factors affecting sales performance on soft drinks: …
TRANSCRIPT
FACTORS AFFECTING SALES PERFORMANCE ON SOFT
DRINKS:
A CASE STUDY OF COCA-COLA COMPANY IN
DAR ES SALAAM REGION
FACTORS AFFECTING SALES PERFORMANCE ON SOFT
DRINKS:
A CASE STUDY OF COCA-COLA COMPANY IN
DAR ES SALAAM REGION
By
Irene John Haule
A dissertation submitted in Partial Fulfilment of the Requirement for the
Degree of Masters of Science in Marketing (MSc-MKT) of Mzumbe University
2020
i
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance
by the Mzumbe University, a dissertation entitled “Factors Influencing the Sales
Performance Of Soft Drinks Company In Tanzania: A Case of Coca Cola Company
in Dar Es Salaam Region” in partial fulfilment of the requirements for the award of
the degree of Masters of Science in Marketing Management (MSC-MM) of the
Mzumbe University.
____________________________________
Major Supervisor
_______________________________
Internal Examiner
_______________________________
External Examiner
Accepted for the board of MUDCC
________________________________________________________
PRINCIPAL/ DAR ES SALAAM CAMPUS COLLEGE BOARD
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DECLARATION AND COPY RIGHT
I, Irene J. Haule declare that this dissertation is my own original work and that it has
not been presented and will not be presented to any other university for a similar or
any other degree award.
Signature ………………………………………………….
Date ………………………………………………………
©2020
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, on behalf of the
intellectual property. It may not be reproduced by any means in full or in part, except
for short extracts in fair dealings, for research or private study, critical scholarly review
or discourse with an acknowledgement, without the written permission of the Mzumbe
University, on behalf of the author.
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ACKNOWLEDGEMENTS
Successful accomplishment of this study has been first and foremost through the
strength and faith granted to me by my Almighty God, I am grateful. It is also the result
of ideas, views and support from many individuals who have contributed to the success
of this study. However, it is not possible to mention all of them by names but I wish to
extend my appreciation to the following.
I would like to recognize and thank the untiring efforts and guidance of my research
supervisor, Dr Mwakujonga Joshua at Mzumbe University - Dar Es Salam Campus
under whose supervision this paper has materialized. I am greatly indebted for his
constructive criticisms, scholar support, encouragement and intellectual guidance in
the preparation and shaping many parts of the study and finally this report.
I also extend my gratitude to the sales members and employees on the Coca Cola
Company depots for their cooperation in responding to the interviews, group
discussions and questionnaires provided to them.
And finally, from my heart, I express my appreciations to my parents Mr. and Mrs.
John Haule,for providing me with moral, emotional and financialsupport along with
untiring encouragement throughout my study. I would not have achieved this
accomplishment if it was not for them. Thank you.
Thanks to my sisters Jacqueline, Evelyne and my brother Alex for their encouragement
throughout my study. This is also to all my colleagues who have played a part into
making sure we both accomplish our study as we aimed for.
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DEDICATION
This dissertation is dedicated to my amazing family especially my father John Haule,
for his undying support and love always.
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LIST OF ABBREVIATIONS
COAD Competitive Advantage
CPD Consumer Purchase Decision
FOSV Fluctuation of Sales Volume
MCO Marketing Communication
SDC Soft Drinks Company
SP Sales Performance
PSA Planning of Sales activity
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ABSTRACT
The study was conducted at Coca Cola Soft drink Company in Dar Es Salaam City,
Tanzania. The research aimed at assessing the factors that influence the sales
performance of the company as the main objective. This study was steered by three
objectives; to assess how the attractiveness of sales incentives influence the sale
performance of the company; to examine how seasons and events affects the sales
performance; and to investigate how competition stimulates the sales performance of
the company from the sales person point of view. The study employed a descriptive
study design. A total sample of 70 respondents was recruited through simple random
sample technique. The used methods of data collection are interview, questionnaire,
and group discussion and observation method. The findings of the study revealed that,
there was a positive impact from sales incentives to the performance of sales by
87.5%despite the need of the sales incentive plan to be adjusted by considering benefits
of both the employees and the company.By 60.71%, the presence of certain seasons
and events strongly influenced the sales performance through the sales activities
causing the fluctuation on the sales volume. Furthermore, up to 70% of the respondents
revealed the rate of competition to be high and with a negative impact onto the sales
performance of the company.Hence, the study recommends that the company should
be more attentive to the trends and pattern on the sales activities and sales volume and
an enhanced communication between the sales and marketing department along with
the management so as to create better and flexible techniques to improve the sales
performance of the company.
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TABLE OF CONTENTS
CERTIFICATION ...................................................................................................... i
DECLARATION AND COPY RIGHT .................................................................... ii
ACKNOWLEDGEMENTS ...................................................................................... iii
DEDICATION ........................................................................................................... iv
LIST OF ABBREVIATIONS .................................................................................... v
ABSTRACT ............................................................................................................... vi
LIST OF TABLES ...................................................................................................... x
LIST OF FIGURES .................................................................................................. xi
CHAPTER ONE ........................................................................................................ 1
INTRODUCTION OR PROBLEM SETTING ....................................................... 1
1.1 Introduction ............................................................................................................ 1
1.2 Background of the study ........................................................................................ 1
1.3 Statement of the problem ....................................................................................... 4
1.4 General objective ................................................................................................... 5
1.4.1 Specific Objectives ............................................................................................. 5
1.5 Research questions ................................................................................................. 5
1.6 Significance and justifications of the study ........................................................... 5
1.7 Limitations of the study ......................................................................................... 6
1.8 Scope of the study .................................................................................................. 6
CHAPTER TWO ....................................................................................................... 8
LITERATURE REVIEW .......................................................................................... 8
2.1 Introduction ............................................................................................................ 8
2.2 Definition of Key Concepts ................................................................................... 8
2.2.1 Sales Performance ............................................................................................... 8
2.2.2Sale incentives ...................................................................................................... 9
2.2.3 Competition ......................................................................................................... 9
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2.2.4 Seasons and Events ........................................................................................... 11
2.3 Theoretical Framework ........................................................................................ 11
2.3.1 A Theory of clearance sale ................................................................................ 11
2.3.2A Two Factor theory ........................................................................................... 12
2.3.3 Theory of Competitive Advantage .................................................................... 13
2.4 Empirical Review ................................................................................................. 15
2.4 Research Gap ....................................................................................................... 21
2.5 Conceptual Framework and Research Model ...................................................... 22
CHAPTER THREE ................................................................................................. 24
RESEARCH METHODOLOGY ........................................................................... 24
3.1 Introduction .......................................................................................................... 24
3.2 Research design .................................................................................................... 24
3.3 Study Area and Targeted Population .................................................................... 25
3.3.1 Study area .......................................................................................................... 25
3.3.2Targeted population ............................................................................................ 25
3.4 Sample size and Sampling technique ................................................................... 25
3.4.1 Sampling Technique .......................................................................................... 25
3.4.2 Sample Size ....................................................................................................... 26
3.5 Data collection methods ....................................................................................... 27
3.5.1 Interview method .............................................................................................. 27
3.5.2 Questionnaire method ....................................................................................... 28
3.5.3 Focus group discussion method ........................................................................ 28
3.6 Data analysis and presentation ............................................................................. 28
3.7 Validity, reliability and ethical consideration. ...................................................... 29
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CHAPTER FOUR .................................................................................................... 31
PRESENTATION OF FINDINGS .......................................................................... 31
4.1Introduction ........................................................................................................... 31
4.2 Descriptive Analysis ............................................................................................ 31
4.4 The influence of sales incentives to sales performance ....................................... 31
4.5 Role of seasons and events on the fluctuation of sales performance ................... 34
4.6 The effect of competition on sales performance .................................................. 38
CHAPTER FIVE ...................................................................................................... 41
DISCUSSION OF THE FINDINGS ....................................................................... 41
5.1Introduction ........................................................................................................... 41
5.2Assessing how sales incentives influence the sales performance ......................... 41
5.3 Examining how the seasons and events affects the sales performance ................ 43
5.4 Investigating how competition stimulates the sales performance ........................ 45
CHAPTER SIX ........................................................................................................ 48
SUMMARY OF THE STUDY, CONCLUSION AND RECOMMENDATION . 48
6.1 Introduction .......................................................................................................... 48
6.2 Summary of the study .......................................................................................... 48
6.3 Conclusion ........................................................................................................... 49
6.4 Recommendations ................................................................................................ 50
6.5 Area for further studies ........................................................................................ 51
REFERENCE ........................................................................................................... 53
APPENDIX…............................................................................................................61
x
LIST OF TABLES
Table 4. 1: Socio-Demographic Characteristics of the Respondents ......................... 27
xi
LIST OF FIGURES
Figure 4. 1: The influence of factors identified in sales incentives to the sales
performance. ....................................................................................................... 31
Figure 4. 2: The influence of the sales incentives to sales performance .................... 34
Figure 4. 3: Role of seasons and events on the fluctuation of sales Performance ..... 35
Figure 4. 4: Influence of the seasons and events to sales performance...................... 37
Figure 4. 5: The effect of competition to the sales performance as derived and
analysed from the collected information. ............................................................ 38
Figure 4. 6: The effect of competition to sales performance ..................................... 39
1
CHAPTER ONE PROBLEM SETTING
1.1 Introduction
This first chapter entail an introductory part of this study. The chapter presents the
background of the study which entails the rise up of sales performance and the
influencing factors that have been covered. The chapter presents the origin of the
problem identified by the study, the statement of the problem. This part explains and/or
identifies the problem as interpreted by the researcher, objective of the research
(general and specific objectives). These explain the focus and coverage of the study,
research questions, significance and justifications of the study and the scope of the
study. The study used a case of the Coca Cola Soft Drinks Company in Dar Es Salaam.
