives. For instance, if the objective of a
beer producer is to get customers to try a product, the use
of sales promotion, such as offering the free product, may
yield better results than promoting through Internet
advertising.
(II)Nature of the Product
Different products require different promotional
approaches. For the consumer market, products falling into
the convenience and shopping goods categories are likely to
use mass market promotional approaches while higher-end
specialty goods are likely to use personalized selling.
(III) Target Market
As one might expect, customer characteristics dictate how
promotion is determined. Characteristics such as size,
location and type of target markets affect how the marketer
communicates with customers. For instance, for a small
marketer serving business markets with customers widely
dispersed, it may be very expensive to utilize a sales force
versus using advertising.
(IV) Product life cycle.
21
At introduction or early stage advertising and publicity are
very important so that to build awareness to the customers
which will lead to buying actions.
During the growth stage advertising and sales promotion are
mostly used to differentiate the products from their
competitors.
At maturity stage there is products which stating to fall so
at this stage may increase advertising to reduce that and
there is application of sales promotion and personal
selling.
(V) Availability of Resources
The amount of money and other resources that can be directed
to promotion affects the marketer’s choice of promotional
methods. Marketers with large promotional budgets may be
able to spread spending among all promotion options while
marketers with limited funds must be more selective on the
promotion techniques they use.
(VI) Company Philosophy
Some companies follow a philosophy that dictates where most
promotional spending occurs. For instance, some companies
follow the approach that all promotion should be done
22
through salespeople while other companies prefer to focus
attention on product development and hope word-of-mouth
communication by satisfied customers helps to create
interest in their product.
(VII) Price
The higher the price of a product the more likely a marketer
will need to engage in personalized promotion compared to
lower priced products that can be marketed using mass
promotion.
(VIII) Time scale.
The time which is specific by the firm to be used for
promotion affects the promotion tools, so the marketer will
choose the kind of promotion regarding to the time.
(IX) Distribution
Marketing organizations selling through channel partners can
reach the final customer either directly using a pull
promotion strategy or indirectly using a push promotional
strategy. The pull strategy is so named since it creates
demand for a product by promoting directly to the final
customer in the hopes that their interest in the product
will help “pull” more product through the distribution
channel. This approach can be used when channel partners
are hesitant about stocking a product unless they are
23
assured of sufficient customer interest. The push strategy
uses promotion to encourage channel partners to stock and
promote the product to their customers. The idea is that by
offering incentives to channel members the marketer is
encouraging their partners (e.g., wholesalers, retailers) to
“push” the product down the channel and into customer’s
hands. Most large consumer products companies will use both
approaches while smaller firm may find one approach works
better.
2.1.7 MANAGEMENT OF SALES PROMOTION
Like most marketing decisions, an effective promotional
strategy requires the marketer understand how promotion fits
with other pieces of the marketing puzzle (e.g., product,
distribution, pricing, target markets). Consequently,
promotion decisions should be made with an appreciation for
how it affects other areas of the company. For instance,
running a major advertising campaign for a new product
without first assuring there will be enough inventory to
meet potential demand generated by the advertising would
certainly not go over well with the company’s production
department (not to mention other key company executives).
Thus, marketers should not work in a vacuum when making
promotion decisions. Rather, the overall success of a
promotional strategy requires input from others in impacted
functional areas.
24
2.1.8 DETERMINING SALES PROMOTION BUDGETSThe sales promotion budgets should be established as a
specific point of budget for the total promotion mix.
Setting a separate budget for sales promotion forces a
company to recognize and manages it. In developing an
integrated promotion strategy, the amount budgeted for sales
promotion should be determined by the task method. These
forces the management to consider objectives and sales
promotion techniques that used to accomplish them.
2.1.9 EVALUATING SALES PROMOTIONS Most sales promotions have definite starting and ending
points coupons must be redeemed by a certain date.
Contest entries must be submitted before a particular
deadline. This differs to the advertising where there can
be significant residue effects and results of one
campaign may overlap the other one.
Responses to a premium offer or coupon with a specified
closing data can be countered and compared to a similar
period when there were no premiums or coupons offered.
25
Most sales promotions are designed to impact sales
directly it is more difficult to measure a change in
altitude or an increase in information about a product or
brand than it is to count sales.
2.1.10 PRETESTING AND IMPLEMENTATION OF SALES PROMOTIONKotler p et al (1991) says pretesting helps to point out the
most appropriate tool, which is of the right incentive size.
