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TITLE PAGE

APPLICATION OF MERCHANDIZING FOR ORGANISATION PERFORMANCE (A CASE STUDY OF APAM LTD ENUGU).

BY

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--/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---

DECEMBER,2018

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APPROVAL PAGE

This is to certify that the research work, " application of merchandizing for organisation performance (a case study of apam ltd enugu)." by ---, Reg. No. --/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.

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DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.

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ACKNOWLEDGEMENT

The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
My appreciation goes to some of my lecturers among whom are Mr. ---, and Dr. ---. I also recognize the support of some of the staff of --- among whom are: The General Manager, Deputy General manager, the internal Auditor Mr. --- and the ---. Finally, my appreciation goes to my elder sister ---, my lovely friends mercy ---, ---, --- and many others who were quite helpful.

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In Nigeria, the challenges of sales performance are prevalent amongst the companies. A declining sales performance was noted for Apam LTD Enugu in its 2018 financial year leading to its poor financial performance. Apam LTD Enugu has also had poor sales performance in the recent years leading to its struggling financial position. Merchandizing is one of the aspects that can be utilized for the purposes of improving on sales performance. The study’s purpose is to determine the effect of application of merchandizing practices Apam’s sales performance. The research sought to dissect the diverse aspects of merchandizing on sales performance and try to establish why the supermarkets are making losses and not profits on sales. The study specifically seek to determine customer attraction, product differentiation, product access and staff attributes effect on Apam’s sales performance. This research used The Product Marketing Mix Theory, Customer Behaviour Theory and Impulse Buying Behaviour Theory. The research utilized descriptive research design to guide on data collection, analysis and presentation of findings. To obtain its data, the study will target the Apam LTD Enugu branch. The target population for the study was 40 staff comprising of management and Apam line attendants. Nassiuma formula was used to determine the desired sample size for the study. 16 respondents was selected as the sample size. Apam line attendants study sample was selected using stratified sampling. This study used structured questionnaires to obtain its data from Apam line attendants. A pilot study was carried out to test the research questionnaires’ reliability and validity. In ascertain the research questionnaires’ validity, content validity was used and cronbach alpha test was used to test the reliability of the questionnaires. Quantitative data was analysed using both descriptive and inferential statistics. The entire study used tables to present the findings. The study found that customer attraction, product differentiation, product access and staff attributes had a positive and significant influence on sales performance. The study concludes that increasing customer attraction helps boost profits simply because loyal customers already have trust in organization’s brand and therefore are likely to spend more. The company uses product differentiation to distinguish a product from similar offerings on the market and gives customers plenty of choice in selecting a product, and encourages creativity. Product access enables the company to sell goods and services across borders. Staff attributes helps to develop the prevailing workplace environment that determines employee morale, productivity and team building abilities. The study recommended that supermarkets should identify their ideal new clients, use direct response marketing to attract customers, give something away to entice new customers, give themselves a face lift to increase sales.

TABLE OF CONTENTS
COVER PAGE
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWELDGEMENT
ABSTRACT
CHAPTER ONE

1.  INTRODUCTION
2. BACKGROUND OF THE STUDY
3. PROBLEM STATEMENT
4. AIM AND OBJECTIVE OF THE STUDY
5. RESEARCH QUESTIONS
6. SIGNIFICANCE OF THE STUDY
7. SCOPE OF THE STUDY
8. LIMITATION OF THE STUDY
9. PROJECT ORGANISATION

CHAPTER TWO
LITERATURE REVIEW

1. INTRODUCTION
2. THEORETICAL LITERATURE REVIEW

The Product Marketing Mix Theory

Customer Behaviour Theory

2.2.3      Impulse Buying Behaviour Theory

1. EMPIRICAL LITERATURE REVIEW

2.3.1    Customer Attraction and Sales Performance

Sales Performance and Product Differentiation

Product Access and Sales Performance

2.3.4      Staff Attributes and Sales Performance

1. BENEFITS OF MERCHANDISING
2. OVERVIEW OF APAM LTD

CHAPTER THREE
METHODOLOGY

1. INTRODUCTION
2. RESEARCH DESIGN
3. TARGET POPULATION
4. SAMPLE SIZE AND SAMPLING DESIGN
5. COLLECTION INSTRUMENTS AND DATA SOURCES
6. RESEARCH INSTRUMENTS RELIABILITY AND VALIDITY
7. RELIABILITY OF THE RESEARCH INSTRUMENTS
8. DATA COLLECTION PROCEDURE
9. DATA ANALYSIS AND PRESENTATION
10. ETHICAL CONSIDERATIONS

CHAPTER FOUR
4.0      RESULT ANALYSIS

1. DATA ANALYSIS AND DISCUSSION OF FINDINGS

CHAPTER FIVE
SUMMARY, CONCULSIONS AND RECOMMENDATIONS

1. INTRODUCTION
2. SUMMARY
3. CONCLUSION
4. RECOMMENDATIONS

REFERENCES

 