1.2 Background of the study
The today’s environment is dynamic and quick to change, forcing many businesses to
act and react according to its pace. Businesses are forced to attain a flexibility character
so as to easily adapt with the changing environment (Anderson, 2008). For a business
to be successful, it is important that the company’s main mission is known. For
example, a company’s main objective or mission could be to survive, to generate profit,
to build brand image, to increase sales performance or to assist the community/ society
needs. Business goals, mission or objectives, measurable targets that a company sets
for itself to achieve, and with the business objective a standard and point of affirmation
is made to determine whether its general performance was successful or not (Zikmund,
2003).
Many companies use product sales category as the first sign to determine whether there
is any progress made in the company. However, for the business to exist, there is a
need of applying good mechanisms for the effectiveness and efficiency in the various
2
market. Those mechanisms should be based on the nature of market and competitive
ways so as to manage the needs of the customers or final user in the market (Alghamdi
et al, 2008).Churchill (2003) narrated that,as the 21st Century’s competitive
environment mixed with the dynamicity of the environment, any business requires to
be more responsive and flexible, especially to the sales department or management.
According to Still et al.(2002), sales management is the function of sales force or sales
team. It is solely the sales force responsibility to bring about impressive results. Sales
performance acts as one of the major ways that are used by many companies to
measure their progress. With the targeted sales against the attained sales results from
the sales personnel, its evaluation brings out the sales performance which determines
the effectiveness and efficiency of the company with respect to the company’s goals
(Still et al., 2002).
The success of a sales performance is highly dependent on the initial sales estimate
production and consumption. It is most difficult especially to organizations that are
revenue based. These organizations depend on the sales of the product or service in
order to achieve profit that settles their survival into the industry and to the market
(Banerjee et al, 2012). The sales are uncertain hence uneasy to determine the precise
estimate production, the consumption rate or level and/or the potential consumer’s
demands. Hence it is a forecast and estimation role that the sales management needs
to pay attention to in order to achieve the sales performance and profit as predicted
(Davies, 1998).
Customers are a very sensitive part of the market and of the industry, with the
appropriate force of influence they can be monitored into achieving the greatest sales
performance and profit growth rates. The mind of a customer requires a frequent
reminder of the brand and the benefits of the product (Ismail et al 2012). It also requires
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a creative and flexible brand or product that relates to his/her changing needs. An
organization should offer better and creative communication strategies that stand a
potential position into the customers’ minds, to ensure a reliable source of profit
through the sales activities and performances lead by the sales management and the
customers (Kotler & Armstrong, 2010).
The Soft drinks industry (Carbonated drinks) in Tanzania is going through an intense
competition period which indicates or symbolizes a significant growth period. Many
companies have applied a complimentary relationship where the producers engage into
the implication of different creative and innovative strategies into the market. The soft
drink producing companies have dedicated their efforts into understanding the
customer’s needs relative to time of the need and the environment that the consumer
belongs to. Understanding the consumer’s behaviour is essential to the producers so as
to offer products accordingly (Berger et al 2010). The companies have to increase their
creativity and innovation of their marketing and managerial strategies with the aim of
acquiring the competitive advantage, which acts as a reward for winning the audience,
which is the targeted market (Berry, 2010).
When the sales performance management of a particular company is effective and
efficient it creates a drive for the company as a whole. Therefore the sales management
is the core function of any company. Poor performance of the sales management
hinders the general performance of the company and vice versa (Still et al., 2002).
This study is done to enlighten on the factors that influence and/or affects the sales
performance in the developing countries, using the case of Coca-Cola Company in Dar
Es Salaam City and particularly on these objectified factors the study is designed to
focus on.
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1.3 Statement of the problem
Sales performance is simply a measure of how efficient and effective the company’s
sales personnel are able to perform their set job or responsibilities. Several studies have
investigated the factors affecting and/or influencing the sales performance and mostly
have placed their focus on the four Ps (Product, Price, Place and Promotion); on the
Marketing communication mix or elements (Advertisements, Personal Selling, Direct
marketing, Publicity and Public relation and Sponsorship) as (Hosseini et al, 2011),
(Ismail et al, 2012), (Banerjee et al, 2012) and; on the External factors known as
PESTEL (Political factors, Economic factors, Technological factors, Social factors and
legal factors) as (Babatunde et al, 2012) and (Talukder et al, 2017).
Havaldar&Cavale (2007) conducted a study which assessed the factors that support a
strategy relation to maintain the sales volume of the company. Hortlund&Oana(2013)
also did a study on the factors affecting the sales volume in a Breweries Company in
Sweden. These studies provided evidence that the marketing and communication
factors play a great role into achieving a successful company’s profit growth rate
through the sales performance. They revealed that, the customer’s or the consumers’
expectation does not equal the sales team or sales management performing efforts.
The Coca-Cola Company is one among the major providers of carbonated soft drinks
in Tanzania. The company has adopted several strategies to communicate and remind
its customers of the services and products that they offer so as to increase and maintain
its sales performance and to make sure that their position as a company in the industry
and to the market is not lost.
A sales person need to be motivated, skilled, smart, have communication skills and
many other factors to enhance a positive relationship with customers through his
exhibited behaviour during an encounter. A sales person’s character plays a great role
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into drawing and exiting potential and existing customers. Tesfaye (2019) and
Seukindo (2019) proved the presence of several factors affecting sales performance,
but the presented studies does not offer specifics or guidelines on how these factors
integrate the findings in a Tanzanian perspective on the soft drinks company. This is
due to several factors as competitive environment, difference in weather, economic
status and incentive plans. Studies by Kefyalew(2018) have not linked the concept of
sales performance with the macro environment, hence raised a need to do such a study
to connect the concepts.
Therefore, this study focused on the Tanzania context, which is a developing country
for it does not match the developed countries where the previous studies are conducted.
1.4 General objective
The study is designed to assess the factors affecting sales performance in Tanzanian
companies.
1.4.1 Specific Objectives
i. To examine the influence of sale incentives to sales performance.
ii. To determine the relationship of events and seasons to sales performance
iii. To investigate the effect of competition to sales performance.
1.5 Research questions
i. How do the sale incentives influence the sales performance?
ii. How do seasons and events affect the company’s sales performance?
iii. How does competition affect the sales performance of a company?
1.6 Significance and justifications of the study
The results of this study could be of importance firstly, academically to other
researchers, to academic students especially the business and marketing based students
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as well as practitioners to apply as a point of referral and a source of knowledge to link
their missing information. The study is significant to other relative members of any
company to uncover strategies that could be of importance to the company. That is to
capture the audience attention and to increase the sales and general performance of the
company. Furthermore, the study is a guiding document to the marketing field as most
of the marketers would be interested to read and apply the methodology of the sales
marketing narrated by different authors for the improvement of their business
environment particularly on the sales performance.
1.7 Limitations of the study
During the research study, the researcher was constrained with difficulties to gather of
data. Such challenges include, time inadequacy that lead to the delay of data collection
in the field, that is why the researcher decided to select Dar Es Salaam region as a case
study. The researcher experienced financial constraints, whereas the data collection
process meant some cost implications, for instance travelling costs and some
respondents demanded to be given money as a sense of assurance of the information
that they provided. The reliability of the data from the respondents was among the
challenges to the researcher, as most of the data required was confidential. Some of
the respondents were not willing to provide the necessary information.
1.8Scope of the study
The study focused at the Coca Cola Soft Drink Company in Dar Es Salaam region to
assess the factors that affect the sales performance of the respective company,
considering factors as competition, sales incentives and the effect of seasons and
events. Despite the other known and researched factors as the product, price, place,
promotion known as the internal factors and the external factors known as the political,
economic, social, technological and legal factor. This study was only focused on the
mentioned factors. Coca Cola Company has higher demand of products and business
7
competition in the soft drinks industry and also the seasonality and events as narrated
in the background of the study influenced the researcher to focus on it
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter narrates a review of literature surrounding the issues in sales performance
as attributed or affected by various factors. The chapter also presents definition of
terms and elaboration of theories relative to the presented variables.
2.2 Definition of Key Concepts
2.2.1 Sales Performance
Sales performance refers to the measurement that a management uses to see whether
the sales team is doing a great job. This is proof that the sales team members are selling
enough to generate profit. Sales performance can be measured by tracking the
following metrics at a specific time lapse. Therefore, it is important for the sales
manager to keep of the metrics that act as indicators for sales performance (Still et al.,
2002). Total revenue refers to the sum of revenue collected over a certain period of
time by a company. A sales manager should be able to track the total revenue collected.
