Significance Of Promotion To Business Organizations In Nigeria (A Case Study Of Nestle Nigeria Plc)

Project and Seminar Material for Marketing

Significance Of Promotion To Business Organizations In Nigeria (A Case Study Of Nestle Nigeria Plc)

Chapter One


1.1 Background of the Study

The concept of promotion of a particular product or service by a firm or organization is to create awareness of the product or service in order to promote sales of the product. Business activities all over the world whether those engaged in production of goods or those that render services, all have objectives to achieve that is how their products or service get know to the consumer. This is done through promotion.

Promotion is any communication activity whose purpose is to move forward a product or services. Promotion provides the stimulus upon which sales progress is based on. Without promotion, business remain stagnant, therefore, wealth and expansion of any business comes from promotion, equally any expansion on introducing promotion, equally any emphasis on introducing promotion to business also parallel with sales and expansion of the business.

Through promotion, an organization attempts to influence the sales of its products or services by increase the quality, the price on a contribution of both to enhance its public image. Business men know that is a better product is produced, hence the needs for effective and efficient promotion.

In any organization, the level of promotion and types of promotion incurred into the business is highly incomparable to one another. Promotion is the only way to ensure survival in a technical market, to maintain the economy. High volumes of sales can only be achieved through the use of promotional tools like advertisement, sale promotion, public relation and personal selling due to the fact that industrial markets are usually well defined, the industrial goods manufacturer can make very good use of direct mail advertisement such as postal advertisement consisting of letter and often sales literature, directly, aimed at specific prospective purchases.

Although, the sophisticated use of the computer enables direct mail techniques to be applied to consumer market, success rated are generally lower than industrial marketing. This is partly because of the difficultly in consumer markets of identifying the prime target audience and partly because costs continue to escalate making direct mail, techniques non-viable for low value items.

Nestle Nigeria plc, is association with the company which has been voted as the larger food company in the world, renowned for its top quality production, nestle Nigeria plc began simple ding operation in Nigeria in 1961 and has today grown into a leading food manufacturing and marketing company.

It is a publicly quoted company existing since 1978 on the Nigeria stock exchange. 43% of its equity is owned by Nigeria share holder while 57% is owned by nestle S.A of Switzerland, the company’s head office and registered office is located at ilupeju Lagos state.

Nestle Nigeria plc is the food beverage industry and its stated objectives is to satisfy the requirement of consumers with high quality food products, mainly before processing agricultural raw-materials into product long shelf life, adopted to the tastes and food habit of the consumer.

The company’s manufacturing facilities are located at Agbara industrial estate in ogun state, which have been design in line with modern manufacturing methods ensuring efficient production of the various product being manufactured infant and deistic products like beverages and culinary product.

A fully integrated plant producing concentrated sorghum mail extracts has been built and commission at its AGBARA site with the assistance of its technical adviser nestle Nigeria plc, at Switzerland. The company also produces hydrolyzed protein-mix using local raw materials.

Nestle Nigeria plc aims at optimizing its long term viability and has available to its physical skilled human resources, high quality product, and high standard of integrity, efficient management and access to the technical adviser. They prompt their products through advertisement, sporting adviser, exhibition etc. nestle Nigeria Plc often sponsor secondary schools and primary School by organization. All secondary school basket ball competition and all primary school football.

Nestle Nigeria Plc promotes its product through exhibition. They provide an excellent opportunity both for making prospective customers can be convinced of a products performance an d valve to their business by reading about successful application in competition organisation

They also promote their product through selling. Selling industrial goods usually requires a different emphasis by the salesman. The salesman makes for fewer calls than customer goods, say two or three times per day as opposed to ten or more, he spends a lot of time with each customers.

1.2 Statement of the Problem

The Nigeria economy has been unstable since late 1981 due to oil guilt. This had an adverse effect on all the fact of the economy. The more the federal governments try to caution the effect of the unfavorable development with one form of policy or the other. So there is need to find a way out.

Since the early 1960 commitment to forecasting in organization at all types has grown steadily as several factors have stimulated interest in the field. One of such factors is the need for management to deal with on increase uncertain environment as that of manufacturing company like nestle Nigeria plc. Forecasting allows operations managers to resource from one product and the other increase.

Management as a subject and planning as its instruct are faced with some problems which curtail its effectiveness. These include all the activities and factors that do allow smooth running of management which may include the following;

  1. Political instability
  2. Future uncertainty and lack of communication
  3. Lack of commitment by managers
  4. Poor mental ability of planners and managers
  5. Lack of expert and trained and experience personnel.
Political Instability:

The instability in our present day government has proved a great problem and affecting the smooth running of business activities in our country.

