MARKETING OF LOCAL MADE PRODUCT

A CASE STUDY OF LOCAL MADE HAND BASS

ABSTRACT

Although the Nigeria economy has been  characterized;  with importation of every  thing ranging from machinery to private consumption commodities, the above idea of consuming imported  goods has led the writer too  question  the  effectiveness of the marketing of  locally  made products.

          The objectives of the study are as follows:-

1.            Investigating the marketing activities for locally made bags

2.            consumer preference for these bags  and their important counter part.

3.            the government role in making sure that the growth of these locally made bag is achieved.

Both primary and secondary data were used, however the overall approach was purely empirical. Personal interviews and observation were used but played only a supplementary role the information secured  from the  producers/ traders/ consumers were helpful in developing a structured survey questionnaire.

          Dichotomous s, oken, ended and multiple choice questions were used to cover a wide range  of relevant areas in the questionnaire.

          The questionnaire was pre-tested and administered among our respondents numbering 500. this the questionnaire represented our main instrument and yielded primary data.

          The primary data yielded the  following findings:-

-       that locally  made product  suffer from  shortages of raw materials.

-       What funds are not sufficient for  them

-       That there is  a lot of competition from goods imported from abroad.

-       That the goods protected locally lack the high quality and durability inherent in  those imported.

That the citizens of Nigeria have apathy to locally made  products.

     That due to low technological know how that the cost of production and trans partition is very high.

That locally made products are over price in relation to their  quality.

     In conclusion the weakness of marketing our locally made products should be  strengthened so that the  gains  will be noticeable to the country.

TABLE OF CONTENTS

CHAPTER ONE

1.1                 Introduction                                                 

1.2                 Problem definition                                        

1.3                 Purpose of study                                           

1.4                 Hypothesis                                                   

1.5                 Objective of the study                                   

1.6                 Significance of the study                                

1.7                 Limitation of the study                                            

CHAPTER TWO

2.0OVERVIEW OF MARKETING                                     

2.1     MARKETING MIX VARIABLES                                   

2.2     MARKETING STRATEGY FOR LOCALLY MADE  HAND BADS

2.3         PROBLEMS OF MARKETING LOCAL MADE HAND BAGS

2.4         GOVERNMENT EFFORTS TOWARDS THE MARKETING OF LOCALLY MADE HANDS BAGS          

2.5         SUMMARY OF THE OVERVIEW OF MARKETING.         

CHAPTER THREE

3.0         RESEARCH METHODOLOGY                                     

3.1         SCOPE                                                                            

3.2         METHODOLOGY                                                     

3.3         STRUCTURING THE INSTRUMENT                           

3.4         POPULATION AND SAMPLE SIZE                             

CHAPTER FOUR

4.0     ANALYSIS OF DATA ND PRESENTATION OF FINDING

4.1         ANALYSIS OF DATA                                                

4.2         HYPOTHESIS TESTING                                            

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1     SUMMARY OF FINDINGS                                         

5.2     RECOMMENDATION                                               

5.3     CONCLUSION.                                                                 

CHAPTER ONE

The growing importance to satisfy  perceived Nigerian  sophisticated in demand  for  foreign  goods  has necessitated the application of imported restriction principles and policies by federal government in most of are  economic decisions and  policies.

This decision among  other parts recognises the importance  and supremacy of local  industries, indigenous to the  economic independence and growth of the country’s economic development.

          Nobody talks about marketing without talking  of the consumers whose demand  patterns of has to be  looked  at before any marketing strategy will be effective in doing this a philosophy of marketing  conceived  with  looking  at the consumers a king  was evolved. This philosophy is know as marketing  concept.

          Station (1982) says that marketing concept is a philosophy of business that  the consumer want satisfaction is the economic and social justification for a firms existence. Consequently, all company activities must be developed to finding out  what the customer wants and ten satisfying those  wants, while still making a profit  over the  long  run similarly, firmer (1976) observed that a customer is boss behind our boss. By serving him well, we serve ourselves as well. This is because when a customer wishes to satisfy his need, he expects value in what he  buys. If he is not give the value in one  place or product he  will go elsewhere to  find it or  buy another  product  to have it.

The strategy is in keeping with  the fact that a customer’s patronage cannot be  bought  or stole but can be freely gives in  response to gifts of value from the between the  locally made  goods and tem counter part from the European counters his extended the     requirements of this concepts to embrace the importance of high quality  content of our locally manufactures goods.

          If on the aggregate a country’s products are perceived as being satisfactory whenever use, it will means a  great fortune  for that  country a demands for her product  will be high resulting in a better economic position  which  ultimately leads to a higher standard of living  for  thhe citizens of that  country is not  well placed when the consumer’s particularly in that country view her product are lacking the basic satisfying  elements.