The sales performance is termed as low or poor if the total revenue collected is low,
and termed as effective when the total revenue collected is high.
Revenue by product line or by single product: The revenue collected from a specific
product’s sales can be used to determine the sales performance of that specific product.
If there is an increase in revenue from the sales of a certain product line then the sales
performance of the respective product line is termed to be effective, and vice versa is
true, meaning poor sales of the product will result to poor revenue collection from that
same product and will indicate poor sales performance. Market penetration refers to
the ability of a marketer to enter into a market, whether it is a potential or an existing
market. It refers to ability of increasing a company’s market share by increasing brand/
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product awareness to the targeted market. By tracking the market penetration rate the
sales manager is able to measure the sales performance over a certain period of time.
Time invested on sales activities is the amount of time that the sales team will use into
practising or to encounter with sales activities will determine the sales performance of
the sales team. A longer time invested in practising direct sales than in-office selling
activities is more efficient in attaining greater sales. Therefore, tracking the sales team
time investment on the sales activities will assist the sales manager in measuring their
sales performance.
2.2.2Sale incentives
This is a form of offered reward; it could be financial or non-financial, to the sales
team as a gift or a gesture for accomplishing a certain task or activity in the respective
department. The task could be selling a good or a service, attaining potential customers,
creating awareness relative to the brand or product. According to (Abratt, 1989)
narrates that “sale incentives are identified as an essential requirement to motivate the
sales team into establishing better performance”. A sales incentive plan is a business
instrument used to influence or boost the rate of performance of the sales team and to
compensate for achieving the set targets over a specific set period of time.It can be
annually, semi-annually or quarterly or even on weekly and a daily basis. The sales
team performance highly relates with the desire and interest of the sales members
themselves to perform the tasks, equally the company or the management plays a role
into stimulating the performance rate, that is through the several ways including the
incentive plan, the working environment, an efficient and effective horizontal and
vertical communication, and space to build personal growth (Adsit, 2008)
2.2.3 Competition
Competition is an initiated action by an individual, a group or a company with whom
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you share the same market which is having a similar target of audience in the market,
and/or offers relatively similar products to the market and/or belongs to the same
industry, who are known as competitors. The presence of several companies in the
same industry divides the market into shares that determines the level and rate of sales
a company can commit to. In which the market share of a company is not permanently
fixed, it can be altered with the introduction of effective strategies to encourage
awareness and create a proper brand image.
Competition can be experienced on various elements, including the marketing
elements as product, price, promotion and place. Rival companies can compete on
those bases depending on each other’s point of strength and weakness. As a study
conducted by Hortlund & Oana (2013)investigating factors that influence the sales
volume performance in Sweden, had proven that price does playa great role into
influencing and affecting the sales volume performance. This was elaborated as due to
the presence of price sensitive market it is a guarantee that one of the famous strategies
used by companies is by altering the price of the products and services to a rate
favourable to the market hence consumption rate increases and sales volume increases
and vice versa.
Competition is characterized by the presence of many undifferentiated products, low
or no barriers to entry or exit, the presence of many producers, middle agents and
consumers, that is the buyers and sellers and accessible information about the product’s
and service’s price. An effective sales performance depends on the ability of a
company/ the sales management to draw the consumers’ attention and to persuade
them to make the final purchase decision,hence to increase the sales volume which
leads to a successful sales performance (Rothaemel et al, 2008).
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2.2.4 Seasons and Events
Seasons refers to the changes that repetitively occur at a known lapse of time, it could
be in days, weeks, months and even years. Events are organized activities or occasions
that take place at a certain planned time. Sales fluctuation in a company may occur due
to the presence of seasons. Therefore, altering the sales performance seasonally has
encouraged several companies to introduce better strategies to fill up the downs during
such seasons (Hall et al, 2018).
Most companies plan ahead before the seasons and the events could occur so as to
incur proper allocation of the resources and the goods produced for proper utilization
of time and products. Planning is important as it is a point of referencing for the future
forecasts. It is an ordinary trend for sales to increase from September to December for
it is a Christmas season, and sales to decline after that particular season. It is the sales
management responsibility to adjust and create better strategies to boost the sales
activities during the low tide season, which is from January after the Christmas season.
The up and down movement of the sales activities and sales performance is quiet
common on the economic time series. It is the company’s responsibility to create
flexible strategies that fits the seasons and the seasonality of the fluctuating sales (Still
et al, 2006).
2.3 Theoretical Framework
2.3.1 A Theory of clearance sale
The theory of clearance sale as elaborated by Lazear(1986) and further discussed and
Peitz(2007) is based on how sales tend to change or alter as a function of time. That is,
from when a product is offered to the market, sales are inevitably high but as time pass
by the sales decreases unless introduced upon a strategy to boost up the sales (known
as the clearance sales). For example, products as summer clothes and winter equipment
12
like skiing boards, for the first period of sales (at the beginning of the season) the
demand is uncertain, while on the second period where the sales decreases with time
(demand is known, at the end of the season) the company aims at clearing the stock so
as to prepare for the next seasonal product by lowering the price of the same product
to encourage or boost its sales.
The theory explains a company experiences fluctuation of sales volume from season
to season, the sales activities are uncertain due to the approximations made on the
consumer’s demand of the products offered. This theory acknowledges the objective
of this study in support to the presence of seasons and events affecting the sales
performance through the sales volume fluctuations.
2.3.2A Two Factor theory
This theory was brought into existence by Frederick Herzberg in 1959.It is also known
as the Herzberg’s Motivation-Hygiene theory. The theory explains the presence of two
factors that a company or an organization can alter to fix the employees morale to
perform their respective activities in the working area. These factors are motivators
and Hygiene factors, whereas the presence of motivators stimulates the employees to
adhere to their activities and encourages them to work harder. The presence of hygiene
factors does not necessarily create a better environment for the employees to work but
its absence does affect the workers’ morale to better perform their responsibilities.
Motivators include the work itself, a chance for self-growth (to learn new skills),
recognition, and advancement (promotion opportunity). The Hygiene factors include
the work condition, relationships (horizontal and vertical), salary (a reasonably fair
paying structure), and job security.
Figure 2.1: Presentation of implementation of the motivating and hygiene factors
to the employees of an organization
13
Source: Herzberg (1959)
2.3.3 Theory of Competitive Advantage
As derived by Michael Porters in 1985, the theory of competitive advantage provides
elaborations on companies to perform business that creates quality products and prices
of high value to the market. Companies are encouraged to generate qualities or features
that bring about performance that is higher than the one created by their rival
companies, that is their competitors. For the competitive advantage to be achieved by
a particular company in the industry, its performance should be able to outperform the
activity performance by the competitors.
Competitive advantage is explained as features that identify a firm or a company as
better than his challenger or rival company. These features could be the quality of the
goods and services offered, the quantity of the goods produced (production), the cost
of production, the price of the goods and services offered to the market. The aim of a
company to achieve the competitive advantage is to ensure the survival of the company
in the industry and in the market. According to (Porter, 1985) a company or a firm
INADEQUATE IMPLEMENTATION OF
HYGIENE FACTORS DECREASES THE
WORKERS/EMPLOYEES’ ABILITY TO
PERFORM BETTER
ADEQUATE IMPLEMENTATION
OF MOTIVATING FACTORS
INCREASES THE EMPLOYEES’
ABILITY TO PERFORM BETTER
14
needs to put into consideration the following interactive determinant factors in order
to acquire the competitive advantage, which are the factors of production, the factors
of demand/ the demand factors, the company’s strategy and structure, and lastly the
relative and nonrelative companies in the industry. This theory acknowledges the
objective of the study in support to the influence of competition to the sales
performance of a company.
Figure 2. 2: An illustration of the determinants for a competitive advantage
Source: Porters (1985).
FACTORS OF
PRODUCTION (LAND,
LABOUR, CAPITAL)
RELATIVE,
SUPPORTIVE AND
RIVARLY FIRM
FIRM STRATEGY AND
STRUCTURE
DEMAND CONDITION
(ABILITY TO
DETERMINE THE
MARKET’S NEEDS)
15
2.4 Empirical Review
This section provides a number of different literatures from different authors and
scholars who have conducted similar studies on the factors influencing sales
performance. The study revealed that, the factors influencing the sales performance in
developed countries are different from the factors influencing the sale performance in
developing countries due to geographical differences, economic status of the
consumers and the country, the difference in the consumer’s characteristics depicted
while making a purchase decision.
Kefyalew(2018) in his study of assessment of factors affecting sales performance
conducted under the case of MOHA Soft drink industry summit and T/Haimanot plants
in Ethiopia. The study established that the sales teams agrees to the presence of
incentive to stimulate sales performance; the sales team also agreed on the presence of
a high level of sales fluctuation from season to season caused by the inadequate level
of raw materials. The study did not recognize the current nor suggest a better incentive
plan for the organization and with the fluctuating sales from seasons to season,
shortage of raw material is not the only possible reason for it and did not show how
the seasonality of the sales can be overcame. With the difference in the environment,
there is a need to conduct the study in this context.
