INFLUENCE OF CORPORATE REPUTATION ON MARKETING PERFORMANCE
INFLUENCE OF CORPORATE REPUTATION ON MARKETING PERFORMANCE
OF CADBURY NIG. PLC
IWUABA MAXIMUS
(Ph.D./2022/000996)
DEPARTMENT OF MARKETING
SCHOOL OF MANAGEMENT SCIENCES,
THE UNIVERSITY OF AMERICA, CURACO CAMPUS.
CENTRAL WASGHTON COLLEGE, ENUGU TUTORIAL CENTER NIGERIA
OOCTOBER, 2022
INFLUENCE OF CORPORATE REPUTATION ON MARKETING PERFORMANCE
OF CADBURY NIG. PLC
BY
IWUABA, MAXIMUS
(Ph.D./2022/000996)
BEING FIRST SEMINAR PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF DOCTOR OF PHILOSOPHY (Ph.D.) IN MARKETING.
SCHOOL OF MANAGEMENT SCIENCES,
THE UNIVERSITY OF AMERICA, CURACO CAMPUS.
CENTRAL WASGHTON COLLEGE, ENUGU TUTORIAL CENTER NIGERIA
SUPERVISOR: PROF. G.N. NEBO
OCTOBER, 2022
ABSTRACT
In the stud, we examined influence of corporate reputation on marketing performance of Cadbury Nigeria Plc, Ikeja. The objectives of the study included to; ascertain the extent to which an integrity-building reputation affected the profitability of Cadbury Nigeria Plc.; investigate the extent to which product quality reputation influenced the sales volume of Cadbury Nigeria Plc. and to determine the extent to which employee welfare reputation influenced customer loyalty of Cadbury Nigeria Plc. A survey research design with a total sample size of 200 comprising 120 staff and 80 consumers were used in the investigations. Staff and consumers involved in the research were selected using purposive and convenience sampling techniques respectively. The questionnaire was the primary instrument used for data collection. The reliability of the instrument was checked using the Cronbach alpha test and the test result showed a reliability co-efficient of 0.82, depicting that the instrument was highly reliable. The study employed the simple percentage model in analyzing and interpreting the responses from the study questionnaire whilst hypotheses were tested and further analyzed using regression tool. Results from the analysis revealed that: integrity building did not have a significant effect on the profitability of Cadbury Nigeria Plc.; product quality reputations did not have a significant positive influence on sales volume of Cadbury Nigeria Plc. and employee welfare reputation did not have any significant positive influence on customer loyalty. Based on the findings we recommended that Cadbury management should improve on integrity building, product quality, and employee welfare reputation in order to achieve high profitability, sales volume, and customer loyalty objectives respectively.
Keywords: Profitability, Sales Volume, Customer Loyalty, Corporate Reputation (CR), Market Share (MS), Service and Product Quality, Marketing Performance, and Employee Welfare
TABLE OF CONTENTS
COVER
TITLE
ABSTRACT i
SECTION ONE: INTRODUCTION
1.1 Background of Study 1-2
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Statement of Hypotheses 3
1.6 Significance of the Study 3-4
1.7 Scope of the Study 4
1.8 Limitations of the Study 4-5
1.9 Definitions of Terms 5
1.10 Profile of Cadbury plc. 6
SECTION TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual review 7
2.1.1 Corporate Reputation
2.1.2 Integrity Building Reputation 7-8
2.1.3 Product Quality Reputation 8-9
2.1.4 Employee Welfare Reputation 9
2.1.5 Marketing Performance 9
2.1.6 Profitability 10
2.1.7 Sales Volume 10
2.1.8 Customer Loyalty 10-11
2.1.9 Conceptual Framework 11-12
2.1.10 Relationship between Integrity Building Reputation and Profitability 12
2.1.11 Relationship between Product Quality Reputation and Sales Volume 12-13
2.1.12 Relationship between Employee Welfare Reputation and Customer Loyalty. 13-14
2.2 Theoretical Framework 14
2.3 Empirical Review 14 -15
2.4 Summary of Empirical Review 15
2.5 Gap in Empirical Review 17
SECTION THREE: METHODOLOGY
3.1 Research Design 18
3.2 Area of Study 18
3.3 Sources of Data 18
3.4 Population of the Study 18
3.5 Determination of Sample Size 18
3.6 Sampling Technique 19
3.7 Data Collection Instrument 19
3.8 Validation of Research Instrument 19
3.9 Reliability of Research Instrument 19
3.10 Method of Data Presentation and Analyses 19
SECTION FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation 20
4.2 Test of Hypotheses One 21
4.3 Test of Hypotheses Two 23
4.4 Test of Hypotheses Three 25
4.5 Discussion of Findings 27
SECTION FIVE: SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary of Findings 29
5.2 Conclusion 29
5.3 Recommendations 29
5.4. Contribution to Knowledge
REFERENCES 30-34
LIST OF TABLES & FIGURES
Table 2.1: Summary of Empirical Review 15-17
Table 4.1: Age Distribution of Respondents 20
Table 4.2: Marital status of respondents 20
Table 4.3: Integrity built by my organization reflects in the behaviour of its employees 21
Table 4.4: The quality of a product by my organization has a direct impact on the sales volume. 25
Table 4.5: Employee's welfare has a direct impact on customer loyalty. 25
Fig 1. Model of Corporate Reputation and Marketing Performance. 11
SECTION ONE
INTRODUCTION
1.1 Background of the Study
In the wake of the competitive nature of businesses, organizations strive to gain footholds over their competitors by looking beyond the traditional system of management which focused on the production of goods and services. A paradigm shift toward image building is now perceived as a key enabler towards the attainment of organizational objectives. This concept revolves around Corporate Reputation Management (CRM). Corporate reputation is a major component of corporate marketing and it reflects in all marketing activities (Balmer & Greys, 2006)
The concept of corporate reputation management has been in existence and evolving. In the last three decades, we have witnessed an increased interest in the subject of corporate reputation from the academic and business society. An overview of scientific output found 1,559 publications on corporate reputation and related terms such as organizational identity, organizational image, corporate brand equity, and corporate branding (Walker 2010). According to Jeng (2011), the term corporate reputation (CR) has "developed with time to become a strategic and intangible corporate asset and it has been used in daily life, business, and politics, for a very long time". Because of this, corporate reputation can be assessed as a key contributor to an organization's success or failure. This recognition of the transcendental importance of corporate reputation for a company's success and the need to focus scientific activity on the topic has reawakened organizational desires to explore more on the topic.
Currently, reputation is well-thought-out as a precious and decisive factor for attaining a competitive advantage by organizations (Rose &Thomsen,2004) Corporate reputation has become an interesting topic, and evidence linking a favorable corporate reputation and various intangible and tangible benefits exists. In alignment with this, Uadiale (2010) through his findings confirmed that corporate reputation is a significant management decision that has the potential to greatly influence the owner's equity return and performance as well as the market value of the shares.
Corporate reputation under a marketing perspective attempts to build brand equity recognizable through names and logos that are capable of evoking positive associations in customers and therefore facilitate marketing activities and sales (Hatch and Schultz, 2010). This helps companies to achieve a strong competitive advantage, and enhance stockholders' market performance as well as performance value on other measures. Cultivating a strong reputation is therefore an essential foundation for today's firms that anticipate beating the competition, and enhancing their market outlook and financial performance as well as sustained existence. Corporate reputation management aims to enhance an organization's (positive) image and thus the performance of the organization.
Aaker and Myers (1975:138) state that "It is not an exaggeration to say that a good image is fundamental to the existence of any business enterprise. The concept of image is often considered to be an important determinant of long-term sales and profits. Therefore, it is reasonable to consider the use of the image as an objective not only for an advertising program but for marketing program and an organization as a whole''. In view of this, reputation may serve as a point of reference when judging the firm's contribution to stakeholders' own and the public's welfare. Therefore, to gain support from the public, the corporate image must show that management is progressive, open to innovation, and free of dogma and conventions. Creating and promoting a corporate image effectively is mainly a matter of communicating marketing objectives, belief,s and reputation to gain goodwill from the public. Although the concept has received substantial attention in developed countries, it has remained neglected in developing countries. (Uadiale, 2010). This study is therefore undertaken to gain more insights into the impact of corporate reputation on marketing performance at Cadbury Plc.
1.2 Statement of the Problem
Corporate reputation has been linked to a firms superior performance and long-term success in todays highly competitive world. Studies have shown that a firm that lacks a good corporate reputation pays dearly for it in terms of loss of market share, profitability, sales volume, customer satisfaction, and customer loyalty. In this connection, studies have been done extensively to establish the link between corporate reputation and organizational performance. However, despite a ubiquitous number of studies in this area, the fact remains that the key elements of corporate reputation that build business performance are many and varied. The elements of corporate reputation that improve business performance in one organization are regrettably invalid and unrealistic in another organization. Therefore, there is the need for a continuous search for a model of corporate reputation that will leverage the performance of the business organization, especially in Cadbury Nigeria Plc where studies on corporate reputation are quite scarce.
1.3 Objectives of the Study
The aim of the study was to determine the effect of corporate reputation on the marketing performance of Cadbury Nigerian Plc. Specific objectives were to:
Ascertain the extent to which integrity-building reputation affects the profitability of Cadbury Nigeria Plc.
ii. Investigate the extent to which product quality reputation influences the sales volume of Cadbury Nigeria Plc.
iii. Determine the degree to which employee welfare reputation influences customer loyalty of Cadbury Nigeria Plc.
1.4 Research Questions
In view of the above objectives, the following questions were raised.
To what extent does integrity building affect the profitability of Cadbury Nigeria plc?
What is the degree of influence product quality has on the reputation and sales volume of Cadbury Nigeria plc?
To what degree does employee welfare reputation influence customer loyalty of Cadbury Nigeria plc?
Statement of Hypotheses
The following ensuing hypotheses were tested in the study:
i. Integrity building reputation has no influence on the profitability of Cadbury Nigeria Plc.
ii. Product quality reputation does not have influence on the sales volume of Cadbury Nigeria Plc.
iii. There is no influence of employee welfare reputation on customer loyalty at Cadbury Nigeria Plc.
1.6 Significance of the Study
Reputation relates to the perception of the extent to which a company may be held in high esteem. It is a measure of customers/public perception of how the company organization has presented itself over time. Therefore, it is the desire of every organization to have a good image that meaningfully establishes credibility for the firm and differentiates it from competitors.
It is imperative that a way to turn around the declining image of firms be found very urgently. It is from this standpoint that this study becomes very important in the crusade to restore the lost glory of firms in Nigeria.
The study is also of immense importance to bring to the awareness of the public and management professionals the role image management can play in marketing performance using Cadbury Nigeria PLC, Ikeja as a case study.
The study will also help to understand the strategies the firm should adopt in building, managing, and promoting a favorable corporate image.
The management of this firm will benefit from this study as it will analyze and explain the circumstances and factors which led to the image management problems. The recommendations at the end of the study will enable the management to apply a market-oriented strategy that connects the organization to the realities of the dominant business condition and forestall any challenging dispositions.
The study will be of great importance to researchers who wish to investigate the corporate reputation and its relationship with organizational performance. This study will be a very good source of literature material for those who wish to carry out research in this field of study. The study will also help policymakers to design a robust policy meant to improve the image of business organizations in Nigeria.
1.7 Scope of the Study
The study is primarily conducted to gain insights on the effects of reputation on marketing performance with a focus on Cadbury Nigeria PLC, Ikeja. The study is conducted in the context of the food and beverages industry. The study centers on three reputational variables which are profitability, sales volume, and customer loyalty. The study also focused on staff and customers of Cadbury Nigeria PLC in Lagos state.
