The Impact Of Marketing Strategies On Sales Performance: A Case Study Of Awash Wine S.C In West Shoa Zone, Oromia, Ethiopia

Abstract

The primary objective of this study was to examine the impact of product, price, promotion, place, and people strategies on the sales performance of AWSCs in the West Shewa Zone, Oromia region, Ethiopia. A descriptive and multiple linear regression model was adopted by employing the data collected through a quantitative approach. The collection of primary data was facilitated through the administration of questionnaires, while the collection of secondary data was obtained from pertinent documents. The collected data was edited, coded, and analyzed using IBM SPSS software version 27. Quantitative data was presented using descriptive statistics, which included measures such as the mean, standard deviation, and frequency. Additionally, valid and cumulative percentages were included in the presentation of the data. The study utilized correlation and multiple linear regression analysis methods to evaluate the correlation and estimate the impact of independent variables on sales performance. The regression result indicated that there is a strong positive relationship between the place strategies and sales performance of the AWSCS (β = 0.373, p< 0.01). Therefore, it is imperative for the AWSCS to proceed with its current product strategy in relation to its competitors. The process of strengthening the current distribution strategy facilitates the customization of solutions to cater to the specific needs and preferences of individual buyers within the designated distribution regions. In contrast, the product (β= -0.50, p< 0.01), pricing strategies (β= -0.23, p< 0.05), and promotion strategies (β= -0.237, p< 0.05) indicated a negative impact on the sales performance of Awash Wine Share Company. Given the above econometric result, new promotional and pricing strategies and product strategies with other effective marketing strategies are also recommended, as solely relying on current promotions and product strategies hinders optimal sales performance. As a result, the research underscores the need for executing new promotion strategies and choosing suitable product strategies, followed by effective pricing strategies, to reverse the negative association between these three strategies. Hence, AWSCs should carefully reconsider their current promotion strategy, price, and product strategies to maximize sales performance. To implement the aforementioned recommendations, the organization must engage in a collaborative endeavor with its final distributors to reform its current marketing strategies, thereby improving its sales performance. Moreover, future research should investigate how marketing strategies impact sales performance by considering tie-on series of sales trends using longitudinal research