Djoni (2016) did a study on the factors affecting the sales performance of PT SKP in
Indonesia. Results of this study indicated that, incentives and product rewards
significantly affect the sales performance while training and significance satisfactory
did not significantly affect the sales performance in the PT SKP. Therefore, as a point
of recommendation, the author suggested an increase in the incentives to keep the
members motivated on the long term, and by offering short term bonuses or rewards.
That was meant to improve the skills of the members through trainings so as to increase
their confidence and ability to directly speak and negotiate business with a customer.
16
This study focused on the incentives and product rewards but do not show how the
incentive scheme can be applicable in a different macro environment like Tanzania and
other developing countries. The study established its results with an interview as the
only method of data collection, in addition other methods as group discussions and
questionnaire method will be employed.
Kaunyangi (2014) did a study on the Impacts of competition on performance of firms
in the mobile telecommunication sector in Kenya. On competition, the researcher
focused on the threats of new entrants, competitive rivalry and bargaining power of
buyers. From these variables the study concluded that there is a direct relationship
between competition and the firm’s performance in the mobile telecommunication
sector that the improvement in performance of the firm is not based on the cost of
production rather the competitors’ reactions towards the relative company’s actions.
The study is also based on the mobile telecommunications as among the reference
industry that has sales marketing competition in Tanzania particularly in Dar Es
Salaam.Hence, itdid not show how the results of this study can be compatible to other
relative and nonrelatives companies and industries. The researcher decided to conduct
this study by considering soft drink companies so as to observe if the results will be
compatible.
Lopez et al. (2006) examined a study on sales performance and stated that for the sale’s
member to effectively and efficiently perform their sales, compensation rate needs to
be increased. Discovering that sales member needs to be motivated to ensure a good
performance, any kind of offer in terms of payment could be ideal for a sales person.
Motivation alone is not enough to stimulate the sales performance of a sales member,
since with its presence some organizations still fail to perform. This respective study
did not consider the impact of moderator variables which in this study the moderator
variables are known, as the type of sales job and the nature of the product being sold.
17
Therefore this study did not consider a specific type of a product and measure the
results on hence unable to show a connection which results to specific a company and
offered product.
A study relative to the influence and effect of competition on the organization
performance was conducted by (Al-Rfou, 2015), with the analysis conducted it reveals
that the market has high intensity of competition which had a strong positive influence
on the organization performance. The study was done under the multiple regression
analysis, and it involved the survey of 33 industrial companies mentioned at the
Amman Stock Exchange of 2010, Jordanian firms. Due to the presence of potential
investment climate of the market in Jordan it has been a major stimulator to the intense
competition present amongst the companies. The study aimed at the industrial sector
of Jordan and involved a quantitative approach therefore the researcher recommended
that a qualitative study should also be involved in the future studies and a wider scope,
which is considering other sectors and/or different countries to measure the
compatibility of the presented results which the study did not focus on.
Astudy focused on the relationship between competition, the management of the
accounting system change and the performance of companies (Norouz et al., 2015).
This study involved both analytical and descriptive approach hence an applied research.
The results show that, there is a strong relation of change towards the competition and
the company’s management. The study focused on the evaluation of competition in
which the results reveal that competition has an important role on the company
performance, selection of technology, and strategic decision making. The study
involved a sample of 120 respondents from the production companies in Tehran Stock
Exchange and from the food service companies, dress, make up and health companies.
The study only involved competition despite the presence of other micro
environmental factors, hence the researcher suggested that further studies should be
18
conducted considering other factors than/and intensity of competition on the
performance of an organization.
Kahyarara(2010) conducted a study on the role played by competition in stimulating
productivity and performance (investment and export performance) on Tanzanian’s
manufacturing companies.The study aimed at analysing the hypothesis that a generally
fair competition essentially influences the quantity and quality of the produced goods,
productivity as a whole and investment. The study also revealed that the companies
undergo a war, where the surviving companies or competitors attain a competitive
advantage which is strongly associated to the company’s productivity.With the same
industry, the companies operate under the same micro environment, therefore in order
to receive a higher success level; a product differential competitive technique is
employed by the companies as a marketing communication strategy so as to
differentiate themselves from each other (Nayaranan, 2004). Both studies did not focus
on the rate of competition experienced rather the techniques that can be employed to
fight competition by achieving a competitive advantage through the quality and
quantity of the produced goods. The studies failed to show the extent of competition
present, this brings a gap to this study since it has aimed to show the rate of competition.
Astudy carried out concerning the effects of communication of marketing on sales
performance of Ghana (Okyere et al., 2011). The study argues that there is a relation
or a connection between the dependent variable (sales performance) and the
independent variable (marketing communication). A sample size of 40 respondents
was derived from the GT’s Vodafone, records on sales and promotions were also taken
into consideration so as to examine the impact of marketing communication on the
sales performance. The study results revealed that there was actually a negative
connection between the budget of sponsorship and the total sales made by the company
causing a low return of investment from the sponsorship budget. The study did not pay
19
full attention on the total costs of the communication elements and the returns on
investment on that particular expenditure. While conducting this study, the only
limitation that mostly came up was the lack of adequate relevant information to assist
the researcher with. And the study has recommended that further studies should be
done to investigate other strategies despite the marketing communication strategies
that can influence the sales performance, which brings a gap to this study.
Campbell (1990) conducted a study involving 10 elements that are potential for the
performance of sales; the elements include the sales volume, competitor
comprehension and customer information, company knowledge and product
understanding, time management, customer relations, ability to achieve quotas and
management of expense accounts. From the study, the elements were further
categorised into; the customer relation, gross profit per sale, profit growth and sales
volume per annum so as to establish a significant outcome. Mostly, customer use price
as a measure for quality on a product, hence it is believed to be uneasy to achieve the
customer’s perception by many companies. Therefore, the study concluded that
companies need to align their product quality with the product price so as to achieve
the perception required to establish customer knowledge on their needs and wants and
on what they are more comfortable and likely to purchase. The study did not reveal the
extent to each factor causing an effect to the sales performance as categorised, rather
than justshowing the type of connection experienced, whether a positive or a negative
relation.
Havaldar&Cavale (2007) conducted a study to assess the factors that support a strategy
relation to maintain the sales volume of the company. The focus of this study was to
reveal the effect of employee’s motivation on the company and the various types of
motivation that are employed by different organizations. The study results indicate that
employees efforts and activity rate is boosted by the presence of motivation, the
20
workers reaction towards the various rewards systems that the company offers. The
study also assists to attaining an understanding on what should and should not be
included into the company’s motivation scheme on a general note. The study did not
specify the usefulness of various forms of motivation schemes to companies with
respect to their needs. The study also recommends an in depth study on the role culture
plays in motivating the employees leading to an improved sales volume.
Hortlund&Oana (2013) also did a study investigating the factors affecting the sales
volume of alcoholic beverages in a Breweries Company in Sweden. This study
explains the role of tax rates into shaping and changing the price of products in a
company. With the presence of a price sensitive market, the study revealed that it is
easier for a company to adjust the product’s price according to the market’s
comfortability to make a purchase decision. The study used an observation method to
gather information where a total of 672 balanced panel observations were attained.
The study regrets not being able to achieve more detailed information due to the
increased precisions of the estimates. Therefore, the study did not produce a detailed
evidence to back up the revealed results, and has recommended that more studies with
accurate data should be conducted on the same topic.
Kassa (2013) also conducted a study on the assessment of factors influencing the sales
volume at the MOHA soft drinks Company. The study involved the use of a 100% of
the population as a sample due to its small number. The results of the study revealed
that the major factors influencing the sales volume are the inadequacy of the raw
materials and the sales fluctuations or seasonality of the sales caused by weather. The
study did not show how the revealed causes can be overcame, and failed to show the
presence of moderating variables or factors that also play a role into affecting the
company’s sales volume.
21
A study conducted to determine the impact of financial and non-financial offers by the
company to boost the worker’s motivation and performance (Laakso, 2012). The study
results revealed a positive impact of both the financial and non-financialrewards
towards the company by increasing the employee’s morale and performance. The study
used questionnaire as a means to collect the relative necessary data. The study failed
to show how each form of reward influences or impacts the employees’ performance
individually,hence unable to show the connection and the role of financial rewards into
boosting the employees’ morale.
2.4 Research Gap
There are a number of studies that have a similar focus on the factors affecting the sale
performance on various companies.The studies have brought up different reasons of
effect to sales performance as, the marketing elements (product, price, promotion and
place), the communication marketing elements (advertisements, direct marketing,
personal selling, public relation and publicity, and sponsorship), sales personnel’s
behaviour, competition internally and externally, other known as external factors
which are political factors, economical factors, social factors, technological factors and
legal factors. With the conducted studies, each has based on its own context, and has
not shown how those factors integrate to other contexts or how those factors can be
applied onto a different macro environment. Therefore, the researcher saw a need to
conduct the study on its own macro environment.This is different from the rest, so as
to get a clear understandingof the factors on its context. Considering most relative
studies conducted are based on the developed countries.
Most of the studies have gathered their data through the use of interview and
questionnaire, the researcher tends to involve the group discussion method as an
22
additional way to gather more information relevant to the study and set objectives.
