debre berhan university assessment of marketing …
TRANSCRIPT
DEBRE BERHAN UNIVERSITY
ASSESSMENT OF MARKETING STRATEGY
PRACTICES AND CHALLENGES IN DEBRE BERHAN BLANKET FACTORY
IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN
BUSINESS ADMISNTRATION (MBA)
BY:
SISAY AYALEW
ID NO. FGEE/0087/2008
JUNE, 2018
DEBRE BERHAN, ETHIOPIA
DEBRE BERHAN UNIVERSITY
ASSESSMENT OF MARKETING STRATEGY
PRACTICES AND CHALLENGES IN DEBRE BERHAN BLANKET FACTORY
IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN
BUSINESS ADMISNTRATION (MBA)
BY:
SISAY AYALEW
ID NO. FGEE/0087/2008
JUNE, 2018
DEBRE BERHAN, ETHIOPIA
“ASSESSMENT OF MARKETING STRATEGY
PRACTICES AND CHALLENGES IN DEBRE BERHAN BLANKET FACTORY”
BY: SISAY AYALEW
A THESIS SUBMITTED TO THE FACULTY OF BUSINESS & ECONOMICS
PRESENTED IN PARTIAL FULFILLMENT OFTHE REQUIREMENTS FOR THE DEGREE
OF MASTERS INBUSINESS ADMISNTRATION (MBA)
DEBRE BERHAN UNIVERSITY
ADVISOR: SHIFERA BEKELE (PHD.)
DEBRE BERHAN, ETHIOPIA
JUNE, 2018 G.C
i
Debre Berhan University
School of Graduate Studies
This is to certify that the thesis prepared by Sisay Ayalew, entitled: Assessment of Marketing
Strategy Practices and Challenges in Debre Berhan Blanket Factory and submitted in partial
fulfillment of the requirement for the Degree of Masters in Business Administration (MBA)
complies with the regulations of the university and meets the accepted standards with respect to
originality and quality.
Approved by board of examiners
Name Signature
Advisor: Shifera Bekele (PHD.)
External Examiner: --------------------------------
Internal Examiner: -----------------------------------
ii
DECLARATION
I, the undersigned, declare that this thesis is my original work, prepared under
the guidance of my advisor Shifera Bekele (PHD.) . All sources of materials used
for the thesis have been duly acknowledged. I further confirm that the thesis has
not been submitted either in part or in full to any other higher learning institution
for the purpose of earning any degree.
_________________________ ______________________
Name Signature
DEBRE BERHAN UNIVERSITY JUNE, 2018
iii
ENDORSEMENT
I, the undersigned, declare that this proposal is my own original work and has not been presented
in any other university. All sources of materials used for this proposal have been duly
acknowledged.
Name: SISAY AYALEW Signature: ----------------------------
DEBRE BERHAN UNIVERSITY JUNE, 2018
iv
Abstract
Debre Berhan Blanket Factory, one of the major producers of Blanket, Kuta, Polysters Bed
Cover, Mattress and Pillow, is among the oldest textile industry in Ethiopia which use imported
and locally produced inputs. The main purpose of this study is to examine the practice and
challenges of the marketing strategy of the factory by using descriptive data analysis method by
applying the instrument such us frequency and percentage using Statistical Package for Social
Science (SPSS). Research data were collected using questionnaire and interview using purposive
sampling techniques. The finding shows that the factory marketing mix strategy is mainly based
on its product. Developing new product and product identification are relatively well recognized
product mix strategies practiced. The qualities of the products are high that meet the customer’s
requirement. In terms of pricing method ,which is set based on cost of production and
competitors’ pricing , the Factory’s product price is relatively not expensive for its customers.
Despite the fact that the factory didn't set enough promotional budgets it use participating on
trade fare. In terms of product distribution the factory’s product are distributed through own
office , other textile factory, whole seller and individual customer. The factory's segmentation is
based on economic and geographic locations. The Factory reach target markets through its sales
agents where the potential sales area is identified and need assessment is done for product
distribution. The finding further shows that there are major problems such as shortage of raw
material , local and imported competition, human capital turnover, lack of enough promotional
budget and oldness machineries are some of the major challenges of the factory which cause
underutilization of the existing potential and as result the factory could not able to generate
sufficient out put there by increasing its sales revenue which require immediate solution to
increase production thereby increasing market share. Based on the finding the writer would like
to recommend that in order to increase the current level of production, the factory should
increase its product level of quality to export standard so that it will have access to foreign
currency to import raw material and it will increase its level of production thereby fulfilling the
local demand as well. This will enable the factory to retain its senior employees as it will have
capacity to pay more and to develop incentive system to improve labor productivity.
v
Acknowledgements
First and for most, I would like to give my glory and praise to the Almighty GOD for his
invaluable cares and supports throughout the course of my life and helped me since the
inception of my education to its completion and enabled me to achieved my career.
Next I would like to express my sincere gratitude to my advisor Dr. Shiferaw who helped me
with his constructive comment throughout my work. Especially ,his valuable and prompt advice
,his tolerance guidance and useful criticisms throughout the course in preparing the paper
,constructive correction and insightful comments ,suggestion and encouragement are highly
appreciated .
My sincere and heartfelt gratitude goes to all employs of the company for their frank response to
my interview question and questioners without which this paper would come to life. spatial Ato
Moges Teshome
I would like to express my heartfelt gratitude my brother Tewoderos Ayalew, who initiated me to
attend my carrier, and his endless encouragement and to my lovely mother W/ro Teruneshe
Ayele encouragement in moral, friends Woldetsadik Kagnew and Sintayehu Ambachew family
member’s w/ro Amdework Aberu , Pawlos sisay ,Yohannes Sisay , close relatives, and
colleagues who directly and indirectly helped me for the completion of this work.
Finally, I would like to thanks my all staffs of Debre Berhan Blanket Factory for their help in
providing all the necessary data used for the study.
vi
Table of Contents
Abstract ........................................................................................................................................................ iv
Acknowledgements ....................................................................................................................................... v
CHAPTER 1 .................................................................................................................................................... 1
1. INTRODUCTION ................................................................................................................................ 1
1.1. Background of the Study ................................................................................................................... 1
1.2. Company Back Ground .......................................................................................................................... 2
1.3. Statement of the Problem ............................................................................................................... 2
1.4. Objective of the Study.................................................................................................................... 4
1.5. Research questions ......................................................................................................................... 4
1.6. Significance of the study ................................................................................................................ 4
1.7. Scope and Limitation of study ...................................................................................................... 5
1.8. Organization of the Study .............................................................................................................. 5
CHAPTER 2 ................................................................................................................................................. 6
2. REVIEW OF RELATED LITRATURE ............................................................................................... 6
2.1 Theoretical literature review ......................................................................................................... 6
2.1.1 Meaning & Definitions of Marketing Strategy ..................................................................... 6
Three Generic Strategies ....................................................................................................................... 6
2.1.2 Marketing through the Product Life Cycle ........................................................................... 8
2.1.3 Pricing Strategies ................................................................................................................ 11
2.1.4 Selecting a Pricing Method ................................................................................................. 11
2.1.5 Pricing Strategies for New Products ................................................................................... 12
2.1.6 Pricing Strategies for Established Products ........................................................................ 13
2.1.7 Promotion Strategies ........................................................................................................... 13
2.1.8 Personal Selling................................................................................................................... 14
2.1.9 Sales Promotion .................................................................................................................. 14
2.1.10 Public Relations .................................................................................................................. 15
2.1.11 Direct Mail Marketing ........................................................................................................ 15
2.1.12 Trade Fairs and Exhibitions ................................................................................................ 16
2.1.13 Advertising .......................................................................................................................... 16
vii
2.1.14 Place Strategy ...................................................................................................................... 17
2.2 Empirical literature review.......................................................................................................... 17
Chapter 3 ..................................................................................................................................................... 19
3. Research Methodology ....................................................................................................................... 19
3.1. Research Design ............................................................................................................................... 19
3.2. Target Population............................................................................................................................. 20
3.3. Method of Data Collection ............................................................................................................... 20
3.4. Sampling Techniques ....................................................................................................................... 21
3.5. Method of Data Analysis .................................................................................................................. 21
Chapter 4 ..................................................................................................................................................... 22
4. Data Presentation, Analysis and Discussion ....................................................................................... 22
4.1. Result Discussion .............................................................................................................................. 22
4.2. Interview analysis and discussion .................................................................................................... 34
CHAPTER FIVE ............................................................................................................................................. 39
5. CONCLUSION AND RECOMMENDATION ................................................................................................ 39
5.1 Conclusion ......................................................................................................................................... 39
5.2 Recommendation .............................................................................................................................. 41
viii
Lists of table:
Table 4. 1 Questionnaire respondents profile .............................................................................. 23
Table 4. 2 Respondent's opinion for the management uses of product differentiation ................ 24
Table 4. 3 Product mix strategy ................................................................................................... 25
Table 4. 4 Respondents opinion for products target market need consideration .......................... 25
Table 4. 5 Respondents answer for customer's opinion about the factory product quality .......... 26
Table 4. 6 Respondents opinion about the factory product quality .............................................. 26
Table 4. 7 Response in relation with the factory pricing methods ................................................ 27
Table 4. 8 Respondents answer for the factory pricing strategy ................................................... 27
Table 4. 9 Respondents opinion for the factory product price compared to similar factory product
....................................................................................................................................................... 28
Table 4. 10 Respondents answer for the factory process of selling .............................................. 28
Table 4. 11 Respondents answer for which factors affect the factory highly in setting price ...... 28
Table 4. 12 Respondent response on does the factory set sufficient promotional budget every
year ................................................................................................................................................ 29
Table 4. 13 Respondent suggestion as the best strategy of advertising ........................................ 30
Table 4. 14 Respondent response on how many promotional activities the factory performs per
year ................................................................................................................................................ 30
Table 4. 15 Respondents response for factor of selecting distributor ........................................... 31
Table 4. 16 Respondents answer for where can the factory find target market ............................ 31
Table 4. 17 Respondents answer for factory’s major effective customers ................................... 32
Table 4. 18 Respondents answer for marketing strategy continuous improvement ..................... 32
Table 4. 19 Respondents answer for marketing mix strategy ....................................................... 33
Table 4. 20 Respondents answer for marketing segmentation strategy ........................................ 33
Table 4. 21 The Factory Annual Production(2012-2017 G.C.) .................................................... 36
ix
List of figure:
Figure 4. 1 Aannual production chart for DebreBirhan Blanket Factory ..................................... 37
x
Lists of Acronyms
SWOT-Strength, Weakness, Opportunity and Threats
BCG-Boston Consulting Group
EIIDE-Ethiopian Industrial Inputs Development Enterprise
KK-Ketema Kebede
SBDC-Small Business Development Corporation
ETB-Ethiopian Birr
1
CHAPTER 1
1. INTRODUCTION
1.1. Background of the Study
With the growing competition in the domestic and international markets, more demanding and
assertive customers, rapid advancement in technology, and changing government policies and
laws, the marketing environment has changed dramatically and is becoming more turbulent.