          In the presents Nigeria situation where the economy is declaiming and the  consumer becoming more aware, it is vital to make sure he locally produced  goods are of acceptable standards. There, this study will attempt to highlight the major factors, influencing the marketing of locally produced products, particularly Aba made bags. The prefer is further designed  to empirically investigate  consumer’s preference to importuned  vis- a vis Aba made bags as well as  any changes in the preference in response to the current recessionary period in Nigeria

Te result  of the study is  expected to  help  the  consumers and Aba bag products achieve mutual satisfaction by bridging the communication gap between them.

          Also kotter defined marketing as the set of human activates  directed as facilitating and consummation exchange based  on these definitions, there are important  variables that need to be pointed out.

i)             we are made too understand that  marketing is located  in the realm of human activities. This means that marketing  requires the degrees  of intelligence possessed only by human benefits.

ii)            Marketing aims at facilitating  consummation

exchanges. This means that satisfaction is of paramount importance in the continuation of marketing relationship. Therefore marketing  has no  meaning  where there is no  satisfaction. Since Aba producers offer services to consumers in order to satisfy their  needs, this write up is based on how the producers in Aba apply their marketing concept in their satisfaction of their customers needs.

          It is quite importance  to note that Nigeria’s political and economic history has great influence on her marketing activities as well as the consumption behaviour of her  citizenry. This  fraud  cannot be  ignored I  any meaning full study if the marketing of locally   produced  goods in  Nigeria is to be  achieved.

          In the 1050 and 60%, Nigeria produced and exports mostly agricultural products as palms oil, cocoa and groundnut  while the country in turn  imported manufactured goods from the advances western  countries the volume and value  of these export  of agricultural products gradually) increased in the 60 and 70 but with decaling  percentage contrition t o the national income.

          Teriba and kayoed (1977) observed that the agric sector contributed 67.5%, 53.8% and 41.80% of the national income in  1959, 1967 and 1972 respectively. They structure was such  that  private  consumer product  expenditures, dominated the import by constituting  84.4%, 85.3% and 72.9% of’ the  total imports in 1959, 1965, and 1972 respectively.

          However, despite the fact the percentage of the amount  spent on consumer goods  importation  were high the monetary values, uninvolved were not  such that could cause much   concern  considering the low level of the national income. Teriba and kayoed (1977) saw that the national income for Nigeria in 1967 store at N3,231.6 million only besides, the structure of the  economy with many foreigners occupying  key  position in the economy went further  to justify such  spending. Also, most well  placed Nigerians a re of  the  opportunity  to  consume foreign products regularly like, bag, clothing’s, canned beef, butter etc, while the rest Nigerian enjoyed them only on  festive periods  for then  on regular basis  but  for  their income.

Then the oil boom of the idle seventies gave them  the opportunity to  consume them on  regular basis Ndu (1984) stated that huge oil money

Resulted in Nigeria recording  impressive surpluses in her balance of payment from 1973 to 1975 and this created avenue  for the importation and consumption of foreign  goods.

          Consequently, the corresponding result  was for businessmen  to rush  into importation of foreign  goods rather than  marketing them locally  in Nigeria. The Nigerian with  virtually and foreign  consumer products as bags, key holders, canned  foods etc even  imported said and refuse. Nigeria  became  used  to foreign  brand names for  all product choosing  between  Taliban and chained bland names  for bags, Amos and Hera  wears, st, Michael and Gerizionmani wears, uncle bens and uncle Sam packaged rice and so on.

          Ndu (1984) supported  this observation when he  contended  that  “Nigerians made affluent by the oil boom flooded the  country  with imported  ready made  goods of all classification and description commerce but  frustrated  industrialization in effect, the products of many local industries could not  compete with  imported good.

The effects  of the declining  oil revenue by 1978 and indiscriminate importation became pronounced and culminated in  the balance  of payment  deficit  fir that year. According to uke (1985) this  them head of state, general coliseum  the consumers preference  for  foreign products  which   result in the alarming   one of the major social maladies of the Nigeria  society especially in last 7 yrs.

(uke 1985) he therefore, urged Nigerians to “£ tighten their bets” while introducing the following  measures  to check the  importation and  consumption rates for  foreign   products in  order to  discourage the  out  flow of foreign  exchange.

1.            pre-shipment inspection for imports

2.            form “m”

3.            compulsory import despoil scheme  (Nigerian to

additional, mar /Apr 1980) time was hardly enough to  appraise the performance administration of these measure  when  on October 1st 1979. the new government relaxed the   stringent import policy and also liberalised the importation increase  in oil revenue for 1980 and 1981 budget  years.

The new Nigerian foreign trade journal, (1986) recorded that the shagari  government adopted a chain of reactions  comprising  penic foreign trade policy measures to deals with the  self-fielded crisis .

The measures  included.