Hence this study included interview questionnaire and focus group discussions as a
method for collecting the required information.
2.5Conceptual Framework and Research Model
According to Adom et al.(2018), a conceptual framework is a crucial instrument that
provides with a clear elaboration of a relationship between variables and concepts. It
provides a basis for problem construction and identification so as to be studied. It is a
simple and understandable figure that shows an interaction or a link between the
studied variables.
The conceptual framework depicts the independent and dependent variables of the
study. Among the independent variables, the first is sale incentives, the researcher
looked into the company’s sales incentive scheme/plan, how attractive it is to the sales
personnel and how does it affect sales performance. The second independent variable
is the competition, with this variable the researcher identified the presence of other
relative companies with similar products and how the company (the sales department)
reacts to when their rivals offers or modifies their products and selling
techniques/strategies. Seasons and events are the third independent variable.The
researcher identified and described the presence of annual impactful events and
seasons in the country and measure how the sales rate alters in the presence and
absence of such events and seasons. The dependent variable to this study is the sales
performance.
The independent variables act as predictors or influencers to the dependent variable,
for it can cause change and alter the direction of the dependent variable. The dependent
23
variable cannot experience change on its own unless triggered by the independent
variables (Flannelly et al., 2014)
Figure 2.3: Conceptual Framework on assessing the factors influencing Sales
Performance.
INDEPENDENT VARIABLE DEPENDENT VARIABLE
Source: Research Model (2020).
SALE INCENTIVES
COMPETITION
SEASONS AND EVENTS
SALES
PERFORMANCE
24
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter shows the methods and instruments which were employed to this study.
It shows the selected research methods and clear reasons and justifications to why they
were selected. The study used a descriptive approach to assess the influencing factors
to sales performance. This chapter also includes the research design, the area of study,
the population of the study, sample size and sampling technique, data collection
methods, data analysis and method of presentation.
3.2 Research design
This is an approach used by the researcher to integrate the variable objectives of the
study (Neuman, W. 2000). A research design is a framework that explains the
procedures and techniques to be used to help determine ways of collecting and
analysing data (Glass & Hopkins, 1984). The study employed a descriptive type of
research design which was used to analyse and present data through the use of
frequency tables, graphs and percentages.
The study used questionnaire and interview to gather the necessary data from the
respondents. In addition, the study applied the group discussion method so as to attain
deep conversation with the respondents with the aim of attaining further relative
information. Furthermore, the study focused on the Coca Cola Soft Drink Company in
Dar Es Salaam region because it is easily accessible to the researcher and has a
favourable number of wholesaler and sales agents than in other regions.
25
3.3 Study Area and Targeted Population
3.3.1 Study area
This is the area or geographical site where the study is conducted. For the case of this
study, Coca Cola Company in Dar Es Salaam region is the area that the researcher
focused on. The Coca Cola Company is among the most successful and popular
company, the area of study is also easily accessible to the researcher, hence a reason
for the selection of the particular area.
3.3.2Targeted population
A study population refers to the sum of people, also known as respondents in which a
particular study focussed on to attain answers and solutions through responding to the
researcher’s questions (data collection or gathering process). The study population of
this study was the sales workers in the Coca Cola Company. In which the Coca Cola
Company has a total of not less than 700 workers where the sample was drawn from,
hence an ideal area to conduct the study.
3.4 Sample size and Sampling technique
3.4.1 Sampling Technique
Sampling techniques involves the methods or ways in which the researcher attains or
to selects an optimal sample size from the study population (Sekaran, 2003). With this
particular study, the researcher used a convenience probability technique, whereas
each and every respondent was selected due to his/her availability and presence at the
particular moment. With this sampling technique the researcher achieved various and
reliable ideas from the sample of a population, that is the 70 sales personnel as
respondents.
26
3.4.2 Sample Size
Sample size refers to a selected portion from the population, which is convenient and
enough to provide and assist with the data collection process (Stainback et al, 2008).
Due to factors as limited time and insufficient financial resources it is therefore
impossible to conduct a study based on the entire population. An individual
questionnaire was successfully distributed to 70 employees (the sample size), in which
56 questionnaires were filled correctly. This makes an 80% response rate, which is
satisfactory and warrants further analyses.
In this study, the social demographic information involves the distribution of the
respondents by age, gender, education level, and years of working experience. The
study managed to attain a total of 56 respondents who were the sales members at the
Coca Cola Company. This included 34 respondents as males and 22 respondents as
females which is equivalent to 60.71% and 39.29% respectively. On the part of age,
48 respondents age ranged from 18 to 26 years; and 8 respondents’ age ranged from
27 to 36 years, which makes a 85.71% and 14.29% respectively. For the education
level part the respondents with an ordinary level were 3 (5.36%), respondents with a
certificate were 18 (32.14%), 25 were respondents with a diploma which makes a
44.64%, and the respondents with an undergraduate level of education were 10
(17.86%). Most of respondents have their work experience ranging from 2 to 5 years
which is 48 (85.71%) and 8 (14.29%) respondents had a work experience ranging at 5
to 10 years.
27
Table 4. 1: Socio-Demographic Characteristics of the Respondents
S/N Demographic
Characteristics
Criteria Number of the
Respondents
Percentage
1. Age 18 - 26
27 - 36
37 – 46
+46
48
8
-
-
85.71
14.29
-
-
2. Gender Male
Female
34
22
60.71
39.29
3. Education level Ordinary level
Certificate
Diploma
Undergraduate
Postgraduate
3
18
25
10
-
5.36
32.14
44.64
17.86
-
4. Work experience 2 – 5 years
5 – 10 years
+10 years
48
8
-
85.71
14.29
-
Source: Research Finding (2020)
3.5 Data collection methods
The primary data involves the data collected directly from the field (Saunders et al.,
2007); while the secondary data involves the second hand information which has been
gathered from journals and articles, books, and other publications. The methods used
to collect data for this study include interview, questionnaires, focus group discussion
was implemented so as to collect the primary data (Sekaran, 2003).
3.5.1 Interview method
Interview is a planned conversation between a researcher and his/her respective
respondent which aims at extracting important and relevant information relative to the
present study.The study used an unstructured interview method which provides with
questions relative to the type of information required. According to Kothari (2004), an
Interview method involves the collection of data through an oral and verbal two way
communication between the researcher and the respondent. The researcher used the
28
interview method so as to save and manage time, which is to make sure the respondents
do not feel like their time is being wasted and to have a clear view of the respondent’s
reaction towards the asked questions and their reaction while responding to them.
3.5.2 Questionnaire method
A questionnaire consists of a number of questions which are typed or printed on forms
in a definite order (Saranta Kos, 2005). The researcher physically distributed these
questionnaires to the respective 70respondents in their working areas (Coca Cola depot
centres in Dar Es Salaam) and the researcher successfully attained information
explaining on the potentiality of incentive scheme the company offers to the employees,
how seasonality and events triggers the performance of the sales team activities, and
to what extent does competition influences the sales performance of the respective
company.
3.5.3 Focus group discussion method
The researcher was given an opportunity to discuss the study’s objectives during the
sales agents’ morning assembly meetings at the Coca Cola Company on Saturdays
before being dismissed to their working centres. This method was more useful since
the respondents provided with in-depth information and clarification of answers from
the early employed methods.
3.6 Data analysis and presentation
Data analysis involves identifying pattern and relationships that will give answers and
solutions to the study relative to the set objectives (Mason, 1996).The researcher
employed both the qualitative and quantitative analysis to interpret the information
gathered. The quantitative analysed data was derived from numbers collected from
numerical and standardized data. Therefore, the use of statistical presentations
employed the use of distribution tables and graphs to attain a meaningful and clear
29
analysis of the data.The qualitatively analysed datais the non-numerical data which
represents or expresses quality; hence the interpretation and meaning is presented
through words.
3.7 Validity, reliability and ethical consideration
According to Saunders et al.(2007), validity is the rate to which data collection
methods accurately measure what they are intended to quantify. The validity of the
study was ensured by the researcher by considering the quality of data whereas the
questionnaire was approved by the supervisor before handed out to the respective
respondents. The questionnaire considered the guidelines of Mzumbe University hence
the validity of data was accurate and captured from the real sources as narrated in the
findings of the research.Reliability refers to the degree to which a measuring
instrument includes variable errors that appear variably from observation to
observation during any one measurement attempt or at the same measuring instrument
(Nachmias and Nachmias, 2004). Moreover, the reliability of data based on the
primary data collection methods such as interview, questionnaire and group
discussions. The Researcher ensured that the confidentiality and anonymity of the
participants would be maintained.
The research was conducted by considering ethical matters of report writing by
avoiding the issues of copying other practitioner’s work, observation of confidentiality
and corruption. Some respondents during data collection had doubts on the
confidentiality of the gathered data hence demanded payment to compensate the risk
of the provided data to the researcher. A researcher adhered to the principles of
conducting ethical matters for making sure that there was no harsh language during
the data collection process and avoiding abusive language that might cause conflicts
or bad interpretations. Therefore, the researcher guaranteed that no respondent were
put in a situation where they might be harmed as a result of their participation, physical
30
or psychological and also ensured that the confidentiality would be maintained
between both parties.