It is advisable to pretest promotion before entering into
the market. But so many business companies don’t pretest the
sales promotion tools.
2.2 EMPIRICAL LITERATURE REVIEW
In the course of documentation, a researcher came about
different reports about the impact of promotion mix on sales
or/ and organization in general.
According to a research paper by Joseph.E.G (2002) of Mzumbe
University in his research on “The impact of promotion
techniques under competitive business environment” he
generally said that promotion tools are the most weapon(s)
used in the competition battle, and if they are effectively
used, they tend to affect sales positively.
According to Jaha (2004) in his research report “The Impact
of Effectiveness Promotion Techniques in Telecommunication
Company” 2003/2004 argued that TTCL should increase more
26
funds to boost promotion activities so as to create good
image, improve customer care and network expansion. He also
argued that there should be application of effective
promotion which means a promotion with all the necessary
messages and uniqueness, sales promotion campaigns should be
conducted frequently to overcome the activities of
competitors. New products in the market should have an
intensive sales promotion for public awareness.
Biseko (1999/2000) in his research report on effectiveness
of sales promotion at Bonite Bottlers Limited argued that
sales promotion should be include in a company’s promotion
plans along with advertising and personal selling. It
recommenced that BBL management must establish a policy for
evaluation of effectiveness of its sales promotions
activities. This will enable a firm to know the news of
consumers and retailers and therefore be on the next sales
promotions. Also the firm should employ the experts in
promotion activities who will be responsible to steer the
implementation of sales promotion activities.
Kimolo(1998) in her report on the “Promotion Techniques”
conducted at NSSF headquarters found out, some organizations
are not effective in sales because they are not aware of the
promotion tools when, where and how to employ them. She also
said that some techniques are not affecting sales because
they are wrongly implemented and lacks enough funds for
implementation.
27
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter outlines the methods which were used in the
collection of data in the field.
Area of the study
The research was undertaken at Serengeti Breweries Ltd (SBL-
Tanzania) Dar es Salaam.
28
3.2Research Design
In order to achieve the descriptive case study (Baker 1993)
said” It creates a conductive environment for combining a
variety of evidences including interviews, documents and
observation to conduct an in-depth inquiry into a social
phenomena in which research interest involves a range of
variables but always maintaining a unitary nature of the
unit of inquiry”.
This provides the guidance and forms the demarcation of the
scope of enquiry of the researcher with regards to
collection, organisation, analysis, and interpretation of
data pertaining to the research
The researcher has adopted case study research design. This
is justifiable as SBL was used together with its customers
and employees; the researcher was able to visit in the
course of his placement at SBL.
It is in researcher’s confidence that sufficient and
reliable information have been obtained as a result of data
gathering using this design. The design is also
argumentative as it offers facilitation to the management of
the units so required.
Unit of inquiry
The study unit of inquiry was Serengeti Breweries top
management whom I assessed as to why the Kilimanjaro premium
lager was re-launched, and whether the Kilimanjaro re-launch
29
had appeared to be a threat to the performance of SBL or
not. The SBL department managers, supervisors and the staff
assisted me to know the history of Kilimanjaro Premium
Lager, tools which where used in re-launching and the
response of some of the customers to the new Kilimanjaro
Premium Lager. From various consumers of the various
products and services offered by Serengeti Breweries ltd and
TBL I managed to obtain the data on the impact of
Kilimanjaro Premium re-launch on the customers response.
3.4 Sampling of respondents
Sampling can be defined as the use of definite procedure in
the selection of a part for the express purpose of obtaining
from its descriptions or estimates of a certain properties
and characteristics of the whole. (Mc McCarthy et al 1963;
23)
To realize the objectives of study, the sample of 200
customers and 30 people was drawn from population of
SBL departments’ staff members; they included the top
management, departmental Managers, and departmental workers.
Both probability and Non-probability sampling techniques
were used.
3.4.1 Probability Sampling Under this, stratified random sampling (sometimes called
proportional sampling) was employed due to the fact that it
accounts for the marked differences in the population when
30
a sample is selected. This method was employed in the
selection sample of SBL staff, where by the population was
divided from members of different departmental staff and the
selection were based on these departments.
3.4.2 Non-Probability sampling Under this context, Judgemental sampling was used due to
the reasons that the researcher knew the target population
well enough to choose a sample using expert judgement. And
convenience sampling was applied mainly to TBL’s and SBL`s
customers, that means the selection based on the willingness
of the respondents to participate.
3.5 Data collection methods
Data was collected by using primary and secondary data
collection methods.