(Cole, 2004). Therefore, to deal with the current challenges, the businesses must have more
distinctive and purposeful marketing strategies which should be effectively implemented (Jain,
1997). As part of the strategic planning process, a company has to formulate a marketing strategy
before entering a new market. For company marketers, formulation of a good marketing strategy
is of big importance since it contributes benefits, including raising the efficiency of new products
launches, cost reduction and improving product quality and market share performance. So,
before beginning to develop a product, the entrepreneur must show that the product will be
accepted by a target audience and their marketing strategy will accomplish this goal. (Zelalem .
and Negi,. 2009).
In today‘s dynamic business environment, appropriate strategy is needed for business companies
to be competitive or at least to stay where they are in their field of operation. This is because
strategies help firms to guide themselves to the direction they need and to withstand the
environmental challenges (Mintzberg, 1987).
The historical perspective demonstrates how various strategic approaches, such as Borden’s
marketing mix, Dean’ pioneer pricing strategies, Smith’s differentiation and segmentation
strategies, Forrester’s product life cycle, Andrew’s SWOT analysis, Ansoff’s growth strategy,
Porter’s generic strategies, handbag’s growth-share matrix, can be integrated into a
comprehensive conceptual framework for marketing strategy. (Eric and Kendall, 2005).
2
1.2. Company Back Ground
Ethiopia has a long history of manufacturing traditional textiles using hand spun, yarn and hand
looms for weaving. This activity has been the part of cottage industry and is considered to be
major sources of employment both in rural and urban areas. Debre Berhan Blanket Factory (here
after the factory), which is one of the major producer of blanket in the country, is among the
oldest textile industry in Ethiopia which use imported and locally produced inputs. The reason
behind choosing Debre Berhan for blanket factory is that the area has traditionally been the
center for the production of local wool and woolen articles like Burnos and Bana. The factory
was previously administered by Privatization and Public Enterprises Supervising Agency under
the government of Ethiopia until became privatized and handed over to the Indian owner in April
25/2009 and its main products are Blanket, Kuta, Polysters Bed Cover and Mattress and Pillow
from its byproduct.( Moges Teshome, personal communication, October 2, 2017)
The factory does have two sales center in Debre Berhan town of which one is inside the factory
that is used for whole sale and the other is at the center of the town that serves for retail trade.
Additionally, the factory has two sales centers in Addis Ababa at Merkato and Mexico for its
additional whole sale trade. The factory also uses other means for its product sales such as
through EIIDE, which has around 88 branches, and Addis Fana General Trading Share
Company, which has around 44 branches. Moreover, the factory also uses its own sales expert in
some major cities like Jimma, Hawassa, Bahir Dar and Mekele. In some other cities credit sales
agent and farmer’s union are used as a tool. Despite all these, the factory is not able to satisfy all
the local market demand. On the other hand, in line with its privatization, the factory is supposed
to export its product and generate hard currency. (Moges Teshome, personal communication,
October 2, 2017)
1.3. Statement of the Problem
Debre Berhan blanket factory is one of the oldest companies with long experience in the supply
of blanket and related products with its strategic location at Debre Berhan town. Currently, the
factory has different challenges in its supply chain (in its process from production to
consumption stage of its product).
3
For all the factory sales channel final price is determined by dealing with each agent about how
much their profit margin should be having covered the transport cost of the product by the
factory itself. Initial product price is determined taking in to account the cost of production and
other competitor’s market price of similar product. In this regard there is continuous production
cost increase of imported inputs which force to revise its product price upward which affect the
factory product market demand negatively. (Moges Teshome, personal communication, October
2, 2017)
In regard to product promotion the factory uses its sales expert to promote and sometimes in the
past television was used as well. Currently, the factory has big shortage of input which results in
to produce under capacity and unable to satisfy even the existing market demand. Thus, despite
the continuous product differentiation, there is no enough product promotion that it has in order
to aware its customers even if the factory has local competitors like KK, DHGeda, and Adey
Ababa blanket factory which have a capacity to produce similar products. (Moges Teshome,
personal communication, October 2, 2017)
The factory's major challenge is from the imported one which has low price and attractive
design despite their low comfort and quality .The current raw material shortage resulted from the
unavailability of hard currency exacerbate the challenges which force the factory to produce
under capacity as most of input used are from outside the country which needs hard currency to
purchase and due to their expensive price force it to increase its product price.( Moges Teshome,
personal communication, October 2, 2017)
Despite long experience of the factory in the sector, it is one of locally confined producer with
lower market share in the country. Moreover, the factory’s products are not popular which might
have resulted from low or absence of promotion and also its product are not distributed enough
with in the country and abroad which might be the factory’s poor distribution and placement of
its product and pricing may has also its impact on same.
4
1.4. Objective of the Study
A) General Objectives
The general objective of this study was to examine the practice and challenges of the marketing
strategy of Debre Berhan Blanket Factory located at North Shewa Debre Berhan town.
B) Specific Objectives
The specific objectives of the study were:
To identify the factory product strategy & the quality of the product,
To identify how the factory sets its pricing strategies,
To identify how the factory promotes its product,
To identify the distribution practices of the factory, and
To identify the factory’s major challenges.
1.5. Research questions
In light of the marketing strategy practice and challenges of Debre Berehan blanket factory the
study tried to answer the following research questions:
Which pricing methods are used by the factory to succeed?
What promotion strategy is employed in the factory to introduce its products?
What criteria are used by the factory in selecting distributors?
What is the target market of the factory?
What are the major marketing challenges?
1.6. Significance of the study
Besides being a partial fulfillment for an MBA, this study will have an immense significance as
its output will be used as an input for the factory decision maker and other partners on similar
sector. This study will give an insight on the factory's marketing strategy practice and challenges
and its result will be useful for further research on the area.
5
1.7. Scope and Limitation of study
Because of limited time and other resources the study didn’t not look all factories that take part
in the textile industry. Thus, only Debre Berhan blanket factory was the focus of the study. Even
from the factory the research focus was on its marketing strategy practice (the 4 Ps-price,
promotion, product & placement ) and challenges by taking data from the marketing department
and higher a management through interview and questionnaire.
1.8. Organization of the Study
The study has five chapter .Chapter one, the introductions part, discuss about background,
problem statement, objectives, research questions, significance of the study ,scope and limitation.
In chapter two theoretical and empirical literatures and Ethiopia’s economic performance is
reviewed .The third chapter is about data and methodology of the study whereby the econometric
model is specified and techniques used for data analysis are discussed. Then the last two chapters
which are chapter four and five deals about result discussion and conclusion and policy
implication respectively.
6
CHAPTER 2
2. REVIEW OF RELATED LITRATURE
2.1 Theoretical literature review
2.1.1 Meaning & Definitions of Marketing Strategy
Marketing strategy is one of the most important areas that need to be carefully examined by the
corporate. Marketing strategy is commonly defined as a strategy employed by a firm to attain its
marketing objectives, which in turn is related to the achievement of the firm’s business
objectives. The firms in order to have a formulation of the marketing strategy should have a
marketing objective. The marketing objectives include: maximization of Profits, maximization of
market share, maximization of sales, enhance brand image, improve customer satisfaction,
provide customer value, and maintain price stability. In other words, marketing strategy refers to
the marketing goals and action plans that address matters of product/ service, price, distribution,
communication, and the process of new product development. Marketing strategy can allow an
organization to concentrate its limited resources on the greatest opportunities to increase sales
and achieve a sustainable competitive advantage. (Nanda and Khanna, 2011).
