SALES FORCE MOTIVATION: A MEANS FOR ACHIEVING SUSTAINED GROWTH AND INCREASE MARKET SHARE (A CASE STUDY OF NIGERIAN BOTTLING COMPANY OWERRI)
ABSTRACT
The degree of success in the generation of sales revenue in any organization equates directly with the quality and performance of its sales force. More than ever, today’s sales people have dynamic power in the business world. They are responsible for generating more revenue in our economy than workers in any profession. In the light of aforesaid, this study seeks to take critical analysis on the effect of motivation of the sales personnel for increased performance and productivity (market growth and market share) in the Nigerian Bottling company, Owerri, Imo state, with a view to determining the relationship between salesforce motivation and the attainment of organizational goals, the motivational and compensation tools and offering recommendations, for change. In order to achieve the intended objectives, the work is structured in five chapters. Chapter one is the introduction which highlighted the purpose of the study, definition of the problem, formulation of hypothesis, significance of the study and limitation of study. Chapter two is the literature review, which focused on the sales force and selling process, theories of motivation, motivational tools and compensation tools. Chapter three explained the research methodology adopted. This covers the design of study, sources of data, determination of sample size, method of questionnaire distribution, method of investigation and sampling method used. Chapter four, it focuses on the presentation and analysis of data and test of hypothesis. Finally, chapter five presents the summary of findings, recommendation and conclusions.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
The marketing firms no matter what they do must reach out and exchange. This is why the marketers believe that nothing happens anywhere in the world till exchange has taken place.
The use of salesforce in the marketing of goods and services stated during the barter stage and till date, it is still used as the major way of reaching out to the customer of a company’s product. The Nigerian Bottling company is a company that is in the soft drinks industry. The soft drink industry represents a sector where larger scale of production and marketing is undertaken. This sector is also characterized by stiff competition owing to the number of firms and products that compete for customer loyalty and patronage. The industry is also known for its high dynamic nature owing to the changing tastes of the consumers, wide scope of the market, high customer patronage, technological changes and threats from other alcoholic beverages.
For firms in this industry to succeed, they must learn to adequately motivate their salesforce for increased performance and productivity.
The Nigerian Bottling company Plc is an off-shoot of Coca-cola international which started in 1886 in Atlanta Georgia in the United States of America. Coke founded by Dr. Perpeton is the world’s leading soft drink industry sold in more than 145 Countries of the world.
Coca-cola first came to Nigeria in 1953 when the Nigeria Bottling company set up its first plant in Lagos. The Nigerian Bottling company is a subsidiary of A-G Leventis company and has its headquarters at NBC House, Ebute metta Lagos.
The Nigerian Bottling company Owerri was established in 1982. The plant began with an exciting story of growth and development particularly during the past 20 years in Imo state. Nigerian Bottling Company Plc is today one of Nigerian’s number one bottler of soft drink selling more than six million bottles per day , a figure which is still growing with the continuing expansion of market share.
The Nigerian Bottling company which started with one flavour coke as a major product now has more than 12 brands and these include; sprite, krest, Bitter lemon, diet coke, fanta Orange, fanta club soda, fanta Ginger ale, fanta tonic water, fanta chap man, fanta lemon, fanta current, Eva water, five alive and limca products which they recently bought over.
The Nigerian Bottling company must therefore ride on the back of the salesforce to achieve increased performance and productivity thereby fulfilling the organizational goals and objectives. They also must know that motivation encourages hard work, which in turn results to increased productivity. It is only when the salesforce is adequately motivated that the company can stand well to fight competitors and to increase share of the market.
1.2 DEFINITION OF THE PROBLEM
Certain conditions or factors can make the sales force to perform below expectation or ineffectively in their job. It can be the poor state of infrastructure
Also increased competition in the industry which has led to evolution of marketing strategies used by the companies to out with their competitors and adequately meet the needs and wants of the target market.
Another outstanding problem is lack of supervisory body to supervise the salesforce in order to performance well. Changing or dynamic nature of the marketing environment is another problem that faces the salesforce. The different marketing orientations in marketing requires different marketing approach and proper understanding of this, as required by the salesforce, to perform effectively.
Frequent and high labour turnover rate with respect to company sales force has also been a big problem. Ohire (2002. pg,. 130) is of the view that if the turnover is high, it is a problem to such an organization because there will not be enough experience among the workers there. Obisi (1996:30) listed the consequences of high labour turnover as including revisiting the selection, recruitment and placement process, it kills the moral of the newly employed sales personnel, it leads to low productivity.
1.3 PURPOSE/OBJECTIVES OF THE STUDY
The general purpose of this research is to determine the significance or otherwise of the contribution of sales personnel towards attainment of organizational goals and objectives given adequate motivation. Specifically, the research will achieve the following.
To show the relevance of sales personnel in the Nigerian Bottling company.
To examine the relationship between sales force motivation and the attainment of organization goals.
To determine ways or means by which the company’s sales force can be adequately motivated.
To determine the level of market share that will be achieved by Nigerian Bottling company through motivation of the sales force.
To determine the motivational tool that will be applied to increase growth and performance.
To show the relevance of the training of the sales force and how it motivates them.
To determine to what extent, good management and supervision motivates the sales force towards increased productivity.
To determine the level salesforces motivation has guaranteed the achievement of organizational goal.
1.4 FORMULATION OF HYPOTHESES
This study seeks to prove or disprove the following hypotheses.
HYPOTHESIS I
Ho: Motivation of sales force does not lead to increased performance and productivity.
Ha: Motivations of sales force leads to increased performance and productivity.
HYPOTHESES II
Ho: Sales force supervision does not enhance increased performance and productivity.
HA: Sales force supervision enhances increased performance and productivity.
HYPOTHESES III
Ho: Training of sales force does not increase performance and productivity.
HA: Training of sales force increases performance and productivity.
1.5 SIGNIFICANCE OF THE STUDY
Most companies find it difficult motivating their sales force towards increasing performance and productivity, this in turn helps to reduce the attainment of the set goals and objectives. This study becomes necessary to understand how the Nigerian Bottling company can use motivation of the salesforce to achieve its short and long-term goals and objectives. It helps to understand the various motivational tools in relation to its application and outcomes.
The Nigerian Bottling company will gain from this study in the sense that the researcher will identify the appropriate steps towards creating the generally acceptable and result yielding motivational atmosphere for its salesforce. The firms within the industry have an opportunity to gain from the research as they may be confronted with a similar situation.
Generally, the business world stands to benefit from the research finally this study will help future researchers this topic as it will form a lee way to ride on.
1.6 LIMITATION OF THE STUDY
Lack of fund, limited time, negative attitude of the company’s personnel towards answering questions and falsified information given by the respondents formed the limitation of the study.
SALES FORCE MOTIVATION: A MEANS FOR ACHIEVING SUSTAINED GROWTH AND INCREASE MARKET SHARE (A CASE STUDY OF NIGERIAN BOTTLING COMPANY OWERRI)