(a) Primary Data Collection
In collecting primary data three methods was used .These are
questionnaires, interviews, and observations
Observations
In this respect the researcher participated in day to day
activities of SBL with the staffs and sometimes the
researcher observed and recorded critical incidents relevant
to the subject studied.
Questionnaire
31
This was data collection technique used by the researcher.
In specific terms, the researcher made use of personal
administration of the questionnaire. Personal administration
of this data collection instrument was adopted due to the
following reasons;
First, to enhance accuracy as this provides opportunity for
clarification and explanation of some aspects.
Second, to increase the level of response as compared to
mailing due to time limitation, and
Third, editing and compilation of data was achieved at the
same time of data collection.
In some instances however, due to unavoidable circumstances,
the questionnaires were left with the respondents to fill at
their convenient time
In designing the questionnaires, comments and feedback from
supervisor, and colleagues at SBL were elicited in an
endeavor to ensure that questions were clear and precise.
Interview
In special cases where particular information was required
unstructured, an interview method was used in connection
with the questionnaires, some of the respondents were of
concern in adding input to the work, their views were not
discredited. The questions basically spring from
researcher’s head when using this approach, but they are
basically in line with what is being researched The
32
researcher interviewed the head of departments, other staffs
and the consumers of the brand under investigation.
(b) Secondary Data Collection
Documentation
Under this the researcher surveyed various documents which
enabled him to get appropriate information. The documents
include; sales books, journals, magazines, newspapers,
newsletters, office files, reports and websites.
3.6 Sample size.
Figure 1: Proposed Distribution of Respondents in the sample.
Category of
respondent
No. of Respondents % of the
Respondents
category to the
sampleTop management 05 2.Departmental
Managers
06 3.
Departmental
Workers
19 8.
Customers 200 87Total Sample size 230 100
33
3.7 Data analysis methods
After the collection of data, the researcher analyzed them
through both qualitative and quantitative methods.
Qualitative Data
This was used to examine and interpret data that could not
be quantified e.g. behavior and views of consumers.
Quantitative Data
This was used to represent and manipulate quantifiable data
e.g. size and amount of sales volume.
CHAPTER FOUR
4.0 DATA ANALYSIS, INTERPRETATION AND DISCUSSION OF THE FINDINGS
4.1 Introduction.
This chapter presents the data collected during the study,
analyzes and discusses the findings. The data collected
include the impact of the Kilimanjaro re-launching to the
customers response, the factors behind Kilimanjaro Premium
re-launching, the tools which were used in Kilimanjaro re-
34
launch campaign and finally whether the Kilimanjaro re-
launching was a threat to SBL or not.
4.1 The History of Kilimanjaro Premium Lager.
The official launch of Kilimanjaro Premium lager was by Mr.
Fredrick Sumaye (by then a prime minister of URT) on Friday
October 1996 at Diamond Jubilee. This was the launch of
Premium Lager that is Kilimanjaro Premium Lager, of which
before the launch it was known as Kilimanjaro lager.
The brand itself was initially launched sometime in either
1961 or 1963, there is a dispute here, and it was launched
by Madvan Breweries owned by Madvan family in Arusha. The
breweries itself was known as Kilimanjaro Breweries.
During Madvan there were same changes made in the
Kilimanjaro brand. This includes both the change of bottle
shape and the change of the label.
The latest shape which was introduced on September 2007 (new
500ml long neck) Previously there were some other bottle
changes In 1996 a bottle sized 330ml, popularly known as
dumpy was introduced. In 2003 the new canning was added in
which another 340ml was introduced. In September 2005, there
was an introduction of 330ml, non returnable bottle format.
In the label change, during Madvad error, Kilimanjaro label
was upgraded three times. The first launch was in 1996, the
second in 2005, and the third one in the re-launch on
September 2007.
35
4.2 Why Kilimanjaro Premium Lager Re-Launch?
The Kilimanjaro re-launching did not just start on 2007, butrather the campaign had been introduced since before 2005.Inthe TBL annual report of the year 2006,page 14,the ManagingDirector’s report states that, ‘In march 2005 we introduced apackaging graphics upgrade to one of our leading brands Kilimanjaro PremiumLager.’ He continues ‘In September 2005 we reintroduced non returnablebottle format making both Kilimanjaro Premium Lager and Castle lageravailable in this pack.’