CHAPTER ONE

1.0                                                          INTRODUCTION

1.1                                            BACKGROUND OF THE STUDY

There are noted sales performance challenges in companies across the world due to various challenges. In USA, Morley (2017) noted declining sales performance in major companies in the United States. In this context, Morley (2017) noted that there was $3 billion less in fast- moving consumer goods (FMCG) spending in the first quarter of 2017 comparative to a similar period in 2016. Still in the United States, the sears company which was once amongst the largest companies in the US was forced to close some of its branches in 2018 due to declining sales performance.
According to Dinapoli (2018) this was a result of 12% drop in quarterly comparable-store sales. In the United Kingdom, Coupe (2018) noted challenges in the sales performance of the Sainsbury store with a 1.4% sales drop in the general merchandise for the 2017 financial year.
Nuru (2015) focused on the 34 water-bottling companies. The research concluded that the company to a very great extent (32%), great extent (43%) and moderate extent (14%) has product adopted differentiation strategies. The research discovered that product differentiation resulted into stocking of high quality products carefulness in selecting product suppliers, selecting product based on customer specification and having products in assorted style that is different from competitors. The study found out that to 0.877 increase in sales performance resulted from product differentiation unit increase due to unstandardized beta coefficient of 0.877 which was significant at 5% significance level.
In Canada, Mackrael (2018) examined the sales performance of major retail stores within the month of December, 2017. Mackrael (2018) noted that sales performance at the general merchandise stores fell by 5.3% compared to similar period in 2016. On the other hand, Wood (2015) noted a 2.8% fall in its sales performance for the 2017 financial year in the Mothercare stores. In Japan, Hersey (2017) noted a 1.4% drop in sales performance in major Japanese stores in comparing the half year results in 2017 to 2016 similar period performance on a store by store basis.

Sales Performance

The sales perbeenformance has conceptualized differently by scholars. According to Kunga (2016) sales performance relates to the ability of the sales person or an organization to sell to the clients against a prescribed target. Amongst the aspects that Kunga (2016) utilized to measure sales performance included market share, increase in average customer spend, stock turnover rate, and customer retention rates. Kasiso (2017)inspected deals execution as the volumes that of offers that are practiced inside a predefined period diverged from foreordained deals levels. Similar to Kunga (2016), Kasiso (2017) used market share and sales volume as the indicators for sales performance.
The use of sales performance measurement tools also helps reduce uncertainty in sales peoples performance, and also help develop manager trust as the manager has a better view of how sales peoples targets are met and how in line with company strategy they are (Mallin, O´Donnell & Hu, 2012). Küster and Canales (2016) argue that as the manager sees that the sales person is meeting their goals and working in accordance with company guidelines, it can also lead to better communication and cooperation, as both parties see that they are working towards the same end result.
In practice, a successful sale person needs to be able to work according to the company process, use sales-forecasting and sales funnel method, have systematic working methods and manage resources as well as have an input in sharing and developing innovation(Grewal, Levy, Mehrotra& Sharma, 2014).Kumar and Patel (2016)note it is important to keep these goals realistic. Unattainable goals are demotivating and can lead to sales people taking unnecessary risks. Therefore, the degree to which a sales person uses sales performance measurement tools is based on how useful they perceive the tools to be.

Merchandizing application

Merchandise is the array of products in a physical or online store for the purposes of sales. Merchandizing applications are the procedures whereby a retailer avails the correct quantity of commodities at the right place and at the right time in order to meet the goals of an organization (Randhawa & Saluja, 2017). Merchandising is also defined as the strategy used to present goods to customers in a way that it can entice them to make purchases, for example, through visual displays(Mehta & Chugan, 2013).
Merchandising is the practice of promoting products that are available for retail. It entails selecting promotional tools available to both the manufacturer and the retailer – dubbed as a promotional mix according to Mehta (2013).
Merchandising strategies include personal selling, sale promotion, marketing strategies, creating coupons, and discounts. More broadly, merchandising may refer to in-store or on-store promotion other than personal selling meant to promote purchasing behavior according to Mehta (2013).
The merchandizing practices imparts on the sales performance in diverse ways. These ways include locking the sales after advertising campaigns, simplifying the sales process, boosting customers’ buying experience, and driving the sales growth (Buleje, 2014). According to Mehta (2013) the main objective of visual merchandising is to display the store and its goods in a manner that will entice customers to make purchases. Other objectives of visual display include determining the optimal shelf location for each product, structure eye-catching displays, and using signage or other means for pricing and other product information.
Customer attraction is highly important today. In a competitive business environments, the ability to identify profitable costumers and consistent development of existing relationships are the key competitive factors of an organization (Yong &Yoonseong, 2014). According to Cheng and Chen (2015) customer attraction helps organizations recognize customers' value, identify the most profitable ones and develop high quality relations with them. Careful examination of profitability of each customer and identification of the most profitable ones are key factors of customer attraction success.
Product differentiation is a marketing process that showcases the differences between products. Differentiation looks on how to make a product more attractive by contrasting its unique qualities with other competing products (Rahman, 2011). According to Pelham (2017) product differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm's products and services. Therefore, a firm should constantly strive to differentiate itself from its competitors and seek rare and inimitable resources with which to sustain its competitive advantage.
Ahearne, Rapp, Hughes and Jindal (2010) observe that product access refers to the ability of a company to sell goods and services across borders. It is important to consider the specific contexts surrounding each product. For instance, whether a certain product is receiving a boost due to a viral marketing campaign or experiencing a decrease because competition is offering a similar product at a lower price. According to Winer (2013) product accessibility deserves dedicated thinking and planning, but it should not be done in isolation. Rather, it should be integrated into your organization’s processes.
Staff attributes as defined by Churchill, Ford, Hartley and Walter (2015) as psychological characteristics that enhance a person’s ability to perform. Meanwhile, Wiley and Carolyn (2017) relate staff attribute as one’s ability to perform the task that he or she has the right personal characteristics, the right mental capabilities for selling. Marketing scholars have recognized the importance of personality components, especially in giving some guidance for the selection and hiring of staff.

