WERABE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANGMENT

A RESEARCH PROPOSAL ON:

ASSESSING THE PRACTICE OF PROMOTIONAL MIX: A CASE STUDY

OF ZEMEN FLOUR FACTORY

PREPARED BY: 1. SEMERE HINTSA

2. SHEWAYE SERAWORK

3. BIRHANU SHETIE

4. FETLEWORK DEGENE

5. EKRAM NURHASEN

ADVISOR: KIDER GELETU (MSc)

FEB 12, 2024

WERABE, ETHIOPIA
Acknowledgement

First and foremost, praises and thanks to the Almighty God, for his showers of blessing
throughout our proposal work to complete the research proposal successfully. Our deepest and
lovely gratitude goes to our advisor Mr. Kider G., from whom our long eagerly awaited dream is
able to bear a fruit through his intellectual support and scholastic criticism. We are also indebted
to extend our gratitude and heartfelt thanks to the staff members of the Department of Marketing
Management in Werabe University. Finally, we want to express our gratitude to our friends and
family for supporting our work in various ways.

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Table of Content

Acknowledgement ………………………………………………………………………………..1

List of Tables ……………………………………………………………………..……………. 4

List of Acronym ………………………………………………………………………………… 5

CHAPTER ONE …………………………………………………………………………………6

1 INTRODUCTION …………………………………….………………………………………6

1.1 Background of the Study …………………………………………………………………6

1.2 Statement of the Problem…………………………………….……………………………7

1.3 Research Questions ………………………………………………………………………8

1.4 Objectives of the Study ………………………………………………………………….9

1.4.1 General Objective …………………………………..………………………………9

1.4.2 Specific Objective …………………………………….……………………………9

1.5 Significance of the Study …………………………………………………………………9

1.6 Limitation of the Study ………………………………………………………..……….10

1.7 Scope of the Study ……………………………………………………………………..11

1.8 Organization of the Paper ……………………………………………..………………11

CHAPTER TWO ……………………………………………………………………..…………13

2 LITERATURE REVIEW ……………………………………………………………………13

2.1 Introduction ………………………………………………………………………………13

2.2 Introduction to Promotional Mix ……………………….………………………………13

2.3 Theoretical Framework …………………………………………………………………..14

2.4 Previous Studies on Promotional Mix Strategies ……………………………….………..16

2.5 Promotional Strategies in the Food Industry in Ethiopia ……………….……………17

2.6 Challenges and Opportunities in Promotional Mix Strategies in Ethiopia ……………18

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2.6.1 Challenges …………………………………………………………………………..18

2.6.2 Opportunities …………………………………………………………………...…..19

2.7 Research Gap …………………………………………………………….…………...….20

CHAPTER THREE ………………………………………….………………………………….21

3 RESEARCH METHODOLOGY ……………………………………………………………21

3.1 Description of the Study Area ………………………………………………..………….21

3.2 Research Approach …………………………………………………………….…..…...21

3.3 Research Design …………………………………………………………………………22

3.4 Type and Source of Data ……………………………………….………………………..22

3.4.1 Primary Sources of Data …………………………………………………………22

3.4.2 Secondary Sources of Data ………………………………………………………22

3.5 Method of Data Collection ………………………………………………………………22

3.6 Sampling Design ………………………………………………...………………………23

3.6.1 Target Population ………………………………………….………………………23

3.6.2 Sampling Technique ………………………………………………………………23

3.6.3 Sample Size ………………………………………………………………………23

3.7 Method of Data Analysis and Presentation …………………………..……………….…23

3.8 Ethical Consideration ……………………………………………………………………23

CHAPTER FOUR …………………………………………………………….…………………24

4 BUDGET AND TIME SCHEDULE ……………………………………………………….24

4.1 Work Schedule …………………………………………………………………………24

4.2 Budget Statement …………………………………………...…………………………..25

REFERENCE ……………………………………………..…………………………………….26

Appendices …………………………………………………………………………………28

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List of Tables

Table 4.1 ……………………………………………………………………...…………………24

Table 4.2 ………………………………………………………………………………...………25

Table A.1 ………………………………………………………………………………………..30

Table A.2 ………………………………………………………………………………………. 30

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List of Acronym

AIDA ……………………………………. Attention, Interest, Desire, and Action

CSR ………………………………………. Corporate Social Responsibility

SMEs ……………………………………… Small And Medium-sized Enterprises

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CHAPTER ONE

1 INTRODUCTION

1.1 Background of the Study

Promotional mix element are means by which firms attempt to inform, persuade, remind
consumers-directly or indirectly about a products and brands that they sell. In sense, marketing
communication represents the “voice” of the brand and is a means by which it can establish a
dialogue and build relationship with consumer. Marketing communication perform many
functions for consumers. Consumers can be told or shown how and why a product is used, by
what kind of person, and where and when. Consumers can learn about who make the product and
what the company and brand stand for; and consumer can be given an incentive or reward for
trial or usage. Marketing communication allow companies to link their brands to other people,
places, invents, brands, experiences, feelings, and things. Marketing communication can
contribute to brand equity by establishing the brand in memory and designing a brand image
(Phillip Kotler, 2006).