31
CHAPTER FOUR
PRESENTATION OF FINDINGS
4.1Introduction
This chapter discusses the analysis and presentation of findings. The gathered
information was coded, summarised and presented in a form of frequency distribution
table, percentages and clear graphs. The chapter is divided into two parts; the social
demographic characteristics of the respondents and analysis of the study variables.
4.2 Descriptive Analysis
The study identifies and explains basic features of the gathered data relative to the
study. This section provides further elaborations on the influence of the sales incentives
to the sales performance; ways in which seasons and events impact the performance
of sales through fluctuation of sales volume; and the extent of competition present and
how it influences the general sales performance of a company
4.3The influence of sales incentives to sales performance
The following chart reveals the response of the agreement level measurement. From
the first objective as derived from the information gathered through the questionnaires.
With this objective the analysis was done by checking on the present incentive plan
that the company offers and how the current rewards influence the sales activities of
the sales people in the company.
Figure 4. 1: The influence of factors identified in sales incentives to the sales
performance.
32
Source: Research findings (2020)
From the above chart, the findingsshow that the majority of the respondents’ agreement
level according to the questionnaire, whereas 40 respondents strongly agreed to the
presence of an attractive incentive scheme by the company (80%) causing an influence
to the sales performance. The company has an incentive plan that practically does a
great job in stimulating its work force into increasing their performance rate from time
to time. A total of 20 respondents strongly agreed that the company does offer non-
monetary rewards (40%). The company has different forms of incentive rewards that
are being offered to the sales members and other employees in general.Such rewards
are said to be effective as they have a certain percent of efficiency into boosting the
worker’s morale into increasing their work efforts leading to an increased
performance.Up to 24 respondents strongly agreed to the presence of customized
rewards (48%).
These customized rewards are the offers made by the company relative or depending
0
10
20
30
40
50
60
70
80
90
attractiveincentivescheme
offers nonmonetaryrewards
customizedrewards
employeerecognition
essentialityof monetary
gifts
equalchances of
attaining theoffers
AG
REE
MEN
T LE
VEL
BY
PER
CEN
TAG
E %
FACTORS IDENTIFYING THE PRESENCE OF SALES INCENTIVES
33
on the wants of the employee, but there are limits to the options provided to the
employee to choose from.For example, the reward chosen should not exceed a budget
of 200,000/= Tanzanian Shillings; or the reward should not involve doing activities
that will relate with the competing companies.Up to34 respondents agreed on the
company’s policy for employee recognition for their performance (68%). The sales
force solely agrees that, when an employee is publicly recognized in the company for
his or her good work this act reveals a sense of appreciation and belongingness to the
company hence creating an environment that workers believe are trusted and depended
on for the work that they perform hence increase their commitment to perform better
than the previous attempts.A total 42 respondents also agreed on the essentiality to
introduce monetary rewards (84%).
Monetary rewards are believed to have a great value to the employee because he or
she is free to suggest and choose how to spend it. The sales members do agree to have
various personal problems which need money as a solution despite the monthly salary
attained, hence with the presence of the monetary rewards will definitely be a turn on
for the workers to increase effort in performing the sales activities. Lastly, 30
respondents agreed on the presence of equal chances to attain the set rewards (60%).
Majority of the findings indicate that,the sales people are aware of the incentive
scheme offered by the company and what to be done to increase their sales
performance.
34
Figure 4. 2: The influence of the sales incentives to sales performance
Source: Research Findings (2020)
Figure 4.2 above shows that, about 87.5% of the respondent’s sales performance is
influenced by the sales incentives offered by the company (55.36%), 31 from the
strongly agreed and 32.14%; 18 from the agreed, and 4(7.14%) of the respondents are
neutral.This set of employees only perform according to the responsibilities set for
them and are not entirely entitled to be motivated with the company’s incentives, they
are satisfied with the general salary and careless as long as the set targets are meet and
not beyond that.In addition,3(5.36%)who disagreed suggest that, sales incentives is
not the only motive or factor to influence the sales person’s sales performance.From
the group discussions conducted, the respondents added that the current incentive is
not enough to boost their morale to increase the sales performance, due to the needs of
improving their career and securing their positions in the company for the long run
4.5 Role of seasons and events on the fluctuation of sales performance
The second objective was to examine the role of seasons and events on the fluctuation
0
10
20
30
40
50
60
strongly agreed agreed neutral disagreed stronglydisagreed
55.36
32.14
7.14 5.36
0
PER
CEN
TAG
E %
35
of the sale performance. The analysis of this objective involved checking on the rate
of sales activities performed on both during the absence and the presence of the certain
season and event.
Figure 4. 3:Role of seasons and events on the fluctuation of sales Performance
Source: Research findings (2020)
The above graph shows the majority agreement level of respondents on the variable
factor of influencing role of the seasons and events to the fluctuation of the sales
volume which leads to an unsteady sales performance as derived from the
questionnaires.A total of 44(78.57%) respondents have agreed to the presence of
variation of sales from time to time, the soft drink company experiences an up down
0 10 20 30 40 50 60 70 80
variation of sales time to time
market always accessible
difficult to work during rainy days
more eligible to work on sunny days
presence and/or absence of events alters theactivity
performance of any activity during the holidays
78.57
26.79
73.21
58.93
78.57
51.79
PERCENTAGE %
FAC
TOR
S D
ETER
MIN
ING
SEA
SON
S A
ND
EV
ENTS
36
movement of the sales performance, that is the sales volume, sales growth and sales
activities. This is due to the presence of various factors including the
weather.15(26.79%) of the sales people have agreed to the presence of access to the
market always. This initiates that majority of the respondents do not agree that the
market is always accessible to the sales members to perform their sales activities and
achieve sales growth and emphasize the sales volume by increasing purchase.Up to
41(73.21%) respondents agreed to the presence of difficulties to adhere to their sales
activities during the rainy season or rainy days. Due to reasons as transportation
difficulties and costs, some sales members live far from the company’s depot centre,
some client’s settlements are far and with the Dar Es Salaam traffic jam in some areas
makes it more difficult to penetrate to in time, so along with those concerns are
elaborated by respondents during the rainy days it is even harder to be accessible to
the market and perform the sales activities to their full potential compared to the sunny
days where it is not as difficult where 33(58.93%) of the respondents agrees to the
eligibility of the sales person to work on the sunny days.A total of 44(78.57%)
respondents suggest that, the presence and absence of the events and certain seasons
does alter the rate performance of their sales activities.Up to 29(51.79%) of the total
respondents agree to perform certain activities that relate to sales during the holiday.
37
Figure 4.4:Influence of the seasons and events to sales performance
Source: Research findings (2020)
The findings presented above show that, 21(37.5%) of the respondents strongly agreed
that seasons and event does influence the sales performance; 13(23.21%) of the
respondents have agreed that the presence and/or absence of the seasons and events
does influence the sale performance of the sales people;6(10.71%) of the respondents
were neutral, 4(7.14%) of the respondents disagreed and 12(21.44%) of the
respondents have strongly disagreed that seasons and event are the reason for the
fluctuation of sales causing an unsteady sales performance. Through the interview
conducted the respondents stated that, the presence of other factors can influence the
sales performance through sales fluctuation like presence of inadequate raw material
or due to delayed deliveries”.
0 5 10 15 20 25 30 35 40
strongly agreed
agreed
neutral
disagreed
strongly disagreed
37.5
23.21
10.71
7.14
21.44
PERCENTAGE %
38
4.6 The effect of competition on sales performance
The third objective was to analyse how and to what extent which the competition
influences the sales performance. This was done mainly by checking on the marketing
elements and its effect when applied by other companies on the same industry.
Figure 4. 5: The effect of competition to the sales performance as derived and
analysed from the collected information.
Source: Research findings (2020)
The above figure shows the sub-factors that the researcher used to determine the
influence of competition on sales performance, with the factors as presence of similar
product with low price 49(87.5%) of the total respondents have agreed to its influence
on competition, the market is comprised of different types of customers some being
price sensitive and impulse customers so in the presence of various similar products
0 10 20 30 40 50 60 70 80 90
difficulty to increase market share
standard profit increase annually
presence of relative promotional strategies
presence of similar distribution mode
presence of similar products
presence of similar products with low prices
46.43
66.07
67.86
48.21
82.14
87.5
AGREEMENT LEVEL BY PERCENTAGES %
FAC
TOR
S M
EASU
RIN
G L
EVEL
OF
CO
MP
ETIT
ION
39
despite quality the customer use price as a point of comparison to assist his/her final
purchasing decision.From the total respondents, 46(82.14%) have agreed that the
presence of similar product in the industry does influence the level of competition, a
similar product refers to the similarity in the content, the packaging, labelling, colour,
and name of the content, differentiating these factors creates room for the customer to
compare and decide on a purchase decision.
