ABSTRACT
This study, image management and corporate Goodwill in Nestle Nigeria Plc was undertaken to determine how corporate goodwill is dependent on image management in continued existence of Nestle Nigeria Plc. The study focused on two South South State capitals namely Uyo and Port Harcourt. Port Harcourt is regarded as the commercial nerve center and even the capital of the South South with the largest concentration of dwellers and Uyo is the state capital of the largest oil producing state in Nigeria. Five research objectives and two hypotheses were formulated to guide the study. The survey research method was adopted for the study, with a sample size of four hundred (400) respondents. Cluster and accidental sampling were used in selecting the respondents out of a population of one million, one hundred and Eighty six thousand, five hundred (1,186,500) people. Interview schedule guide and questionnaire were instruments for data collection. Data from the study were analysed in relation to the research questions and hypotheses used in the study. Each question from the interview schedule was analysed using explanation building technique. The Pearson Product Moment Correlation Coefficient was adopted in the test of hypothesis the research questions were in turn analysed using frequency tables. Three theories and one model namely corporate social responsibility, stakeholder, relationship management theories and the two-way symmetrical model were used to situate the work, with four empirical works reviewed. The major findings revealed that Nestle Nigeria Plc adopts two major strategies public relations and focus strategies; in promoting corporate goodwill and building relationship with its publics. It was also revealed that trust and quality are the secrets behind Nestle Nigeria product acceptance and continued patronage. It was recommended that organizations desiring success should as a matter of urgency imbibe the principle of public relations “doing good and getting credit for it”. Another excellent way to promote the image of an organisation is through the media, the study also recommended that Nestle Nigeria Plc should also adopt the media strategy focusing on the internet which will also help in promoting its image.
TABLE OF CONTENTS
CHAPTER TITLE PAGE
Title Page – – – – – i
Declaration – – – – – ii
Certification – – – – – iii
Dedication – – – – – iv
Acknowledgements – – – – v
Abstract – – – – – vi
Table of Contents – – – – viii
List of Table – – – – – xi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – – 1
1.2 Statement of the Research Problem – – – – – 5
1.3 Objectives of the Study – – – – – – 6
1.4 Research Questions/Hypothesis – – – – – 6
1.5 Significance of the Study – – – – – – 7
1.6 Scope/Limitation of the Study – – – – – 8
1.7 Definition of Terms – – – – – – – 10
CHAPTER TWO: LITERATURE REVIEW
2.1 The Review of Concepts – – – – – – 12
2.1.1 Corporate Goodwill – – – – – – – 12
2.1.2 Image Management – – – – – – – 19
2.1.3 Image Management, Corporate Goodwill and Public Relations Practice 23
2.1.4 Public Relations as a Tool for Achieving Goodwill and
Image Management in Corporations – – – – – 28
2.1.5 Image Management Strategies in Corporate Organisations – – 36
2.1.6 Corporate Social Responsibility Activities of Nestle Nigeria Plc – 38
2.2 Theoretical Framework – – – – – – 43
2.2.1 Corporate Social Responsibility Theory – – – – 43
2.2.2 The Stakeholder Theory – – – – – – 47
2.2.3 Relationship Management Theory – – – – – 48
2.2.4 Two-Way Symmetrical Model – – – – – 49
2.3 Review of Studies – – – – – – – 51
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design – – – – – – – 57
3.2 Population of the Study – – – – – – 57
3.3 Sample Size/Sampling Procedure – – – – – 58
3.4 Validity of Research Instruments – – – – – 59
3.5 Reliability of Research Instrument – – – – – 59
3.6 Method of Data Collection – – – – – 60
3.7 Method of Data Analysis – – – – – – 61
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Data Presentation and Analysis – – – – – 63
4.2 Data Analysis and Findings – – – – – – 74
4.2.1 Data from survey (in-depth interview) – – – – 74
4.2.2 Test of Hypothesis – – – – – – – 77
4.3 Discussion of Findings – – – – – – 83
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings – – – – – – 97
5.2 Conclusion – – – – – – – – 98
5.3 Contribution to Knowledge – – – – – – 99
5.4 Recommendations – – – – – – – 100
5.5 Suggestions for Further Studies – – – – – 100
References – – – – – – – – 103
Appendix I – – – – – – – – 110
Appendix II – – – – – – – – 117
Appendix III – – – – – – – – 116
Appendix IV – – – – – – – – 117
LIST OF TABLES
Table 4.1: Distribution of respondents according to their personal
Characteristics(N = 365) – – – – – 64
Table 4.2: Respondents’ years of using Nestlé’s Products – – 65
Table 4.3: Respondents’ Awareness / knowledge of Nestle Nigeria Plc – 65
Table 4.4: Respondents’ identification of Nestle products – – – 66
Table 4.5: Distribution of Respondents by the Products used – – 66
Table 4.6: Views on customers generating goodwill based on
CSR project of Nestle Nigeria Plc – – – – 67
Table 4.7: Customers’ patronize Nestle products based on the good
things said about the company’s CSR Project – – – 57
Table 4.8: Customers’ views on Nestlé’s products being of high
quality and providing satisfaction – – – – 68
Table 4.9: Customers’ buy Nestlé’s products because of the company’s
positive contribution to the society through CSR projects – 68
Table 4.10: The good gestures of Nestle results in huge patronage of
thecompany’s products – – – – – – 69
Table 4.11: The prestige Nestle commands translates positively to continued patronage of Nestle good name – – – – – 69
Table 4.12: Nestle would have closed down but for their good relationship
with their customers that leads to continued patronage – 70
Table 4.13: Respondents’ description / views of Nestle Nigeria Plc’s Products 70
Table 4.14: Positive Public Perception of Nestle Nigeria Plc impacts positively
on the level of acceptability of its products by customers – 71
Table 4.16: Respondents’ rating of Nestle Nigeria Plc’s products – – 71
Table 4.17: Nestlé Nigeria Plc has long cordial relationship with its publics 72
Table 4.18: Nestlé Nigeria Plc’s good name and high quality products is responsible for high demand and patronage of its products – 72
Table 4.19: Nestle Nigeria Plc Uses its good gestures in Building
Relationships – – – – – – – 73
Table 4.20: The good gestures of Nestle and their production of quality
goods is key to their survival and continued patronage – 73
Table 4.21: These Strategies are the reason for my continued patronage
of Nestle’s Products – – – – – – 74
Table 4.22: Respondents’ views on whether they patronize Nestle
Products base on the good things said about the company – 78
Table 4.23: Responses of respondents on the prestige Nestle commands
translating positive to continued patronage Nestle good name – 80
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The challenges of the world economic recession and the new technologies have made competition more among corporate bodies in parts of the globe. Drucker cited by Emeka (2010) notes that business enterprises exist to make profit, corporate bodies must endeavour to improve efficiency, quality of products and services as well as ensure customer loyalty, increase sales and expanded profitability. Yusuf as cited in Eboh (2012) notes that image is the subconscious impression a person has of an organization, institution or person, such perception by the public will dictate their positive disposition towards the products and services of such corporate bodies.