According to Ethiopian context, some of the listed promotional mix elements are not used
practically and effectively. The most common promotional mix elements, which are
implemented, are: advertising, sale promotional, public relation and personal selling to
encourage inter society and to increase the company’s sale volume (Rahel, 2007).

The promotional mix is a crucial component of a company's marketing strategy, as it involves

the coordination of various promotional tools to effectively communicate with customers and
drive sales. The elements of the promotional mix include advertising, sales promotion, public
relations, personal selling, and direct marketing (Kotler & Keller, 2016).

In the context of the food and beverage industry, promotional activities play a significant role in
creating awareness and preference for products among consumers. Zemen Flour Factory is a
leading player in the flour industry, producing high-quality flour products for both domestic and
international markets. The company has a strong brand presence and a wide distribution network,
but it is important for them to continuously assess and improve their promotional mix strategies
to maintain their competitive edge.

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This study aims to assess the practice of the promotional mix at Zemen Flour Factory, focusing
on how the company utilizes various promotional tools to reach their target market and achieve
their marketing objectives. By conducting a case study of Zemen Flour Factory, this research
will provide valuable insights into the effectiveness of their current promotional strategies and
suggest recommendations for improvement.

Overall, this research will contribute to the existing literature on promotional mix strategies in
the food and beverage industry and offer practical implications for companies looking to enhance
their promotional efforts. By understanding how Zemen Flour Factory utilizes the promotional
mix, other companies in the industry can learn best practices and implement more effective
marketing strategies to drive growth and success.

1.2 Statement of the Problem

Promotional mix is aseptic combination of promotional method used for one product or family of
product. Elements of promotional mix may include print or broadcast advertising, direct
marketing personal selling of point of sale display and merchandising (J, baker 1995). Promotion
is the communicating information between seller and potential buyer or other in the channel to
influence attitudes and behaviors. The marketing manager’s main promotion job is to tell target
customers that the right product is available at right place at the right price (William, D,
Perrault,and Jr. E. Jerome).

Despite the extensive literature on the theoretical aspects of promotional mix and its importance
in marketing strategies, there is a lack of empirical research on how these strategies are
implemented and assessed in real-world business contexts. This gap is particularly evident in the
case of the Zemen Flour Factory, where limited information is available on the specific
promotional tactics used, their effectiveness, and their impact on consumer behavior and brand
perception.

Previous studies have predominantly focused on general principles of promotional mix, such as
advertising, sales promotion, public relations, and personal selling, without delving into the
practical application and evaluation of these strategies in specific industries or companies (Kotler
& Keller, 2016). As a result, there is a need for research that examines how organizations like

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Zemen Flour Factory utilize their promotional mix to reach target markets, influence consumer
purchasing decisions, and enhance brand awareness and loyalty.

The lack of research on the practice of promotional mix specifically within the Zemen Flour
Factory presents a significant gap in the literature. While numerous studies have explored the
theoretical underpinnings of promotional mix, there is a dearth of empirical research that
investigates how these concepts are applied and evaluated in real-world business settings,
particularly within the context of the Zemen Flour Factory.

Existing research has highlighted the importance of a well-executed promotional mix in driving
consumer awareness, influencing purchasing decisions, and ultimately enhancing a brand's
competitive position (Kotler & Keller, 2016). However, without a concrete understanding of how
promotional strategies are implemented and assessed in practice, companies like Zemen Flour
Factory may struggle to optimize their marketing efforts.

By conducting a case study of the Zemen Flour Factory and assessing its promotional mix
practices, this research aims to provide valuable insights into the effectiveness of these strategies
in the context of a specific industry. This study will contribute to the existing literature by
offering empirical evidence on the impact of promotional mix on consumer behavior and brand
perception, and by identifying potential areas for improvement in the implementation of these
strategies in the Zemen Flour Factory and similar businesses.

1.3 Research Questions

In order to attain the objectives of the study, we will employ the following research questions:

1. What are the current promotional mix strategies utilized by the Zemen Flour Factory?
2. What are the strengths and weaknesses of the current promotional mix strategies of the
Zemen Flour Factory?
3. How effective are the promotional mix strategies of the Zemen Flour Factory in reaching
and engaging the target market?
4. What is the impact of the promotional mix strategies on brand awareness, perception, and
customer loyalty within the Ethiopian market?

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1.4 Objective of the Study

1.4.1 General Objective

The overall objective of the study is to assess the practice of promotional mix in case of Zemen
Flour Factory.

1.4.2 Specific Objective

Specifically, the study will employ the following objectives:

1. To analyze the current promotional mix strategies employed by the Zemen Flour Factory
in Ethiopia.
2. To evaluate the effectiveness of the promotional mix strategies in reaching and engaging
the target market in Ethiopia.
3. To assess the impact of the promotional mix strategies on brand awareness, perception,
and customer loyalty within the Ethiopian market.
4. To identify strengths and weaknesses in the current promotional mix strategies of the
Zemen Flour Factory and recommend potential improvements.