Limitations of the Study
The major constraint encountered in this research work was the delay in getting feedback from respondents. Most of the respondents were consistently out of the office due to different work responsibilities. Because of this, it took several call visits before the researcher was able to get the needed attention and feedback for the study.
1.9. Definition of Terms
Corporate Reputation (CR)- This refers to the general impression or perception of the public in terms of the companys product, employees, integrity, financial standing, and so on.
Market share (MS) - A percentage of total sales volume in a market captured by a brand, product, or company.
Service and Product Quality Reputation - An assessment of how well a product's quality and delivered services conform to the client's expectations. Service business operators often assess the service quality provided to their customers to improve their service, quickly identify problems, and to better assess client satisfaction
Quality Building Reputation: This is an act of consulting or investing in quality programs by an organization to further enhance the effectiveness of their product in other to create a market belief about this quality and justify a premium price in the future.
Employee Welfare Reputation: These are services, incentives, or benefits introduced by employers to offer comfort to their employees to motivate them to be more productive.
Marketing Performance: Marketing performance is the alignment between the marketing goal and objectives versus the actual results. It is measured using a selection of metrics and key performance indicators including return on investments, cost per sale, cost per lead, conversion rate, and customer lifetime value.
Profitability: Profitability is the measure of the benefit realized when the amount of revenue gained from an activity exceeds the expenses, costs, and taxes needed to sustain the business. It is a measure of efficiency and ultimately success or failure. A business can produce a return on an investment based on the resources in comparison with an alternative investment.
Sales Volume: This is the number of total sales of products or services in a given period.
Customer Loyalty: Customer loyalty is a measure of a customers likeliness to repeat business with a company or brand. It describes the ongoing emotional relationship between a company or brand and its consumers manifesting itself in how willing the customer is to make a repeat purchase.
1.10 Profile of Cadbury Plc
Cadbury is noted as one of the fastest-growing Nigerian food and beverage industries. Its products are fast becoming an essential part of the nation's diet, especially in urban areas. Nigerian food and beverages industry bears an attractive responsibility of feeding a populous and developing nation (Gorondutse and Hilman, 2013f). The industry has shown strong growth over the last 15 years (Cadbury Nigerian Plc, Annual Report, 2008), largely as a result of the relatively stable economic climate. Cadbury is at the forefront of manufacturing dairy products, hot beverages, pasta, and noodles. The demand for its products from Nigerian consumers is estimated to be above $500 billion per annum ($ naira, the Nigerian currency) (Cadbury Nigerian Plc, Annual Report, 2008).
The food and beverage industry in Nigeria mostly is globally competitive and dominated by multinational companies. The target population is quite large; however, the fear of some indigenous companies, the Dangote Group, and BUA companies becoming strong competitors entail the need for the enhancement of their corporate reputation to maintain their customer loyalty.
SECTION TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Review
2.1.1 Corporate Reputation
In the modern setting, corporate reputation is perceived as having considerable influence. According to Fombrun and Shanley (1990), corporate reputation is a perceptual representation of the companys past actions and future predictions that represents the overall contribution of a company when compared to others. Invariably, corporate reputation describes stakeholders discernment of an organizations capability to create value. The above definition is in line with scholars like Lee and JungbaeRoh (2012), who defined corporate reputation as perceptual and mostly dependent on the perception of third-party evaluation. Given these definitions, three features of a corporate reputation could be inferred and they are (1) corporate reputation is dependent on the people (2) it is internally and externally judgmental, and (3) corporate reputation contains the valuation of the different stakeholder groups in the organizations (Roberts & Dowling, 2002).
A good reputation could serve as a real form of uniqueness and as a source of competitive advantage that is considered to be impossible for competitors to copy (Hall, 1992). Built on this, there is a consensus among various scholars that confers benefits to its organization by clarifying investment decisions and removing decisions from customers about the choice of product (Weigelt & Camerer, 1988). Conversely, a poor reputation may hinder the survival prospects of an organization. For the various benefits that are attributed to reputable companies, extant literature points out that the business world is characterized by unbalanced information, which could make it difficult for stakeholders to fully recognize the range of activities attributed to an organization (Rao, Greve, & Davis, 2001). This view is fully supported by the presence of incomplete information, which forces outside observers to depend on proxies to define rival preferences and determine their likely course of action (Weigelet and Camerer, 1988). In search of necessary, detailed responses, Fombrun and Rindova (1996) and Gotsi and Wilson (2001a) further observed that the reputation of proactive organizations builds favourable activities for the business. These activities include evolving direct experiences with stakeholders and widely disemminating information about the comparison between a given firm's actions and those of its competitors. Since organizations have various kinds of stakeholders, it seems that the activities that are relevant to their reputation vary between the companies. It is further recommended by Rao et al. (2001) that various companies are considered more visible when relying on more visible activities like corporate social responsibility, customer satisfaction, product quality, financial performance and market share, etc. Therefore, corporate reputation could be considered a more visible signal.
2.1.2 Integrity Building Reputation
A successful business is fundamentally built around integrity and fair play. Jackson 2004 in his book averred that firms gain sustainable competitive advantage by cultivating intangible and inimitable assets. These assets drive reputation building and inadvertently reduce the cost of capital for a firm by improving its ability to raise money in the credit market. Integrity is simply defined by the Oxford dictionary as "the state of being honest and having strong moral principles''. Building an integrity reputation in an organization, therefore, entails the application of consistency of actions, measures, methods, principles, and outcomes. When organizations implement a strict honesty-integrity policy, the positive results show in job performance capacity, loyalty, improved sales, employer satisfaction, and stakeholder respect (Jackson,2004). Integrity building is therefore one of the basic principles of ethical business practice. The integrity of a firm or an organization determines its relationship with clients and the general public as well as stakeholders confidence in the organization.
2.1.3 Product Quality Reputation
Delivering continually qualitative products and services to the customers is valued as the key component for the sustainable success of business operations. Product quality reputation could be viewed from different perspectives depending on the type and characteristics of the business assessed. Manufacturers view product quality reputation in terms of compliance with specifications and standards. Quality in itself is defined on the premise of (1) fitness for use (2) consistency and (3) conformance to consumers needs. (Minakasi,2022). This entails that quality is a key attribute that consumers use to evaluate products or services. A highly reputable company views quality as an "asset" with the capability to satisfy stated or implied needs revolving around consumers.
High-quality firms have more customers because they have fewer dissatisfied customers who leave word-of-mouth advertising resulting in increased sales and positive image building for the company (Shaharudin et al, 2010). The notion of quality reputation is self-fulfilling as studies have shown that firms producing high-quality products and maintaining their reputation tend to consistently raise their revenue against those that produce low-quality products with a bad reputation.
2.1.4 Employee Welfare Reputation
Employee welfare is crucial to the determination of employee engagement which eventually translates into higher performance and enhanced return on investment. Consistent with this view, Levine (1992), Wadhwani, and Wall (1991) cited in Hamidi & Ghouma (2018) find that greater levels of wages lead to enhanced productivity. Besides, Perry-Smith and Blum (2000) documented that family-friendly policies within companies lead to increased market share and larger corporate profits. Improved working conditions usually result in better firms' ability to build a positive reputation. Such a reputation generally guarantees the continued engagement of the firms stakeholders, including the stockholders (Brammer, Brooks, and Pavelin, 2006). This is key for firms survival especially to generate a higher future. Satisfactory employee welfare tends to reduce the probability of strikes in an organization. Studies have shown that strikes create a bad reputation for a firm and reduce its value. Thus, higher standards of employee treatment would likely result in a more productive employee and a well reputable organization.
2.1.5 Marketing Performance
Marketing performance is the arrangement between the marketing teams stated goals and objectives versus actual results achieved. It is measured using a selection of metrics and indicators like return on investment, customer satisfaction, timeliness and cost per sale, and a host of other key indicators relative to a firm. Marketing performance is used to determine the ability of a salesperson to close a deal with a company and subsequently meet set performance goals as outlined by the company or business organization. Marketing performance as a concept is gaining more ground as its need to demonstrate its contribution to a firm performance becomes inherent. There have been regular calls for marketing practitioners to develop and enhance their ability to account for marketings contribution to firm performance (Ambler 2003; Bolton 2004). Therefore, marketing performance is vital and has a positive relationship with organizational performance.
2.1.6 Profitability
Profitability in general terms refers toa measure of a firm's profit relative to its expenses. Profitability is foundational and dependent on management efficiency. More efficient organizations will realize more profit as a percentage of their expenses compared to a less-efficient organization, which must spend more to generate the same profit. Sartono, (2010), averred that one of the financial ratio analyses that are important in measuring the ability of firms to create wealth is profitability.A positive reputation has a direct link to the profitability of a firm. It simply translates to more customers, better employees, and greater profitability. A good reputation doesnt only increase the number of customers you attract, but it can also increase the quality of the said customers. Some aspects that form the elements of a company's image & reputation include among others the financial capability and product and service quality of the firm. In this regard, a good reputation has a direct impact on the sale and the overall profitability or losses of a firm. Having a good reputation in the market provides a competitive edge and increases overall sales revenues.
2.1.7 Sales Volume
Sales volume is the quantity of sales measured in terms of Naira or unit of products sold. About 25% of a company's market value comes directly from its reputation (Shirey,2022). This assertion simply entails that a company's reputation is a requirement for the successful selling of a product or service. In line with this, a brand having a good reputation contributes to the enhancement of its products and services' value. Conversely, a bad reputation devalues products and services and leads to further decline. A brand that is consistently projecting an articulate image of itself in the market is more likely to build a more substantial reputation and be remembered in future transactions. Sales volume referring to the units of product sold by a company within a given time is key for a successful business outcome. Sales volume offers insights on products that are performing well and those that are not performing well in the market.
2.1.8 Customer Loyalty
Customer loyalty is the willingness of a customer to buy a product again, recommends the product to friends and relatives and to continue buying the product irrespective upward review in prices. The concept is considered an important for sustainable competitive advantage (Dick & Basu, 1994). Customer loyalty is driven by memorable experiences customers are exposed to while transacting business with a company. While those great experiences will potentially bring in long-term customers, a bad experience will result in a loss of customers. Reichheld and Schefter (2000) explained that if an organization is not able to secure the loyalty of the customer, then that organization wont be able to increase its profit. The reputation of a company tends to drive consumer loyalty and future purchasing decisions. Accordingly, customer loyalty signifies a customer's genuineness in identifying with a particular brand of product or service. It is the degree to which a customer exhibits repeat purchasing behaviour from a service provider, possesses a positive attitudinal disposition toward the provider, and considers using only this provider when a need for this service exists (Gremler and Brown, 1996). Previous research has proved a strong relationship between positive corporate reputation and consumer loyalty. Jeng (2008) asserted that good corporate reputation results in a higher market share of firms and better financial performance.
2.1.9 Conceptual Framework
The diagram below illustrates the conceptual framework of the study focusing on three key elements of reputational activities that influence marketing performance
Corporate reputation Marketing performance
356235068580Profitability
00Profitability
9525068580Integrity Building Reputation00Integrity Building Reputation H1
24003007620
356235068580Sales Volume
00Sales Volume
9525068580Product Quality Reputation
00Product Quality Reputation
H2
24003007620
356235068580Customer Loyalty
00Customer Loyalty
9525068580Employee Welfare Reputation
00Employee Welfare Reputation
H3
24003007620
Source: Rao et al (2001)
Fig 2.1. Model of Corporate Reputation and Marketing Performance chosen from literature
Previous research has proven that organizational culture, employee or human resources management and product quality significantly plays a major role in determining how a company is perceived/and or reputed. These variables directly lead to the overall marketing outcome of an organization. The organizational culture has assumed considerable importance in business concerns because of its impact on employee performance and satisfaction, sales growth, social return on investment and corporate image (Lingane & Olsen, 2004). In like manner, the role of human resources is important for socially responsible business organizations (Bhandarker, 2003). According to Grahame (2004), a good corporate reputation always signifies trust in the company, creates an emotional and intellectual bond with employees, target customers and other important stakeholders; and acts as the source of authority and credibility for an organization's dealings. Finally, delivering continually qualitative products and services to the customers is valued as the key component for the sustainable success of business operations (Henard & Szymanski, 2001). This creates a good reputation for the company thereby enhancing product acceptability.