Image management is the ongoing process of evaluating and controlling the impact of appearance and the resulting response on the organization and others. The concept of image management applies to any organization/business whoneeds to improve confidence, capability and credibility. It is creating an authentic, appropriate, attractive and affordable image.
Today,Image management and goodwill are acknowledge as having the potential to impact positively or negatively on the internal and external public’s loyalty to the organization. Views of the publics about an organization tell the level of acceptability of that organization to its numerous publics.
Many business outfits, even individuals all over the world, have seen the need to either reposition their image or sell their image to the society for better perception and profit maximization. It is the endeavour of any organization to draw the attention of both internal as well as external publics towards it ideas, products and service. No one can afford to be unmindful of the opinions of people concerning the company.A company must develop a two-way communication system through which it will not only inform people of its policies and programmes, but also study the reactions of the people towards them. This requires certain skills and expert knowledge so that communication can be effective in reaching out to the target audience and carefully handled through competent professional techniques and media.
Belch and Belch (2001), opine that many corporations enhance their public image through involvement in the affairs of local communalities. No one wants to be perceived as a bad citizen. So, they engage in campaigns that make them acceptable. Such social responsibility programmes come in the form of scholarship for students, building of new classrooms, health centres and boreholes. These are to make them acceptable and position their image as “good”.
Creating the climate which aids achievement of its corporate objectives is the desirable overall result of public relations activities when it comes to the creation and maintenance of goodwill in an organization. In line with this, Okoro (1999) states that the image making business is not a chance affair, before you can make someone to feel and look good, you have to feel and look good yourself. Your cannot give what you don’t have.
The challenge facing most companies today is to create a favourable impression about itself in the minds of its publics. It is the desire of most organizations to achieve a high level of positive publicity for their programmes and activities but unfortunately, some ill-informed organizations erroneously believe that their corporate image can be built on publicity alone. Nweke (2011) argues that no matter how good, beautiful, appealing, or inviting a corporate identify may be and even with rapid application of the force of communication, without genuine supportive good deeds, such an identity can hardly lead to the realization of the desired positive impressions. It suffices that constant communication without attendant good performance is sheer vanity, an empty rhetoric, doomed to make no appreciable impact. It is akin to faith without good works, which invariable is dead. (Osho 2008).
Corporate image or reputation describes the manner in which a company, its activities and its products or services are perceived by outsiders, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community and the general public. A company that mismanages or ignores its image is likely to encounter a variety of problems.
A good corporate image, therefore, depends on a conscientious public relations programme put in place by the public relations manager. The public relations manager thus is neither a superman nor a magician, so he cannot handle all issues that relate to the corporate image of his organization. He needs to work with other employees in the organization to successful accomplish the corporate image goals. When every employee becomes conscious of the need for concerted efforts in corporate image management and inculcate positive public attitude, the perception of the organization’s various publics would have of it is that of a serious of organization with focus.
Organizations have come to realize that their behaviours and attitudes determine the stakeholders’ actions and opinions. They have discovered the necessity to commit themselves to fairness, equity and to act in accordance with those commitments. However, it is not enough because good policies and good performance are worth little if people do not understand the policies and do not know about the performance of organization. Communication in an organization can hasten or increase the result of responsible performance.Nestle Nigeria Plc is a Nigeria-based Food Manufacturing and Marketing Company. The Company operates through two segments: food and beverages. The food segment includes the production and sale of magi, Cerelac, Nutrend, Nan, Lacogen and Golden morn. The beverage segment includes the production and sale of Milo, Chocomilo, Nido, Nescafe and Nestle pure life.
A significant challenge faced by Nestle is economic concern of rising cost of agricultural commodities thus incurring high production costs (IUF, 2007). The organisation’s goals are to boost production and efficiency while projecting a reputation for safety and knowledge sharing thereby improving the quality and volume of their production.
The entire baby food industry was chastised for unethically promoting their products in third world countries through gimmicks and false advertising.This according to Muller (1974) led to high infant mortality worldwide. The above instances should underscore some serious challenge in cooperate goodwill management by Nestle. And this gives credence to the aim of this study which sought to investigate image management and corporate good will of nestle Nigeria Plc. Nestle was accused by UNICEF of undermining breast feeding and contributing to death and suffering (Nestle Crtics, 2008).