1.5 Significance of the Study

The significance of the study on the promotional mix strategies of the Zemen Flour Factory in
Ethiopia lies in its potential to contribute valuable insights to both academia and industry. Firstly,
by examining the company's promotional mix strategies and their impact on consumer behavior
and perceptions in the Ethiopian market, the study can provide practical and actionable
recommendations for the Zemen Flour Factory and other businesses operating in the region.
These recommendations can help companies in Ethiopia optimize their promotional efforts,
enhance brand visibility, and improve customer engagement, ultimately leading to increased
sales and market share.

Secondly, the study can also contribute to the body of knowledge in marketing and consumer
behavior by providing a case study of promotional strategies in a developing market context.
This can help academics and researchers better understand the effectiveness of different
promotional mix elements in reaching and influencing consumers in emerging economies like
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Ethiopia. The study can also shed light on the unique challenges and opportunities faced by
companies in such markets, informing future research in the field of marketing theory and
practice.

Overall, the study has the potential to bridge the gap between theoretical knowledge and
practical application in the field of marketing, offering valuable insights to both academia and
industry stakeholders. By highlighting the importance of strategic promotional mix decisions in
driving business success in the Ethiopian market, the study can serve as a useful reference for
marketing professionals, researchers, policymakers, and other stakeholders interested in
understanding and optimizing promotional strategies in developing economies.

1.6 Limitation of the Study

One potential limitation of the study on the promotional mix strategies of the Zemen Flour
Factory in Ethiopia is the reliance on secondary data and information provided by the company.
The accuracy and completeness of the data may be subject to biases or inaccuracies, which could
affect the reliability and validity of the findings. Additionally, the availability of data on
consumer behavior, market trends, and competitor activities in the Ethiopian market may be
limited, which could constrain the depth and breadth of the analysis.

Another limitation is the focus on a single company, which may not provide a comprehensive
understanding of the promotional strategies employed by other businesses in the industry. This
could limit the generalizability of the findings and recommendations to a broader context.
Moreover, the study may overlook the influence of external factors such as economic conditions,
cultural norms, or regulatory changes on the effectiveness of the promotional mix strategies,
which could impact the significance and applicability of the results.

Furthermore, the study's scope may be constrained by time and resource limitations, potentially
limiting the ability to conduct in-depth interviews, surveys, or observational research to gain a
richer understanding of consumer perceptions and behaviors. This could affect the depth of the
analysis and the robustness of the conclusions drawn from the study. Addressing these
limitations by acknowledging and mitigating potential biases, expanding the scope of the

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research, and considering alternative data sources can enhance the study's credibility and
relevance in informing marketing strategies in the Ethiopian market.

1.7 Scope of the Study

The scope of the study on the promotional mix strategies of the Zemen Flour Factory in Ethiopia
will encompass an in-depth analysis of the various promotional mix elements utilized by the
company, including advertising, sales promotion, public relations, direct marketing, and personal
selling. This examination will be conducted with a specific focus on the target market in
Ethiopia, exploring the demographic, psychographic, and behavioral characteristics of consumers
to better understand their preferences and responses to marketing initiatives. The study will also
evaluate the effectiveness of the Zemen Flour Factory's promotional mix strategies in engaging
and reaching the target market, encompassing both urban and rural areas of Ethiopia.
Furthermore, the impact of these strategies on aspects such as brand awareness, perception, and
customer loyalty within the Ethiopian market will be assessed. Potential challenges and
limitations faced by the company in implementing its promotional mix strategies will also be
considered, alongside recommendations for optimizing these strategies to enhance marketing
performance and competitive advantage in the region. Additionally, the study will provide
insights into consumer behavior, preferences, and responses to marketing stimuli in Ethiopia,
aiming to inform future promotional strategies not only for the Zemen Flour Factory but also for
other businesses operating within the local market. Comparisons with industry best practices and
benchmarks will also be made to gauge the company's promotional efforts against prevalent
norms and standards in the Ethiopian context.

1.8 Organization of the Paper

This paper consists of five chapters. Chapter one serves as an introduction to the study. Chapter
two provides a review of the related literature; including theoretical and empirical literature to
offer a comprehensive understanding of the research's context. The research methodology is
outlined in chapter three, detailing the principles, approaches, and processes that are employed to
undertake the study. Chapter four is dedicated to data presentation, analysis, and interpretation,
wherein the research's results and observations are explained. Finally, chapter five includes a
summary of the study, conclusions drawn from the findings, and recommendations for future

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research. This chapter serves as a conclusion of the paper's core themes and provides guidance
for future research in this topic area.