2.1.10 Relationship between Integrity Building Reputation and Profitability
Integrity building a reputation relies on developing a strong moral principle that is honest and consistent. It is built in time with immense and sustained effort by developing good business ethics. Furthermore, business ethics is the foundation of the processes by which customers develop feelings of trust in organizations. Ethics has been proven to have a direct impact on customers perceptions of the overall process quality in doing business with organizations (McMurrian, 2016).
In agreement with this assertion, trust increases customers' perceptions of value in doing business with a company. Overall, it is perceived that customers would prefer to pay a higher price and maintain a good business relationships with ethical and trusted organizations than get a lower price deals from organizations that do not deliver outstanding process quality. These customers that are highly satisfied and highly loyal to organizations are much more profitable generating more revenue for the organization than other less loyal customers (Mcmurrian,2016). Instances from the business community, suggest that organizations viewed as having an integrity reputation by stakeholders consistently enjoy several competitive advantages. These advantages include higher levels of commitment and loyalty from employees, higher levels of efficiency in operations, higher levels of perceived product quality, higher levels of customer loyalty and retention, and better financial performance (Ferrell, 2004). In summary, a more positive view depicts that there is a positive correlation between an organizations integrity (ethical behaviors) and the organizations bottom-line results.
2.1.11 Relationship between Product Quality Reputation and Sales VolumeThe quality of a product may be defined as "its ability to fulfill the customer's needs and expectations". Quality in this regard needs to be clarified firstly in terms of parameters or characteristics, which vary from product to product. Cadbury products will include taste, nutritional properties, texture, shelf life, and so on. Owing to the effect of reputation, research has proved that high-quality firms have more customers because they have fewer unhappy customers who leave. And word-of-mouth advertising results in more arrivals and increased sales or market outcomes (Rogerson, 1983). To this effect a product's quality reputation has a significant impact on the product or service performance, thus it is linked to a customer's value and satisfaction (Kotler and Armstrong, 2010). Consumers today are demanding high-quality goods that save time, energy, and often calories. Product quality is the most important factor in the selection of a brand/model, especially in a market environment where the level of competition is intense and price-competitive (Shaharudin et al., 2010). This proves a strong relationship between product reputation and sales volume. It is further explained that companies that are in a competitive market need to provide valuable and unique products to their customers that will automatically satisfy their needs (BIESOK & WYRD-WRBEL, 2011). This satisfaction does not only consist of feelings that are associated with the purchase process but also the atmosphere before and after the purchase execution. In this regard, Van Tonder & Petzer (2018) defined customer satisfaction as the customer fulfillment response, which they further described in terms of product quality that has been broadly accepted by customers. In other words, Gray and Boshoff (2004) further clarified that satisfaction primarily consists of consumers' perceptions about the products or service's attributes, which are unique to the individual. A good quality perception could influence the customer to purchase a selected product thereby impacting sales volume.
2.1.12 Relationships between Employee Welfare Reputation and Customer Loyalty
Employees are the driving factor behind customer satisfaction. Employee communications set the tone for a positive or negative client experience. When employees aren't happy at work, their communications with customers can, suffer. With time, this can have serious repercussions for a business. In view of this, employee engagement is driven by the emotional commitment employees have to their company and its vision. This emotional commitment motivates employees to work better and smarter especially when a positive perception is engraved in their welfare. Since the highest goal of most companies is to create an army of loyal and satisfied customers and use them as brand advocates, it is therefore incumbent on companies to care for the welfare of their employees by adopting an active engagement strategy. Employee engagement reputation is directly tied to client satisfaction and a great example of this is Morrison Management Specialists. This food services company managed to improve their client satisfaction by 1%, for every 2% improvement in employee engagement. Improved employee reputation has proved to enhance customer engagement, loyalty, and sales. According to Saks (Saks Fifth Avenue, one of the best-known New York retailers) Vice President Jay Redman, higher employee engagement has driven sales by up to 25% in some of their stores. Therefore, organizations can gain customer benefits from a positive corporate reputation in various ways, such as through cost advantage, qualified & experienced employees, increased product advancement, and accruing more customer loyalty (de Leaniz & del Bosque Rodrguez, 2016). Overall, Shankar, Smith, and Rangaswamy (2003) further found that customer loyalty and satisfaction significantly and positively reinforce each other; however, the outcome of this is dependent on employee behavioural intentions. In organizations, repeat purchasing intention is an extensively adopted index of behavioural intention. This assumption is supported by Heskett et al (1994) who affirm that there is a significant association between behavioural intention and purchase intention. In this regard, a committed employee could trigger good behavioural tendencies and adoring customer management.
2.2. Theoretical Framework
The theory of planned behaviour (TPB), asserts that customer loyalty was measured by behavioural intention in terms of repurchasing intention, word-of-mouth, and first-in-mind. These measures were proven to be useful in previous research (Taylor and Baker, 1994). Therefore, the theory of planned behaviour would be vital in supporting the research framework for better understanding of customer loyalty. The theory of planned behaviour (Ajazen, 1975) postulates that intention could be the best determinant of an individual's behaviour. Therefore, an individual who has a strong intention is more likely to engage in the conduct than one with low intention. In this setting, the theory of planned behaviour puts forward a factual existence in the relationship between corporate reputation and customer loyalty (Gorondutse & Hilman, 2013)
2.3 Empirical Review
Previous research confirmed a strong relationship between a positive corporate reputation and consumer loyalty. For instance, Jeng (2008) asserted that good corporate reputation results in a higher market share of firms and better financial performance.
Porter (1985); Yoon et al. (1993); and Andreassen and Lindestad (1998) suggest that a good reputation helps firms to build stronger relationships with their customer.
Nguyen and Leblanc (2001) hold that the degree of consumer loyalty is perceived to be higher when a consumer is having strong and favorable perceptions regarding the corporation's reputation. Helm et al. (2010) and Zhang (2009) declared corporate reputation as antecedents of customer satisfaction and customer loyalty which is consistent with the result of Ali et al. (2012) who reveals a highly significant and positive association between consumer satisfaction and consumer loyalty.
2.4 Summary of Empirical Review.
Table 2.1: Summary of Empirical ReviewS/N Author(s) Year Area of Study Title Methodology Findings
1 Amro Alzghou (2015) Corporate reputation
(CR) The impact of CSR and marketing on corporate reputation (CR) The study questionnaire includes 27 queries concerning the three dimensions of the model CSR, Marketing and CR. finding show that marketing and CSR are playing a critical role in enhancing CR; also, there is a significant positive relation between CSR and CR.
2 Sylvia Itembe Otunga
(2010) CR CR and financial performance of companies listed on the Nairobi Stock Exchange Data was collected using questionnaires. These questionnaires were administered using the drop and pick later method. Secondary data, especially the financial performance was obtained from the companies' financial statements. In this study, reputation was measured using the Corporate Character Scale The study revealed that when the employee perception of the firm reputation exceeds that of the customers (positive gap), there is much more favorable company performance and the converse is also true.
3 R.D Sharma
(1999) CR Implication of Social Corporate (CSR)Responsibility on Marketing performance Services Research
(Analysis of conceptual framework) Showed the existence of a positive and monotonic relationship between CSR, performance, and brand equity
4 Ririn Andrianaa, Saparsob, Tomi Fitrioc , Emmywatid, &Badaruddine ,
(2019) Marketing Assessing the Relationship between Corporate Reputation, Customer Satisfaction, Behavioral Intentions and Customer Loyalty Using a cross-sectional research design, 600 questionnaires were distributed among managers in the restaurant industry of Indonesia. A convenient sampling technique was used, which yielded a 58.33% response rate. The Structural Equation Modelling technique was used to analyze the data. The findings showed a positive and significant association between corporate reputation, customer satisfaction, customer loyalty, and behavioural intention
5 Abdullahi. H Gorondutse, Aminu Ahmad & Mustapha Nasidi
(2014) Mgt science Corporate Reputation on Performance of Banking Industries in Nigeria: Using PLS-SEM Tool of Analysis A survey with 384 qualified observations from financial institutions customers in Kano was conducted. Partial Least Squares (PLS-SEM) was used as an alternative to covariance-based SEM The model shows corporate reputation that is a reflective construct that has a significant direct effect on performance.
6 A. H. Gorondutse, H. Hilman, and M. Nasidi
(2013) Relationship between Corporate Reputation and Customer Loyalty in Nigerian Food and Beverages Industry: PLS Approach The data used for the study was collected employing the survey questionnaire research design. The results of this study established the significant effect of corporate reputation on the Customer7 Shih-Ping Jeng
2008 Management Science Effects of corporate reputations, relationships, and competing suppliers' marketing programs on customers' cross-buying intention
Survey The result showed that good corporate reputation results in a higher market share of firms and better financial performance.
8 de Leaniz, P. M.
& del Bosque Rodrguez, I. R.
(2016) Management Science Corporate Image and Reputation as Drivers of Customer Loyalty
Survey The result showed that organizations can gain customer benefits from a positive corporate reputation in various ways, such as through cost advantage, qualified and experienced employees, and increased productivity.
9 Roberts, P. W., & Dowling, G. R. (2002) Financial Management Corporate reputation and sustained superior financial performance
Survey Research results showed that firms with relatively good reputations are better able to sustain superior profit outcomes over time
10 Honggui G. Li, Zhongwei W. Chen, Guoxin X. Ma Business management Corporate Reputation and Performance: A Legitimacy Perspective Survey The results of this research suggest that corporate reputation has a significant positive relationship with enterprise growth. This positive relationship was found through all pathways tested. This means that brand image, social responsibility, innovation capability and staff quality are all important to enterprise growth
Source: Researchers Compilation,2022
2.5 Gap in Empirical Review
After revising articles published in different journals relative to the influence of reputation on organizational performance, four main knowledge gaps were identified (1) no consensus exists regarding the dimensions that comprise Cadbury's image and reputation as both are concerned with stakeholders' perceptions (2) The information on the similarities and differences that image and reputation formation presents among stakeholders is still very limited (3) there is no standardized approach or instrument for the measurements that serves application with different stakeholders and (4) there are no specific considerations on the dimension of roles economic, social and environmental activities play in corporate reputation
SECTION THREE
METHODOLOGY
3.1 Research Design
Baridam, (2006) defined research design as a framework or plan that is used as a guide in collecting and analyzing the data for a study. This study made use of a survey research design in its investigations.
3.2 Area of the Study
The study was done in Lagos Metropolis. Specific areas covered were: Ikeja, Maryland, Opebi, Oregun, Ogba, Akiode, Agidingbi, and Alausa where Cadbury Nigeria is located.
3.3 Sources of Data
Primary sources of data were used for the study and this was collected mainly from questionnaires issued to the staff of the company and consumers of Cadbury products in Lagos Metropolis.
3.4 Population of the Study
The population of this study consists of both staff of the company and consumers of Cadbury products in the Lagos metropolis. The staff population was 120 while that of the consumer was infinite.
3.5.1 Sample Size of Staff.
Since the population of the staff was not much the researcher used all the 120 staff as the sample size.