It is not easy for the customers to distinguish the product due to the confusing
similarity created by the producers. Hence an unsteady sales performance for both
producing companies 27(48.21%) of the respondents agrees that the presence of
relative distribution modes as employed by other companies does stimulate the rate of
competition. And 38(67.86%) suggest that the presence of similar promotional
strategies by relative companies does increase the tension of competition from the rival
companies. With the standard profit increase annually37(66.07%) of the total
respondents agreed there is a slow increase of the profit over the years, and 26(46.43%)
of the total respondents also agrees that the market share has been difficult to increase
at a noticeable level. From the interviews and group discussion done by the researcher,
the respondents agree to these factors as part of measurement for competition and its
influence towards the sales performance.
While the factors as difficulty to increase the market share and presence of similar
distribution mode, the respondents suggested that these factors not necessarily indicate
competition but failure to introduce better and creative strategies to attract and sustain
the targeted audience will indicate a failure to compete with the rival companies.
Figure 4. 6: The effect of competition to sales performance
40
Source: Researcher’s finding (2020)
The analysis shows that, 40% of the respondents agree that the rate of competition
affecting the sales performance is very high; 32% of the respondents agree that the rate
of competition affecting the sales performance is high; 18% of the respondents agreed
on the rate of competition being medium, and 10% of the total respondents agreed on
the rate of competition affecting the sales performance is low. This information
suggests that, majority of the sale people’s sale performance is affected by competition
and the remaining sales members believe that the market share sustained is loyal to the
brand hence competition cannot be the only factor initiating the changes in the sales
performance.
0 5 10 15 20 25 30 35 40
very high
high
medium
low
39.29
32.14
17.86
10.71
PERCENTAGE %
RA
TE O
F C
OM
PET
ITIO
N IN
FLU
ENC
ING
TH
E SA
LE
PER
FOR
MA
NC
E
41
CHAPTER FIVE
DISCUSSION OF THE FINDINGS
5.1Introduction
This chapter presents the findings in discussion of the study. The findings are
interpreted in the study context so as to make sense out of it. This chapter helps in
realising the relation of the findings with the respective literature review, whether it
supports it or not. The main focus of this study was to assess the factors of influence
to sales performance of soft drink companies, under a case study of the Coca Cola
Company in Dar Es Salaam City.
5.2Assessing how sales incentives influence the sales performance
The findings to the first objective indicate that, 49(87.5%) of the sales people do agree
that the presence of an attractive sale incentive scheme does influence the sales
performance. The findings show that, the company does employ several tactics to
make sure their employees are influenced into achieving their targeted goals, through
employees’ recognition, presentation of customized or personalised rewards and by
offering other non-monetary rewards as a way of appreciating the sales team efforts
and encouraging them to attain more than the targeted goal.
The sales crew have also indicated that, there is no bias into achieving the rewards for
there is an equal chance or probability for each member or team to attain the set prize.
This shows that, with the perfect incentive scheme or plan, the sales performance
would positively improve due to the increased sales efforts by the sales members. A
perfect incentive plan is the one that adheres to the needs and concerns of the sales
force.
42
The findings reflect the study byKefyalew (2018), where both depot sales agents and
sales employees have a positive attitude and have faith in the provision of the
salesincentive to the sales members as a way that improves their sales performance
individually and to the company in general.
The study mirrors the one conducted by Laakso (2012), in which he determined the
impacts of financial and non-financial offers towards the employees’ morale and to
cause an effect on the performance. This study revealed a positive impact of the
financial and the non-financial rewards to the employees’ performance similarly to the
study. The study also revealed that a combination of both financial and non-financial
rewards plays a greater role into motivating the employees that implying the rewards
individually.
Furthermore, the study aligns with Djoni (2016) on the similar study and the results
show that the sale performance is significantly influenced by the incentives and
product rewards. The study also revealed that the incentives can only be used on the
long run if the strategy reflects or relates to the long term goal of the company, and the
short term rewards should still be offered to motivate the employees to achieve their
daily short term goals.
The results reflect the argument by Pride et al. (2008) the success of a company is
created by a good leadership management, production according to the needs of the
customers and the willingness of the employees with effort to perform accordingly and
beyond the set responsibilities. For the employees to put in the needed effort they need
to be shown appreciation for the already completed tasks and to be motivated for the
upcoming set targets. Employees are like a motor vehicle, after a set journey has been
accomplished they need to be refuelled and serviced so as to re-energize and be ready
for the next set journey.
43
The study also aligns with Lopez et al. (2006) whose results suggest that incentives
alone is not enough to stimulate the sales person’s performance. Other intervening
factors need to be considered in order to achieve the organization’s targeted goals
through the sales performance. Factors as long term secured benefit to the employee,
the working environment, which can be a source of influence parallel to the incentive
plans. Companies should also keep in mind that the incentive plan is equally created
for the benefits of the employees as it is thought to benefit the employer, hence the
plan should consider and adhere to the needs and wants that the employers have
presented.
Despite the presence of an attractive sales incentive scheme, there are still few sales
members who are lagging, and have suggested that for the sales incentive to influence
their sales performance there is a need for few modifications or additions to relate with
their needs, as monetary gifts to be part of the rewards since the interest on the non-
monetary gifts is low. And that, the customized rewards should really base on what the
employees need and not what the employer think the employees need.
5.3 Examining how the seasons and events affects the sales performance
The findings indicated that, 34(60.71%) of the respondents, that is the sales people
have agreed that seasons and events do affect the sale performance through causing
fluctuation of sales volume. The respondents agreed that it is indeed difficult to work
during the rainy days and more efficient to perform the sales activities during the sunny
day, hence this shows that weather does affect the performance of sales activities and
it is slowed down during the rainy season compared to the sunny season. And the
presence of events alters the sales performance by either increasing or decreasing the
sales activities during the time of the event. Likewise when a sales person is on holiday
that is off duty, the sales work that rises during this time are postponed to when he or
she will be on duty or rather shifted to another sales person who is currently on duty,
44
where with the different ways of dealing with customers mostly such deals are not
successfully closed.
This initiates that the presence of seasons and events such as the Christmas season,
there is a shift of demand by an increase causing an improvement in the sales and
purchasing activities leading to an accelerating sales performance, and vice versa, that
is compared to when the particular season has passed, the demand rate decreases or
drops to normal causing a decreased sales and purchasing activities.
The sales people also agreed that there is a variation or a fluctuation of sales volume
from time to time, with that being said the respondents disagreed on the easy access of
and/or to the market due to the presence of many other reasons. The study suggested
that an accumulation of factors do cause the fluctuation of sales volume leading to an
unsteady sales performance. The respondents suggested factors as delayed deliveries
of the product to the depot, delayed delivery of the raw materials from the external
sources.
There is a high fluctuation of sales volume from season to season which affects the
sales performance of the sales members in depots, the study also agreed that the
fluctuation of the sales volume is due to weather and shortage of raw materials
Kefyalew(2018). The study aligns to the one conducted by Kefyalew and results
suggests that the seasonality of the sales volume which affects or influences the sales
performance is due to weather and the presence/absence of events.
When an event has occurred, a public, political or social event the consumption of the
soft drinks increases hence an increase in the present sales activities leading to an
improved sales performance during the presence of the event. When there is no event
the sales activities are backed down to normal where the sales performance is at a
normal rate. Considering the sales agents at the depot when absent due to reasons as
45
being sick, or on a personal holiday the sales activities are low hence the sales
performance are lower when sales members are absent in the performance of their
general sales activities.
The study aligns with the study byKassa (2013), where the results show that the
fluctuations of the sales performance through the sales volume are due caused by the
seasonality in the weather condition. That is, with the presence of seasons caused by
weather it is inevitable for the company to experience fluctuation of sales volume,
rather better and flexible strategies should be introduced so as to create a balance to
the up and down movement of the sales volume.
This study also mirrors the one conducted by Fill (2001), who argued that it is
important for the company to communicate and create an understanding with their
workers, so as to understand the challenges they are facing while trying to achieve the
company’s targets. The management should provide with better tools, strategies and
information that is useful for the betterment of both the company and the workers.
In this instance, companies should be aware of the seasons when the sales are high and
when they are low, and develop strategies to improvise with the states respectively.
The company’s management should cooperate with the sales and marketing members
to uncover proper ways to deal with the fluctuations of the sales volume which
significantly affects the sale performance of the company.
5.4 Investigating how competition stimulates the sales performance
The findings to the third objective presents that,40(71.43%) of the respondents agreed
to the rate of competition affecting the sales performance being very high; 18% of the
respondents believe that the rate of competition influencing the sales performance is
at a medium rate while; 10% of the sales people responding to the study believe the
46
rate of competition affecting the sales performance is preferably low. This suggests
that the sales team does experience a rivalry fight with the relative companies in their
daily activity performance. The respondents’ experience a high competition rate on the
product itself, the product price, and the promotional strategies employed with the
relative rival companies which tend to be similar with the one from the respective
company, causing a struggle to attain the competitive advantage.Hence this partly
defines the standard increase in the annual profit and the slow almost fixed increase in
the market share.
Despite the high rate of agreement of respondents to the rate of competition affecting
the sales performance, the 10% of the respondents who believe the rate of competition
has a low effect on the sales performance suggests that the presence of other variable
factors do affect the sales performance. The sales people have suggested personal
factors and customer character and behaviour as reasons that alter the sales
performance. The personal factors include the fear of interaction and rejection, and
how to deal with different kind of customers.