As Varadarajan (2010) defined that, Marketing strategy refers to an organization’s integrated
pattern of decisions that specify its crucial choices concerning markets to serve and market
segments to target, marketing activities to perform and the manner of performance of these
activities, and the allocation of marketing resources among markets, market segments and
marketing activities toward the creation, communication and/or delivery of a product that offers
value to customers in exchanges with the organization and thereby enables the organization to
achieve specific objectives.
Three Generic Strategies
Cost leadership
Porter (1990) pointed out that choosing a lower cost strategy means that the firm is able to
produce the product cheaper than its competitors and there can only be one cost leader. The
sources of cost advantage depend on the structure of the industry. It is necessary that the firm has
7
a broad target and serves more than one segment. A lot of companies may even operate up or
down streams in the industry. The firm often sells standard at acceptable quality and service.
Differentiation
By choosing a differentiation strategy Porter (1990) means that the firm is able to provide unique
and/or superior value to the product more efficiently through quality, special features or after
sale service. There can be many differentiators in an industry. Differentiation allows firm to add
a premium value to the product, which leads to a higher profit than that of the competitors. The
differentiated firm makes higher revenue per unit than the competitors, because of the buyer’s
special demand.
Shapiro and Varian (1999) pointed out that if the firm’s strategy is differentiation, the firm must
add value to the product, thereby distinguishing the product from the competing products.
Focus
As Porter pointed out that firms in the same industry can choose different competitive scopes
In the same segment. The basic choice is between a broad target and a narrow target within the
same segment. The narrow target is a well-defined market and the broad target is a larger market
defined in a wider perspective. Focus is achieved by personalizing the product. If a company
succeeds in creating a unique product it will have breathing room to both personalize the pricing
and to design the product. (Shapiro and Varian, 1999)
Marketing Mix Strategies
The marketing program (popularly called the marketing mix) is the set of variables that managers
use to influence customers. These variables include the product or service, price, advertising and
promotion, and distribution. And the main four elements of marketing mix are described in the
following: -
Product strategy
Of all the strategic decisions to be made in the marketing plan, the design, development,
branding, and positioning of the product are perhaps the most critical. At the heart of every
organization lie one or more products that define what the organization does and why it exists.
Products fall into two general categories. Products purchased for personal use and enjoyment are
8
called consumer products, whereas those purchased for resale, to make other products, or for use
in a firm’s operations are called business products. (Ferell and Hartline, 2011).
Small Business Development Corporation [SBDC], 2011 stated that Products incorporate the
following characteristics:
Product attributes
Quality – the major tool in positioning company product. It encompasses two key elements:
1) Quality level - how it is made or perceived, and 2) quality consistency - how it performs over
Its life.
Features – the physical or intrinsic characteristics of our product that contribute to the benefits it
offers.
Design – a combination of how the product looks and how it performs.
Branding
A brand is a name, term, sign, symbol or design, or a combination of these elements that
identifies the maker or seller of a product or service. Branding is an important part of a product
and contributes to its personality and perceived value. The power of a brand cannot be
underestimated many people buy on the strength of brand alone with no regard for price or
performance.
Packaging
Packaging incorporates the wrapper or container for your product. It serves to protect the
product, ensuring it reaches the buyer in good condition and also conveys the personality of your
brand and important safety and statutory information.
Labeling
Labeling incorporates all the written information about our product and usually takes the form of
an adhesive sticker, a tie-on tag or a printed piece of packaging.
2.1.2 Marketing through the Product Life Cycle
Successful goods and services, like people, pass through a series of stages from their initial
appearance to death; this progression is known as the product life cycle. Humans grow from
infants into children; they eventually become adults and gradually move to retirement age and,
finally, death. The four stages through which successful products pass are introduction, growth,
9
maturity, and decline. Most product lifecycle curves are portrayed as a bell shape (Lancaster, G.
A., 2004). The product life cycle concept provides important insights for the marketing planner
in anticipating developments throughout the various stages of a product's life. Although there are
variations on the concept, the product life cycle is typically divided in four stages: introduction,
growth, maturity, and decline.
Introduction Strategies
In the early stages of the product life cycle, the firm attempts to promote demand for its new
market offering. Because neither consumers nor distributors may be aware of the product,
marketers must use promotional programs to inform the market of the item's availability and
explain its features, uses, and benefits. New-product development and introductory promotional
campaigns are expensive and commonly lead to losses in the first stage of the product life cycle.
Firms focus their selling on those buyers who are the readiest to buy, usually higher-income
groups. Prices tend to be high because costs are high due to relatively low output rates,
technological problems in production, and high-required margins to support the heavy
promotional expenditures. In this stage slow sales growth is observed as the product is
introduced in the market (Kotler,P, Keller,K.L., Koshy,A., Jha,M.,2009)
In the introductory stage of the life cycle, a financially strong firm facing weaker competitors
would probably employ a penetration strategy. The penetration strategy aims at the mass market,
or a very large market segment, with an aggressive marketing mix: usually a combination of
basic product, low price, large advertising and promotional campaign, and intensive distribution.
Growth Strategies
Sales climb quickly during the product's growth stage as new customers join the early users who
are now repurchasing the item. Person-to-person referrals and continued advertising by the firm
induce others to make trial purchases. The company also begins to earn profits on the new
product. But this encourages competitors to enter the field with similar offerings. Price
competition appears in the growth stage, and total industry profits peak in the later part of this
stage. To gain a larger share of a growing market, firms may develop different versions of a
product to target specific segments (Kotler, p. et al (2009).
10
Usually employed during the growth phase, an expansion strategy may be used during any stage
of the life cycle, even to recycle a mature or declining product. There are two types of expansion
strategies, one based on customers the other based on products. Firms can expand by adding new
customer segments. An organization can expand geographically, by going from local to regional,
regional to national, or national to international. A firm could also expand by adding new
product lines.
Maturity Strategies
Industry sales at first increase in the maturity stage, but reach a saturation level at which further
expansion is difficult. Competition also intensifies, increasing the availability of the product.
Firm concentrate on capturing competitors' customers, often dropping prices to further their
appeal. Sales volume fades late in the maturity stage, and some of the weaker competitors leave
the market. Firms spend heavily on promoting mature products to protect their market share and
to distinguish their products from those of competitors, profit stabilize or decline because of
increased competition (Kotler, p. et al (2009). During the maturity stage of the life cycle there
are several strategic alternatives. These include maintenance, harvesting, and differentiation
strategies. A maintenance (or hold) strategy attempts to maintain market share by maintaining
marketing effort; essentially, keeping things the way they are. Toward the end of maturity, many
firms shift from maintenance to a harvesting strategy. The product is treated as a “cash cow;”
which involves accepting some reduction in market share in exchange for a more than
proportional retrenchment in marketing effort. In contrast to the passive maintenance and
harvesting strategies, a differentiation strategy keeps the firm aggressive during the maturity
phase of the life cycle. Differentiation involves creating brand uniqueness in the minds of
customers.
Decline Strategies
Finally, at some time in the decline stage of the life cycle, a divestment strategy becomes
necessary because a product or service with declining sales consumes disproportionate amounts
of marketing time, effort and money. Consequently, the product must be withdrawn from the
market. If almost all other competitors are dropping out of the market, however, it may be
possible to profitably stay alive a little longer as the sole survivor. (Shaw, 2011)
11
2.1.3 Pricing Strategies
In discussing pricing, include the rationale for choosing the price, as well as any discounts,
allowances, trade margins or adjustments. Three generic approaches to pricing are known as the
3 C’s: (1) customer (or demand), (2) competitor, and (3) cost oriented pricing. The highest price
possible to charge is the maximum that a customer is willing to pay. The lowest price a firm can
offer, and remain in business for long, is its cost of goods plus operating expenses. Typically,
prices are set somewhere between these two extremes based on competitors’ prices.
First, in demand oriented pricing, customers are charged the highest price that each segment will
pay, usually phrased: “what the traffic will bear.” Price skimming is an example of demand
oriented pricing. With skimming a high price is charged initially. After those who are willing to
pay the most actually buy the product and sales begin to level off, the price is lowered to the next
segment, and the process is repeated.
Second, competitor oriented pricing is particularly common in industries known as oligopolies.
If a firm charges a higher price than competitors, no one buys from them.
Third, cost oriented pricing relates the price to cost. This method is particularly popular in
wholesaling and retailing where a standard markup is common, such as “keystone” pricing using
100 percent markup above cost. (Shaw, 2011).
