THE EFFECTS OF ECONOMIC DEPRESSION ON THEMARKET OF PAINTS IN ENUGU
(A CASE STUDY OF ENUGU SOUTH LOCAL GOVERNMENT MARKETING OF ENUGU SOUTH LOCAL GOVERNMENT MARSHAL PAINT LIMITED)
The abstract of this particular topic THE EFFECTS OF ECONOMIC DEPRESSION ON THE MARKETING OF PANIT IN ENUGU: is bases on the fact that, every Nigerian is that aware that the present Nigeria. Economy is depressed in nature and as such it calls for quick ratifications.
This is evidence to show ever-increasing problems facing the nation in form of general rise in price levels, dwindling business activities characterized by decreasing profit growth, political instability, unfavorable governmental policies and inflation. It is imperative to note that the prevailing circumstance undermines the effectiveness of marketing as it relates to creating demand for products and services . however, the basic marketing task in a depressed economy depends on the state or marketing existing in different segments of the economy and it’s operational strength in general. Therefore, this research will help to alleviate the problems of paints in dustries in the state, this work will also go a long way to analyies and separate the effects of economic depression on the marketing of paints in Enugu.
The researcher in the course of this work visited the producers, customers nagging and distributors to found out the problems facing it, with aid of questionnaires, primary and secondary data were also used. In testing hypothesis the chi-square method were used and table showing the responses of customers, producers and distributors were equally shown in this research work. In addition since paint industry is found as competitive the firm should embank on mole advertising and high product quality to fight it’s competitors. The researcher discovered the following findings.
(i) that the company does not buy mach emphasis on promotional activities for it product.
(ii) that there is a general upward rise in price due to economic situation which affects the marketing of paints products.
(iii) it was also discovered that the firm does not operate a marketing planning by the management.
(iv) it was foung that economic situation has made paint producers to star the innovative policy as most of them were found integration backward especially paints marked in Enugu south local government (marshal paints limited).
(v) it was also discovered that the foreign exchange rate has been stable but that the producers are stil finding it difficult as the currency are not available as many people are sourcing for it which may lead to high cost rate. And it was also seen that the industry is a competitive one.
Form the findings, the researcher made some of the following recommendations.
(i) that the company should lay more emphasis in promotional activities such as advertising, personal selling and sales promotion and try to create promotional budget allocation.
(ii) They should also make sure that they lay more emphasis on backward integrating policies to enable them reduce price of their product.
(iii) The company should create a marketing department to be headed by a professional.
(iv) The government should help in making the foreign exchange currency to the commercial bank.
Not withstanding, since it was found that the industry is a completive one the firm should buy more emphasis on advertising and high product quality as was state earlier.
Conclusively, the paints industries(marshal paints) should continue in her efforts to finding out possible solution to the problems caused by this economic depression and should also work according to the government policies and maintain a marketing department.
ISAAH CHRISTIAN ABIODUN U.
TABLE OF CONTENTS.
1.1) BACKGROUND OF STUDY
1.2) HISTORICAL BACKGROUND OF THE COMPANY
1.3) STATEMENT OF PROBLEMS
1.4) PURPOSE OF STUDY
1.5) STATEMENT OF HYPOTHESIS
1.6) SIGNIFICANCE OF STUDY
SUMMARY, RECOMMENDATION AND CONCLUSION
5.1) SUMMARY OF FINDINGS
LIST OF TABLES
SHOWING WHETHER THE CUSTOMERS BUY OR NOT
SHOWING WHETHER THE CUSTOMERS ARE AWARE OR
MARSHAL PAINT LIMITER.
SHOWING WHETHER THE CUSTOMERS KNOW ABOUT MARSHAL PAINTS.
SHOWING WHETHER INEFFECTIVE PROMOTION AFFECTS CUSTOMERS DEMAND.
SHOWING HOW THE CUSTOMERS ARE AFFECTED BY INEFFECTIVE PROMOTION.
SHOWING THE CUSTOMERS ON THE NATURE OF PRICE OF THE PRODUCT.
SHOWING THE CUSTOMERS ON WHETHER THERE IS DECLINE IN THE DEMAND OF THE PRODUCT
SHOWING THE CONSUMER ON WHETHER THEY PATRONIZE MARSHAL PAINT OR NOT
SHOWING THEM ON THE REASONS FOR PATRONIZING MARSHAL PAINT
SHOWING THE DISTRIBUTORS ON SEX
SHOWING THE DISTRIBUTORS ON THE COMPANY THAT OFFERS THEM SOLE DISTRIBUTORSHIP.