However, this study contradicts study of Laswai (2013) and McFarland (2001), whicha
marketing position in an industry can be attained through the distribution channels that
is a competitive advantage can be achieved through the distribution modes. The agents
of distribution are able to offer services as credit clearance, emergency deliveries, and
knowledge of source of supply for buyers creating a trustworthy environment which
initiates loyalty of the customers to the product and brand.
The findings reflect the arguments by Al-Rfou (2015) that the intense competition in
the industry is due to the presence of a potential market, which is attractively desired
by the relative companies in the industry. The results of the study have shown that the
47
presence of similar marketing strategies creates a greater rate of competition in the
industry. This is due to the confusion it creates to the targeted market which is believed
to cause difficulties in comparing and making the final purchase decisionleading to an
unsteady sales performance Lilian & Kotler(1983).
The study also aligns with Porter (1980) that, a company should have a strategic
weapon to defend and maintain its market, and mostly this marketing weapon acts as
competitive advantage in the industry. Therefore, it is crucial for the company along
with the sales and marketing members to formulate sensitive yet creative strategies
that can cutter with the competitive environment by influencing the customer’s choices
to select the respective brand as the final purchase decision hence create an
improvement in the sales performance.
In this instance, companies should pay attention to its strengths and point of weakness
so as to determine their position in the market and on the industry. With the awareness
achieved the company should be able to identify its strength which can be used as a
competitive advantage against its rival or relative companies.
48
CHAPTER SIX
SUMMARY OF THE STUDY, CONCLUSION AND RECOMMENDATION
6.1 Introduction
This chapter provides the summary of the study in general, presents a conclusion and
relative recommendations to the study.
6.2 Summary of the study
This study was conducted at Coca cola Soft drink Company in Dar Es Salaam City,
Tanzania. The research aimed at assessing the factors that influence the sales
performance of the company as the main objective. This study was steered by three
objectives which are:
i. To assess how sales incentives influence the sale performance of the company,
ii. To examine how seasons and events affect the sales performance
iii. To investigate how competition stimulates the sales performance of the
company.
Various ideas and concepts from authors and theorists were presented in relation to the
study. The suggested theories by the researcher to support the presented objectives in
the study include the Clearance Sale Theory, the Two-Factor Theory and the Theory
of Competitive Advantagewhich both caters to the objectives respectively.Various
studies were elaborated to show how they were carried, and the relation to this study,
their challenges and to point the left-out gaps.
The study employed a descriptive study design. A sample of 56 successful respondents
was attained through a simple random sample technique. Data was collected by using
following methods; interview, questionnaire, and group discussion and observation
method. Data presentation was done with the application of both qualitative and
49
quantitative approaches.
The results have shown that the sales incentive plan is an influencing factor to the
changes of the sales performance, the sales members are attracted to the current
incentive plan offered by the company, but it is not enough for the long run. The study
also revealed that, there is a positive effect of the seasons and events with the sales
performance through the sales activities. In the presence of certain seasons and events
the sales performance are guaranteed to improve due to the increased sales activities
during these times.Competition is perceived to be high in the presence of similar
marketing and communication elements with the other relative companies. Hence a
negative relationship between competition and sales performance is revealed. This
implies that an increase in competition leads to a decrease in the sales performance
unless a company achieved its competitive advantage.
Moreover, the analysis and discussion of the results from the gathered information was
elaborated by relating the findings to the literature review, so as to discover the point
of contradiction or similarity in the existing literatures.
6.3 Conclusion
In conclusion, the company does offer an attractive sale incentive to the sales members
which in turn do stimulate their working morale into increasing their sales activities
leading to an improved sales performance.The current sale incentive scheme does not
flatter all the sales members hence leading to a low sales performance.Based on the
findings it has been concluded that, the presence or absence of certain seasons and
events does slow down or accelerate the rate of performing the sales activities set to
the sales people.This tends to influence the sales performance respectively.Lastly, it
has been found that competition indeed influences the general performance of sales in
the company. Sales people agreed that,the presence of other companies in the same
50
industry automatically keeps them in a war against each other to attain a competitive
advantage as the reward.
6.4 Recommendations
The following suggestions are given as to the best course of action and to increase the
potentiality of this study based on the accumulated findings. The following
recommendations are given to the company and its respective sales members so as to
improve their efficiency in the operational activities, clear out the challenges by
sighting better strategies as the researcher has sought of.
i. The first concern that the researcher is recommending is on the sales incentive
scheme. Most of the sales people agreed on the attractiveness of the scheme
but with few improvements. It will surely be adapted by all sales members. It
is recommended that the company should introduce monetary rewards as one
other form of reward to the sales people (the current forms of reward remaining
constant). The company should consider introducing long term rewards for
long term assurance of the employees’ performance.For instance, by providing
courses that is relative to the employee’s occupation to support his or her
growth career wise.
ii. On the concern of seasons, the company should introduce strategies that adapt
with the environment, during the sunny season the company should be willing
to lower their prices so as to increase their chances of increasing their sales at
a higher quantity, and during the cold season when the consumption is not as
high the company should set their prices back to normal so that the company’s
profit and performance does not decrease to its least rather at a standard
position. Same applies to some events where with its occurrence it tends to
increase sales activities, therefore the company consider introducing events
that stimulate the consumer’s purchasing rate. The events should solely base
51
on the consumers’ interest and the company’s efforts should meet and exceed
their expectations.
iii. The study also recommends that for the company to achieve the competitive
advantage unique and innovative strategies should be implemented to capture
the consumer’s attention. And the sales members should be trained on different
and productive ways of dealing with customers depending on their behaviours
and mood.
The study also recommends that the company should be more attentive to the trends
and pattern on the sales activities and sales volume, an enhanced communication
between the sales and marketing department along with the management so as to create
better and flexible techniques to improve the sales performance of the company.
6.5 Area for further studies
Further research studies are recommended regarding the consumer or the customer’s
behaviour and how these affect or influence the company’s sales performance. During
data collection it was realized that some sales members were unaware on how some
customers are difficult to interact with hence hindering their chances of closing a
purchase deal.
Further study should focus on the company’s communication strategies that are
adaptable and flexible to different environments and to the company itself..
And also, the study recommends a consideration on the role of culture on the sales
performance and general performance of the company, the relationship and connection
between culture and the sales performance of a company.
And lastly, a study regarding the relationship of the sales department with the
52
management to the performance of sales of a company should be considered as a
recommendation by the study.
53
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APPENDIX
Suggested questionnaire for company’s sales people
My dear respondents, thank you for your time and willingness to complete this
questionnaire. The information provided will be used only for educational purposes in
assessing the factors affecting sales performance of Soft Drinks Companies and will
be kept confidential. Your identity is not necessary. The student researcher kindly asks
for your cooperation to attempt all questions objectively and honestly.
SECTION A: Personal questions.
Instructions; Please tick { the most relative response.
1. Age
a) 18 to 26 years
b) 27 to 36 years
c) 37 to 47 years
d) Above 47 years
2. Gender
a) Male
b) Female
3. Educational level
a) Ordinary level
b) Certificate
c) Diploma
d) Under Graduate
e) Post Graduate
63
4. Work experience
a) 2 to 5 years
b) 5 to 10 years
c) Above 10 years
SECTION B: BASIC QUESTIONS TO THE STUDY
Instruction:
Please choose your degree of agreement in each statement in the following scale by
Selecting a number that is most relevant to your response
Each number represents a scale range as shown below.
5=strongly agree, 4=Agree, 3=Neutral, 2=Disagree, 1=strongly disagree.
1. The influence of sales incentives to sales performance.
STATEMENT AGREEMENT LEVEL
As an employee,
a) Does the company has an attractive incentive
scheme?
b) Does the company offers non-monetary
rewards when the set target is achieved?
c) Does the company provide customized or
personified rewards to its sales crew?
d) Are employees recognized by the department
or company for their performance?
e) Are monetary gifts essential to sales people?
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2. The influence of competition to performance of sales
STATEMENT AGREEMENT LEVEL
As an employee,
a) Does the company find it difficult to increase
its market share?
b) Does the company’s profit increase at a
standard rate over the years?
c) Does the presence of relative promotional
strategies by other companies influences your
sales activities?
d) Does the use of similar distribution mode of
products by other companies alters your sales
activities?
e) Does the introduction of similar products by
other companies affects your selling
activities?
f) Does the introduction of similar products with
lower prices triggers your sales activities?
3. The relationship of seasons and events to the fluctuation of sales
performance
STATEMENT AGREEMENT LEVEL
As a sales person,
a) Does the company experience variation of
sales from time to time?
b) Is the market always accessible?
c) Is it difficult to perform your sales activities
during the rainy days?
d) Is it more eligible to work on sunny days?
e) Does the selling activities differ with the
presence and absence of events?
f) Do you perform any sales activities during
your holidays?
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Pleaseclearly share your reason for ratings on the (3rd) set of questions.
a) ________________________________________________________
b) ________________________________________________________
c) ________________________________________________________
d) ________________________________________________________
e) ________________________________________________________
f) _________________________________________________________