1.       economic stabilization measure of 1982 which imposed wide ranging restrictions on  imported goods and foreign   exchange expenditure.

2.       removal of open  general lances as residual list of imports.

3.       introduction of new  tariff structure simplify, streamline and rationalize the use of high tariff rates.

          Despite the adoption of the above measures, the consumers, preference  for  imported goods persisted as the then heads of state major Gen-Mohammad Buhari, noted in his  1984 budget  speech.

          The seriousness of the country’s propensity of  import is reflected in the fact that  out  of every  N1 of the new naira crated;  about 68k is spent on import . at N12 505 5m in 1982, imports of consumer goods were N5,471.8m an N3,489.9m higher than the levels in 1977 and  1980 .

Every increase in oil export receipts I  a particular years was  followed by liberalization leading to sudden jump in imports in subsequent  years ( business time  Monday, January, 1984) page 9 and 15. the buhari and idiagbon regime in pursuit of its admin. Goals took move stringent measures to check the patriotic attitude of the Nigerian  consumer” by curtailing  the importation availability  consumption of foreign goods  as stockfish, ay old chicks, ready made wears including bads.

          IBB following sit by adopting the much talked a bout structural adjustment program which  be lives in import substitution of almost all imported  goods and placing  ban on such products as barley, wheat, bags, shoes,  cloths both  fairly used and new ones  most  raw material etc.

          These measure aimed at controlling  consumers preference s gradually being  effective and successful; anyway, the above cite instance claims that the average Nigeria has a negative preference  towards locally made bags and prefer  imported alternative   to those  made in Nigeria. Little wonder hen that the situation has continued to puzzle well meaning  Nigerians when  realize the effect of such  preference  if allowed  to purist on  the socio-economic  independence of the country in the long run  in the light  of the above  placement  of he consumers the researcher was moved to investigate and e valuate the major factors  influencing  e  marketing  of locally made  goods  with  emphasis on Aba made bags.

1.2        PROBLEM DEFINITION

As stated   earlier, it  has  often been  said that Nigerians  prefer imported  products to the  locally made acquirement. The  out  come of  such preference on  some  Nigerian; industries, technology, goods and services  can be very devastating and will invariably have negative effects  on  Nigeria’s economy  in both  the  short and  long  runs. Hence  the preference has  become  a problem that require immediate solution.

          This study  therefore  deems  to identify the causes of  such  preference and to  suggest  some possible marketing solutions to  them  the specific  problem  to address  include the  following  Question.

1.            what are the  preference of Nigerians towards imported and local made  bags when price and quality for both types of bags are help constant?

2.            can the locally made bags compete favourably with imported bags especially in quality?

3.            is the locally  made bags  over-priced  for the quality?

4.            are he  marketing strategies of the  locally made bags encouraging?

5.            how is he government helping the  locally made bags  industries?

1.3          PURPOSE  OF STUDY

1.  To empirically  identify and  examine the main   Factors  Influencing Nigeria  preference for bags.

2.  to  compare  preference towards locally made bags against imported ones.

3.  to find out whether  the locally made  bags can compete favourably with the  imported  bags  in the marketing.

4.  to find out  if the locally made bags  are over-priced in relation to their quality.

5.  to evaluated the adequacy and effect likeness of the  meeting activities of the locally bags manufactures the locally made  bags manufactures.

6.  to know how the  government  is encouraging  the bags manufactures in Nigeria.

1.4          HYPOTHESIS

(1)          Most Nigerians Do Not   prefer imported  bags  to locally   made ones  when he  quality and price for  both the  classes of bags are perceived to be the same.

2.  preference for locally made bag does no increase as rte price  or the quality  increases.

3.  the locally made bags is not  over-priced in relation to  its  quality

4.  the  marketing activities of the locally made  bags  manufactures  are not adequate and effective.

5.  the government is encouraging the locally  made manufacturers.

1.5     OBJECTIIVE OF THE STUDY

          in this content  the researcher aimed  at investigating  the marketing  activities for Aba locally  made bags, consumer preference   for their bags and their  comported  counterpart . the study tries  to  make  inference as to hoe imported bags are  being marketed and  compare with  the marketing  activities of locally made bags  on the sales volume, consumer preference, quality of the   bags, market share and the  economic and physical condition of bag industry in Abia  state in particular and Nigeria in general.

1.6     SIGNIFICANCE  OF THE STUDY

This study use a  contribution   to the  recovery of the Nigeria economy.

          It is expected  to  provide  the basis upon  which  conclusive statement  could be made in the purpose  of study . such conclusions  will invariable give some  insight  into the marketing  of bags n Aba and helps  the consumer and manufacturer of bags in Nigeria to achieve the much desired mutual satisfaction objective, which  will further  stimulate demand  and  supply of bags as well as other   relevant resources  thereby  resulting  in increased  economic activities and  ultimate paid economic recovery.

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