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CHAPTER TWO

2 LITERATURE REVIEW

2.1 Introduction

This chapter offers a comprehensive review of selectively adopted literature that pertains to the
subject matter of this study. The literature reviewed in this chapter includes book chapters and
journal articles which provide an extensive analysis of the promotional mix. Empirical studies
that examine the impact of promotional mixes are also discussed in this chapter. Additionally,
this chapter presents a conceptual framework that has been developed from both theoretical and
empirical literature to identify the key factors that determine the promotional mixes. Overall, this
literature review aims to provide a detailed understanding of the key concepts that shape the
objectives of this study.

2.2 Introduction to Promotional Mix

The promotional mix is a fundamental element of marketing strategy that comprises a

combination of promotional tools and tactics used by companies to communicate with target
audiences and promote their products or services (Fill, 2013). It encompasses various
components, including advertising, sales promotion, public relations, personal selling, and direct
marketing, which work collectively to achieve marketing objectives and drive customer
engagement (Kotler et al., 2016).

Advertising, as a key component of the promotional mix, involves paid, non-personal

communications through diverse media channels such as television, radio, print, online, and
social media to inform, persuade, and remind consumers about a brand or product (Belch &
Belch, 2020). Sales promotion, on the other hand, includes short-term incentives and
promotional activities like discounts, contests, and loyalty programs aimed at stimulating
immediate sales and enhancing customer engagement (Clow & Baack, 2017).

Public relations form another important element of the promotional mix, focusing on managing a
company's reputation, fostering positive relationships with stakeholders, and generating
favorable publicity through media relations, sponsorships, and events (Kitchen & Burgmann,
2010). Personal selling, involving direct one-on-one communication between sales
representatives and customers, enables companies to tailor messages, address customer needs,

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and facilitate individualized sales interactions (Churchill et al., 2019). Additionally, direct
marketing utilizes personalized communication channels such as direct mail, email, and online
advertising to target specific customer segments and drive immediate responses (Kotler &
Armstrong, 2008).

The promotional mix plays a critical role in marketing strategy by enabling companies to
effectively communicate value propositions, differentiate their offerings, and persuade
consumers to make purchase decisions (Pickton & Broderick, 2005). Through a strategic blend
of promotional tools and tactics, companies can enhance brand awareness, influence consumer
perceptions, and drive sales and revenue growth in competitive market environments
(Brassington & Pettitt, 2006).

Moreover, the promotional mix contributes significantly to shaping consumer behavior and
perceptions by creating brand awareness, building brand loyalty, influencing purchase intent, and
reinforcing brand image (Shimp & Andrews, 2013). By leveraging the promotional mix
effectively, companies can strengthen customer relationships, enhance market presence, and gain
a competitive edge in the marketplace (Jobber & Ellis-Chadwick, 2016).

In conclusion, a comprehensive understanding of the components and importance of the

promotional mix is essential for companies to develop impactful marketing campaigns, engage
with consumers effectively, and achieve marketing objectives in a dynamic business landscape
(Smith & Taylor, 2019).

2.3 Theoretical Framework

In the field of marketing, various theories and models provide a theoretical foundation for
understanding how promotional strategies influence consumer behavior and purchasing
decisions. Some of the key marketing theories and models related to the effectiveness of
promotional strategies include:

1. AIDA Model: The AIDA model, which stands for Attention, Interest, Desire, and Action, is a
classic framework that describes the stages a consumer goes through when exposed to a
marketing message. According to this model, effective promotional strategies should first
capture the consumer's attention, generate interest in the product or service, create desire for the
offering, and ultimately lead to action or purchase (Blythe, 2009). This model emphasizes the

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importance of creating engaging and persuasive promotional messages that guide consumers
through the decision-making process.

2. Hierarchy of Effects Model: The hierarchy of effects model outlines a series of stages that
consumers go through when making a purchase decision. This model suggests that consumers
move through stages such as awareness, knowledge, liking, preference, conviction, and purchase
in a sequential manner (Lavidge & Steiner, 1961). Promotional strategies play a crucial role in
guiding consumers through these stages by building brand awareness, shaping brand perceptions,
and influencing purchase intent.

In addition to these overarching marketing theories, several theoretical concepts are relevant to
understanding the impact of promotional mix elements on key marketing outcomes such as brand
awareness, brand image, customer loyalty, and purchase intent:

1. Brand Awareness: Brand awareness refers to the extent to which consumers are familiar with
a brand and its offerings. Promotional mix elements such as advertising and public relations play
a vital role in building and maintaining brand awareness by increasing brand visibility and
exposure to target audiences (Keller, 1993). Effective promotional strategies can enhance brand
recall and recognition, making the brand more top-of-mind for consumers.

2. Brand Image: Brand image reflects consumers' perceptions, beliefs, and associations with a
brand. Promotional mix elements like advertising and public relations contribute to shaping
brand image by communicating brand values, positioning, and personality to consumers (Aaker,
1996). Consistent messaging and branding across promotional channels help reinforce the
desired brand image and differentiate the brand from competitors.

3. Customer Loyalty: Customer loyalty refers to the degree of attachment, trust, and repeat
purchase behavior exhibited by customers towards a brand. Promotional mix elements such as
sales promotions and direct marketing can be effective in fostering customer loyalty by
rewarding and incentivizing repeat purchases, building customer relationships, and enhancing
customer satisfaction (Reichheld, 1996). Engaging and personalized promotional activities can
strengthen customer loyalty and increase customer lifetime value.

