Impact of Promotion and Advertising on Success and Share Price of Lidl Company

This assignment explores the impact of promotion and advertising on the success and share price of Lidl Company. It includes a literature review, analysis of promotion and advertising concepts, and recommendations for better promotional strategies.

BA (Hons) Business and
Management with
Foundation Year in
Business

Executive summary
The current project is based on the topic of Impact of promotion and advertising in enhancing
success and share price of a company for which a study is under taken on Lidl company. This
assignment comprise of literature review based on analysis and evaluation of various online
articles and journals associated with current research topic to have a better understanding about
the set topic and its objective. Further, the issues and problem prevailed in the advertising and
promotional activity is also identified along with valid conclusion and recommendation.
Table of Contents
Project Topic: Impact of promotion and advertising in enhancing success and share price of a
company...........................................................................................................................................1
Background of chosen topic.............................................................................................................1
Project aims and objectives..............................................................................................................1
Literature review based on existing literature and secondary data..................................................2
To review about the concept of promotion and advertising along with its significance for a
firm.........................................................................................................................................2
To determine the impact lead by promotion and advertising in enhancing success level and
share price of Lidl company...................................................................................................3
To evaluate about some better and latest ways of promotions and advertising that could be
adopted by Lidl company to have an enhanced share price and better success level............3
Problem Identified in the area of Interest........................................................................................4
Conclusion and recommendations...................................................................................................5

Conclusion..............................................................................................................................5
Recommendation....................................................................................................................5
REFERENCES................................................................................................................................6