3.5.2 Sample Size of the Consumer.
Since the population of the consumer is unknown, the researcher conveniently selected 80 consumers as the sample size. The total sample size was 200 comprising 120 staff and 80 consumers.
3.6 Sampling Technique
Purposive sampling technique was applied in selecting staff whereas convenience sampling was used in selecting consumers who completed the questionnaire.
3.7 Data Collection Instrument.
The questionnaire was the primary instrument used for data collection and this was divided into two sections A and B. Section A contains bio-data of respondents such as age, gender, income and educational background. Section B captures data relating to independent variables (corporate reputation) and dependent variables (marketing performance).
Corporation reputation measurement construct (integrity building, product quality, and employee welfare), as well as marketing performance variables (profitability, sales volume, and customer loyalty), were all derived from models of previous studies. The questions were constructed on a Likert scale ranging from strongly agree -5 points to strongly disagree -1 point.
3.8 Validation of the Research Instrument
To ensure the face and content validity of the instruments, the researcher made proper consultations with the supervisor before arriving at the research questions. This enabled the researcher in ensuring that the instrument covered the breadth of the content area and to also ascertain if the instrument contains a representative sample of the content being assessed.
3.9 Reliability of Research Instrument
The reliability of the instrument was checked using the Cronbach alpha test. The test result showed a reliability coefficient of 0.82, showing that the instrument was highly reliable using the Nunnally and Berstein (2004) benchmark for testing the reliability of a research instrument.
3.10 Method of Data Presentation and Analyses
The study employed the simple percentage model in analyzing and interpreting the responses from the study questionnaire whilst the hypotheses were tested and further analyzed using regression and spearmans correlation tools.
SECTION FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation
A total of two hundred (200) copies of the questionnaire were distributed to respondents. Out of this, 117 (one hundred and seventeen) representing 59% of questionnaire copies were dully completed and returned.
Table 4.1: Age Distribution of Respondents
No. of respondents Percentage
Valid Less than 25 12 10
25-39 Years 45 38
40-54 Years 33 28
55 Years and above 27 23
Total 117 100
Source: Field data, 2022.
From the above table, it can be observed that 12 respondents representing 10 percent of the respondents were less than 25 years of age, 45 respondents representing 38 percent fall within the 25-39 years age bracket while 33 of the respondents representing 28 percent were observed to have fallen within the 40-54 years age bracket. The remaining 27 respondents represented 23 percent of the total respondents.
Table 4.2: Marital Status of Respondents
Marital No. of respondents Percentage
Single 40 34
Married 77 66
Total 117 100
Source: field data, 2022.
From the table above, 40 respondents representing 34% of the total respondents are single, while 77 respondents representing 66% of the total respondents are married. Table 4.3: Integrity built by my organization reflects in the behaviour of its employees
Option No. of respondents Percentage
Strongly agree 60 51
Agree 30 26
Disagree 15 13
Strongly disagree 12 10
Total 117 100
Source: field data, 2022.
From the above table, 60 respondents representing 51% of the total respondents strongly agreed that the integrity built by their organization does reflect in the behaviour of employees. 30 respondents representing 26% agreed, 15 representing 13% of the total respondents disagreed, while the remaining 12 respondents representing 10.2% strongly disagreed.4.2 Test of Hypotheses One
H01: Integrity building reputation has no significant positive influence on the profitability of Cadbury Nigeria Plc.
H1: Integrity building reputation has a significant positive influence on the profitability of Cadbury Nigeria Plc.
Variables Entered/Removed
Variables Entered/Removed
Model Variables Variables Method
Entered Removed 1 Integrity Enter
a. Dependent variable: Profitability
b. All requested variables entered
Source: SPSS Data, 2022
Model summary
Model Summary
Model R R Square Adjusted
R Square Std.Error of the Estimate R Square Change Change Statistics
F Change df1 df2 Sig. F Change
1 .058a .000 -.007 .759 .089 .009 1 148 .925
a. Predictors: (Constant), Integrity
Source: SPSS Data, 2022.
Hypotheses 1 shows an R (Coefficient determination) of .089 implying that the independent variable which is integrity, accounts for 89% of the outcome of our dependent variable which is achieving profitability. The result shows that 11% is unaccounted for. Also, the R (Regression coefficient) of .058, shows there is a significant relationship existing between the variables.
Coefficients
Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta (Constant) -.134 .062 -2.147 .033
1 Integrity -.058 .090 -.008 -.094 .925
a. Dependent Variable: Achieving profitability
Source: SPSS Data, 2022.
There is a standardized coefficient of .058 which shows a strong relationship existing between the variables and an R-value (sig) of .925 which is greater than alpha 0.05. It means we should accept the null hypotheses.
Anova
ANOVA
Model Sum of Squares Df Mean Square F Sig.
Regression .005 1 .005 .009 .925b
1 Residual 85.328 148 .577 Total 85.333 149 a. Dependent Variable: Integrity
b. Predictors: (Constant), Profitability
Source: SPSS Data, 2022.
From Anova output, it shows a P-value (sig) of .925 which is greater than alpha 0.05 indicating acceptance of the null hypotheses.
Table 4.4: The quality of the product by Cadbury has a direct impact on the sales volume
Option No. of respondents Percentage
Strongly agree 65 56
Agree 30 25
Disagree 12 10
Strongly disagree 10 9
Total 117 100
Source: field data, 2022.
From the above table, 65 respondents representing 56% of the total respondents strongly agreed that the quality of the product by their organization has a direct effect on sales volume achieved. 30 respondents representing 25% agreed, 12 representing 10% of the total respondents disagreed, while the remaining 10 respondents representing 9% strongly disagreed.
4.3 Test of Hypothesis Two
Ho2: Product quality reputation does not have a significant influence on the sales volume of Cadbury Nigeria Plc
H2: Product quality reputation has a significant positive influence on the sales volume of Cadbury Nigeria Plc
Variables Entered/Removed
Variables Entered/Removed
Model Variables Variables Method
Entered Removed 1 Product quality Enter
a. Dependent variable: Sales Volume
b. All requested variables entered
Source: SPSS Data, 2022
Model summary
Model Summary
Model R R Square Adjusted
R Square Std.Error of the Estimate R Square Change Change Statistics
F Change df1 df2 Sig. F Change
1 .056a .000 -.007 .759 .088 .009 1 147 .924
a. Predictors: (Constant), Quality
Source: SPSS Data, 2022.
Hypotheses 2 shows an R (Coefficient determination) of .088 implying that the independent variable which is quality, accounts for 88% of the outcome of our dependent variable which is achieving profitability. The result shows that 10% is unaccounted for. Also, the R (Regression coefficient) of .056, shows there is a significant relationship existing between the variables.
Coefficients
Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta (Constant) -.134 .062 -2.139 .034
1 Quality -.056 .090 -.008 -.093 .924
a. Dependent Variable: Higher Sales Volume
Source: SPSS Data, 2022.
There is a standardized coefficient of .056 which shows a strong relationship existing between the variables and an R-value (sig) of .924 which is greater than alpha 0.05. It means we should reject the alternate hypotheses and accept the null hypotheses.
Anova
ANOVA
Model Sum of Squares Df Mean Square F Sig.
Regression .005 1 .005 .009 .924b
1 Residual 85.326 147 .577 Total 85.331 148 a. Dependent Variable: Quality
b. Predictors: (Constant), Sales volume
Source: SPSS Data, 2022.
From Anovas output, it shows a P-value (sig) of .924 which is greater than alpha 0.05 implying acceptance of the null hypotheses.
Table 4.5: Employees welfare has a direct impact on customer loyalty
Option No. of respondents Percentage
Strongly agree 67 57
Agree 32 27
Disagree 11 9
Strongly disagree 9 8
Total 117 100
Source: field data, 2022.
From the above table, 65 respondents representing 57% of the total respondents strongly agreed that employee welfare has a direct effect on customer loyalty. 32 respondents representing 27% agreed, 11 representing 9% of the total respondents disagreed, while the remaining 9 respondents representing 8% strongly disagreed.
4.4: Test of Hypothesis Three
Ho3: There is no significant positive influence of employee welfare on customer loyalty of Cadbury Nigeria Plc.
H3: There is a significant positive influence of employee welfare on customer's loyalty to Cadbury Nigeria Plc.
Variables Entered/Removed
Variables Entered/Removed
Model Variables Variables Method
Entered Removed 1 Product quality Enter
a. Dependent variable: Sales Volume
b. All requested variables entered
Source: SPSS Data, 2022
Model summary
Model Summary
Model R R Square Adjusted
R Square Std.Error of the Estimate R Square Change Change Statistics
F Change df1 df2 Sig. F Change
1 .058a .008 -.007 .012 .089 .009 1 144 .927
a. Predictors: (Constant), Quality
Source: SPSS Data, 2022.
Hypothesis 3 shows an R (Coefficient determination) of .089 implying that the independent variable which is employee welfare, accounts for 89% of the outcome of our dependent variable which is achieving customer loyalty. The result shows an R (Regression coefficient) of .058 indicating that a significant relationship exists between the variables.
Coefficients
Coefficients
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta (Constant) -.134 .062 -2.139 .034
1 Quality -.056 .090 -.008 -.093 .927
a. Dependent Variable: Higher Sales Volume
Source: SPSS Data, 2022.
There is a standardized coefficient of .058 which shows a strong relationship existing between the variables and an R-value (sig) of .924 which is greater than alpha 0.05. This implies that the alternative hypotheses should be rejected and the null hypothesis accepted.
Anova
ANOVA
Model Sum of Squares Df Mean Square F Sig.
Regression .005 1 .005 .009 .927b
1 Residual 85.329 144 .579 Total 85.334 145 a. Dependent Variable: Employee welfare
b. Predictors: (Constant), Customer loyalty
Source: SPSS Data, 2022.
From Anova's output, it shows a P-value (sig) of .927 which is greater than alpha 0.05 indicating acceptance of the null hypotheses.
4.5 Discussion and findings
4.5.1: Objective 1. Influence of Integrity Building Reputation on Profitability
Findings from the study depict that integrity building reputation has no direct impact on the profitability of Cadbury Nigeria Plc. This result revealed that Cadbury Plc is not aligning its operations with the consistency of actions, measures, methods, principles, and outcomes that drive reputation. Instances from previous studies suggest that organizations viewed as having an integrity reputation by stakeholders consistently enjoy several competitive advantages. These advantages include higher levels of commitment and loyalty from employees, higher levels of efficiency in operations, higher levels of perceived product quality, higher levels of customer loyalty and retention, and better financial performance (Ferrell 2004). In the case of Cadbury Nigeria Plc, there is a standardized regression coefficient of about .058 which exists between the variables, and an R-value (sig) of .925 generated from Anova is greater than alpha 0.05. This is a reflection of poor performance in integrity building within the organization. Previous research results showed that firms with relatively good reputations are better able to sustain superior profit outcomes over time.
4.5.2: Objective 2. Influence of Product Quality Reputation on Sales Volume
The result of the study showed that the quality of Cadburys Nigeria Plc Products has no significant impact on the sales volume. This result simply entails that the quality perception of products dispatched to the market by Cadbury Nigeria Plc is not consistent in quality. Customer complaints relative to this were glaring and noted during the survey interphase. This result is consistent with the outcome of previous studies on the subject. According to previous studies, good quality perception of a product can influence the customer to purchase a selected product thereby impacting sales volume. Consumers today lay more emphasis on high-quality goods that save time, energy, and often calories. Product quality is the most important factor in the selection of a brand/model, especially in a market environment where the level of competition is intense and price-competitive (Shaharudin et al., 2010).