Future Uncertainty and Lack of Communication:

It could be somehow difficult and risky to forecast with certainty and assurance what the future holdings. The world is dynamic and changes every now and then this brings about seasonal changing in planning and management.

Lack of Commitment by Manager:

Many managers and supervisor pay lips services to plans and management which eventually result in lack of support and good devotion or time, skills and knowledge on the part of workers and the manager.

Poor Mental Ability of Planners And Managers:

This is as a result that many planners and managers are mentally poor and are not capable of determine goals for the organization they could not easily execute planes and propels effort to achieve it.

Lack of Expert and Trained Experienced Personnel:

Management as a whole cannot be fully run effectively and smoothly without help of skill, trained and expert in the field.

From all that has been started above, it is crystal clear that a study on forecasting is of great importance to most managers.

1.3 Aim and Objective of the Study

This study is basically on the significance of promotion to business organization which involves:

  1. To help to show information on how people get to know the company for patronizing with particular activity adopted by the company.
  2. To show information on which of the promotional tools to be used frequently by the company and effectiveness and efficiency of promotion on the company.
  3. To show the uncertainly and changes since use operate in dynamic societies. To make management function to be effectively done.
  4. To show the importance of promotion in an organization.
  5. To show the formulation of plans and policies and making decisions to effect the plans and made it complete.

As a researcher of this topic, the researcher’s aim and objective is to expose me to many roles and promotion in an organization, and to know the feasibility study of business because one day I might be an entrepreneur.

1.4 Scope of the Study

The scope of the study simply means the area of coverage of the study. The scope of this will be directed towards;

  1. Conceptual scope
  2. Industrial scope
  3. Territorial scope
  4. Time scope
A Conceptual Scope

Conceptual scope has to do with the subject matter that the research covers. The conceptual scope this study will focus on

  1. The relevance
  2. The significance of sales promotion to product sales in the nestle plc market.
Industrial Scope

Industrial scope implies specification of the industry of the study. As far as this research is concerned, the industrial scope are the firm nestle Nigeria in the area specified that is nestle Nigeria plc.

Territorial Scope

The territorial scope is the land area; area within which the study covers the territorial scope of this research will be within Lagos state.

Time Scope

This study cover the period of writing this project that is second semester 2014/2015 session. The time scope shall also focus on the depth of the data to be collected on the study.

However, in this research the time scope shall be limited to a decade (10 years) of the operational years.

1.5 Significance of the Study

The significance of the study cannot be ruled, the study deal deeply on the effectiveness of the promotional tools used in nestle Nigeria plc, limited ILUPEJU LAGOS state such as making the target market aware of the existence of particular product or services.

The study also covers the major promotional tools likes advertising selling publicity and sale promotion and also to know promotion tools have significance effect on the products.

The study is more important to know when the hand of buyer, to know if the price displayed or imposed on product service in nestle Nigeria plc compete with other competitors.

The study helps the company to improve quality of product personal selling which seems to be a never ending process; it also helps the customers to have more knowledge about the company’s product or service rendered.

Finally, the study serves as a mean of communication to the customers and the entire community.

1.6 Limitation of the Study

There are inhibiting factors that have narrowed down this study. The first is that of time constraint. This research would have been more successful than this but research would have been more successful than this but there was no sufficient time for the effective study of this research.

Secondly, financial constraints, this stands as a big barriers as a lot of money were required in gathering relevant data which could have jeopardize the full success of this study. Yet with the assistance of parent, family.

Lasting, data problem, the response o9f manufacturing were not encouraging in terms of release of data. They says they cannot release some data for company protection and the perfect image of their company. Some did not even welcome question regards to their company.

1.7 Definition of Relevant Terms

Every organization is made up of human and physical resources. Promotion is the most prestigious accolade for every organization.

The relevant terms of this project is promotion, business, business organization section.

Promotion is one of the market mix, element or feature and a term used frequently in marketing. The marketing mix includes the four P’S

  1. Price
  2. Product
  3. Promotion
  4. Place

According to ABDUL RAHEEM, I (2002) define promotion as raising customer awareness sales and creating brand loyalty. Promotion is also found in the specification of five promotional mix or promotional plan.

These elements are personal selling, advertising, sales promotion direct marketing, and publicity.