4. Purchase Intent: Purchase intent refers to consumers' likelihood or inclination to purchase a

product or service in the near future. Promotional mix elements, particularly personal selling and

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sales promotions, can influence purchase intent by creating a sense of urgency, providing
incentives, and addressing consumer needs and preferences (Rust & Oliver, 1994). Strategic
promotional tactics that encourage trial and purchase can drive purchase intent and lead to
conversion.

By integrating these theoretical frameworks and concepts into their promotional strategies,
companies can enhance the effectiveness of their marketing efforts, influence consumer
behavior, and drive positive outcomes such as increased brand awareness, brand image
enhancement, customer loyalty, and purchase intent. Understanding the underlying theories and
principles of marketing can help businesses develop more strategic and impactful promotional
campaigns that resonate with consumers and drive business growth.

2.4 Previous Studies on Promotional Mix Strategies

In the field of marketing, numerous studies have examined the use of promotional mix strategies
by companies in developing markets, with a specific focus on the food and beverage industry.
These studies have delved into the effectiveness of various promotional mix elements in
influencing consumer behavior and purchasing decisions. Here is a summary of some key
research findings in this area:

Sharma and Yadav (2018) explored the use of promotional mix strategies in the food and
beverage industry in developing markets. The study highlighted the importance of integrating
multiple promotional elements such as advertising, sales promotions, and social media marketing
to create a comprehensive promotional mix strategy. The researchers found that companies that
effectively combine different promotional tactics are more successful in reaching and engaging
consumers in developing markets.

In their study, Oktaviani et al. (2019) investigated the impact of promotional mix elements on
consumer purchase behavior in the food and beverage sector. The researchers found that
promotional activities such as discounts, events, and sponsorships significantly influence
consumer attitudes and purchase intentions. They concluded that companies need to carefully
design and execute their promotional mix strategies to effectively capture consumers' attention
and drive purchase decisions.

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Maitri and Chakrabarti (2020) analyzed the role of promotional mix elements in building brand
awareness and loyalty in the food and beverage industry. The study revealed that brand
awareness and loyalty are positively influenced by promotional activities such as advertising,
product sampling, and point-of-purchase displays. The researchers emphasized the importance of
creating engaging and memorable promotional campaigns to enhance brand perception and
customer loyalty in competitive markets.

Sutha et al. (2021) conducted a study on the effectiveness of promotional mix strategies in
influencing consumer perceptions and preferences in the food and beverage industry. The
researchers found that promotional elements like celebrity endorsements, public relations, and
social media influencers play a significant role in shaping consumer preferences and purchase
decisions. They recommended that companies tailor their promotional mix strategies to align
with consumer preferences and market trends.

Overall, these studies underscore the importance of leveraging a mix of promotional elements in
the food and beverage industry to influence consumer behavior, enhance brand perception, and
drive purchase decisions in developing markets. By understanding the effectiveness of different
promotional mix strategies and elements, companies can create targeted and impactful marketing
campaigns that resonate with consumers and drive business growth.

2.5 Promotional Strategies in the Food Industry in Ethiopia

The food and beverage industry in Ethiopia has experienced significant growth in recent years,
with a range of domestic and multinational companies operating in this sector. Here is an
analysis of the promotional strategies adopted by companies in the Ethiopian food industry, with
a focus on successful campaigns and their impact on key marketing outcomes:

1. Advertising: Companies in the Ethiopian food industry have used various forms of
advertising to promote their brands and products. Television, radio, and print media are
commonly used channels for advertising, while social media and online advertising have gained
more prominence in recent years. For example, Dashen Brewery, a leading beverage company in
Ethiopia, has invested in television and online advertising to promote its products and build
brand awareness. Their promotional campaigns have been successful in increasing brand
visibility and market share (Tesfaye, 2015).

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2. Sales Promotions: Promotional activities like discount offers, coupons, and free sampling
have been used by food and beverage companies in Ethiopia to drive sales and build customer
loyalty. For instance, BGI Ethiopia, a local beer and soft drink manufacturer, offers discounted
prices, promotions and giveaways during popular festivals in Ethiopia, such as the Ethiopian
New Year and Christmas. Such promotions have helped the company to increase their sales, gain
market share, and build customer loyalty (The Reporter, 2018).

3. Public Relations: Companies in the Ethiopian food industry have also used public relations
activities to build brand image and enhance brand reputation. This can include activities such as
sponsorship of local events/activities, community engagement initiatives and corporate social
responsibility (CSR) activities. For example, Nestlé Ethiopia, a multinational food and beverage
company, has implemented numerous CSR projects such as nutrition education programs for
children, school kitchen construction, and water supply projects in rural areas of Ethiopia. These
initiatives help to build a positive image for the company and improve brand perception among
consumers (Addis Fortune, 2020).