A re-launch is made when it is apparent to the marketer that
the brand in question is loosing share because its physical
qualities need a change. It is also possible that, in
comparison to competition the brand is looking tired and old
fashioned that it was loosing its relevance in consumer’s
minds, so that this could be a reason to strengthen the
brand communication, in addition to making changes to the
product
The key factors that marketers review in order to decide
whether a brand needs a re-launch are
a) A decline in its market share, and the
b) Brand strength (when measured through a suitable
research methodologies)
showing a decline.
Very often, it has been noticed that both these declines
occurs at the same time. Moreover, the idea of re-launching
a brand when it is still flourishing is a very good one and
should be a practice of good businesses and marketing
36
strategy. Unfortunately re-launches when a brand is
successful are rare.
It is more common to push a growing brand up the growth
curve by a re-stage rather than a re-launch; particularly if
the growth of the brand is threatened or likely to be
threatened by major competitors.
Kilimanjaro Premium Lager being one of TBL’s flagship brand
over years, had to be re-launched as it faced challenges
/competition from other products within TBL and EABL. Other
companies such as Serengeti Breweries with its high quality
brands placed a real challenge to Kilimanjaro. Some of the
other products that gave challenge to Kilimanjaro included
Red bull, Windhoek, Grolsch, Heineken, Faxe and Efes.
Therefore something was to be done for the brand to keep up
with the ever-changing landscape. Following the months of
consumer research, design and development, the brand was re-
launched with a new Kilimanjaro Premium Lager packaging into
the market.
4.3 What were the tools which were used in Kilimanjaro re-launching campaign?
4.3.1 Product upgrading.With the Kilimanjaro re-launching there was a change of two
particular areas in the product. The areas which were
changed include,
37
a) Label upgrading and
b) Bottle changing.
With the label upgrading there was a change in design, of
which it was made more modern; the bottle was changed into
the new long neck bottle. Both these changes were to make it
attract more consumers and hence improve its relevance in
consumer’s minds, so that this could be a reason to
strengthen the brand communication, in addition to making
changes to the product so that consumers may feel their
product moving with time and new technology.
4.3.2 Promotion. TBL promotional mix differs markedly in two respects
one of which is expected and that is to do with the amount
of promotion it does. Given the size of TBL and the number
of brands it owns or produces under licence one might expect
TBL to advertise more (electronic, print and out door), do
more personal selling, more direct marketing, more internet
and online marketing (this is done only on a very small
scale in the beer industry in Tanzania even by the main
player e.g. http://www.kilitimetz.com/) perform more sales
promotions and gain more publicity than any other brewer or
importer of beer; and so the scale is markedly different.
But one aspect that TBL deliberately emphasizes is events
which it organizes and sponsors widely but selectively.
Virtually all major TBL brands are associated as part of its
38
brand character and positioning with a particular type of
event or specific event. Kilimanjaro Premium Lager has for a
number of years now organized the Kilimanjaro Music Awards-
the premier popular music awards in the country, the
Kilimanjaro Marathon- an international marathon race held
annually around the foot of Mount Kilimanjaro in Moshi town;
and sponsoring the Dar es Salaam basketball competition
yearly.
These events and sponsorships are attempts at engaging the
consumer on a relevant platform (games, music and so on) and
also communications of positioning and repositioning and
opportunities for generating a great deal of public
relations publicity in the news media
Other means which went hand in hand with the Kilimanjaro
re-launching included,
Advertising.
Advertising is a 'paid for' communication. It is used to
develop attitudes, create awareness, and transmit
information in order to gain a response from the target
market. There were many advertising 'media' which were used
in re-launching of Kilimanjaro. These included, magazines
such as Bang released on December 2007, page 2, with the
words which said “THERE IS A NEW LOOK IN THE TOWN”. News
papers such as Nipashe and Daily news had the same advert.
39
In the local TV and Radio there was and advertisement
convincing people to try the new re-launched Kilimanjaro
premium Lager. The radio channels include, KISS FM, on its
favourite program BONGO BEATS. The TV advert was witnessed
in the 20:00 news hour program runned by ITV. Billboard was
seen along Morogoro road in Manzese area. The suburb vision
was observed in areas like Kigogo, Sinza Mori, opposite
Serengeti plant, and in Ilala opposite Regional officer’s
office. Others included posters in the bars, wall painting
and the vehicle brands.
Personal selling.
Personal Selling is an effective way to manage personal
customer relationships. The sales person acts on behalf of
the organization. With Kilimanjaro re- launching they hired
some few people to do the personal selling who were assisted
by the TBL sales people.
Sales Promotion.