2.1.4 Selecting a Pricing Method
The three major considerations in price setting: Costs set a floor to the price. Competitors’ prices
and the price of substitutes provide an orienting point. Customers’ assessment of unique features
establishes the price ceiling. Companies select a pricing method that includes one or more of
these three considerations. According to Kotler and Keller (2012), pointed out that, Here the
following are the price-setting methods: -
Markup pricing-the most elementary pricing method is to add a standard markup to the
product’s cost. Construction companies submit job bids by estimating the total project cost and
adding a standard markup for profit. Lawyers and accountants typically price by adding a
standard markup on their time and costs.
Target-return pricing-in target-return pricing, the firm determines the price that yields its target
rate of return on investment. Public utilities, which need to make a fair return on investment,
often use this method.
12
Perceived-value pricing- An increasing number of companies now base their price on the
customer’s perceived value. Perceived value is made up of a host of inputs, such as the buyer’s
image of the product performance, the channel deliverables, the warranty quality, customer
support, and softer attributes such as the supplier’s reputation, trustworthiness, and esteem.
Value pricing- in recent years, several companies has adopted value pricing: They win loyal
customers by charging a fairly low price for a high-quality offering. Value pricing is thus not a
matter of simply setting lower prices; it is a matter of reengineering the company’s operations to
become a low-cost producer without sacrificing quality, to attract a large number of values
conscious customers.
Going-rate pricing- In going-rate pricing, the firm bases its price largely on competitors’ prices.
In oligopolistic industries that sell a commodity such as steel, paper, or fertilizer, all firms
normally charge the same price. Smaller firms “follow the leader,” changing their prices when
the market leader’s prices change rather than when their own demand or costs change.
Some may charge a small premium or discount, but they preserve the difference.
Auction-type pricing- Auction-type pricing is growing more popular, especially with scores of
electronic marketplaces selling everything from pigs to used cars as firms dispose of excess
inventories or used goods. (Kotler and Keller, 2012)
2.1.5 Pricing Strategies for New Products
The pricing strategies for new product should be developed so that the desired impact on the
market is achieved while the emergence of competition is discouraged. Two basic strategies that
may be used in pricing new products are; skimming pricing and penetration pricing strategy.
1). Skimming pricing: is the strategy of establishing initial price for a product with a view of
“skimming the cream of market” at the upper end of the demand curve. It is accompanied by
heavy expenditure on promotion. A skimming strategy may be recommended when the nature of
demand is uncertain, when a company has expended large sums of money on research and
development for a new product, when a competition is expected to develop and market a similar
product in the near future or when the product is so innovative that the market is expected to
mature very slowly. Under these circumstances, a skimming strategy has several advantages.
Premium and umbrella prices are two other forms of price skimming. Some products carry
premium prices (high prices) permanently and build on image of superiority for themselves.
13
Some times higher prices are maintained in order to provide an umbrella for small high cost
competitors. Umbrella prices have been aided by limitation laws that specify minimum prices for
a variety of products, such as milk.
2). Penetration pricing: is the strategy of entering the market with a low initial price so that a
greater strategy is used when an elite market does not exist and demand seems to be elastic over
the entire demand curve even during early stages of product introduction. High price elasticity of
demand is probably the most important reason for adopting a penetration strategy. The
penetration strategy is also used to discourage competitors from entering the market. Penetration
pricing reflects a long term perspective in which short term profits are scarified in order to
establish sustainable competitive advantage (Paul Fifield, 1994).
2.1.6 Pricing Strategies for Established Products
An examination of existing prices may lead to one of three strategic alternatives; maintaining the
price, reducing the price, or increasing the price.
Maintaining the prices: If the market segment from which the company drives a big
position of its sales is not affected by changes in the environment, the company may
decide not to initiate any change in its pricing strategy.
Reducing the prices: There are three main reasons for lowering prices. First, as a
defensive strategy, prices may be cut in response to competition. In addition, to
successfully compete in mature industries, many companies reduce prices, following a
strategy that is often called value pricing. A second reason for lowering price is offensive
in nature. Following the experience curve concept, costs across the board go down by
fixed percentage every time experience doubles. Technology advances have made
possible the low cost production of high quality electronics gear. The third and final
reason for price cutting may be a response to customer needs.
During a period of inflation, all types of costs go up, and to maintain adequate profits, an
increase in price becomes necessary. How much the price should be increased is a matter
of strategy that varies from case to case (Philip & Garry, 2007).
2.1.7 Promotion Strategies
Promotion relates to all the communication tools that the marketers use in the marketplace.
Promotion includes all of the tools available to the marketer for marketing communications. As
14
with the marketing mix, marketing communications has its own promotions mix, where different
aspects of the promotions mix can be integrated to deliver a unique campaign. The elements of
the promotions mix are: -
Personal selling
Sales promotion
Public relations
Direct mail
Trade fairs and exhibitions
Advertising
The elements of the promotions mix are integrated to form a coherent campaign in relation to the
strategy developed using .
2.1.8 Personal Selling
Personal selling is an effective way to manage personal customer relationships. The sales person
acts on behalf of the organization. They tend to be well trained in the approaches and techniques
of personal selling. Personal selling is highly persuasive and is often used in markets where
personal choice figures strongly in the purchase. Compared to other types of promotion, personal
selling is the most precise form of communication because it assures companies that they are in
direct contact with an excellent prospect. Though one-on-one contact is highly advantageous, it
does not come without disadvantages. The most serious drawback of personal selling is the cost
per contact.
Personal selling is also expensive due to the costs associated with recruiting, selecting, training,
and motivating salespeople. (Ferrell and Hartline, 2011).
2.1.9 Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive
tools, mostly short term, designed to stimulate quicker or greater purchase of particular products
or services by consumers or the trade. Whereas advertising offers a reason to buy, sales
promotion offers an incentive. Sales promotion includes tools for consumer promotion (samples,
coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials,
warranties, tie-in promotions, cross-promotions, point-of purchase displays, and demonstrations),
15
trade promotion (prices off, advertising and display allowances, and free goods), and business
and sales force promotion (trade shows and conventions, contests for sales reps, and specialty
advertising). Sales promotions in markets of high brand similarity can produce a high sales
response in the short run but little permanent gain in brand preference over the longer term. In
markets of high brand dissimilarity, they may be able to alter market shares permanently. (Kotler
and Keller, 2012).
Sales promotion involves activities that create buyer incentives to purchase a product or that add
value for the buyer or the trade. Sales promotion can be targeted toward consumers, channel
intermediaries, or the sales force. Sales promotion includes broad assortment of promotional
elements because it encompasses activities other than advertising, public relations, and personal
selling. (Ferell and Hartline, 2011)
2.1.10 Public Relations
Public relation is defined as the deliberate, planned and sustained effort to establish and maintain
mutual understanding between an organization and its publics, institute of public relations.
Public relations can be split into proactive communications designed to build understanding and
reactive communications designed to counter misunderstanding. Not only must the company
relate constructively to customers, suppliers, and dealers, it must also relate to a large number of
interested publics. A public is any group that has an actual or potential interest in or impact on a
company’s ability to achieve its objectives. Public relations include a variety of programs to
promote or protect a company’s image or individual products. The wise company takes concrete
steps to manage successful relationships with its key publics. (Kotler and Keller, 2012).
2.1.11 Direct Mail Marketing
Direct mail is a popular medium because it permits target market selectivity, can be personalized,
is flexible, and allows early testing and response measurement. Although the cost per thousand is
higher than for mass media, the people reached are much better prospects. The success of direct
mail, however, has also become its liability so many marketers are sending out direct-mail pieces
that mailboxes are becoming stuffed; leading some consumers to disregard the blizzard of
solicitations they receive. In constructing an effective direct-mail campaign, direct marketers
must choose their objectives, target markets and prospects, offer elements, means of testing the
campaign, and measures of campaign success. (Kotler and Keller, 2012).
16
Direct marketing has now expanded into areas such as telemarketing; cataloguing, door to door
leafleting, e-mail marketing, broadcast faxing etc. as such direct marketing is a major sub-section
of marketing in its own right.
2.1.12 Trade Fairs and Exhibitions
The purpose of trade fairs and exhibitions is to increase awareness and to encourage trial, largely
through face to face contact of supplier and customer. They offer the opportunity for companies
to meet with both the trade and the consumer, for both to build relationships outside traditional
sales meetings. They are heavily used with business to business marketing, especially within
technology and engineering based products.
2.1.13 Advertising
Advertising is a key component of promotion and is usually one of the most visible elements of
an integrated marketing communications program. Advertising is paid, non-personal
communication transmitted through media such as television, radio, magazines, newspapers,
direct mail, outdoor displays, the Internet, and mobile devices.
Advertising promotes all types of products, including goods, services, ideas, issues, people, and
anything else that marketers want to communicate to potential customers. Whether used in
consumer or business markets, there are two basic types of advertising: institutional and product
advertising.
Institutional Advertising Institutional advertising promotes a firm’s image, ideas, and culture,
with the goal of creating or maintaining an overall corporate image.
Product Advertising Product advertising promotes the image, features, uses, benefits, and
attributes of products. Product advertising comes in many different forms. (Ferell and Hartline,
2011)
In developing an advertising program, marketing managers must always start by identifying the
target market and buyer motives. Then they can make the five major decisions, known as “the
five Ms”: Mission: What are our advertising objectives? Money: How much can we spend and
how do we allocate our spending across media types? Message: What message should we send?