4. Personal Selling: Personal selling is another promotional strategy that is often employed by
food and beverage companies in Ethiopia. This involves face-to-face interactions between sales
representatives and potential customers. For example, PepsiCo International engages in personal
selling during their promotional campaigns where sales representatives promote their products
directly to customers in a specific target area. This has been successful in driving product trial
and encouraging repeat purchases (Haile, 2018).

Overall, these promotional strategies have had a positive impact on the Ethiopian food industry,
as evidenced by increased brand awareness, market share, and customer loyalty for companies
such as Dashen Brewery, BGI Ethiopia, Nestlé Ethiopia, and PepsiCo International. By adopting
creative and effective promotional strategies tailored to the Ethiopian market context, food and
beverage companies can continue to effectively influence consumer behavior and drive business
growth.

2.6 Challenges and Opportunities in Promotional Mix Strategies in Ethiopia

2.6.1 Challenges

According to Tadesse, Y. (2019), the following main challenges are mentioned:

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1. Limited Infrastructure: One of the key challenges faced by companies in Ethiopia when
implementing promotional mix strategies is the limited infrastructure, especially in rural areas.
This makes it difficult to reach a wider audience through traditional advertising channels such as
television and print media.

2. Cultural Diversity: Ethiopia is a culturally diverse country with many different ethnic groups
and languages. Companies need to tailor their promotional messages to resonate with the diverse
population, which can be a complex and challenging task.

3. Low Internet Penetration: While digital marketing is becoming increasingly important, the
low internet penetration rate in Ethiopia poses a challenge for companies looking to leverage
online promotional channels effectively.

4. Budget Constraints: Many companies in Ethiopia, especially small and medium-sized

enterprises (SMEs), face budget constraints when it comes to implementing comprehensive
promotional strategies. Limited financial resources can hinder their ability to invest in
advertising and promotional activities.

2.6.2 Opportunities

According to Zekarias, M. (2020), the following opportunities are mentioned:

1. Rise of Social Media: Despite the challenges of low internet penetration, social media
platforms such as Facebook, Twitter, and Instagram are gaining popularity in Ethiopia.
Companies can leverage social media marketing to reach a wider audience and engage with
consumers in a cost-effective manner.

2. Mobile Marketing: Mobile phone penetration is high in Ethiopia, presenting an opportunity

for companies to implement mobile marketing strategies such as SMS marketing and mobile
apps to connect with consumers on-the-go.

3. Influencer Marketing: Collaborating with local influencers and celebrities can help
companies in Ethiopia to increase brand visibility and credibility among consumers. Influencer
marketing has proven to be an effective promotional strategy in various markets worldwide.

4. Experiential Marketing: Creating unique and memorable experiences for consumers through
events, product demonstrations, and sampling activities can help companies stand out in the
competitive Ethiopian market and build customer loyalty.
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By recognizing these challenges and leveraging the opportunities presented by the evolving
marketing landscape in Ethiopia, companies can optimize their promotional efforts and gain a
competitive advantage in the market.

2.7 Research Gap

While previous studies have provided valuable insights into the relationship between
promotional mix strategies and consumer behavior, there are several gaps that remain
unaddressed. These include:

1. Limited research on the specific challenges and opportunities faced by companies in

developing economies, such as Ethiopia, when implementing promotional mix strategies.
2. The need for more in-depth analysis of the cultural factors that impact consumer
responses to promotional activities in diverse markets like Ethiopia.
3. The lack of studies that explore the effectiveness of experiential marketing and influencer
marketing in influencing consumer behavior in the Ethiopian context.
4. The evolving nature of digital marketing and the need for research on the latest trends
and strategies that can be leveraged to optimize promotional efforts in developing
economies.

Our study aims to address these gaps by conducting a comprehensive analysis of promotional
mix strategies and consumer behavior in the Ethiopian market. By exploring the specific
challenges and opportunities faced by companies in Ethiopia and examining the effectiveness of
emerging promotional tools, we seek to contribute to the field of marketing and consumer
behavior research by providing relevant and actionable insights for practitioners and academics
alike.

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CHAPTER THREE

3 RESEARCH METHODOLOGY

3.1 Description of the Study Area

Zemen Flour Factory is a renowned flour production company located in Addis Ababa, Ethiopia.
The factory is strategically situated in an industrial zone, allowing for efficient distribution and
access to both urban and rural markets across the country. Zemen Flour Factory is known for its
high-quality flour products, catering to a diverse customer base that includes bakeries,
restaurants, and households. Established over two decades ago, Zemen Flour Factory has built a
strong reputation for reliability and consistency in providing superior flour products to meet the
needs of its customers. The factory is equipped with modern machinery and production facilities,
ensuring high levels of efficiency and product quality throughout the manufacturing process. As
a key player in the Ethiopian flour industry, Zemen Flour Factory faces competition from other
local and international flour producers operating in the market. To maintain its competitive edge,
the factory continuously innovates its production processes, explores new market opportunities,
and adopts effective promotional mix strategies to engage customers and drive sales.

