Effect of Adverting Strategies on Profitability of Manufacturing Companies in Rwanda, a Case Study of Rwanda Foam LTD, from 2019 to 2023

Abstract

The study sought to examine the effect of advertising on the profitability of manufacturing companies in Rwanda. It was conducted explicitly in the Rwanda Foam LTD,with the following specific objectives: to analyze the effectiveness of advertisement in the Rwanda Foam LTD,and to assess the relationship between advertisement and the profitability of manufacturing companies. The study has collected data through mixed approaches to achieve the above-stated objectives. Data were collected from 40 respondents who were employees of Rwanda Foam LTD and were selected purposively. The results showed that Research found that activities performed by the Rwanda Foam LTD such as advertising have 40% of the respondents because many Rwandans lesson to the radios and television and other advertisement channels which make many Rwandans to be customers of Rwanda Foam LTD, pricing and branding takes 30% of the respondents pricing is one way for attracting customers where the lower prices attract many customers while 25% of respondents disagreed with the statements, sales promoting have 12.5 % of the respondents when Bank establish sales promotion many customers open the account in order to get chance to be one of the customers to participate in then become the permanent customers and finally 17.5% of the respondents are in public relation, 25% of respondents said that they opted to use newspaper to communicate, 10% of respondents revealed that they opted to use billboards, 5% of respondents pronounced that they use radio media to advertise and sensitize while 12.5% of respondents stated that all statements presented above are used as strategies to create awareness of customers while were neutral with the statement Regards on the importance which are considered in daily activities of Rwanda Foam LTD and the results from respondents shows that 32.5% of respondents agreed that an efficient marketing strategies results in lower costs of distribution and lower prices to consumers, 15% of respondents revealed that marketing strategies helps in stabilizing the price level in the daily activities of Rwanda Foam LTD and this is important due to the fact that they produce what consumers demand and consumers have a wide choice of products where there are no fluctuation in price of Rwanda Foam LTD.TResearch found that 100% of the respondents strongly agree that there is a relationship between advertisement strategies and profitability of Rwanda Foam. In comparison, 100% of the majority of them agreed that there is a big relationship between them.These results provide evidence to reject the null hypothesis that advertising strategies do not significantly influence on profitability of companies and to accept the alternative hypothesis that advertising strategies significantly influence the profitability of companies.