SHOWING THE DISTRIBUTORS ON THE PRICE OF THE PRODUCT THEY DISTRIBUTE.
SHOWING THE DISTRIBUTORS IF RISING PRICE AFFECTS THEIR OPERATIONS
SHOWING DISTRIBUTORS ON HOW THE RISING PRICE AFFECTS THEM.
SHOWING OTHER PROBLEMS THAT AFFECT THE ECONOMY DISTRIBUTORS.
SHOWING THE PROBLEM PRODUCERS ON HOW THEY SEE THE ECONOMY.
SHOWING THE PRODUCERS ON THEY HAVE BEAM
ADJUSTED TO THE SITUATION.
SHOWING THE PRODUCERS ON HOW THE DEPRESSED ECONOMY AFFECTS THEIR OPERATION
SHOWING THE PRODUCERS ON WHETHER THE NEW GOVERNMENT POLICIES AFFECT THEIR OPERATION
SHOWING THEM ON THE GOVERNMENT POLICIES THAT AFFECT THEM.
SHOWING THE PRODUCERS ON HOW THEY SOURCE RAW MATERIALS
SHOWING THEIR REACTIONS ON THE NATURE OF THE FOREIGN EXCHANGE RATE .
SHOWING WHETHER UNSTABLE FOREIGN EXCHANGE RATE AFFECTS THEIR OPERATION.
SHOWING HOW THE UNSTABLE EXCHANGE RATE HAS AFFECTED THE COMPANY.
1.1 BACKGROUND OF STUDY
It is a React that every Nigerian knows that, the present economy is not only depressed but at the verse of collapse. The fact is characterized by the continuous rise in general price level, that is, high inflationary trend, unrealistic government polices such as: SAP, SFEM, Deregulation and devaluation of currency, instability in the political system and ever increasing crime rate. The business section seems suffer the burnt of it all. Some them strive to exist through on a show rate of return. The cause of all these is not without the present economic circumstance and the government policies on the Ban on importation raw materials, tariff structure, high company taxes, unstable foreign exchange market system and SAP, though the present government have lifted ban on importation and removal of tariffs but all have not seemed to be working as the situation still remains constant.
This research work therefore, is designed to investigate and disclose the problems consequence, and prospects of marketing pains products in Enugu state under the present economic depression, which is perhaps, the greatest problem facing the Nigerian industries and businessmen. With the introduction of these policies like Sap, which the government thought, will be a lasting solution to the problem of the economy has turned to a cause to the nation’s fiscal and balance of payment.
The Nigeria Marketing environment under a fundamental change of the close of 1986 in a view of the intensity of the level of unemployment and wide spread inflation. The situation in the late 170s reflected the fact that consumers disposable in come was on the increate and individual buyer expectation were raised, emphases shifted to the creation of an increased capacity for production as the range of purchases becomes widened. Today’s marketing environment is more turbulent and consumption pattern among various market segments especially the pain industry, are not diverse and selective. The real disposable income of most citizen has remained constant while just a few populace has been lucky enough to record a marginal rise.
Marketing although involves means of satisfying the need and wants of there consumers through exchange process. But fir the survival at the project day business consideration variables. Generally, the different mix of marketing have not been fully utilized or well applied by the paints industries in the sate of study. Much is still to be done especially in the creation of awareness and demand needed by the industries for their survival. This then calls for proper integration of the marketing mix.
Finally, the irony of the situation lies in the fact that despite all the strategies and policies being put in motion to vandalize the depressed economy, proved abortive because the economy is becoming more depressed it is based on this problems and situation that led the researcher into looking at the plight of marketers of some products like pains under the depressed condition of the economy and recommend measures the company will adopt to ensure rapid sales growth and reasonable financial inflows.
1.2 HISTORICAL BACKGROUND OF THE COMPANY
satellite food and chemical was company limited (FSCC) was established in 1982 and was registered in June 1988 under the Nigerian company deeds of 1975 and the was located at N0. 14 Agbain Road, Unani, Enugu.
They were producing shampoos, deodorants and paints disappearance. This chemical industry Nigeria.
Nigeria limited in 1992 under the company deeds. And the factory is located at No. 9 marshal paint Avenue New Haven, Enugu.
Before it’s registration, they were satellite limited. The company was a capital of the N 102 200,000 under the authority of the private company incorporation in 1997.
The company has different varieties of panits product raising from Emulsion that is made up of prime and standard Emulsion Gloss, Tescote, Wood finish and thinner paints
The company stalk strngth is abut two hundred within the branches.
