THE INFLUENCE OF PROMOTION COST AND DISTRIBUTION COST TOWARDS THE SALES OF ORIFLAME PRODUCTS IN PEKANBARU

Abstract

The research was carried out at PT. Ayu Natural Orindo Oriflamme enterprise branch offices located at Jalan A. Yani Pekanbaru. Research objectives were to determine the effect of promotion and distribution costs for selling oriflame product in Pekanbaru and to determine which factors influence the more powerful the Oriflamme product sales in Pekanbaru. In this study, the method used in the data analysis of multiple regression models, with SPSS version 17. The results showed that the distribution cost and sales promotions cost positive have influence in increasing the sales of Oriflame product in Pekanbaru. Variable distribution costs in the category considerable influence on the sales of Oriflame product, while the variable costs of promotion and sales of Oriflame products considered to be very influential in this study. Thus, the cost of the promotion was perceived to have a stronger impact on sales compared to the Oriflame product distribution costs. Recommendations are given to the company is to further enhance the efficiency of the distribution cost so as to provide a better impact on sales in the future. To expand sales of Oriflame products recommended providing more promotional package so that consumers feel more pampered and consumers can more convenience to make purchases at the Oriflame products. Meanwhile, to increase sales of the oriflame products further enhanced, in term of distribution, the company should enlarge the number of it’s sales force such upperline and especially downline in order to deliver more effectively and efficiently so that Oriflame products soon reached the hands of consumers.