40
Sales promotions tend to be thought of as being all
promotions apart from advertising, personal selling, and
public relations. With the Kilimanjaro re-launching, sales
promotion was also used. It involved the offering of
tablemates, t-shirts, tire covers and key holders. It also
included the promotion of the brand in the bars which had
the poor performance in the market.
These elements of the promotional mix were then integrated
to form a unique, but coherent campaign.
4.4. What impact does the Kilimanjaro re-launching have on customer’s response?
In analyzing whether the Kilimanjaro re-launching had an
impact to the customers response or not, the following
presented graphs, give the clear picture of the response
given by 200 customers who were interviewed concerning the
subject
Graph 2; The Gender analysis graph.
GENDER ANALYSIS
female39%
male61%
femalemale
41
The pie chart above shows that out of the 200 interviewed
persons,39%were females, while the remaining 61%represented
males.
Graph 3; Age analysis
From the above graph we can observe that 73% of the
Kilimanjaro premium drinkers are below the age of 35years,
and the average age of the drinkers is 32years.
42
Graph 4; Age-sex analysis.
From the age sex analysis, the following were observed.
69%of the female drinkers are below the age of 35years.
49%of the female drinkers are below the age of 30years.
86%of the female drinkers are below the age of 40years.
56% of the male drinkers are below 30years of age.
77% of the male drinkers are below 35years of age.
94% of the male drinkers are below 40years of age.
AGE - SEX ANALYSIS
20
29
2017
4
10
22
34
2117
4 3
0510152025303540
18-25 26-30 31-35 36-40 41-45 46+AGE
% OF DRI
NKER
S
Female Male
43
Graph 5; Occupational analysis.
OCCUPATION ANALYSIS
62
1519
25
18
9
2 4
0
510
15
2025
30
1 2 3 4 5 6 7 8 9OCCUPATION
% OF DR
INKE
RS
The occupation numbers on the x-axis on the graph above
stands for the following.
1 Housewives2 Students3 Unskilledlabour4 Skilledlabour5Supervisors6 Middle andJunior management7 Seniormanagement8 CEO&Directors9 Retired
44
From the above graph we can observe that, 67%of the drinkers
belong to Socio Economic Class (C1, C2, D, and E) and 29% of
the drinkers belong to SEC, ( A, and B).
Graph 6; Educational analysis.
EDUCATION ANALYSIS
68
1613
18
9
15
47
2
0
5
10
15
20
1 2 3 4 5 6 7 8 9 10EDUCATION LEVEL
% OF DR
INKE
RS
The education numbers on the x-axis on the graph above
stands for the following, as shown bellow
Figure 2: Educational level. No school 1Not completed Primary School 2Completed Primary School 3Not completed Secondary School 4Completed Secondary School 5Not completed Post Secondary 6
45
Completed Post Secondary 7Not completed University 8Completed University 9Refused to answer 10
From the data collected, 65% of consumers who had been found
drinking the new Kilimanjaro premium lager, had been
drinking the same beer before re-launching, 10%were drinking
Premium Serengeti lager, 8% were drinking tusker lager,
5%were drinking Castle lager before, 2%were drinking safari
lager before, 7%were drinking Ndovu and 3%were drinking
other types of beer before the re-launching.
In analyzing the shifting pattern of the consumers who were
drinking Premium Serengeti lager before, I found that, out
of consumers who were drinking Serengeti lager before 40%
were males and 60%were females. Their ages were distributed
as shown in the following graph.
46
Graph 7; Profile for PSL consumers who shifted.
PRO FILE FO R PSL CO NSUM ERS W HO SHIFTED
13
38
2621
2 00510152025303540
18-25 26-30 31-35 36-40 41-45 46+AGES
%OF
DRINK
ERS
PSL consumers between the ages of 26-30, are the highest
shifting group to new Kilimanjaro premium lager.
31-35 are the second shifting group to Kilimanjaro premium
lager.
Higher age groups of the consumers are the least group to
shift to Kilimanjaro Premium Lager.
47
As shown in the following two graphs, the numbers on the x-
axis represents what consumers like and dislike while
consuming Kilimanjaro premium lager.
Figure 3: What people liked and dislike in the new Kilimanjaro Premium Lager. The smooth taste 1The taste on the palate/tongue 2The bottle 3The packaging 4The availability 5The alcohol content 6The way it makes me feel 7The smell 8Refreshment 9No hangover 10Price 11Sugar level 12Other(Gas content of the beer and impurities) 13
Graph 8; What people liked in the new Kilimanjaro Premium Lager.
