THE IMPACT OF PROMOTION EXPENSE AND DISTRIBUTION EXPENSE ON SALES VOLUME IN RETAIL INDUSTRY (A CASE STUDY OF THE TOP THREE PERFORMING PUBLIC-LISTED COMPANIES: PT. MITRA ADIPERKASA TBK., PT MATAHARI PUTRA PRIMA TBK., AND PT. RAMAYANA LESTARI SENTOSA TBK.)

Abstract

The objective of the study is to discover the influence of promotion expense and distribution expense on the sales volume of retail industry in Indonesia and which of the two influence more significantly. Retail businesses nowadays realize that, to compete in the global market, they can no longer rely on products alone. A good promotion strategy along with an effective distribution strategy plays an increasingly significant role in the expansion of these businesses. This phenomenon aroused the researcher’s interest since it is related to the researcher’s previous working experience. The researcher believes that this study will prove to be useful as a reference for companies in Indonesia’s retail industry seeking to strengthen its position in regard to sales volume. It also highlights the practical purposes of concepts and theories in relation to promotion, distribution, and sales volume for university students. Finally, this study could expand the knowledge of general readers regarding the influence of promotion and distribution on sales volume in retail industry. This research covers the retail sector of Indonesia’s economic industry represented by three leading retail companies listed in Indonesia Stock Exchange:  PT. Mitra Adiperkasa Tbk.  PT. Matahari Putra Prima Tbk.  PT. Ramayana Lestari Sentosa Tbk. For this study, the researcher employed multiple regression analysis and classical assumption tests in analyzing the numeric data gathered from the companies’ annual reports between the years 2006-2010. Based on the statistical tests conducted, sales volume is influenced distribution expense significantly. On the other hand, promotion expense does not influence sales volume in a significant manner.