4.5.3: Objective 3. Influence of Employee Welfare Reputation on Customer Loyalty
Results obtained from this study revealed that employee welfare reputation had no significant impact on the customer loyalty of Cadbury Nigeria Plc. Anova's output from the study generated a P-value of .927 which is greater than alpha 0.05 depicting a none significant value for the variable under analysis. This result is consistent with previous studies which established the significant effect of employee welfare reputation on customer loyalty. Enhanced working conditions usually result in better firms' capacity to build a positive reputation. Such a reputation generally guarantees the continued engagement of the firms stakeholders, including the stockholders (Brammer, Brooks, and Pavelin, 2006). This result simply entails that Cadbury Nigeria Plc is deficient in its employee welfare package.
Emeka,
Repeat Section Four using appropriate analytical technique; regression is most inappropriate here.
SECTION FIVE
SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS
Summary of Findings
After data analysis, findings show that:
i. Integrity building reputation has no significant positive influence on the profitability of Cadbury Nigeria Plc (P > 0.05).
ii. Product quality reputation does not have a significant positive influence on sales volume of Cadbury Nigeria Plc (P > 0.05)
iii. There is no significant positive influence of employee welfare reputation on customer loyalty of Cadbury Nigeria Plc (P > 0.05)
5.2 ConclusionFrom the results of this study, we conclude that corporate reputation especially integrity building, product quality, and employee welfare reputation do not influence profitability, sales volume and customer loyalty of Cadbury Nigeria Plc respectively.
5.3 Recommendations
i. Cadbury management should improve on its integrity building reputation in order to increase its profitability goal.
ii. Cadbury management should improve on product quality reputation in order to increase the sales volume.
iii. Cadbury management should also improve on employee welfare packages in order to attract customer loyalty to their business.
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MARKETING PLAN AND MARKET SHARE OF UNILEVER PLC
IWUABA, MAXIMUS
(PhD /2022/000996)
DEPARTMENT OF MARKETING
SCHOOL OF MANAGEMENT SCIENCES,
THE UNIVERSITY OF AMERICA, CURACO CAMPUS.
CENTRAL WASGHTON COLLEGE, ENUGU TUTORIAL CENTER NIGERIA
OCTOBER, 2022
MARKETING PLAN AND MARKET SHARE OF UNILEVER PLC
BY
IWUABA, MAXIMUS
(Ph.D./2022/000996)
BEING A SEMINAR SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT FOR THE AWARD OF DEGREE DOCTOR OF PHILOSOPHY (Ph.D.) IN MARKETING.
THE UNIVERSITY OF AMERICA CURACO CAMPUS,
CENTRAL WASGOTON COLLEGE ENUGU TUTORIAL CENTER NIGERIA
SUPERVISOR: PROF. G.N. NEBO
OCTOBER, 2022
ABSTRACT
The aim of the study was to examine the relationship between marketing plan and marketing share of Unilever Nigeria Plc. The objectives of the study included to: ascertain relationship between product plan and market share of Unilever Nigeria plc; determine relationship between marketing promotion plan and market share of Unilever Nigeria plc; and assess relationship between marketing logistics plan and market share of Unilever Nigeria Plc. Survey research design was used for the study. The study made use of 50 Unilever Nigerian managers who were involved in preparing marketing plans. Structured questionnaire was the major instrument used in collecting data. The instrument was validated and checked for reliability using the Cronbach alpha test. The hypotheses were tested using Spearmans correlation tool. After data analyses, the findings show that product plan, marketing promotion plan, and marketing logistics plan all had significant positive relationship with market share of Unilever Nigeria Plc. Based on the findings, concluded that was significant positive relationship between marketing plan and marketing share of Unilever Nigeria Plc. We recommended that marketing managers who were involved in marketing plans should maintain the current status quo since they provided favorable results on the market share of Unilever plc.
Keywords: Market share; Promotion plan; Product plan; Logistics plan
TABLE OF CONTENTS
Cover ii
Title iii
Abstract iv
List of Tables & Figures vii
SECTION ONE: INTRODUCTION
1.1 Background of Study 1
1.2 Statement of the Problem 2
1.3 Purpose of Study 2
1.4 Research Questions 3
1.5 Statement of Hypotheses 3
1.6 Significance of Study 3
1.7 Scope of Study 4
1.8 Limitations of the Study 4
1.9 Definition of Terms 4
1.10 Profile of Unilever Nig Plc 5
SECTION TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual Review 6-7
2.1.1 Marketing Plan 7
2.1.2 Product Plan 7
2.1.3 Marketing Promotion plan 7-8
2.1.4 Logistics Plan 8
2.1.5 Market Share 8
2.1.6 Conceptual Framework 8-9
2.1.7 Relationship between Product Plan and Market Share 9
2.1.8 Relationship between Marketing Promotion Plan and Market Share. 10-11
2.1.9 Relationship between Marketing Logistics and Market Share 11-12
2.2 Theoretical Framework 12
2.3 Empirical Review 12-13
2.4 Summary of Empirical Review 13-15
2.5 Gap in Empirical Studies 15
SECTION THREE: METHODOLOGY
3.1 Research Design 16
3.2 Area of Study 16
3.3 Source of Data 16
3.4 Population of the Study 16
3.5 Determination of Sample size 16
3.6 Sampling Technique 16
3.7 Data Collection Instrument 16
3.8 Validation of Research Instrument 17
3.9 Reliability of Research Instrument 17
3.10 Method of Data Presentation and Analyses 18
SECTION FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Percentage of the Questionnaire Distributed and Returned 19
4.2 Analysis of the Demographic Data of the Respondents 19
4.3Analysis of Research Questions and Test of Hypothesis
4.4 Discussion of Findings 20-23
SECTION FIVE: SUMMARY OF FINDINGS, CONCLUSION,
AND RECOMMENDATIONS
5.1 Summary of Findings 25
5.2 Conclusion 25
5.3 Recommendations 25
5.4. Contribution to Knowledge
REFERENCES 26-29
LIST OF TABLES & FIGURES
Table 2.1: Summary of Empirical Review 13-15
Table 3.1 Test of reliability 17
Table 4.1: Gender Category of Respondents 19
Table 4.2: Level of Biz experience of respondents 19
Table 4.3: Product Planning/Strategy 20
Table 4.4: Promotion Planning/Strategy 21
Table 4.5: Logistics planning/Strategy 22
Table 4.6: Correlation table and Test of Hypotheses 23
Fig 1. Model of Corporate Reputation and Marketing Performance. 9
SECTION ONE
INTRODUCTION
1.1 Background of the study
Following the rapid changes stemming from globalization and the advancement of information technology, organizations especially in Africa are now becoming more competitive with each other. Many organizations are now driven by the market to set goals that focus on performance. Some of these objectives are strategically set to reduce cost, ameliorate productivity, produce innovative products and increase their market shares (MS). This simple practice is the rudiments of strategic management and organizational performance.
Market share in recent times is perceived as a measure of profitability by most organizations. Okwachi, Gakure, and Ragui (2013) stated that achieving market share growth is a fundamental business objective and that MS is the percentage of a market accounted for by a specific entity, and can be represented as an organization's sales volume or revenue in a given market divided by the total volume of sales in that market.
A strategic marketing plan follows a market-driven process of strategy development imbibed in the overall strategic plan of an organization. It requires taking into account a constantly changing business environment and a continual requirement to deliver customer satisfaction.
A significant number of recent investigations suggest that an efficient and effective strategic management system can increase market share and profitability. More recent empirical evidence indicates that on average, companies that plan outperform those that do not.
With the changing business and economic environment, establishments are intensively focusing on crafting strategies that will ameliorate their performance by reducing cost, innovating products and processes, and enhacing quality, productivity and speed to market. This shows that there is an established relationship between strategic management and organizational performance.
The corporate marketing plan of FMCG as Unilever plays a vital role in providing business units with market direction and capabilities to maintain and develop adequate pace with the consistently changing business environment. This reinforces decision-making and most importantly helps in the provision of a competitive edge to a business (Abbas, 2018).
Unilever is increasing its efforts in Nigeria to build on its long-established local roots in developing regions. Ironically, the economic and market conditions are volatile creating activities that are characterized by a high frequency of price fluctuations, unproductive promotional schemes, poor quality of products, and uneven availability and distribution of products within domestic markets.
The aforementioned is the basis for this study aimed at establishing a link between the resultant effects of marketing plan efforts on the market share of the company
1.2 Statement of the Problem
In the recent past, the performance of organizations has been the focus of intensive research efforts. In line with this, most organizations are implementing policies and programs that accomplish their strategic intent in terms of their mission and vision. A strategic marketing plan is a process by which we can envision the future and develop the necessary procedures and operations to influence and achieve that future. Research have made it clear that there is an increased internal and external uncertainty due to emerging opportunities and threats. The economic environment is changing rapidly and this change is characterized by such phenomena as globalization, changing customer, and investor demands, and ever-increasing product/market competition.
Therefore, to compete successfully in these environments, organizations need to continually improve their performance by adopting cost-reducing concepts, innovating new products with good quality, and increasing their speed to market. Organizations must adapt themselves to empowered customers by implementing strategies that can sustain them in this competitive environment (RDB & HCID, 2012). To achieve a competitive market share, a business unit must be able to assess its competitors and set goals and strategies to meet all existing and potential competitors, and then reassess each strategy regularly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances or technology (Lamb,1984)
1.3 Objectives of the Study
The aim of the study was to determine the relationship between marketing plan and market share in Unilever Plc. Specific objectives included to;
i. Ascertain the relationship between product plan with market share of Unilever Nigeria Plc.
ii. Determine the relationship between marketing promotion plan and market share in Unilever Nigeria Plc.
iii. Assess the degree of the relationship between marketing logistics plan and market share in Unilever Nigeria Plc.
1.4 Research Questions
Based on the above objectives, the following questions were raised.
i. To what is the relationship between product plan and market share in Unilever Nigeria Plc.
ii. What is the relationship between marketing promotion plan and market share in Unilever Nigeria Plc.
iii. What is the of relationship between marketing logistics plan and market share in Unilever Nigeria Plc.
1.5 Statement of Hypotheses
The following hypotheses were tested in the study;
There is no relationship between product plan and market share in Unilever Nigeria Plc
Marketing promotion has no relationship with market share in Unilever Nigeria Plc.
There is no relationship between marketing logistics plan and market share in Unilever Nigeria Plc.
1.6 Significance of the Study
The major setbacks currently experienced by most organizations can be attributed to poor strategic market planning, especially in the context of products, promotion, logistic plans, and developments. These shortcomings could also arise as a result of the economy, fluctuation in demand, a low level of industrialization, and poor transport and communications. This research, therefore, identifies those inherent problems which hinder the successful implementation of a producer's marketing effort in any organized market. More so, this study aims at identifying the factors impeding the complexity of the marketing strategies of organizations.
The study will avail companies of the opportunity to re-examine their marketing policies to be more competitive and able to achieve higher growth and continued survival. It will also enable firms to be more customers oriented and perhaps, provide them with a clearer understanding of how and the need to be relevant in their environment.
The study is also of immense importance to bring to the awareness of the public and management professionals the role a strategic marketing plan can play in organizational performance using Unilever Plc as a case study.
The management of Unilever will benefit from this study as it will review and explain the circumstances and factors which contribute to the advancement of the company.
It will add value to policymakers and be of great significance to the industrial sector, customers, the general public, and the students for academic purposes who wish to carry out studies on the subject matter in the future.
1.7 Scope of the Study
The study is primarily conducted to gain insights into the relationship between marketing plans and market share in Unilever Plc. The study is limited to Lagos State, Nigeria. The study was limited to three marketing plan variables Product marketing promotion and logistics and one dependent variable, marketing share. Only managers that are involved in marketing plans were investigated.