W HAT PEOPLE LIKE IN THE NEW KILIM ANJARO BEER
16
9
14
2 1
5
11
0
9
13
02 1
0
5
10
15
20
1 3 5 7 9 11 13LIKES
% OF DR
INKE
RS
48
Graph 9; What people disliked in the new Kilimanjaro PremiumLager.
W HAT PEOPLE DISLIKE IN THE NEW KILIM ANJARO
0 1 0 0 08 1 0 1 0 6 1
82
0
20
40
60
80
100
1 2 3 4 5 6 7 8 9 10 11 12 13 14DISLIKES
% OF DR
INKE
RS
In analyzing whether people preferred the new or old pack,
83%prefered the new pack, while 17%prefered the old pack.
the above information is shown in the following pie chart.
49
Graph 10; Likability of the new pack
LIKABILITY OF THE NEW PACK
like83%
dislike17%
4.5 Was Kilimanjaro re-launching a threat to performance in Serengeti breweries?
In assessing whether Kilimanjaro re-launch was a threat or
not to SBL, the researcher made a sales trucking in more
than 23 bars and restaurants to know the estimated sales of
various brands in these bars and restaurants. The bars were
from various parts of Dar es Salaam city. The collection of
the data from these bars lasted for three months namely
October, November and December. As the re-launch had taken
place on September 2007, the researcher found that it was
convenient to assess the performance of this brand for these
three months after re-launch. The following were the results
from the sales trucking;
50
Figure 4: Sales of both Kilimanjaro premium lager and SBL brands. OCT 2007 NOV 2007 DEC 2007Kilimanjaro 67337 67946 78069PremiumSerengeti lager50cl 78986 90032 99096PremiumSerengeti lager33cl 3513 3750 4513Stella Artour50cl 2794 2980 3247Stella Artourcl33 2133 2287 2427The Kick 284 327 446
51
Graph 11; Sales of the brands of SBL and re-launched Kilimanjaro.
THE G RAPH SHOW ING SALES O F THE BRANDS O F SERENG ETI
BREW ERIES AND RELAUNCHED KILIM ANJARO .
020000400006000080000100000120000
OCT NOV DECM ONTHS
SALES
KilPsl 50clPsl 33clSA 50clSA cl33Kick
After the Kilimanjaro re-launching, there was the increase
in the sales Kilimanjaro Premium lager, while at the same
time the sales of the brands produced by SBL increased at
higher rate some even exceeding the rate of growth of sales
of Kilimanjaro Premium lager. The vivid example is depicted
by growth of Premium Serengeti lager.
52
CHAPTER FIVE
5.0 CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION
The aim of this report was to assess the impact of re-
launching of Kilimanjaro Premium lager as the promotional
tool to the performance of SBL.
From the analysis of data in chapter four above, the
researcher found that the history of Kilimanjaro beer
started in either 1961 or 1963,under which ever since it was
firstly launched there have been some few re-launches under
which there was a change of both bottle, content, label and
the taste itself.
There were many reasons as to why the Kilimanjaro was re-
launched. Some of them include the loosing of the market
share of Kilimanjaro in the beer market, and the increased
competition both internally and externally which made the
brand look old and tired.
After certain months of consumer researches, design and
development, the brand was re-launched with a new package
and label.(Dogo ipange fresh sentence) There were many tools
which were used in ensuring the success of the program of
53
re-launching. They include product upgrading in terms of
bottle and label, and promotional tools like advertising,
personal selling, sales promotion and publicity. The tools
were successful; it was shown by increased sales of
Kilimanjaro lager.
There was a general increase in the sales of Kilimanjaro
Premium Lager in Dar es Salaam city as it was shown from the
graph showing the sales of this brand.
The increased sales of this brand mainly were from people
who had been drinking this brand before and for some reasons
had stopped drinking it, and some from other brands produced
by SBL, TBL and the local brews.
Though the sales of the brands produced by SBL increased, in
analyzing the individual customer response to the re-
launched Kilimanjaro, the researcher found that some
consumers from SBL have been shifting to Kilimanjaro Premium
Lager consumption.
The effect of the increased sales of Kilimanjaro Premium
Lager should not be looked without a keen eye. Serengeti
Premium lager while been viewed from product life cycle
point of view, we will discover that it can be said to be in
the growth stage, and hence has more power in gaining the
new markets. Kilimanjaro Premium Lager on contrary is in
maturity stage and the rate of capturing the new markets
increases at the decreasing rate.