Media: What media should we use? Measurement: How should we evaluate the results? (Kotler
and Keller, 2012).
17
2.1.14 Place Strategy
Place is not just about the point of sale, it’s about the total channel of distribution and a
consideration of the value chain from raw materials through to the customer. As such it’s one of
the most cross-functional areas within marketing and one of most vital areas in terms of the
processes aspect of the extended marketing mix.
There are six basic channel decisions:
1. Do we use direct or indirect channels? (E.g. direct to a consumer, indirect via a wholesaler).
2. Single or multiple channels.
3. Cumulative length of the multiple channels, longer length adds cost
4. Types of intermediary
5. Number of intermediaries at each level
6. Which companies as intermediaries to avoid intra channel conflict (i.e. infighting between
local distributors)? There are many types of intermediaries such as wholesalers, agents, retailers,
the internet, overseas distributors, direct marketing (from manufacturer to user without an
intermediary), and many others.
2.2 Empirical literature review
According to Glaniniaet al. (2013) combination of strategies and activities that companies use to
sell their goods and services is marketing mix. By focusing on the people who buy, a company
can pick the right features for the product, the right price and distribution outlets, and the right
words and approaches for promoting the product. The entire success of the company lies in the
amount of belief and loyalty; its customers are having in it.
The major problems are absence of well-developed supplier-customer relationship, lack of access
to international market information and technology, outdated processing facilities, lack of raw
material and accessories, lack of paved roads, communication infrastructure, and internet
services. (Rahel, 2007)
A study on Ethiopia's textile industry performance working capital shortage problem, quality
problem, low labor productivity, poor automation, and high labor turnover) are some of the
major problems of the sector which caused underutilization of the existing potential and as a
result the country could not able to generate sufficient job opportunity and foreign income from
the sector. (Teshome, 2014)
18
Ethiopian textile and garment firms are not in a position to compete in the international markets
due to the problems such as low productivity, limited quality awareness, limited capability of
own design & development, ineffective and inefficient management structures, limitations of
skills training, and inefficient systems and in order to enjoy the global market opportunities in
the twenty first century, firms should identify the dimensions of global competitiveness and their
comparative advantages. ( Kitaw and Matebu.,)
Marketing mix is the combination of strategies and activities that companies use to sell their
goods and services. By focusing on the people who buy, a company can pick the right features
for the product, the right price and distribution outlets, and the right words and approaches for
promoting the product. The entire success of the company lies in the amount of belief and
loyalty; its customers are having in it. Consumer behavior analysis is an important domain for a
marketing manager as it gives insight into a number of factors which affect sales and
relationships that are not in the control of a company. What is in control of a manager is the
marketing mix. The marketing mix allows a marketer to better relate to the identified target
market; based on the characteristics of the target market, the marketer will build the marketing
mix elements around the target market.( Gilaninia, Taleghani and Azizi,2012)
19
Chapter 3
3. Research Methodology
Research, is simply the process of finding solutions to a problem after a thorough study and
analysis of the situational factors. (Uma, p- 19, 2003). Its search for knowledge. One can also
define research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation where researcher collect, analyze and
interpret information to answer questions. Therefore, in order to solve the problem or answer the
research questions appropriate methodology should be designed. This chapter deals with research
design, Target population, data sources and collection method and data analysis.
When we think of research methodology the options are to use qualitative, quantitative or the
combinations of the two:
Quantitative method will as a synonym, which involves data collection technique (e.g.
questionnaire) or data analysis procedure (e.g. graphs or statistics) that generates or uses
numerical data.
Qualitative method will as a synonym, which involves data collection technique (e.g.
interview) or data analysis procedure (e.g. categorizing data) that generates or uses non-
numerical data.
The study used both methods in order to analyze the data about the factory and to reach the
specified objectives. In order to obtain primary data, the research used survey and questionnaire
and also to have additional information about the factory which is called secondary data which
refers to data used for some other purposes.
3.1. Research Design
A research design is a plan, structure and strategy of investigation so conceived as to obtain
answers to research questions or problems. When researcher wants to know the state of affair as
it exists at present in order to get its overall picture descriptive research is important. (C.R.
Kothari, p-15, 1990 and Kumar, p-95, 2011). Therefore, this study used descriptive analysis in
order to assess the marketing strategy practices and challenges of the factory.
20
The study employed quantitative and qualitative research approach. Quantitative research is
based on the measurement of quantity or amount. It is applicable to phenomena that can be
expressed in terms of quantity. Qualitative research, on the other hand, is concerned with
qualitative phenomenon, i.e. phenomena relating to or involving quality or kind. (C.R. Kothari,
p-16, 1990) In line with this, quantitative research tests the theoretically established relationship
between variables using sample data with the intention of statistically generalizing for the
population under investigation.
3.2. Target Population
The target population for this study was the sales and marketing employee of the factory
including the marketing manager. As the number of employs are small in those departments
census study was used for the study and the data was collected through questionnaire and
interviews from the departments.
3.3. Method of Data Collection
While deciding about the method of data collection to be used for the study, the researcher
should keep in mind two types of data viz., primary and secondary.
The primary data are those which are collected afresh and for the first time, and thus happen to
be original in character. (C.R. Kothari, p-91, 1990). For this closed type of questionnaire was
used to employee of the factory. More over interview with the marketing management team was
done in order to have clear understanding of the marketing strategy practices and challenges of
the factory.
Regarding the secondary data, data that are already available i.e., they refer to the data which
have already been collected and analyzed by someone else, including published or unpublished
which include the factory annual report and periodic sales data and will be used when they are
reliable, suitable and adequate.
21
3.4. Sampling Techniques
.Instead of obtaining information from those who are most readily or conveniently available, it
might sometimes become necessary to obtain information from specific target groups. The
sampling here was confined to specific types of people who can provide the desired information,
because they are the one who have it which is called purposive sampling was used for this study.
(Uma, p-277, 2003). For this study all the marketing department teams that are 32 in total were
used for the survey (both questionnaire and interview).
3.5. Method of Data Analysis
After data collected they were sorted and organized in a meaningful way and the analysis of data
was done by using descriptive analysis method by applying the instrument such us frequency,
percentage, mean, using Statistical Package for Social Science (SPSS)
22
Chapter 4
4. Data Presentation, Analysis and Discussion
In this section, the marketing strategy practice and challenges of Debre Berhan Blanket Factory
is discussed. The primary data was collected through questionnaire and personal interviews. The
marketing managers, sales manager, distribution manager, production manager and one senior
sales personnel were interviewed and all the marketing department team of the factory was
selected for survey through questionnaires. The contents of the survey questions (both interview
and questionnaires) are mainly on the marketing strategy practices and challenges of the factory
with respect to marketing mix (Product, Pricing, Promotion, and Place (distribution)) strategy
that constitute for marketing strategy practices. Total questionnaire disseminated was 28 but only
25 were collected in full response . The data collected through questionnaire are analyzed using
Statistical Package for Social Science (SPSS) version 16 and results from the SPSS are discussed
with table and descriptive analysis.
4.1. Result Discussion
From the total respondents (as it is indicated in the table 4.1 below) about 80 % of the
respondents are male and the rest 20 % are female. Looking at the age of the respondent’s
majority of the employees are from 36 to 45 which account for 28 % and between 26-35 and 46-
55 are the second largest having 24 % share each and only one respondent is above 56 years old
and there is one respondent that didn't answer question with regard to age. This shows that
majority of the employees are within the productive age to contribute their early age potential to
the factory. On the other hand, 40% of the respondent has BA or BSC degree, 32% are collage
diploma and only 16 % and 12 % of the respondent has grade 8-12th and technical school
educational background respectively. This shows that in terms of academic qualifications most
of the marketing teams are degree graduate which is very vital for a better productivity. When
we look at the respondent's work experience most of them have 6 and above year work
experience and this will enable them share their accumulated experience & discipline for the
younger employees for the achievement of the factory objectives. From the respondents two of
them are managers and 11 are department head and 11 are staffs and there is one respondent that
didn't specify position in the factory. Of all the respondent’s majority has monthly income
23
between 2001-4000 ETB and there is only one person who has a monthly income above 8,000
ETB.