Limitations of the Study
Since the researcher targeted directors and top management staff of Unilever Plc and their clients, it was challenging to get hold of these groups of respondents. Because of this, the initial target time allocated for field work was not achieved. The respondents were also very economical with the relevant information fearing leakage of vital information to competitors. Overall, the feedback received from respondents was consistent, and reliable and subsequently addressed the objectives of the study.
1.9 Definition of Terms
Market share (MS) - A percentage of total sales in a market captured by a brand or company
Promotion Plan: This visualizes how organizations perform their marketing strategies because of awareness creation to the target audience. It gives insights into how a company plans to differentiate itself from other brands in the market.
Product Plan: This is a process through which the exact nature of the product is determined. It can also be regarded as a plan for marketing a particular product or product line of a company in a particular industrial or geographical area.Logistics Plan: This defines the service and distribution attributes of an organization. It focuses on defining how goods, information, products, and service within the supply chain are moved from one place to another.
1.10 Profile of Unilever Plc
Unilever is an organization built around a robust culture and employer brand. With so many different products and so many different brands touching so many different markets, it would be easy for each one to have its own distinct culture and marketing, with little overlap in-between (Kocchoper, 2015). Unilever Nigeria PLC is one of Nigeria's largest consumer goods companies with a coverage network that spans all the states in the nation and a distribution center in almost every town and city in the country. The company's long-term success of the business stems from its strong relationship with the consumers based on its deep roots in the local cultures and markets. This created products that help them to feel good, look good, and get more out of life and the total commitment to exceptional standards of performance and productivity (Paul, 2008), according to Unilever Nigeria report in 2005. Unilever Nigeria Plc. operates in Nigeria with one manufacturing plant located at Oregun, Lagos state. The company produces its products and manages the complex logistics framework through third-party logistics (3PL) companies which provide support in sales and warehousing, distribution, and merchandising. Unilever South-East has a sales potential of over 20,000 existing and potential retail outlets with 21 distribution centers. South-eastern Nigeria has demonstrated to be a potential new market focus for the organization with growth in major cities in the region like Onitsha, Warri, Aba, Enugu, Port Harcourt, and Calabar. The company faced setbacks with meeting up to the full potential of the market size. This was a result of a lack of logistics planning and financial constraints at the redistribution level (Unilever Report 2005) and that stock integrity, resulting in unnecessarily high costs (Mohan, 2012)
SECTION TWO
REVIEW OF RELATED LITERATURE
2.1 Conceptual Review
2.1.1 Marketing Plan
The success of every business is foundational and dependent on its vision and management attributes. Marketing planning is a vital component of every business. It is centered on the formulation and implementation of marketing goals and creativities involved in the strategies as defined by the stakeholders of an organization. Therefore, strategic marketing according to Gisma (2019) "entails evaluating business goals, the organization's vision, and objectives as well as the plans". This ensures that a business runs effectively and efficiently. Strategic marketing planning aligns with a firm's strategic management plans, more specifically, it relies largely on research, customer opinion, employee contribution, effective communication, and industry best practices for it to thrive. Adeleke (2008) affirms that strategic management helps organizations to examine both present and past business environments enabling firms to implement decisions focused on achieving their objectives. The success of a given organization is on developing a clear sense of purpose and direction that outlines its goals and strategic objectives. This in turn expresses a vision of how the organization will look in the future. This agrees with Holbeche, (2004) postulations which affirm that Strategic management has a clear focus on implementing strategic change and growing the skill base of the organization to ensure that it can compete efficiently in the future.
Over the years, more consideration has been given to market share than any other marketing variable. That interest results from a long history of research that shows that a higher share leads to higher profits. There are four possibilities; gaining share, holding or maintaining share, harvesting, and divestment or abandonment (BYUKUSENGE et al. 2018). The impact on a strategic marketing plan when properly applied and implemented is felt mostly on the market share of a firm. Market share is a measure of the customers' preference for a product over similar products. A higher market share usually implies a greater sale, lesser effort to sell more and a strong barrier to entry for other players in the market. A higher market share also implies that if the market expands the leader gains more than the others. By the same token, a market leader - as defined by its market share - also has to expand the market, for its growth (Schnaars, 1998). In line with this market share could be considered a more visible signal in performance measurement. This agrees with Rao et al. (2001) who postulate that various companies are considered more visible when relying on more visible activities like corporate social responsibility, customer satisfaction, product quality, financial performance, and market share. Therefore, this review will be focused on literature and views from eminent researchers based on three key proxies.
2.1.2 Product Plan
A product plan is an internal premeditated procedure to create a successful product or service. It involves the tasks and decisions that affect all aspects of the product or service rendered to the customer. This includes decisions about the type of products, their pricing, distribution, and promotional activities. It's an ongoing process that is constantly changing requiring careful thought, adaptability, and efficient management of expectations. Tantong, et al., (2010) found that product style adaptation plan was associated with firms performance. In the same vein, Cavusgil and Zou, (1994) and Lee and Griffith, (2004) noted that higher firm performance is obtained via adapting the merchandise to satisfy the needs of export customers. Product is a combination of a firms resources in form of a single unit offered to a customer to make a profit (Okeudo & Okoli,2013). This definition simply reemphasized the importance of product as a key attribute to the overall performance of a firm
2.1.3 Marketing Promotion Plan
Various studies have confirmed that a marketing promotion plan is an effective instrument that has a positive direct impact on users' purchase behavior. According to Steenkamp (2005) marketing promotion helps to increase consumer sensitivity triggering a switch among brands. This improves the customer-perceived value of the product price leading to an increased share of the market. Marketing promotion, therefore, is one of the best tools used to attract new customers and retain old ones. Palmer (2004), concurred with this statement by affirming that sales promotion is distinctive and has the capability of offering additional incentives for consumers to buy. Many organizations now use a variety of methods to promote their products. Among these are advertising, trade promotions, and consumer promotions. Firms use these three tools to formulate their marketing strategies while competing for a share of customers' money. Market share responds to components promoting selling strategy. In agreement with this, Brodrechtova, (2008) elucidated that promoting strategy may be a roadmap of how a firm assigns its resource and relates to its setting, and achieves a company objective to achieve a competitive advantage over its competitors. Sales promotion is an endearing tool to win new customers and retain old ones. This includes marketing activities that add more value to the products for a limited period to stimulate consumer purchases and the effectiveness of intermediaries
2.1.4 Marketing Logistics Plan
A logistics plan is a process that ensures the optimization of workflow in an organization. It includes planning, implementing, and maintaining the efficiency of warehousing, the flow of goods and services, and information. Studies have demonstrated that a successful logistics plan often shares a theme of streamlining the supply chain operations to gain a competitive advantage. Therefore, the logistics plan of an organization plays an integral role in how effectively an organization delivers its promises to clients. Persson (1991), identified three basic strategies of logistics and categorized them based on (1) competitive forces (ii) capability of making suppliers or customers more dependent upon them, and (iii) using heavy investment in a new logistics network to discourage other firms from entering a market sector. These three strategies of logistics stimulate purchase effectiveness thereby impacting the share of the company positively.
2.1.5 Market Share
One of the foremost necessary aims of companies is to boost their market share to attain a bigger scale in their operations and improve profitability. Market share is therefore a key indicator of a companys competitiveness. Most organizations now focus on determining the factors that influence their market shares. Studies have shown that product quality, price, promotion and distribution exert a positive and significant effect on influencing the market share of a company. An increase or decrease in market share can be perceived as a sign of the relative competitiveness of the company's products or services. As the total market for a product or service grows, a firm maintaining its market share is seen as growing revenues at the same rate as the total market. Research has shown that market share is a desired asset among competing firms (Armstrong and Greene,2007).
2.1.6 Conceptual Framework.
The concepts of the research are hinged on the relationships between the dependent and independent variables. In this case, the independent variables are the strategic marketing planning variables: promotion planning, product strategy, and logistic strategy whilst market share is the dependent variable.
Marketing Plan
1362075417195(Independent variables) Dependent variable
3595370626109Market Share
00Market Share
Product Plan
-47625222250Marketing Promotion Plan
00Marketing Promotion Plan
1362075197485
136207569850
-47625171450Marketing Logistics Plan
00Marketing Logistics Plan
Figure 2.1 Source: Researchers Compilations,2022
2.1.7 Relationship between Product Plan and Market Share
Product planning and development is one of the ways of enlarging the size of the product portfolio of any organization. Many organizations have not recorded much success concerning the depressed economic situation. It is therefore imperative to recognize the fact that necessity gives birth to Invention. Saaksvuori and Immonen (2004) described a product as goods and services that are sold by an enterprise to its customers. Product planning is the set of activities beginning with the perception of a market opportunity and ending with the production, sale, and delivery of a product (Ulrich and Eppinger, 2007). Conversely, product planning is a process through which the exact nature of the product is determined. It can also be regarded as a plan for marketing a particular product or product line of a company in a particular industrial or geographical area. In this regard product planning is not an optional matter. It has to be done just to survive in today's dynamic markets (Perreault and McCarthy, 1996). The success of firms depends on their ability to identify the needs of customers and to quickly create products that meet these needs. Achieving the goal of satisfying the needs of customers is not solely a marketing problem, nor is it solely a design problem or manufacturing problem; it is a product development problem relating to all of these functions (Ulrich and Eppinger, 1995)
Consumers in recent times are demanding for high-quality goods that save time, energy and often calories. Product quality is the most important factor in the selection of a brand/model, especially in a market environment where the level of competition is intense and price-competitive (Shaharudin et al., 2010). This proves a strong relationship between product planning and sales volume. Tantong, et al., (2010) found that product style adaptation strategy was completely associated with firm performance. In the same manner, Cavusgil and Zou, (1994) and Lee and Griffith, (2004) noted that higher firm performance is obtained via adapting the merchandise to satisfy the needs of customers. Fizebakhsh, (2002) discovered that the existence of warranty for product quality, diversification of product, packaging, and consistency in product production were effective factors that influenced the market share. Lages et al., (2009) describe that solely product innovation had a positive impact on the economic performance of a firm, so they stressed that in today's international markets, the major role of product planning is to extend economic performance.
It is further explained that companies that are in a competitive market need to provide valuable and unique products to their customers that will automatically satisfy their needs (BIESOK & WYRD-WRBEL, 2011). This satisfaction does not only consist of feelings that are associated with the purchase process but also the atmosphere before and after the purchase execution. In this regard, Van Tonder & Petzer (2018) defined customer satisfaction as the customer fulfillment response, which they further described in terms of product quality that has been broadly accepted by customers. In other words, Gray and Boshoff (2004) further clarified that satisfaction primarily consists of consumers' perceptions about the products or service's attributes, which are unique to the individual. A good quality perception could influence the customer to purchase a selected product thereby impacting sales volume and market shares
2.1.8 Relationships between Marketing Promotion Plan and Market Share
Without a doubt, Nigeria and most African nations are experiencing an economic meltdown. This is compelling organizations to execute their business activities under the persistently high inflation, material and energy shortages, high-interest rates, skyrocketing exchange rates, and aggressive competition. To survive, organizations are subsequently crafting different marketing attributes to retain their share of the market and profitability. One of the key areas of achieving this is via sales promotion planning. Kotler and Armstrong (2004) classified sales promotion as one of the five backbones of the marketing communication mix. A marketing communication mix is a tool that is used to persuade consumers to purchase certain products or services of which sales promotions are one. These tools are short-term motivations that influence consumer buying behavior. On the other hand, a promotion strategy is the use of advertising, sales promotion, personal selling, public relations, and direct marketing to promote organizational products. According to Brassington and Pettitt (2010), promotion is a direct way in which companies communicate their products or services to their target customers
Several researchers have assessed the relationships between promotional activities with a market share to seek out whether or not sound promotion would increase sales and profit. A promotion plan visualizes how organizations perform their marketing strategies giving awareness creation to a target audience. It gives insights into how a company plans to differentiate itself from other brands in the market. Promotion is a drive to increase the visibility of a company's brand, products, or services. It is comparatively effective in the campaigns of competitors (Thirkell & Dau, 1998).