Project Topic: Impact of promotion and advertising in enhancing success and
share price of a company
Background of chosen topic
The concept of promotion and advertising is mainly associated with the type of a marketing
communication that are used to inform and persuade target audiences and customers through
leading better information and awareness about the relative merits of a product, service and
overall brand (Tigerstrom, 2017). Thus, the main aim of promotion and advertising is to increase
awareness of customers, create interest in product and service to generate higher sales level or
create brand loyalty. Current study is lead out on Lidl Company which is well known German
international supermarket chain having its branches across various location of world along with
UK to evaluate and analysis about the overall impact lead by the promotion and advertising in
enhancing success and share price of a company.
Project aims and objectives
Project Aim
To evaluate about the concept of promotion along with its impact on enhancing the
success level and overall share price of a company. A research project on Lidl.
Research Objective
 To review about the concept of promotion and advertising along with its significance for
a firm.
 To determine the impact lead by promotion and advertising in enhancing success level
and share price of Lidl company.
 To evaluate about some better and latest ways of promotions and advertising that could
be adopted by Lidl company to have an enhanced share price and better success level.
Research questions and hypothesis
The main research questions and hypothesis which are set out for current investigating
and needs to get evaluated by this particular study on Lidl company are listed as follows:
 What is meant by the concept of promotion and advertising?
 Why the concept of promotion and advertising is significant for a firm?
 What impact is lead by promotion and advertising in enhancing success level and
share price of Lidl company?
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 What are the some better and latest ways of promotions and advertising that could be
adopted by Lidl company to have an enhanced share price and better success level?
Literature review based on existing literature and secondary data
To review about the concept of promotion and advertising along with its significance for a firm.
As per the view point of Juska, J.M., 2017, the concept of Promotions is mainly referred
and represent the entire set of the activities which aim at providing information and
communicating about the product as well as brand along with other service offered and delivered
to the user (Promotion, 2020.). Thus, an analysis can be made that the main idea of promotion is
all about making people and customers aware about a product in order to attract and cater larger
number of customers who are induce to buy the product through leading effective promotion in
preference over others. On the other hand, it has been evaluated that the concept and meaning of
advertising is related and associated with the ways used by a firm and company to advertise a
product and service or a company through making use and help of various media like television,
radio or social media. Thus, an analysis can be drawn that advertising is important and helpful
for a firm as it helps in spreading and transferring better awareness and information about the
company and its brand through leading better advertising of its offered product or service. Beside
this, it has been also find out that various forms of mass media and digital modes are used by a
company for better advertising and promotion of its product which includes traditional media
like newspapers, magazines, television, radio, outdoor advertising or direct mail along with
newly developed and latest way of advertising and promotion like blogs, social media, websites
along with other form text or online messages (Zgheib, 2017).
Further, according to the view point of Fraser Sherman, 2019, it has been also analysed
that the concept of advertising and promotion is highly significant and important for a company
as Advertising plays a vital role in drawing and catering the attention of target customer towards
the products or services of a company which is significant to achieve the goal of company of
boosting sales. Use of Commercials along with newspaper ads and online ads plays a significant
role in promotion of a product and services which leads to enhanced publicity and Boost brand
awareness which convince and attract larger number of people to try and use product at least
once to enhance overall sales and productivity. Thus, an analysis can be made that the concept if
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promotion and advertising is significant and vital for a firm to have better publicity of its brands
and product that leads to enhanced brand image and better productivity and sales.
To determine the impact lead by promotion and advertising in enhancing success level and share
price of Lidl company.
With respect to the information provided by the Zgheib, P.W., 2017, it has been analysed
that an effective promotion and advertising strategy leads to a positive impact in enhancing
success level and share price by the way of creating enhanced awareness about product and
services among the customers. It has been also analysed that an effective promotion strategy and
wrong content and message through commercial advertising would lead to a reduction in brand
image and can hamper the reputation of product and services which also lead to reduction in
success level and share price of a firm. Thus, an analysis can be made that promotion and
advertising are two vital concept that have significant impact on maintaining and enhancing the
success level and share price of a company (Dzeparoski and Trajkovic-Jolevska, 2018). It has
been observed that a vital connection and communication level is provided and lead out by
promotional and advertising that plays a vital role in attracting larger number of customers and
building better brand image of companies like Lidl that enhance there overall profitability and
productivity level that would ultimate lead to enhanced market position and share price of a firm.
Thus, an analysis can be made that vital role and impact and lead out by advertising and
promotion in enhancing success and share price of a company through building brand image and
leading better publicity and awareness about the product and services offered by a firm that
attract and cater larger number of customers. Further, it has been analysed that an ineffective
advertising strategy and inappropriate promotional strategy can lead to creation of bad reputation
and hamper brand image and productivity of a firm that is the biggest issues and challenge
associated with the concept of advertising and promotion (Anand, Singh and Gandhi, 2018).
To evaluate about some better and latest ways of promotions and advertising that could be
adopted by Lidl company to have an enhanced share price and better success level.