5.2 RECOMMENDATION
54
Succcees due to promo tools.use prom,upgder commd
SBL should increase the promotion activities to ensure
the speed of the sales of new Kilimanjaro Premium Lager
is retarded.
Promotion should go hand in hand with increased supply
and distribution of the Premium Serengeti Lager. On 25th
of December 2007 customers in some parts of Dar es
Salaam, experienced the shortage of the products (which)?
As the product is in the growth stage, constant supply of
products to consumers should be maintained.
SBL should add value to its employees who meet face to
face with the consumers; value may be in terms of how
they present themselves to customers(in terms of
uniforms, and cleanness, how they talk and serve
customers ,should have training and short causes).
SBL should consider improving the quality of their
existing products and introduce the new products to the
market. To start with, the management may consider
introducing the PSL, in the canes package which will
increase more consumers. The consumers are expected to be
obtained from the playing grounds, night clubs and discos
and the travelers.
SBL may utilize some of their idle resources which have
not been utilized. To start with, the management should
consider utilizing Serengeti fence, which is located in
55
the four ways which can be used for advertisements hence
placing the product in the consumers’ minds.
Within the plant’s premises, the management should
consider placing the billboard which will also attract
more customers. In both receptions the management may
consider placing some screens which will be displaying
the product and any activity which will be considered
valuable to the consumers.
People under marketing department should be considered by
been given more time to have access to internet to read
more on the marketing issues, and there should be a
person who will be constantly observing competitors
activities on television and other areas.
There should be constant feeding of information in the
organization’s website to enable more people who have
access to internet, learn more about the organization and
its functions. Information should involve organization’s
mission, vision and company’s values, a word from various
departments, financial statements and any particular
information which may be found valuable in that
particular period of time.
SBL should also improve employees’ welfare by providing
them with improved remunerations, short and long term
courses, bursaries, e-learning, on job training and
coaching. The training should be from both within and
outside the country. SBL should continually remain
56
focused on finding the right employees, developing them
and treating them with respect and equal opportunity.
Employees should also be provided with medical treatment
facilities and dispensaries at the production centers,
free consultancy, assistance in the meals and drinks and
in order to support family culture the management should
consider building a pub allowing employees to socialize
at ease and get together with a view of exchanging ideas
and get together to get to know each other.
All the above recommendations aim at ensuring the production
of quality products, and increasing the competitive
advantage to SBL which will ensure greater performance and
hence minimizing the ability and competitiveness of the
competitors.
57
BIBLIOGRAPHYKotler, Phillip, Marketing Management Analysis, planning,
implementation and Control, prentice hall of India, New
Delhi 1997
Barry B and Evans J. R: Retail Management A Strategic
Approach, 5th ed. Macmillan Co, New York, 1992
William J Stanton, Michael J. et zel and Bruce J. Walker.
Fundamentals of Marketing 10th E d
Baker.M (1986) Marketing 4th Ed, Mac Millan Education Ltd
Hamphire, Great Britain.
Peterson Robin (1970) Marketing: A Contemporary
Introduction, Wiley
Lancaster, G. et al (2000) Marketing Fundamentals: Chartered
Institute of Marketing Examination Series, Butterworth-
Heinemann, Oxford UK
58
Jobber David (2004): Principles and Practice of Marketing
4th Ed, McGraw Hill London.
Stanson J.William et al. Fundamentals of Marketing 10th Ed,
McGraw-Hill Inc New York 1994
E. Jerome Mc Carthy and William D Perreault (2001) Basic
Marketing: A Managerial Approach 9th E d Home wood Irwin.
OTHER SOURCES
Know this.com, a knowledge source of marketing since 1998.
Sales promotion –Wikipedia
(www.mktwire.com
(www.brandchannel.com).
www.allabout branding .com)
. http://www.kilitimetz.com/)
www.netmba.com(2007)
Appendix 1
ASSESSMENT OF THE IMPACT OF RELAUNCHING OF KILIMANJARO BEER
AS A PROMOTIONAL TOOL TO THE PERFORMANCE OF SERENGETI
BREWERIES LTD.
QUESTIONNAIRE FOR STAFF
59
Dear interviewee,
I kindly request you to complete the following questions.
The information required is intended to serve for academic
purpose and would be treated as confidential.
You are required to tick the appropriate answer for the
closed ended questions and for open ended questions you are
required to according to instructions provided in each of
the question.
1. Designation………………………………. Gender……………………
2. Department………………………………
3. For how long have you been employee of Serengeti
Breweries ltd?