Table 4. 1 Questionnaire respondent’s profile
Profile of respondents Frequency Percent
Gender Male 20 80.0
Female 5 20.0
Age 18-25 4 16.0
26-35 6 24.0
36-45 7 28.0
46-55 6 24.0
56-65 1 4.0
Educational
Qualification
Grade 8th -12th 4 16.0
Technical school 3 12.0
College diploma 8 32.0
Bachelor of sciences (BSC) or
Bachelor of Art (BA) degree 10 40.0
Postgraduate and above 0 0.0
Position
Manager 2 8.0
Department head 11 44.0
Staff 11 44.0
Work
experience
Under 5 6 24.0
6-15 8 32.0
16-25 7 28.0
Above 25 4 16.0
Monthly
income (in
ETB)
1000-2000 6 24.0
2001-4000 8 32.0
4001-6000 5 20.0
6001-8000 5 20.0
Above 8000 1 4.0
Source: own computation using SPSS 16
24
Table 4. 2 Respondent's opinion for the management uses of product differentiation
Product differentiation
strategy Frequency Percent
Strongly disagree 7 28.0
Disagree 7 28.0
Undecided 4 16.0
Agree 5 20.0
Strongly agree 2 8.0
Source: own computation using SPSS 16
Product differentiation strategy is one of the essential parameters to gain a competitive
advantage. As from table 4.2 above about 20 % employees agreed and 8 % strongly agreed that
the factory is issuing a product differentiation strategy and the rest of the respondents disagree
and strongly disagree having 28 %from the total respondents each. This indicates that most of the
respondents agreed that there no product differentiation in the factory and thus the factory is not
widely using product differentiation strategy even if it is advisable to shift to another product
when the demand of one product is decreased which has better demand than the existing product
so that total sales will keep increasing.
In terms of product mix strategy, the factory is effective in developing new product, maintaining
existing product and product identification by 44%, 36 % and 48 % percent respectively as from
table 4.3.And from the total respondent one didn't reply the query about modifying existing
product and 2 for product identification. This indicates that developing new product and product
identification are relatively well recognized product mix strategies. On the other hand,
maintaining existing product is less recognized.
25
Table 4. 3 Product mix strategy
Product
tools list
Developing new
product
Modifying
existing product
Maintaining
existing product
Product
identification
Frequency Percent
Freque
ncy Percent
Frequen
cy Percent
Frequen
cy Percent
Least
effective 4 16.0 8 32.0 10 40.0 - -
Effective 11 44.0 8 32.0 9 36.0 12 48.0
Very
effective 5 20.0 8 32.0 3 12.0 11 44.0
Extremely
effective 5 20.0 - - 3 12.0
- -
Source: own computation using SPSS 16
The one and most crucial activity of the marketing strategy is the selection of target markets
or the identification of the products to whom they are produced. Companies use the target
Marketing to tailor their products for specific markets. Table 4.4 shows 72 % of the respondents
agree that the factory produce its product based on its target market and 12% strongly disagree
on the factory’s product are based on its target market, the 8 % are undecided and 4 % strongly
disagree on same. This shows that the factory is producing its product based on its target market.
The factory production is based on the order of the distributors and to anyone who has interest to
buy its products.
Table 4. 4 Respondents opinion for products target market need consideration
Products target market
need consideration
Frequency Percent
Strongly agree 3 12.0
Agree 18 72.0
Undecided 2 8.0
Disagree 1 4.0
Strongly disagree 1 4.0
Source: own computation using SPSS 16
26
As indicated in the table 4.5 below the majority of the respondents (which accounts 72 %) said
that customer's opinion about the factory’s product quality is good and 24% responded that the
product quality is medium and one person said that the opinion is very good. This indicates that
the existing product of the factory has good customer perception. Reply on interview also
confirmed that the customer’s opinion towards factory’s product is good
Table 4. 5 Respondents answer for customer's opinion about the factory product quality
product quality
Frequency Percent
Very good 1 4.0
Good 18 72.0
Medium 6 24.0
Source: own computation using SPSS 16
As indicated in table 4.6. Below the majority, which accounts 68%, of the respondents said?
That the factory’s product quality is good, 24 % responded the product quality is medium,
And 8 % of the employee replied the factory products have poor quality. This implies that most
of the respondents agreed that the factory has quality product.
Table 4. 6 Respondents opinion about the factory product quality
product quality
Frequency Percent
Good 17 68.0
Medium 6 24.0
Poor 2 8.0
Source: own computation using SPSS 16
When we see the pricing methods of the factory, 56% answered that the pricing methods cost
plus (cost plus) pricing, 24% replied that its competitor based pricing, 12%choose it is target
pricing and the rest 4 % that is one in number replied value pricing. Therefore, the pricing
27
method of the factory is mainly based on cost plus pricing which shows that the factory set its
product price based on input cost.
Table 4. 7 Response in relation with the factory pricing methods
Frequency Percent
Pricing method
Value pricing 1 4.0
Target return pricing 3 12.0
Cost plus pricing 14 56.0
Competitor based
pricing 6 24.0
Source: Own computation using SPSS 16
When we see the pricing strategy of the factory, 52% answered that the pricing strategy
is maintaining existing price ,36 % replied that it is increasing pricing and, 8% choose it is
reducing price and there is one respondent that did not give any response in this regard.
Therefore, the pricing strategy of the factory is mainly maintaining existing price which shows
that the factory works on more and more production there decreasing the unit cost of production
and so that existing unit price will maintained for customers.
Table 4. 8 Respondents answer for the factory pricing strategy
Frequency Percent
Pricing strategy
Maintaining
existing price 13 52.0
Reducing price 2 8.0
Increasing price 9 36.0
Source: Own computation using SPSS 16
According to the respondent’s opinion indicated below on table 4.9. about 64% of the
respondent’s account that the price of the factory ‘s product is affordable which implies that the
factory pricing strategy is reasonable which enable for customer to afford it and it is expensive as
from the rest of the respondents which account 36 %.
28
Table 4. 9 Respondents opinion for the factory product price compared to similar factory
product
Frequency Percent
Pricing
method
Expensive 9 36.0
Affordable 16 64.0
Source: Own computation using SPSS 16
As table 4.10 depicts about 48 % of the respondents said that the selling process of the factoryis
fast, 48 % % replied it as medium and the remaining 16 % say the company selling process is
very fast. This indicates that the selling process of the factory is likely medium and in some case
very fast and this will enable the company to have competitive advantage over its competitors by
delivering its product on time.
Table 4. 10 Respondents answer for the factory process of selling
Frequency Percent
Pricing method
Very fast selling 4 16.0
Fast selling process 12 48.0
Medium selling process 9 36.0
Source: Own computation using SPSS 16
As from table 4.11. Below from the respondents 52 % agreed that the major factors that are taken
into account in setting price area external while 48 percent agree that it is internal instead.
Table 4. 11 Respondents answer for which factors affect the factory highly in setting price
Frequency Percent
Factors for
setting price
Internal factor 12 48.0
External factor 13 52.0
Source: Own computation using SPSS 16
29
Promotion is the communication element of a business to reach its product or service to its
Target audiences which include personal and non-personal communication activities. Each
Promotional tool has its own unique characteristics and costs. These strategies may be designed
around advertising, personal selling, sales promotion and publicity. These tools create a good
image for the factory product to gain popularity.
As from table 4.12below, 76 % of the respondent, for the quarry of whether there are enough
budgets for promoting the factory’s product, said that there is no sufficient budget while 24 %
said that there is sufficient budget. This result is supported by the response from interview which
shows that Debre Berhan Blanket Factory has big brand which is already built a long time ago
and it has a lot loyal customers including different government companies like Ministry of
defense and health organization and other different companies and individuals and currently less
attention is given for promotion currently due low level of production and the factory is getting
difficult to serve even the already existing demand.
Table 4. 12 Respondent response on does the factory set sufficient promotional budget
every year
Does the company set sufficient
promotional budget every year?
Frequency Percent
yes 6 24.0
no 19 76.0
Source: Own computation using SPSS 16
According to the respondents’ suggestion below in table 4.13 the best strategy of advertising is
through participating in trade fair which accounts 56% %, respondents who preferred television
as a good strategy to reach the customer are 20 %. Employees who said public relation and radio
are 12% each. From this we can conclude that, the best way of advertising for the factory’s
product is through participating in trade fair. Nowadays taking part in different trade fair is
becoming the best way for manufacturer as it creates a chance to get potential clients in person
and product owners will have all the chance to convenience potential client to become loyal
customer.
30
Table 4. 13 Respondent suggestion as the best strategy of advertising
Best strategy of
advertising
Frequency Percent
Radio 3 12.0
Television 5 20.0
Public relation 3 12.0
Participating in trade fair 14 56.0
Source: Own computation using SPSS 16
As from the respondents’ opinion 44 % said that the factory performs two times in a year
promotional activities and from the overall we can say that the factory doesn't frequently do
promotional activities.
Table 4. 14 Respondent response on how many promotional activities the factory
performs per year
Promotional activities the
factory perform per year
Frequency Percent
One times 6 24.0
Two times 11 44.0
Three times 1 4.0
Five times 2 8.0
Source: Own computation using SPSS 16
As it is depicted in table 4.14 below, 48 % of the respondents said the product distributor is
selected by distributing capacity, 32% respondent respond by its market factor, 8% choose
competitive factor, financial capacity & product factor each with 4% and there is one individual
who did not reply for the query. This shows that most of the factory product distributors are
selected based on their distributing capacity.
31
Table 4. 15 Respondents response for factor of selecting distributor
Factor of selecting
distributor
Frequency Percent
Financial capacity 1 4.0
Market factor 8 32.0
Product factor 1 4.0
Competitive factor 2 8.0
Distributing capacity 12 48.0
Source: Own computation using SPSS 16
As from table 4.15 below the factory find its major target market through sales agent office and
the least through online.
