The Effect of Promotion Mix on Sales Performance of Large Leather Footwear Manufacturing Factories in Ethiopia

Abstract

The objective of the study was to explain the effect of promotion mix on sales performance of large leather footwear manufacturers in Ethiopia. The research followed quantitative research approach. The research used both explanatory and descriptive research designs. The study also used cross-sectional survey design. The target population of the study was large leather footwear manufacturers in Ethiopia having high market share and experience of using different elements of promotion mix. The identified large leather footwear manufacturers were Anbessa Shoe S.C., Jamaica Shoe Factory, Kangaroo Shoe Factory PLC, Peacock Shoe Factory, Sheba Leather Industry PLC & Tikur Abay Shoe S.C. The study used purposive sampling technique and the targeted population was the staffs of marketing and finance departments found in the head offices of these factories. The researcher adopted census survey method over the staffs of marketing and finance departments found in the head offices of the factories. Both primary and secondary sources of data were utilized. Structured questionnaire were utilized as an instrument for primary data collection. Descriptive analytic tools such as frequencies, percentage, mean, and standard deviation were used for summarizing and presenting the data. With regard to inferential statistics, Pearson correlation coefficient was used to show the inter dependence between independent and dependent variables and multiple linear regression analysis was used to test the significance contribution of each independent variable to the dependent variable sales performance. The finding of the study shows that all the promotion mix elements have significant effect on sales performance of large leather footwear manufacturers in Ethiopia. The result of the findings revealed that promotional mix elements influences the sales performance with 89.7% while other variable not included in the variable tested takes the remaining 10.3%. The researcher therefore recommended that, management of the aforementioned factories should embark on more strategic promotion mix elements in general, and public relations and sales promotion in particular in order to increase their sales performance.