According to the information provided by the Catherine Lovering, 2019, it has been find out
that the advertising and promotion are taken a lure that draws and cater the attention of
customers towards business and product thus, it become vital for a form to adopt and implement
most effective and better ways of promotions and advertising to have an enhanced share price
and better success level. Some of these better and latest ways of promotion that can be adopted
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by Lidl company to have an enhanced share price and better success level are discussed and
evaluated as below:
Purchased Online Ads and Television Advertising- The strategy of Posting ads and
commercial videos and images on websites that have heavy traffic and presence of large number
of individuals is an effective strategy of promotion and advertising to communicate information
about product and services with specific target market. Further, television ads ad commercial
also facilitates an effective way of publicity and communicating information about the product or
service with a high price point (Mehmood and Ali, 2020).
Social Media Marketing- It is the latest and most effective trend seen in the advertising and
promotional strategy that comprises of making use of social media platforms to reach and
communicate a larger number of customers. Making use of online websites and digital platforms
which comprises of various social media platforms like facebook, instagram, twitter, etc would
lead a most cost and time effective way of promotion and adverting to attract and cater a larger
number of customers who are having account on these social media platforms. Further, use of
social media marketing facilitates a continuous and most easiest way to communicate and
transform information to potential and target market thus, enhanced the scope and viability of
promotional and advertising strategy of a company through attracting larger number of
customers (Johnson, 2017).
Event Sponsorship and Appearances – It is also a vital way to promotion to build and lead
better image of brands and its product by the way of sponsorship and conducting events and
other promotional activity. On site location and distribution of sample product with company
logo and promotion through appearing in event posters is also an effective strategy to make
customers aware about the product and services along with leading better brand positioning and
enhanced goodwill to cater and attract larger number of customers.
Problem Identified in the area of Interest
The problem that is identified through current study in the area of advertising and promotion
strategy is associated with the fact the an inefficient and inappropriate form of adverting and
promotional strategy could hamper or negatively affect the brand image and reputation of firm in
target market and eyes of its customers which would ultimate affect and hamper the success level
and share price of a company (Zgheib, 2017). Thus, it has been identified and evaluated that it is
vital and most important for an organisation to adopt and implement a viable and effective form
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of advertising and promotion strategy to build a positive brand image which facilitates enhanced
success and better share price and positioning in the target market to overcome the issue and
problem of bad reputation and negative publicity.
Conclusion and recommendations
Conclusion
On the basis of current project it had been concluded that many issues and problems are
associated with bad and negative publicity along with the fact the effective adverting and
promotion lead to better impact on success and share price of a company. Further, it has been
also summarised that the concept of advertising and promotion is associated with the leading
better communication and transferring information about the product and services to lead better
awareness in target customers. It has been also concluded that a positive impact is lead out by
promotion and advertising in success and share price of a company. At last, a summarisation can
be made that commercial advertising through television, use of social media marketing and
sponsorship of events and other promotional activity are effective way of promotion and
adverting.
Recommendation
Following recommendation could be made for Lidl company to have better advertising
and promotional activity to overcome issues of negative publicity and cater larger number of
customers:
 Use of social media marketing is recommended for Lidl company which comprises
of use of social media networks and website to communicate and connect with
larger number of target customers to have better promotion and advertising of
product and services to enhance the overall sales and success level.
 Implication of Purchased Online Ads and Television Advertising is also suggested
for Lidl company as it lead to better publicity of product and services and ensures
enhanced awareness and communication with target customers to overcome the
issue of negative and lack of publicity along with attracting larger number of
customers to achieve enhanced success and better productivity .
REFERENCES
Books and journal
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Anand, M., Singh, J. and Gandhi, K., 2018. An Empirical Study on the Relevance of
Advertising, Sales Promotion, R&D and Training and Development Expenses on Firm
Value in the Indian Context. South Asian Journal of Management, 25(3).
Dzeparoski, M. and Trajkovic-Jolevska, S., 2018. Impact of regulation on advertising and
promotion of traditional herbal medicines and food supplements. International Journal of
Pharmaceutical and Healthcare Marketing.
Johnson, K.D., 2017. Social media marketing: A solution for marketing and advertising agency
promotion.
Juska, J.M., 2017. Integrated marketing communication: advertising and promotion in a digital
world. Routledge.
Mehmood, A. and Ali, T., 2020. Impact of Advertising and Promotion on Sales of Leather
Footwear Industry In Pakistan: A Case Study of Bata Pakistan Limited. Journal of
Engineering and Economic Development, 6(1), pp.1-13.
von Tigerstrom, B., 2017. Regulating the advertising and promotion of stem cell therapies.
Regenerative Medicine, 12(7), pp.815-826.
Zgheib, P.W., 2017. Advertising deceit: Manipulation of information, false advertising, and
promotion. In Advertising and branding: Concepts, methodologies, tools, and
applications (pp. 1482-1494). IGI Global.
Online:
Fraser Sherman. 2019. Why Is Promotion Important for a Business?. [Online] Available
Through:< https://bizfluent.com/about-7221403-promotion-important-business-.html>.
Promotion. 2020. [Online] Available Through:< https://www.toppr.com/guides/business-
studies/marketing/promotion/ >.
Catherine Lovering. 2019. 8 Different Ways to Advertise Products and Services. [Online]
Available Through:< https://smallbusiness.chron.com/8-different-ways-advertise-
products-services-19274.html >.
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