1 year ( )
2 years ( )
3 and above ( )
4. In your own opinions what do you think are the reasons
for Kilimanjaro re-launching?
……………………………………………………………………………………………
…………………………………………………………………………………………...
60
……………………………………………………………………………………………
5. On which way do you think customers will react to
Kilimanjaro re-launching?
………………………………………………………………………………………….
………………………………………………………………………………………….
6. Using your own experience what do you think were the
tools used in Kilimanjaro re-launching?
…………………………………………………………………………………………..
…………………………………………………………………………………………...
7. Do you view Kilimanjaro re-launching as a threat to your
organization’s performance?
YES ( )
NO ( )
Explain why…………………………………………………………………………….
………………………………………………………………………………………….
…………………………………………………………………………………………
I GREATLY THANK YOU FOR TAKING YOUR TIME ANSWERING THESE
QUESTIONS.
61
Appendix 2
ASSESSMENT OF THE IMPACT OF RELAUNCHING OF KILIMANJARO BEER
AS A PROMOTIONAL TOOL TO THE PERFORMANCE OF SERENGETI
BREWERIES LTD
QUESTIONS FOR GUIDED INTERVIEW TO CUSTOMERS
Date _____________________Bar___________________________Location_________________________________
Male Female
b) Could you please tell me your exact age?
____________________________
1) What Brand were you drinking before Kilimanjaro?
Castle KilimanjaroSerengeti BavariaHeineken Stella Artois
62
Pilsner WindhoekPilsner Ice NdovuMiller TuskerSafari CarlsbergKick Grolsch
2) Can you tell me what it is that you like aboutKilimanjaro?
The smooth taste 1The taste on the palate/tongue 2The bottle 3The packaging 4The availability 5The alcohol content 6The way it makes me feel 7The smell 8Refreshment 9No hangover 10Price 11Sugar level 12Other 13
3) Can you tell me what is it that you don’t like aboutKilimanjaro?The smooth taste 1The taste on the palate/tongue 2The bottle 3The packaging 4The availability 5The alcohol content 6The way it makes me feel 7The smell 8Refreshment 9No hangover 10Price 11Sugar level 12
63
Other 13
4) Can you tell me whether you like the old or new pack ofKilimanjaro?
Old pack 1New pack 2
SOCIO-ECONOMIC STATUS
5) Could you please tell me what is your education level?
No school 1Not completed Primary School 2Completed Primary School 3Not completed Secondary School 4Completed Secondary School 5Not completed Post Secondary 6Completed Post Secondary 7Not completed University 8Completed University 9Refused to answer 10
10) And finally, what do you do for a living?
Full time House wife 1
Student 2
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Unskilled or casuallabourer/Unemployed/Maid/Messenger/Gardener/Watchman/Street Vendor/Subsistence Farmer 3
Skilled labourer and artisans (working forothers)/Cook/Shop assistant/Driver/Gamescout/Waiter/Steward/Owner of a small plotselling some products
4
Supervisory and Clerical Staff/Employees inOffices/Lower Grade Bank employees/Lower gradeCivil Servants. Skilled labourers and Artisanssuch as;Carpenters/Electricians/Plumbers/Mechanics/Partqualified technicians. Tailors (selfemployed)/Owners of small farms/Owners of smallfarms/Owners of very small companies such askiosk, small grocery stores/Chef/Chef assistant.
5
Middle and Junior Management/Managers of mediumsized companies/Junior Army Officers/MiddleGrade Civil Servants/Owners of small shops orbusinesses/professional of lower grade andQualified Technicians/Nurses/Primary orSecondary Teachers.
6
Senior Management/Professionalsself-employed/Professional employees/ SeniorCivil Servants/Owners of medium sizedcompanies/Higher Education Teachers/NursingOfficers
7
Directors/Chief Executive Officers/Owners oflarge farm/Owners of large companies/HighGovernment Officials 8
Retired (Specify Previous Occupation) 9
65
MZUMBE UNIVERSITY
(MU)
FACULTY OF COMMERCE
DEPARTMENT OF BUSINESS ADMINISTRATION
RESEARCH REPORT ON: ASSESSMENT OF IMPACT OF RE-LAUNCHING OF
KILIMANJARO BEER AS A PROMOTIONAL TOOL TO THE SALES OF
SERENGETI BREWERIES LTD.
CASE STUDY: SERENGETI BREWERIES LIMITED-(SBL- TANZANIA
LIMITED)
RESEARCHER: TUMAINI JOSEPH C.
BBA III MARKETING
66