The company has branches inmany important cities in Nigeria such as Abuja, Abakaliki urban, liaffia, onitsha and portharcount.
1.3 STATEMENT OF PROBLEM:
For the past ten to fifteen years the paints industries has discovered that there is a decline in the demand for their products which has been a gresat pain and worry to the firms and it business and financial expenses in their cash attentions and inflows.
Considering the nature of paint products and former competitive nature it’s market, engenderd by its key position among other building materials, the researcher intends to carry out a study on the follwing problems characterizing the industry. The problems include the impact of government economic policies on the operation and marketing of paints in the paint industry- the impact of unstable foreign exchange rates in the marketing of paints product. Thye effects of inadequate customer awareness in the demand for the products . this also includes the decline rate of demand being experienced under the present economic situation and the grow thing intense competition among the firm’s in the industry.
1.4 PURPOSE OF THE STUDY:
Having stated the problems, it because obvious that what comes next is the purpose or objective of the study, which means what the study is aimed at achieving with the necessary investigation been carried out considering the depressed nature of the economy from the problems already highlight. The purpose is based on the stating of the deferent economic policies of government and it’s effects on the paints industry.
The study further attempts and aims at the following also:
1. Find out the reason for the decline rate of demand being experience by paints industries with particular reference to the organization.
2. Find out the impacts of unstable foreign exchange rates in the marketing of paints products.
3. To ascertain the effects of inadequate customer awareness in marketing of paints.
4. To ascertain the impact of thr raising price of paints in demand for the products.
5. To make recommendations on the appropriate measure to be taken by Marshal paint company limited to ensure repid state growth.
1.5 STATEMENT OF HYPOTHESIS:
110: Rising price have a negative impact in the marketing of paint products.
111: Unstable Foreign exchange rate affects the marketing of paints.
112: Inadequate customer awareness affects the demands for paints.
1.6 SIGNIFICANCE OF THE STUDY:
This study is going to be of immense benefit to both practicing and prospective their mistake in organizing and operating marketing mix for them to achieve optimum benefits and as well as prospective distributors will be aware of the happening in the field and them remade their plans for possible adjustments.
1.7 SCOPE OF THE STUDY
The researcher close Enugu state for their study and it was taken to be the universe of the population. The researcher selected Enugu Metropolis to represent the entire population. This was due to both time and financial constraints.
1.8 DEFINITION OF TERMS:
The following terms are denied to ease the problem of understanding by any person or group of persons who may make reference to this text in future time.
(a) ECONONMIC DEPRESSION: This is a situation where the economy of a country is raced with some problems that night affect the level distributors customers of the product, the company itself, (Marshal paint limited), students and government alike. The significance therefore lies on it attempts to unrare the problems confronting the marketing of paints products. In Enugu state under the present Nigeria economy, knowledge from this study will also assist in improving the decision making skill of both the company producing and then serve as a guide for buyers who need to know what paint to being, the better price and the preparation method. The study is also aimed at or seeked to estimate the economic problems on all facts of the paint industries with a view to suggesting applicable measures in line with the modern marketing concept in the states under the present economic situation with particular reference to the case organization (Marshal Paint Limited). The study is equally aimed at exposing to the government the need for purposed planning, control and re-evaluation of the economic policies as it affects growing industries in the economy.
The study will help other researchers and students in the field of business as a project and text to add to their knowledge .
Finally, the study will assist the markers of paints product to point out of income of the workers and the production situation, thereby leading to inbalance of payment.
(b) INFLATION: This is a situation of general rise in price of commodities and the process of too much money in circulation.
(c) MARKETING MIX: These are set of marketing tools which a firm was to pursue its marketing objectives the target market.
(d) ECONOMIC POLICY: This is an economic plan of action implemented or adopted by the government of a state to regulate its economy.
(e) MARKETING: According to Koker (1989)), marketing is the social and managerial process by which individuals and groups obtain what they need and what through creating exchange products and values with pthers.]
1.9 QUESTIONNAIRES ADMINISTRATION
The researcher distribution total of two hundred and sixty-one questionnaire for the purpose of the research based on the total number of respondents expected from the determionation of the sample size in 3.4, out of which a total of two hundred and forty three were returned of the respondents making a total of 95 percentage from the percentage of hundred. This is properly stated in the table below.
RESPONDENTS NO. OF QUESTIONAIRE DISTRIBUTED NO. OF QUESTIONAIRE RETURENED PERCENTAGE RATE
CONSUMER 138 130 53.5%
DISTRIBUTORS 73 67 27.6%
PRODUCERS 50 46 18.9%
TOTAL 261 243 100%
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