Sales Promotion of Bakery Products at Žito d.d

Recently, due to increasing market competition, sales promotion has become the element in which the most is invested. Sales promotion encompasses all measures used by trading companies to achieve their sales objectives, increase sales and profit, and ensure consumer satisfaction. Companies use sales promotion as a method to stimulate a stronger and faster response from users, emphasise the advantage of purchasing their products, and stimulate declining sales. In general, sales promotion is a tool that, unlike advertising, produces short-term effects and is most often used precisely when we want quick sales results.

Problem

Recently, due to increasing market competition, sales promotion has become the element in which the most is invested. Sales promotion encompasses all measures used by trading companies to achieve their sales objectives, increase sales and profit, and ensure consumer satisfaction.

Solution and Method

Companies use sales promotion as a method to stimulate a stronger and faster response from users, emphasise the advantage of purchasing their products, and stimulate declining sales. The effects of sales promotion are usually short-lived and do not contribute to long-term consumer loyalty to the brand. Some authors see the possibility of achieving long-term effects.

These are particularly evident in strengthening user loyalty and reinforcing the name (image) of brands.

Results

In general, sales promotion is a tool that, unlike advertising, produces short-term effects and is most often used precisely when we want quick sales results. In the diploma thesis, they focused on only one segment of sales promotion, namely tastings of Lotmerški and Jelenov bread, for which they also conducted a sales analysis during tastings, before them and after them, at different locations, as they highlighted 12 shops where Lotmerški and Jelenov bread are sold.

In the first part of the diploma thesis, they theoretically described sales promotion, with emphasis on tastings, furthermore what the purpose of sales promotion is, the importance and objectives of sales promotion. They also elaborated on sales promotion methods, short-term and long-term effects, advantages and disadvantages, and legal restrictions. In the second part of the diploma thesis, they conducted an analysis for which they obtained data from the professional services of Žito d.d..

They focused on the three-month sales of Lotmerški and Jelenov bread and presented it graphically by weeks and shops. However, as described in the theoretical part, that sales increase in the short term during tastings, this is evident from the graphs at the end of the second research, where they captured 10 days of sales of Lotmerški and Jelenov bread before the tasting, during it and after it. In the third part of the diploma thesis, they conducted an analysis of 100 random respondents who completed questionnaires during the tasting of Lotmerški and Jelenov bread.

All their comments and praise as well as recommendations were summarised in the first research of the diploma thesis, the results of which were presented in tables and graphs. Due to intensifying competition, companies that wanted to cooperate with traders and consumers had to increasingly use other communication methods for their marketing communication activities, especially sales promotion. The basic purpose of sales promotion is to directly or indirectly influence product sales.

Several sales promotion methods are used. They can be directed at intermediaries, at sales staff and at the end consumer. It is precisely the latter that is receiving more and more attention and financial resources at this time.

In the diploma thesis, they presented individual sales promotion methods and paid special attention to only one that is directed at end consumers. Product tastings at the point of sale represent the central theme of this diploma thesis. Using the example of Žito d.d., they determined the usefulness of tastings in practice as well.

By preparing tastings in shops, we can present the product to consumers in the easiest way, consumers can try it, give their opinion about it, and at the same time they can be motivated to purchase. Research shows that approximately 70% of all purchasing decisions are formed when the customer is already in the shop, and with a tasting we can encourage them to make an unplanned purchase. Products intended for consumption can only be evaluated by the consumer through tastings.

Tasting is carried out with the aim of ensuring the product's compatibility with the needs, wishes and requirements of the consumer. Tastings are conducted by trained people who know the product well. The importance of educating and training tasters before each new campaign is ultimately reflected in the results.

The method is very useful in practice, as shown by the analysis they conducted on a specific example of a tasting carried out at Žito d.d.. They limited themselves to only one sales promotion method, tastings and product presentations at the point of sale. We believe that this method will need to be given even more attention in the future and developed further, both at the theoretical and practical level.

The purpose of this research was achieved. There is indeed an increase in sales during the execution of tastings and a lack of recognition of Jelenov bread. In their research, the stated hypotheses proved to be correct, which means that during tastings, sales and customer interest in their products increase, and in the week after tastings it returns to the original level.

The objectives of the diploma thesis were achieved. They identified the reasons for better or worse sales of tasted products and these were submitted to the company management and proposals were presented for improving these factors.