CHAPTER
ONE
1.1
INTRODUCTION
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;
I.
Political instability
II.
Future uncertainty and
lack of communication
III.
Lack of commitment by
managers
IV.
Poor mental ability of
planners and managers
V.
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 AND 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:
i.
To help to show
information on how people get to know the company for patronizing with
particular activity adopted by the company.
ii.
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.
iii.
To show the uncertainly
and changes since use operate in dynamic societies. To make management function
to be effectively done.
iv.
To show the importance
of promotion in an organization.
v.
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;
i.
Conceptual scope
ii.
Industrial scope
iii.
Territorial scope
iv.
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
i.
The relevance
ii.
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
i.
Price
ii.
Product
iii.
Promotion
iv.
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;
i.
To present information
to customers as well as other.
ii.
To increase demand.
iii.
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.