Effect of Sales Promotion on Profitability – The Case of Gourmet Cola

Abstract

The importance of Sales promotion has kept on increasing in this globalized world. In Pakistan, thousands of rupees are spent every day on promotional activities. The companies now consider promotional activities as a crucial part of their sales. Gourmet Cola spend millions of rupees every year on promotional activities but still their managers face a situation where they realize whether the sales promotion has any impact on profits of the company or not. That is why this study is conducted for them to find the effect between both of them. The population in this study is 865 but a total sample of 160 has been used. The primary data was collected using questionnaire approach while the secondary is collected from the financial statements of Gourmet Cola. Convenience based sampling technique has been used in this study to collect the data. The results indicated that the sales promotion has positive and significant relationship with profitability for Gourmet Cola