Table 4. 16 Respondents answer for where cans the factory find target market
Where can the factory find
target market
Frequency Percent
Trade 4 16.0
Online 1 4.0
Own branch office 5 20.0
Sales agent office 15 60.0
Source: Own computation using SPSS 16
From the respondents for the query about the factory’s effective customers 44 % said that other
textiles are effective, 36 % said it is least effective and 8% said that it is very effective and 3
persons didn't reply on this. And for wholesalers 40% of the respondents said they are effective
and 24 % said that it is extremely effective. According to the respondents’ individual customers
are also effective which has 68 % share from the total respondents.
32
Table 4. 17 Respondents answer for factory’s major effective customers
Major customers Other textiles Wholesalers Individual customers
Frequency Percent Frequency Percent Frequency Percent
Least effective 9 36.0 4 16.0 3 12.0
Effective 11 44.0 10 40.0 17 68.0
Very effective 2 8.0 5 20.0 3 12.0
Extremely
effective - - 6 24.0 1 4.0
Source: own computation using SPSS 16
As from table 4.17, 80 % of the employee agree that there is continues improvements on the
marketing strategy and this shows that there continuous marketing strategic improvements in line
with the market demand.
Table 4. 18 Respondents answer for marketing strategy continuous improvement
Marketing strategy
continuous improvement
Frequency Percent
Strongly agree 3 12.0
Agree 20 80.0
Disagree 1 4.0
Strongly disagree 1 4.0
Source: Own computation using SPSS 16
Table 4.18 shows the marketing mix strategy of the factory and as from respondents answer 60%
of them agree the factory apply all of the mix ,16% replied product as marketing strategy ,16 %
replied saying price and 4% promotion and 4 % distribution and this shows that the factory use
the all the mix in most cases.
33
Table 4. 19 Respondents answer for marketing mix strategy
Marketing mix strategy
Frequency Percent
Product 4 16.0
Price 4 16.0
Promotion 1 4.0
Distribution 1 4.0
All of the mix 15 60.0
Source: Own computation using SPSS 16
Market segmentation is one of the most widely accepted concepts in marketing to gain
Competitive advantage. As indicated in the table 4.19 below majority of the employees said that
The marketing segmentation strategies are economic and geographic locations which account
40% and 28% respectively. 20 % employees replied behavioral and the rest 8 % respond that the
base of segmentation is demographic. Generally, from this response we can conclude that the
main bases of the factory’s market segmentation are both economic and geographic
segmentations
Table 4. 20 Respondents answer for marketing segmentation strategy
Marketing segmentation
strategy
Frequency Percent
Geographic situation 7 28.0
Behavioral 5 20.0
Economic situation 10 40.0
Demographic situation 2 8.0
Source: Own computation using SPSS 16
34
4.2. Interview analysis and discussion
To gather additional information about marketing strategy practices of DebreBerhan Blanket
factory, interview questions were forwarded to the marketing department top management of the
factory. Accordingly, the interviewees’ responses to the questions forwarded are summarized as
follows. However, some interview responses are presented and analyzed in the questionnaire
analysis part as a supportive response and left in this analysis.
1) What are the Medias used for promotion and how frequent they are?
Majorly the factory use trade fare and exhibitions for its promotion and it is successful on same,
as it gets its customer face to face and it can express in detail about its products and it enable the
factory to get their feedback and we get enough time to discuss about its products quality.
Previously the factory had used radio program but that were not much successful but when it
take part on trade fare the factory get much order and even it enable the factory to establish
customers and sign agreement to become its sales agent .Currently the factory is not working at
full capacity due to shortage of raw material which is resulted from foreign currency shortage
and as result it is not doing more on promoting its product and currently the factory do have a lot
of project at its hand for different kinds of product and once it become able to work at full
capacity it will work more on promoting .
2) Once product produced, how they are distributed and what type of distributions
channels are used?
The factory has its own shop at Merkato and Mexico in Addis Ababa and here in Debre Berhan
city and inside the factory which are own office for whole sales. Additionally, it has sales agent
at Mekele, Desse, Woldya, Jima ,Hawassa and Debre Markos that sale the factory's product only
and it has also sales expert that assess the market and receive order from clients and farmer’s
union are also its distributor for their member’s association and also the factory sale even by
pieces.
3) Is there any competition? Who are your major competitors? What are your major
competitive advantages?
Previously our factory was sole producer and there was no big competition. Now a day there are
new entrants in the market like KK, DH Geda and Adey Ababa that penetrate in the market and
35
are becoming big suppliers and also similar products are being imported from outside which is
again another sources of the factory’s challenges.
4) What pricing strategy does the company use when setting price for existing product?
Currently the factory set its price based on cost of production which include cost of raw
materials, cost energy, administration cost, working process (time it takes to produce the output)
and human capital cost are among others. Competitor’s price is also taken in to account when the
factory set its product price.
5) What are the factors to increase or decrease your product price?
As mentioned above the major determinant for the factory's output price is cost of raw materials
and when there is a decrease in raw material cost product price will decrease and the reverse is
also true and competitor’s activity is also taken into account for the factory's product price.
6) How do you evaluate the overall performance of the factory?
The factory has been doing well previously but currently it is difficult to say that it is working
well due the current constraints like foreign currency which result in shortage of raw material
and the factory is working under capacity. Thus, currently the factory is working under capacity
which is between 30 to 50 percentage (which is even below breakeven points) of its actual
capacity.
36
Table 4. 21 The Factory Annual Production (2012-2017 G.C.)
Particulars
Year
2012 2013 2014 2015 2016 2017
Different type & size of
blanket in pcs
562,349.00
380,605.00
446,862.00
321,795.00
306,464.00
352,805.00
Different type & size of
mattress in pcs
5,701.00
5,438.00
7,413.00
6,922.00
6,507.00
5,340.00
Different type & size of
pillow in pcs
3,101.00
7,502.00
9,797.00
5,425.00
7,523.00
4,843.00
Different type & size of
bed cover in pcs
-
21,431.00
5,530.00
22,379.12
38,241.00
12,270.00
Different type & size of
kuta in pcs
245.00
3,829.00
664.00
6,664.00
6,840.00
1,110.00
Different type & size of
Acrylic yarn in Hank
-
-
258,450.00
390,655.00
484,041.00
76,165.00
37
Figure 4. 1Annual production chart for Debre Berhan Blanket Factory
7) In doing all those mentioned above what are your challenges?
Majorly raw material shortage is hindering the factory from producing at full capacity and due to
its low level of payment scale and absences of incentives scheme there is frequent employee
turnover specially who has good academic qualification& work performance. Some of the
current machineries are out dated and needs to be changed to produces better products.
4.3. Major Challenges the Factory
When Debre Berhan Blanket Factory was privatized it was with to let it grow and become
internationally competent manufacturer of blanket and related products there by generating hard
currency .However, the factory
38
Majorly the factory use imported input and now a day shortage of raw material is affecting its
level of production; this is due to unavailability of foreign currency to purchase those imported
inputs.
Even if the factory has a long history in producing blanket and related products absence of
enough promotional budgets hinder it from letting its product very popular and built brand
awareness for its potential users.
As a result of the open market external and local competition is becoming another challenges
that the factory is confronting now a day and they are very fast in terms of product
differentiation and accessibly to users compared to it. As a result of this the factory market
shares in decreasing thereby decreasing sales revenue.
Due to its long age most of the factory's machineries are out dated which hinder it from
producing better product in terms of quality and quantity which in combination with shortage of
raw material confined the factory with local market.
Due all mentioned reasons the factory growth is not promising and it become unable to pay good
salary to its employee and as a result the factory is challenged with frequent human capital
turnover .Even if it has senior staffs they are with low level of academic qualification
39
CHAPTER FIVE
5. CONCLUSION AND RECOMMENDATION
The intention of this study was to assess the marketing strategy practice at Debre Berhan Blanket
Factory, mainly focused on the marketing strategy elements and the associated actions to be
considered. Based on the findings and the information gathered in the process of this study, the
following conclusions, Limitation, and recommendations are drawn.
5.1 Conclusion
The factory marketing mix strategy is mainly based on its product. Developing new product and
product identification are relatively well recognized product mix strategies practiced in
Debre Berhan Blanket Factory. The factory main products are Blanket,Kuta,Polyesters, Bed
Cover and Mattress and Pillow from it’s by product. The qualities of the products are high that
meet the customer’s requirement and now a day it is majorly confined with local market and
even it is not capable to satisfy the local demand due to raw material shortage which is resulted
from foreign currency shortage. Hence, increasing its product quantity is the primary measure to
be taken by the factory to meet the market demand and goal of the organization.
In terms of price Debre Berhan Blanket Factory’s product price relatively not expensive for its
customers. The price it set is based on cost of production and competitors’ pricing method. As to
the theory of pricing the prices of the products depend on different factors like: cost based
pricing, customer-driven pricing, competition driven pricing, gross profit, overhead costs, net
profit, and direct costs pricing. The pricing strategy may change because there is a dynamic
environment & the price may change according to the conditions in the market. Hence, the
factory has to set a price strategy as a base to determine price which will help it to be competitive
& to maximize its profits.
