ASSESSMENT OF SALES PROMOTION TOOL ON PAINT ENTERPRISE PROFITABILITY AND SURVIVAL IN LAGOS STATE

Abstract

This study examines the impact of sales promotion tools on the profitability and survival of paint enterprises in Lagos State, Nigeria. The research was motivated by the increasing competition in the paint industry, which necessitates effective promotional strategies to enhance sales, strengthen market presence, and ensure business continuity. The study adopted a descriptive survey design, targeting 50 respondents, comprising 32 company staff and 18 distributors of fine coat paint. Data were collected using structured questionnaires and analysed through frequency distribution, percentages, and cross-tabulation to assess respondents’ perceptions of the effectiveness of promotional strategies.
The findings reveal that a significant majority of respondents (78%) believe that sales promotion positively impacts firm profitability, while 100% agreed that promotion enhances the performance of the company’s products. Furthermore, 66% of respondents indicated that promotion contributes to business survival, highlighting its role as a strategic tool for sustaining operations in competitive markets. The degree of agreement analysis also showed that 68% strongly agree and 22% agree that sales promotion drives profitability. The results underscore the direct and indirect influence of promotional activities on revenue generation, customer engagement, and operational resilience.
The study concludes that sales promotion is a veritable tool for improving profitability and ensuring business survival in paint enterprises. It recommends that firms strategically plan and implement promotional activities, integrating them with other operational strategies to maximize sales performance, enhance brand visibility, and sustain long-term growth. This research contributes to understanding the practical role of sales promotion in the Nigerian manufacturing sector and provides insights for managers seeking competitive advantage.