The study area of Zemen Flour Factory provides a rich context for examining the interaction
between promotional mix strategies and consumer behavior within the flour industry in Ethiopia.
By conducting research within this specific setting, we aim to uncover valuable insights and
recommendations for enhancing promotional activities, understanding consumer preferences, and
fostering customer loyalty in the competitive Ethiopian flour market.

3.2 Research Approach

Research approaches are plans and the procedures for research that span the steps from broad
assumptions to detailed methods of data collection, analysis, and interpretation. There are three
kinds of research approaches such as qualitative approach, quantitative approach and mixed
approach. Therefore, the researcher will only employ qualitative research approach in the study,
in order to assess the practice of promotional mix in the case of Zemen Flour Factory.
Qualitative research is an approach for exploring and understanding the meaning individuals or
groups ascribe to a social or human problem. The process of research involves emerging
questions and procedures, data typically collected in the participant’s setting, data analysis

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inductively building from particulars to general themes, and the researcher making
interpretations of the meaning of the data.

3.3 Research Design

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data. In case, the researcher will employ descriptive research design to assess the
practice of promotional mix in the case of Zemen Flour Factory. Therefore, descriptive research
design is a type of research design that aims to systematically obtain information to describe a
phenomenon, situation, or population. As result, this design will enable the researcher to provide
enough description about the characteristics of the target population.

3.4 Type and Source of Data

The researcher will employ both primary and secondary sources of data.

3.4.1 Primary Sources of Data

Primary sources of data is that which had not been previously generated. It is a first-hand sources
of data. It's collected at the time of research by the researcher themselves through like survey,
questionnaires, interview, etc. So, the researcher will use the primary sources of data.

3.4.2 Secondary Sources of Data

As opposed to primary sources of data, secondary data is that which already exists at the time of
research. The researcher does not have to generate it themselves, but rather, can simply collate or
analyze data which has already been collected. Therefore, the researcher will also use the
secondary sources of data.

3.5 Method of Data Collection

In order to gather primary sources of data the researcher will employ a close-ended
questionnaires. Because, a close ended questions are a question types that ask respondents to
choose from a distinct set of pre-defined responses, such as “yes/no” or among set multiple
choice questions. While the researcher gathers the secondary sources of data through different
international publications, news papers, journals, official statics, etc.

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3.6 Sampling Design

3.6.1 Target Population

The target population for this study will be employees and management staff of Zemen Flour
Factory who are working under the integrated marketing and sales division. In addition, the
target population for the study will also be customer’s, who are client for Zemen Flour Factory.

3.6.2 Sampling Technique

In this study, the researcher will employ purposive sampling technique, the procedure in which a
researcher selects the sample based on some appropriate characteristic was also chosen to take a
sample of participants.

3.6.3 Sample Size

From all 76 senior staff including employees and management staff working under Zemen Flour
Factory, the study will draw 24 sample respondents. In addition, twenty six (26) customers who
are client for Zemen Flour Factory, will be drawn as sample respondents. Therefore, the study
will have 50 total sample size respondents.

3.7 Method of Data Analysis and Presentation

In this study the data will be analyzed and interpreted through using different methods. The
quantitative data obtained from different sources will be organized and analyzed by using
descriptive statistics such as percentile, min, max, and mean. The data which collected in
qualitative method will be analyzed using thematic method such as word and statements. Further,
the analyzed data will be presented in graphical and tabulation form.

3.8 Ethical Consideration

This research is common up on approval by Werabe University. Furthermore, during period of

data collection, the researcher will obtained legal letter from department of marketing
management and also the researcher respected the culture, custom, value and religion of
participant. Moreover, the study clearly inform the real objective of the study and also the
researcher will be asked the willingness of the respondents to participate in the study and also the
response was kept secretly in-order to assure its confidentiality.

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CHAPTER FOUR

4 BUDGET AND TIME SCHEDULE

4.1 Work Schedule

The following table shows the time plan through which the researcher will follow when doing
the research.

Table 4.1: Time Frame

Activities Jun Jul Aug Sep Oct

NO

1 Title selection

2 Study area

3 Review literature

4 Data collection

5 Data entry

6 Data analysis

7 First draft writing

8 Final draft writing

4.2 Budget Statement

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The overall financial resource required for conducting this study is presented as follows:

Table 4.2: Budget Frame

No Item Measurement unit

Quantity Unit price Total price

1 Paper 300 2 600

2 Pen 10 15 150

3 Note book 1 250 250

4 Flash disk 16 GB 300 300

5 Writing and printing cost 70 5 350

per page

7 Miscellaneous expense 1000

8 Internet unlimited 2 999 1998

monthly package

Total 4648

REFERENCES

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sustainable-projects-in-rural-areas/.
 Belch, G. E., & Belch, M. A. (2020). Advertising and promotion: An integrated
marketing communications perspective. McGraw-Hill Education.
 Brassington, F., & Pettitt, S. (2006). Principles of marketing. Pearson Education.