A promotional mix specified how much attention to pay each of the five sub-categories and how much money to budget for each.

A promotion plan can have a wide range of objectives including sale increase, new product acceptance, and creation of brand equity positioning, competitive retaliation, or creation of corporate image. Fundamentally, there are three basic objective of promotion these are;

  1. To present information to customers as well as other.
  2. To increase demand.
  3. To differentiate a product.

There are different ways to promote a product in different areas of media promoters use internet advertisement, special events, endorsement, and newspaper to advertise their product. Many times with the purchase of a product there is a incentive like discounts (i.e coupons), free items, or a contest. This method is used to increase the sales of a given product. Promotion are also held in physical environment at special event such as concept, festivals, trade shows, and in the field such as in grocery or department stores interactions in the field (i.e grocery and department stores) , allow customers to purchase the brand or product immediately. The interactions among the brand and the customers and performed by brands in physical environments.

Business Organization

According to BABATUNDE .J. (1991), Define business organization is an individual or group of people that collaborate to achieve certain commercial goals.

Some business organizations are formed to earn income for owner. Other business organization called on profit, are formed for public purposes. These businesses often raise money and utilize other resources to provide or support public programs.

Orgabnization Structure

An organizational structure reflects that shared values within the organization that impact employee’s moral, communication and ultimately, since companies use formal process and activities to promote team work.
However, much of an organization unique culture company’s structure involves through informal channels for example, a company’s culture can be affected by the way informal encounters.

Chapter Five

5.0 Summary, Conclusion and Recommendations

5.1 Summary of Findings

This project is based on the significance of pro motion to business organization in which nestle Nigeria plc serve as the case study.

Chapter two centered on the review of various public action of the project.

Chapter three presented with research methodizing used by the researcher together information such as descriptive method and questionnaire.

Chapter four focus on the need for promotion the promotional tools used by the company the significance of promotion and the problems of promotion.

Chapter five is the conductive part based on summary of findings, conclusion, and recommendations.

Promotion is important in an organization because is an effort by a seller to persuade buyer to purchase, resell, recommend or use the product services or ideas.

The company can use the combination of all or one of effectiveness the advertising, personal selling, policy and sales promotion, this plc the promotion tools is available and can be used in any desirable manner to actually appropriate result.

The objective of promotion is to inform, persuade and remind target market customer about its product, it’s essence is to create awareness and favorable influence of the potential customers about a product.

The ultimate order to do any product is get to the final consumer and in order to do this efficiently.

The company has to make use of research available to it well, promotion tries to affect the knowledge, altitude and behaviour of customer and persuade them to accept services or ideas.

5.2 Conclusion

It is a matter of importance that promotion is quite necessary for an organization to increase its profit.

The effect of promotion of nestle Nigeria plc is to motivate prospective customers to patronize their product and services. It also provided a necessary medium to remind customers of the existence of the organization. Promotion involve financial commitment by the organization but the relevance and importance that promotion does to the image of increase in profit for out ways the cost of promotion involve.

In conclusion the enormous publicity generated by an organization through promotion created awareness of their goods and service boost stale make product services available to the customer and also increase the profit margin of the company.

Therefore, promotion should be seen as an indisputable means of increasing sales of goods and services,

5.3 Recommendation

This research work is designed to access the effectiveness of promotion of goods and services in nestle Nigeria plc. The organization should be more involved in making use of promotional tools like personal selling, trade fair, inhibition etc. all these result in instanous increase in the profit of the organization at each promotion comparison to non-promotion period.

The necessary fund that will be required for successful participation of the company i8n trade fairs or exhibition should be reality provided by the management of the organisation.

This will also facilitate adequate planning by the organization so as to have an effective representative at6 the venue which should be consequential to increase response from customer. Proper and adequate training of staff on promotional activities should be more serious since the organization is involved in promotion of goods and services.

Lastly, nestle Nigeria plc should see advertisement of numerous goods and services as an important means of promotion.

Its image that will increase sales and not a waste of scarce resource find financial resources.

The ultimate order to do any product is to do this efficiently the company has to make use of resources available to it well.

Promotion tries to affect the knowledge, attitude and behavior of customer and to persuade them to accept concept services or ideas.

Significance Of Promotion To Business Organizations In Nigeria (A Case Study Of Nestle Nigeria Plc)

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Significance Of Promotion To Business Organizations In Nigeria (A Case Study Of Nestle Nigeria Plc)


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