Sales promotion includes all activities and campaigns that are designed to sell more products and to create goodwill, directly or indirectly. Promotions including selling and advertising have received the greatest attention in marketing practice and research (Stanton,1986). Of all dimensions of the promotion plan, the foremost widely researched was advertising which examined advertising procedures targeted at, introducing, informing or encouraging clients and, the outcome of this was perceived to generate additional sales and enhance profit (Leonidou et al., 2002). Every business requires making sales to stay afloat. To achieve this, a healthy dose of advertising promotions is necessary. Advertising can be a good way to increase sales by creating awareness among customers about products and/or services. It can take various forms but must however be proactively communicated to customers/consumers.
2.1.9 Relationship between Marketing Logistics Plan and Market Share
Logistics planning in an organization includes the physical movement, warehousing, ownership of the product, presale transaction, post-sale activities; order processing, credit, and collections; and other different types of support activities (Gorchels et al 2014). Various studies have confirmed the recurring and positive relationship between effective logistic plans and market share. There is no doubt, therefore, that market share and return on investment are strongly impacted by the effectiveness of a firm's logistics. Logistical services, which is a unique subset of industrial services spanning the boundaries between suppliers and customers, have become increasingly important to the success of supply chain operations. According to Bowesox, Closs, and Cooper (2002) Logistics service performance assesses a provider's ability to consistently deliver requested products within the agreed delivery timeframe at an acceptable cost.
The research by Daugherty et al, (1998) on an in-depth assessment of the relationships between logistics service performance and customer satisfaction, loyalty, and market share in an industrial setting indicated that high levels of logistics service are indirectly related to market share through satisfaction and loyalty. This assertion entails that high customer satisfaction could be linked to improvements in a firm's economic returns, including market share and profitability (Anderson, et al,1994). This postulation proves the fact that a delighted customer has the potential to turn into a loyal customer with guaranteed repeat purchases. Innis and LaLonde (1994) established the relationship in logistics, linking customer service, attitudes, satisfaction, and repurchase intentions. In their work, they refer to "repurchase intentions" as a "proxy for market share" (p. 19). It is therefore reasonable to state that the effect of the logistics strategy in Unilever is a potential outcome of a successful service delivery process. The interactions that take place between the customer and the company under this process represent a fundamental part of successful business operations. This, if properly harnessed would strongly lead to the success of relationship marketing initiatives to improve company performance as well as customer satisfaction and customer loyalty levels. This ultimately results in customer retention and eventually, customer acquisition from the competitors which leads to an increase in market share.
2.2. Theoretical Framework
The 4p theory of marketing mix was adopted to analyze the study. Saguti (2015) asserts that a marketing mix is a model used by organizations to create and improve their marketing efforts. It is used to blend different factors in such a way that the organization can achieve its objectives and meet customers' needs. Much of the original philosophy about the marketing mix emerged from the work of McCarthy (1960), who saw the four principal elements of the marketing mix to be Product, Price, Promotion, and Place (Distribution). Subsequently, the marketing mix has been established to include the three 'softer' elements of People, Physical indication, and Process management. The theory is still relevant today and applied in making important decisions that lead to the execution of marketing plans. The marketing mix is central to an organization in all aspects of the marketing plan covering habits, desires, and the psychology of the target market. This theory combines several components aimed at solidifying and strengthening a product both in development and sales. The components of the marketing mix are product, price, promotion, and place. This forms the 4p's. These components are the yardstick that the marketing professional can control, subject to internal and external constraints of the marketing environment to make a customer-focused decision.
2.3 Empirical Review
Ardjouman & Asama (2015) investigated the marketing management strategies affecting the performance of firms in Cote d'Ivoire, the findings from the study showed a significant awareness of the role played by marketing strategies in the performance of SMEs.
The result of the research carried out by Ebitu, (2016) on the impact of marketing strategies on the performance of SMEs in Akwa Ibom State, Nigeria revealed a significant impact of product planning on the profitability and market share of SMEs.
The research of Iwu, (2010) on the Impact of product development and innovation on the market share of firms in Cape Town South Africa showed strong and positive relationships. The research proved that product planning; promotion and logistics strategies influence the sales performance of these firms.
Njoroge, 2015 in his research on marketing strategies and performance of enterprises in Matuu
town Kenya showed that product planning aids customer relationship marketing and provides a means of safeguarding, improving quality, and saving cost.
Following the same trend, the research of Chahrsoughi,2012 on the effects of sales promotion as a tool on customer attention to purchase revealed a relationship between sales promotion and customer retention and attention to purchase.
Belch, (2003) research on measuring the effectiveness of promotional programs, advertising, and promotion, confirmed that the application of sales promotion activities promotes product awareness and loyalty leading to an increase in the purchase and the attendant rise in product market share
Farshid & Amir, (2012) study on how marketing mix influences the market share of polymer sheet manufacturing firms in Iran, proved that on-time delivery of goods and services has a significant impact on retaining customers and growing market share.
Daugherty, et all (1998), studies on the impact of logistics service on market share proved that high levels of logistics service are indirectly related to market share through satisfaction and loyalty.
Furthermore, the research of Kisaka (2012) on the relationship between marketing strategies and the performance of savings and credit societies in Mombasa district revealed a strong relationship between marketing strategies and performance of SACCOs industry.
Finally, studies carried out by Ebitu et al (2015) on marketing problems & the performance of selected enterprises in the South revealed a significant relationship between the marketing problems experienced by SMEs and the increase in their profit margin, sales, and market shares.
2.4 Summary of Empirical Review.
Table 2.1: Summary of Empirical Review [See column 3 and complete as shown in rows 1 and 2]
S/N Author(s)
Year Area of study Title Methodology Findings
1 Ardjouman & Asama 2015 Marketing Management Strategies Marketing Management Strategies affecting Performance of Enterprises in Cote dIvoire Survey There is a high level of awareness of the significant roles played by marketing management strategies in the performance of SMEs
2 Ebitu 2016 Marketing strategies marketing strategies on the performance of SMEs in Akwa Ibom State, Nigeria Survey The finding showed a significant impact of product planning on the profitability and market share of SMEs in Akwa Ibom State3 Iwu (2010) Marketing Strategies Impact of product development and innovation on the market share of firms in Cape Town South Africa Survey The research proved that product planning, promotion and logistics strategies influence the sales performance of these firms
4 Njoroge, P.M (2015) Marketing strategy Marketing strategies and the performance of enterprises in Matuu town, Machakos county, Kenya Survey It also showed that product planning aids customer relationship marketing and provides the means of safeguarding, improving quality and saving cost.
5 Chaharsoughi, S., & Yasory, T. (2012). Marketing strategy Effect of Sales Promotion as a tool on Customer Attention to Purchase, A case study of Automaker Company Survey The result proved the relationship between sales promotion and customer retention and attention to purchase
6 Belch, M. A. (2003)Marketing Measuring the Effectiveness of Promotional Programs, Advertising and Promotion Market research Confirmed that application of sales promotion activities promotes product awareness and loyalty leading to an increase in the purchase and the attendant rise in product market share.
7 Farshid, M. M., & Amir, F. (2012). Marketing strategy The Marketing mix influences the Market share of polymer sheet manufacturer firms in IranSurvey The finding proved that on-time delivery of goods and services has a significant impact on retaining customers and growing market share
8 Daugherty, Patricia J., Theodore P. Stank, and Alexander E. Ellinger (1998), Logistic management Leveraging Logistics/Distribution Capabilities: The Impact of Logistics Service on Market Share Survey That high levels of logistics service are indirectly related to market share through satisfaction and loyalty9 Kisaka (2012) Marketing Strategies Relationship between marketing strategies and the performance of savings and credit societies in the Mombasa districtSurvey Revealed a strong relationship between marketing strategies and performance of SACCOs10 Ebitu et al (2015)Marketing Marketing Problems &the Performance of Selected Enterprises in SouthSurvey There is a significant relationship between the marketing problems experienced by SMEs and the increase in their profit margin, sales and market sharesSource: Researchers Compilations, 2022
2.5 Gaps in Empirical Review
The marketing plan is a concept that lies at the foundational heart of the field of strategic marketing and is central to the practice of marketing. Studies have shown that many of the most pressing current challenges identified by marketers and CMOs are identified from this concept. Therefore, new developments and conceptualizations in marketing strategies have continued to evolve owing to the changes in global marketing practices. Using this lens to assess the current state of marketing strategy via previous research work, it could be stated that important challenges still exist. Among this gap is the limited number and focus of studies, and the declining use of both theory and primary research designs. It is also pertinent to state that from the existing research outcomes a lot of important unanswered marketing strategy questions and opportunities to impact the practice have arguably never been addressed. Most of the research agenda provides no opportunities for researchers to develop new theories, establish clear relevance, and contribute to improving practice.
SECTION THREE
METHODOLOGY
3.1 Research Design
Kothari (2004) defined research design as a framework that shows how problems under investigation are solved. This research adopted a descriptive research survey to determine the effect of the marketing plan on the market share of Unilever Nigeria Plc.
3.2 Area of the Study
The study was done in Lagos State metropolis, Nigeria.
3.3 Source of Data
Primary data for the research were collected using structured questionnaires. The questionnaires comprised open and close-ended questions in-line with the objectives of the study.
3.4 Population of the Study
The population of the study includes marketing managers, product group mangers, senior brand managers, and brand managers in the Marketing Division of Unilever Plc, Lagos who are directly involved in preparing marketing plans. Records from the Personnel Unit of the company show that managers in the category were 50.
3.5 Determination of the Samples Size
Since the population of the study was small, the researcher decided to use all the 50 managers as the sample size.
3.6 Sampling Technique
Purposive sampling technique was applied in selecting managers that participated in the survey.
3.7 Data Collection Instrument
The main instrument used to collect data for this study was a self-administered questionnaire. The questionnaires comprised closed-ended questions. A five-point Likert scale was used, where statements were formulated for each variable in the conceptual framework and respondents were expected to respond to the statements (Burns, 2000). The questionnaires were checked for both validity and reliability
3.8 Validation of the Research Instrument
Validation is the extent to which a research instrument measures what it purports to measure. Specifically, the content validity of the questionnaires was considered while designing them. Content validity refers to the degree to which the instrument fully assesses or measures the construct of interest and the internal consistency. To establish the internal consistency of the instrument, the researcher gave the instruments of the research to the supervisor to verify whether the questionnaires were consistent with what they were expected to test
3.9 Reliability of Research Instrument
Mugenda (2003) defined reliability as the extent to which a research instrument yields results that are consistent each time it is administered to the same subjects. To achieve a high level of reliability the researcher used a self-administration approach to data collection. Most questionnaires were filled out and returned directly to the researcher via email. To ensure that the right people filled the questionnaires, the researcher followed up with phone calls to gain further insights from the respondents based on the submitted questionnaires. This made the research findings more objective and dependable. Furthermore, the researcher subjected the data collected to a reliability check using Cronbach's Alpha model which measures internal consistency by establishing if the resultant variable within the scale measures the same construct. Glien (2003) presented the standard value or threshold of reliable data as 0.7. Therefore, subjecting the variables which formed the scale to test using Cronbach's Alpha model, the researcher deduced that the three variables were a reliable reference to reliability values greater than the standard. The reliability test result is presented in table 3.1 below
Table 3.1: Test of reliability
Scales/objectives Cronbachs Alpha Number of Items
Product Plan 0.820 3
Promotion Plan 0,875 3
Logistics Plan 0.855 3
Source: Field data, 2022.