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 Churchill, G. A., et al. (2019). Marketing: Creating value for customers. Pearson.
 Clow, K. E., & Baack, D. (2017). Integrated advertising, promotion, and marketing
communications. Pearson.
 Fill, C. (2013). Marketing communications: engagement, strategies, and practice. Pearson
Higher Ed.
 Haile, M. (2018). Promotional tools and customer preference: A case of PepsiCo
International. International Journal of Business and Economics Research, 7(4), 139-146.
 Jobber, D., & Ellis-Chadwick, F. (2016). Principles and practice of marketing. McGraw-
Hill Education.
 Kitchen, P. J., & Burgmann, I. (2010). Integrated marketing communication: Making it
work at a strategic level. Journal of Business Strategy.
 Kotler, P., Armstrong, G., & Cunningham, P. (2016). Principles of marketing. Pearson.
 Kotler, P., & Armstrong, G. (2008). Principles of marketing. Pearson Education.
 Maitri, S., & Chakrabarti, P. (2020). Role of promotional mix elements in building brand
awareness and loyalty in the food and beverage industry. International Journal of
Business Management, 22(4), 110-122.
 Oktaviani, R., et al. (2019). Impact of promotional mix elements on consumer purchase
behavior in the food and beverage sector. Journal of Marketing Research, 15(2), 45-56.
 Pickton, D., & Broderick, A. (2005). Integrated marketing communications. Pearson
Education.
 Sharma, A., & Yadav, S. (2018). Integrating promotional mix strategies in the food and
beverage industry in developing markets. International Journal of Marketing Studies,
10(3), 87-98.
 Shimp, T. A., & Andrews, J. C. (2013). Advertising, promotion, and other aspects of
integrated marketing communications. Cengage Learning.
 Smith, P. R., & Taylor, J. (2019). Marketing communications: An integrated approach.
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 Sutha, K., et al. (2021). Effectiveness of promotional mix strategies in influencing
consumer perceptions and preferences in the food and beverage industry. Journal of
Consumer Behavior, 18(3), 205-218.

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 Tadesse, Y. (2019). Challenges of Digital Advertising and Opportunity for Creativity in
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 Tesfaye, A. (2015). The role of advertising in promoting sales of Dashen brewery
products: A case study in Gondar town, North-West Ethiopia. International Journal of
Marketing and Business Communication, 4(2), 1-10.
 The Reporter. (2018). BGI wins beer market competition in Ethiopia. Retrieved from
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Appendix - A

Survey Questionnaire

WERABE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

27
A Questionnaire to be filled by Employees and Customers of Zemen Flour Factory:

Dear Respondents,

This study is conducted as partial fulfillment of the requirements for the Award of the Degree of
Bachelor of Arts in Marketing Management, and which it focuses on the practice of promotional
mix in the case of Zemen Flour Factory. The information that you will provide in this
questionnaire will be used for academic purposes only and will be kept strictly confidential. The
reliability and the strength of the findings are exceedingly dependent on your trustworthy and
honest responses.

I thank you in advance for your valuable time and collaboration!

Instructions:- The success of this study greatly depends on the researcher's usage of this
questionnaire to get accurate data. Therefore,

 Not need of writing your name.

 Put the (√) mark in the box for your response.

 Make an effort to respond to the entire question given below.

Thank you in advance for your cooperation!!

Direction: Please tick in the empty box for your right choices 

Part One: Personal Information

1. Gender:

Male 

Female 

2. Age

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21 - 30 years 

31 - 40 years 

41 - 50 years

Above 50 years 

3. Educational Level

Diploma 

BA/BSc 

MA/MSc 

PhD 

4. Working Experience

Less than 1 years 

2-5 years

6-10 years 

Above 10 years 

Part Two: Likert scale-based survey questionnaires

Here are the Likert scale-based survey questionnaires for both employees and customers of
Zemen Flour Factory presented in table format:

Table A.1: Employee Survey Questionnaire

Questions Very Satisfi Neutra Dissati Very

Satisfi ed l sfied Dissati
ed sfied

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How satisfied are you with the current
promotional strategies used by Zemen Flour
Factory?
To what extent do you feel adequately informed
about the promotional activities of the company?
How motivated are you to participate in
promotional events organized by Zemen Flour
Factory?
Please rate the effectiveness of the current
communication and coordination of promotional
efforts within the company.
How well-supported do you feel as an employee
involved in promoting Zemen Flour products?

Table A.2: Customer Survey Questionnaire

Questions Very Ineffec Neutra Effecti Very

Ineffec tive l ve Effecti
tive ve
On a scale of 1-5, how effective do you find
Zemen Flour's promotional campaigns in creating
awareness about their products?
How likely are you to participate in promotional
activities organized by Zemen Flour Factory in
the future?
Please rate the impact of Zemen Flour's
promotional efforts on your purchasing decisions
for flour products.
How satisfied are you with the level of
communication from Zemen Flour regarding their
promotions and offers?
On a scale of 1-5, how likely are you to
recommend Zemen Flour products to others based
on their promotional activities?

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