Statement of the Problem

Sales performance is still a challenge globally. In Nigeria, the challenges of sales performance are prevalent amongst the casket dealers. Herrbling, (2017) noted a declining sales performance for Apam LTD in its 2016 financial year leading to its poor financial performance. Merchandizing is one of the strategies that all companies (including casket dealers) use to achieve better performance. However, these companies have not attained there targeted sales performance.
Niazi, Hayat and Waqar-ul-Hassan (2015)examined the visual Merchandising influence on organizational Brands and found that majority of companies understands the importance of merchandising and consider it important for customer’s satisfaction and their margin. Mehta
and Chugan (2013) study investigated the impact of visual merchandising on impulse buying behavior of consumer: A case from Central Mall of Ahmedabad India and established that impulse buying accounts for substantial sales across a broad range of productcategories in the stores. Thomas, Louise and Vipinkumar(2018) study investigated the impact of visual merchandising, on impulse buying behavior of retail customers and found that the effect of Promotional offerings at the entrance is comparatively very high. Therefore, this study investigated the influence of merchandizing application on sales performance of Apam LTD enugu state branch, Nigeria.

Study Objectives

The following general objective and specific objectives guided the study.

General Objective

The purpose of the study was to determine the impact of merchandizing practices and Apam’s sales performance.

Specific Objectives

The subsequent specific research objectives directed the research;

1. To find out the influence of customer attraction on Apam’s sales performance
2. To determine the influence of product differentiation on Apam’s sales performance
3. To establish the influence of product access on Apam’s sales performance
4. To assess the influence of staff attributes on Apam’s sales performance

Research Questions

The following research questions are used to guide the current study;

1. What effect does customer attraction have on Apam’s sales performance?
2. What is the effect of differentiation on the product at Apam’s sales performance?
3. What is the influence of product access on Apam’s sales performance?
4. What is the influence of staff attributes on Apam’s sales performance?

Significance of the Study

The study was crucial to Apam’s in improving their merchandizing practices with an aim of improving sales performance of the company. By establishing the extent to which product access affects the sales performance in company, this study will help companies in promoting sales by availing more goods to customers. This study established how product differentiation relates with sales performance of companies in decision making on branding. The study enables the top management of Apam in making decisions of merchandising. This study helps academicians in this subject area as well future researcher for the study contributes to the existing literature on sales performance and merchandizing application.

Scope of the Study

This study was carried out in Enugu state, Nigeria focusing on Apam LTD which is one of the casket dealers in Enugu state.This study was focusing on four merchandizing applications, namely, customer attraction, product access, product differentiation, and staff attributes on sales performance. Primary data was collected using questionnaires from management staff and line attendants. The study focused on sales performance of the company for the last 5 years (2014 – 2019).

Limitations of the study

As we all know that no human effort to achieve a set of goals goes without difficulties, certain constraints were encountered in the course of carrying out this project and they are as follows:-

1. Difficulty in information collection: I found it too difficult in laying hands of useful information regarding this work and this course me to visit different libraries and internet for solution.
2. Financial Constraint:    Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
3. Time Constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work. Also, the study expected the Apam’s staff who are the respondents to this study may lack time for responding to the study questionnaires since they might be attending to their daily duties. The researcher requested in writing to the supervisors and the management of the sampled company allow few minutes for the selected company staff to respond to the questionnaire.
4. FEAR: The management of the company hesitated in allowing the research to be carried out within their company environment for the fear that the data obtained may be shared to their competitors. To overcome this challenge, the researcher served the management of the Apam with the university’ letter of introduction outlining the study purpose and also introduce the researcher to the respondents. She also produced authorization letter from school management that indicated she is permitted undertake the study in that company.

Organization of the Study

The work is organized as follows: chapter one discuses the introductory part of the work, chapter two presents the literature review of the study,  chapter three describes the methods applied, chapter four discusses the results of the work, chapter five summarizes research outcomes and the recommendations.

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