Results in Table 3.1 show that Cronbach Alpha is greater than 0.7. Therefore, the instrument was deemed to be reliable according to Nunnally and Bersteins (1994) benchmark for measuring the reliability of an instrument.
3.10 Method of Data Presentation and Analyses
Descriptive statistical tools (means, frequency tables, and percentages) were used to analyze the raw data collected from respondents. This concept assisted in determining the degree of agreement or disagreement with the various questions/statement under review. The raw data obtained from questionnaires were cleaned, sorted, and coded. The coded data were tabulated and statistically analyzed by using the Statistical Package for the Social Sciences (SPSS) and Excel to generate the quantitative reports presented in tabular forms. A Pearson Correlation tool was also used in testing the hypothesis.
SECTION FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Percentage of Questionnaire Distributed and Returned.
The study targeted a sample size of 50 respondents from which 47 filled and returned the questionnaires representing a response rate of 94%. According to Mugenda and Mugenda (2003), a response rate of 50% is adequate for any statistical analysis and reporting. Rates averaging 60% and above 70% are tagged as good and excellent respectively. Based on this assertion, the response rate for the study is excellent.
4.2 Analysis of Demographic Data of Respondents. [Use modern tabulation]
Table 4.1: Gender Category
Gender Frequency Percentage
Male 41 87
Female 6 13
Total 47 100
Source: Field data, 2022.
The above table showed that 87% of respondents were male whilst 13% were female. This showed that the management of sales in this business segment (Lagos business unit) is dominated by males.
Table 4.2: Level of Business Experience of Respondents
Period/duration of service Frequency Percentages
Less than 1 year 5 11
2-5 years 9 19
Over 5 years 13 70
Total 47 100
Source: Filed data, 2022.
The above results depict that majority of the players representing 70% of the population in the industry have been in the service or business with Unilever for over 5 years. 10% and 19% had less than 1 year and 2 to 5 years experience respectively. The above result entails that the majority of the respondents were knowledgeable about Unilever's operational activities and subsequently provided credible information for the study.
4.3 Analysis of Research Questions and Test of Hypotheses.
Table 4.3: Product Plan
Product Variable Mean Standard deviation
Unilever offers a broad level of product line 4.32 0.36
Unilever has products with a broad market appeal 3.75 0.21
Unilever is efficient in meeting customer's needs 4.11 0.14
Develop and test their product to confirm their adaptability and suitability to the target customers 3.85 0.85
Source: field data, 2022.
The result above showed that the majority of respondents agreed that Unilever offered a broad product line that is efficient in meeting customers' needs. This finding aligns with the research of Doyle (2009) which revealed that the power of product planning and development has helped organizations endure market competition. The finding also conforms to Njoroge's (2015) submission which avers that the product innovation process provides means for safeguarding and improving quality and saving cost. In addition, the study showed that Unilever developed and tested their products to confirm their adaptability and suitability to the target customer and that they have products with broad market appeal. This finding is in adherence with Acquaah & Yasai-Ardekani (2008) who confirmed that product differentiation strategy enhanced organizational performance. Through product planning and innovation, firms seek to create a perception in the minds of customers that their products or services possess superior characteristics that are unique from those of their competitors. With this attribute, the image, reputation, and reliability of the firm improve attracting more sales and market share. Otieno (2015) in his study averred that thriving organizations learn, adapt, and orient themselves consistently with the environmental changes in product innovations. This conforms to the finding above.
Product quality enhances customer retention, customer awareness, and loyalty. Satisfied customers stay longer, and buy more often, thus increasing their long-term value to the business. The overall submission of the results is supported by the report of Farshid & Amir (2012), where they confirmed the greater influence of product quality on the increasing market share of polymer sheet manufacturers in Iran. Thirkell & Dau (1998) found that the quality of the product had a significant and positive correlation with company performance.
Table 4.4: Promotion Planning
Promotion Plan Variables Mean Standard deviation
Unilever has a promotion strategy 3.7 0.21
Unilever advertises its products through various media 4.25 0.22
They focus on customers needs and integrate their activities to satisfy those needs 3.80 0.47
Unilever promotional activities draw attention, interest, desire, and action 4.05 0.14
Unilever introduces new products in design and style 3.96 0.39
Source: field data, 2022.
From the study results, the majority of the respondents agreed that Unilever advertised their products through various media (Mean =4.25, Std dev, =0.22) and their promotional activities are attractive, draw attention and create desire (Mean=4.05, Std dev =0.14). The findings are in agreement with Kiprotich's (2012) research that encouraged organizations to focus more of their effort on promotion strategy owing to its significant & positive impact on winning and retaining customers. The above results were similar to Belch's (2003) research which confirmed that the application of sales promotion activities promotes product awareness and loyalty leading to an increase in the purchase and the attendant rise in product market share.The study further revealed that Unilever introduced new products in design and style (Mean=0.96, Std dev=0.39). Additionally, respondents agreed that Unilever has an ongoing promotional plan (Mean =3.80, Std dev =0.21) and they focus on customers' needs and integrate all their activities towards satisfying those needs 9Mean=3.80, Std dev=0.47). These findings are in line with Kiprotich's (2012) research which averred that promotion strategy is designed to help businesses maximize sales of new products and services. Alphonce, et al. (2012), in their research, reported that at a 5% level of significance, there was a positive relationship between the promotional strategies and profits because as the costs of the promotional strategies increased so did the profits. Chaharsoughi & Yasory (2012) in their study on the effect of sales promotion as a tool on customer attention to purchase concluded that introducing Khodro's products through sales promotion attracts customers' attention to purchase.
.
Table 4.5: Marketing Logistic plan
Logistic Variable Mean Standard deviation
Unilever has a reliable channel of distribution for their products 4.15 0.81
They are easily accessible to customers 3.95 0.36
The location of their depots and major customers affects product distribution and performance 4.20 0.23
Logistics strategy considers location effectiveness before sitting depots to enhance sales and market shares 3.65 0.47
Source: Field data, 2022
From the result, the majority of respondents agreed that the location of depots/warehouses and customer shops plays a major role in the performance and distribution of products (mean=4.20, Std dev =0.23). The result also proved that the company is accessible to its customers and can deliver on time (Mean=4.15, Std dev. 0,81). The finding obtained is similar to the ones of Farshid & Amir (2012) which confirmed that on-time delivery plays a big role in increasing market share. Insights from this show that if there is a product shortage of a particular company at market, the consumers would shift to any other substitute goods such as competition brands and this could reduce its market share later. A customer may not likely purchase a service or product unless it can be comparatively easily accessed.
Furthermore, the study showed reliability in the channel of distribution of Unilever products (Mean=3.95, Std dev=0.36) and that their logistics strategy outlined how and where shops and depots were placed to gain market shares (Mean=3.65, Std dev =0.47). This finding is in line with Cavusgil & Zou's (2014) postulation which averred that the location of a firm concerning its target market is very critical
Test of hypotheses 1,2 and 3.
As a follow-up to the descriptive analysis, the study was subjected to hypothesis testing using a correlation tool. This was to measure the association between the variables under review (The dependent and independent variables). This helped to determine the strength of the relationships between the three independent variables (Product planning, promotion, and logistics plan) with the dependent variable (market share).
The findings from the correlation as captured in the above table 4.6 presented strong and positive relationships for all the variables tested. The test showed a correlation coefficient factor of 0.563 at a 0.001 confidence level for product plan and development. This revealed a statistically positive relationship between product plan activities and the resultant market shares in Unilever Plc. This result upholds the hypothesis (H1) which states that the product plan has a strong relationship with the Market share of Unilever Plc.
In addition, the test on promotion and logistics strategies presented similar positive results as presented in the table.
Table 4:6 Correlation Table & Test of Hypotheses
Performance/MS Product planning Promotion Strategy Logistics planning
Performance/MS of Unilever Correlation Coefficients 1 0.563 0.602 0.614
Sig. (2-tailed) 0.001 0.002 0
N 47 47 47 47
Product planning Correlation Coefficients 0.563 1 0.37 1
Sig. (2-tailed) 0.001 0.0012 0.003 0.002
N 47 47 47 47
Promotion strategy Correlation Coefficients 0.602 0.037 1 0.124
Sig. (2-tailed) 0.002 0 0.002
N 47 47 47 47
Logistics strategy Correlation Coefficients 0.614 1 0.124 1
Sig. (2-tailed) 0 0.001 0
N 47 47 47 47
Source: Field data, 2022.
4.4 Discussion of Findings
4.3.1: Relationship Between Product Plan and Market Share
The results revealed a strong positive and significant correlation between sales performance/market share and product planning in Unilever (Correlation factor =0.563). Further to this, it was revealed that Unilever offered a broad product line (mean=4.32) that is efficient and satisfies customers' needs (mean=4.11). This result is in agreement with the research by Doyle (2009) which confirmed that product planning and development have helped organizations to endure competitiveness. It also showed that product planning provides the means of safeguarding, improving quality, and saving cost (Njoroge, 2015). The result from the study showed that products from Unilever go through adaptability and suitability test before they were released to target customers (Mean=3.85) and that they have products with a broad market appeal (Mean=3.75). This result aligned with Otieno's (2015) submission which directs SMEs to learn, adapt and reorient themselves to changing market environment via product planning and development.
4.3.2: Relationship Between Marketing Promotion Plan and Market Share
Findings from the research showed that Unilever had promotion strategies and the adoption of these revealed a significant positive effect on the market share of the company (correlation coefficient -0.602 significant value =0.00). Descriptive results showed that Unilever players advertised their products via various media (Mean= 4.25) and the promotional strategy elicits attention, interest, desire, and action (mean=4.05). The findings are in agreement with Kiprotich's (2012) research that encouraged organizations to focus more of their effort on promotion strategy owing to its significant & positive impact on winning and retaining customers.
4.3.3: Relationships Between Marketing Logistics and Market Share
The result from the study showed that Unilever had a logistics strategy and its application had a significant positive effect on sales performance and market shares (Correlation coefficient =0.614, significant value =0.000). The descriptive result revealed that the location of depots affects the performance and distribution of products (Mean =4.20) and that the firm is accessible to its customers (Mean=4.15). The finding obtained is similar to the ones of Farshid & Amir (2012) which confirmed that on-time delivery plays a big role in increasing market share and reducing the ever-increasing challenges associated with product distribution.
SECTION FIVE
SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATIONS
5.1 Summary of Findings
After data analysis, the result shows that:
1. There is a strong and positive relationship between product plan and market share of Unilever Nigeria Plc.
2. The promotion plan adopted by Unilever Nigeria Plc had a positive and significant effect on the sales performance and market share of Unilever Nigeria Plc.
3. Marketing Logistics plan has been proven to have a significant positive relationship with the market share of Unilever Nigeria Plc.
Overall, the independent variables associated with Unilevers marketing plan were proven to have a strong and significant positive effect on the market share of the company.
5.2 Conclusion
Based on findings, it is hereby concluded that Product plan, promotion plan, and logistics plan have a direct and positive relationship with the market share of Unilever Nigeria Plc.
5.3 Recommendations
Based on the findings we recommend that:
Unilever Nigeria should maintain its current product plan to build market share of the company.
Unilever's marketing promotion plan should be maintained in order to achieve the market share objective.
Managers of Unilever Nigeria Plc should also maintain their marketing logistics plan to achieve a high percentage of market share against its competitors.
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