40
Promotion strategy is an essential marketing strategy tool practiced by companies. Using the
promotional mixes will create a good image for the factory’s product as the factory produces
quality products. Without a quality product promotion by its self never creates value. When a
quality product is supported with promotion the market shares of the factory will be better than
competitors. However, Debre Berhan Blanket Factory didn’t set enough promotional budgets. So
the factory has to set a promotional budget for people to know its product quality, location of the
product where it is available and its unique feature. For this, the factories may use media
advertisement, such as radio, television, newspaper. This media includes the national radio &
television and different state and private owned newspapers which are emerging in every
regional states of the nation which will be an advantage to reach the customers.
Distribution strategies of the factory’s product are through own office and channel of other
textile factory, whole seller and individual customer. Thus, in addition to its own office the
factory distributes its product through other textile company and thus products can easily reach
to all customers. To make the product accessible to the customers the product delivery system of
the factory has to be effective enough. On time delivery than competitors is the best strategy to
gain a competitive advantage and satisfy the customers. It would be better if the factory looks to
outsource its distribution so that it will concentrate on how to improve its product quality, how to
increase its efficiency, and how to reduce its costs to compete in the market.
Market segmentation is classified mainly based on the customer characteristics such as
demographic, geographic, behavioral and psychographic or lifestyle segmentation. From these,
the factory segmentation is based on economic and geographic locations.
The one and most crucial activity of the marketing strategy is the selection of target markets
Or the identification of the products to which it is produced. Companies use target marketing
To tailor their products for specific markets. Debre Berhan Blanket Factory reach target markets
through its sales agents where the potential sales area is identified and need assessment is done
for product distribution.
41
The major challenges that the factory currently confronting is shortage of foreign currency which
is a means to get imported raw material and as a result the factory is currently producing under
capacity and become even unable to satisfy the exiting local demand. In addition, frequent
employee turnover is hindering to have experienced staff which will have additional negative
impact on productivity and growth of the factory
5.2 Recommendation
The marketing mix analysis provides opportunity to help the factory design the right marketing
strategies to satisfy the customers. The marketing & strategies are about the products to
produced, the price methods used, the promotion strategy selected, the distribution based, and the
target markets it employed. The factory marketing mix strategy is mainly based on its product
mix. In terms of product mix strategy, the factory is relatively effective in developing new
product, maintaining existing product and product identification. This is the most important &
encouraging strategy to be maintained by the factory as it is supported by the differentiation
strategy benefit.
To use the competitive advantage, it has and in order increase local and international market
share, increasing the level of production with quality and variety is an underlying factor.
Successful factory offers a variety of product consistent quality and level of quantity demanded.
So an important consideration for any factory is how enough quantity of output is going to be
produced with the required quality and variety. So, the factory should increase its level of
production by using alternative input which may be locally produced.
Currently Debre Berhan Blanket Factory is not able to satisfy the current market demand for its
product and even those produced are not international standard which hinder the factory from
exporting its product to get finance for its imported inputs. Hence, the company has to give more
emphasis in maximizing the current product quantity with global standard to gain a high market
(Both local and international) share thereby increasing its profit.
Promotion strategy is an essential marketing strategic tool to be practiced by the factory to
Introduce customers the product quality, product identification, product features, where the
42
Product is available, etc. Thus, Debre Berhan Blanket Factory has to set enough promotional
budgets to communicate the above elements with the appropriate promotion tool to increase
brand awareness thereby increasing its market share.
Distribution strategies of the company’s product are through channel of other textiles company,
wholesalers and individual customers that makes its goods available to customers. Thus, through
those channels the company’s product can easily reach to all customers everywhere. However,
the factory involve itself in the distribution of its product which will make it overburdened and
less attention is being given to its production and related major task and thus it has to do
production with full capacity and out sources distributor.
5.3. Suggestion for Further Research
The researcher studied the marketing strategy practice and challenges of the factory by collecting
data from the marketing and higher management team of the factory. However ,researcher may
further expand this study by incorporating the factory's product users and other non marketing
department of the factory .
43
References
Aisha Abdella (2016) Assessment of Challenges, Opportunities and Prospects of
Textile Industry in Ethiopia: The Case of Yirgalem Addis Textile Factory
PLC.<https://www.ama.org/aboutama/Pages/Definition-of-Marketing.aspx>[Accessed
21December 2017].
C.R.Kothari (1990) Research Methodology Methods and Techniques(second revised
edition)
Eric and Kendall,(2005).Marketing Strategy from the History of a Concept to
Development of a Conceptual framework.
Ferell, O.C.,Michael, D., & Hartline. (2011). Marketing Strategy(5thed.): USA, South-
Western Cengage learning.
Goi, C. L. (2009) A Review of Marketing Mix: 4Ps or More?
Goi, C. L. (2009) A Review of Marketing Mix: 4Ps or More? International Journal of
Horovitz, Jacques. (2003). Seven secrets of service strategy, translate to Persian by
abdolrezarezaeinejad, publisher of Rasa.Tehran,Iran.
Kotler, P. And Armstrong, G. (2014) Principles of Marketing: global edition. 15th ed.
Kotler, P., Keller, L. (2012). Marketing Management(14thed.): New Jersey, Prentice
publishing: one lake street, upper saddle river.
Kotler,P., Keller,K.L., Koshy,A., Jha,M.,(2009). Marketing Management 13th ed. A South Asia
Perspective.
Lancaster, G. A. (2004), Encyclopedia of Strategic Management, Lancaster,
England:Cloth, Crest Publishing House
Mintzberg H. (1987). Strategy making in three modes .California Management Review
16 (2)
Nanda,R., and Khanna., DR.P, (November 2011).A Historical Overview of Marketing.
Paul fifield. (1994), Marketing Strategy: oxford, Linacre house, Jordan hill.
Philip, K., &Garry, A. (2007). Principles of Marketing (11th ed.): Prentice hall, Europe,
Mifflin Publishing.
44
Porter, M.E. (1990). The Competitive Advantage of Nations: Macmillan Press ltd
London, ISBN 0-333- 51804-7.
Rahel Abebe (2007) Opportunities and Challenges of Development for Africa in the
GlobalArena.
Ranjit Kumar (2011) A Research Methodology a Step by Step Guide for Beginner,3rd
edition.
Shapiro, C., &Varian. (1999).Information Rules: A strategic guide to the network
economy, Harvard business school press; Boston, ISBN 0-87584-863-X.
Teshome Kelbesa (2014) A study on the Examination of Performance of Ethiopian
Textile Industry.
Uma Sekaran (2003) Research Methods for Business, a Skill Building Approach,4th
edition.
Vardarajan, R. (2010). Strategic Marketing and Marketing Strategy: domain, definitions,
Fundamental issues and foundational premises, Journal of the academic marketing
Science, Vol. 38, PP 119-140.
Daniel Kitaw and Amare Matebu,competitiveness for Ethiopian textile and garment
industries: a way forward,
Shahram Gilaninia, Mohammad Taleghani, Nadia Azizi (2012) marketing mix and
consumer behavior
Zelalem, T. and Negi, R. (2009), “An Assessment of the Marketing Strategy for Mobile
Services of Ethiopian Telecommunication Corporation.” Services Marketing Quarterly,
The Haworth Press, Taylor & Francis group, USA, Vol. 30, No. 4.
45
APPENDIX I
Survey Questionnaire Items
DebreBerhan University
College of Business and Economics, Management Program
Degree of Master of Business Administration (MBA).
Dear respondent: -this questionnaire is prepared for the purpose of within an MBA thesis on
"Assessment of Marketing Strategy Practices and Challenges in DebreBerhan Blanket Factory"
for marketing department employees and top management group of DebreBerhanBlanket
Factory. This questionnaire is prepared by SisayAyalew who is a Master of Business
Administration student at DebreBerhan University College of Business and Economics,
Management Program. The purpose of this questionnaire is to collect data on marketing strategy
practices and challenges at DebreBerhan Blanket Factory in partial fulfillment for the
requirement of Master of Business Administration (MBA).
The information that you provide will be valuable for the success of this research project. I
sincerely request you to respond all questions honestly and genuinely. I would like to confirm
you that it will never bring any negative impact both on your job and company, in addition to
this the information you will give never be disclosed to any public. Your cooperation is very
much appreciated.
Thank You for your cooperation!
46
Interview Guide:
1) What are the medias used for promotion and how frequent they are?
2) Once product produced, how they are distributed and what type of distributions channels are
used?
3) Is there any competition? who are your major competitors? What are your major competitive
advantages?
4) What pricing strategy does the company use when setting price for existing product?
5) What are the factors to increase or decrease your product price?
6) How do you evaluate the overall performance of the factory?
7) In doing all those mentioned above what are your challenges?
47
Appendix II
Survey Questionnaire Items
DebreBerhan University
College of Business and Economics, Management Program
Degree of Master of Business Administration (MBA).
Dear respondent: - this questionnaire is prepared for the purpose of within an MBA thesis on
"Assessment of Marketing Strategy Practices and Challenges in DebreBerhan Blanket Factory"
for marketing department employees and top management group of DebreBerhan Blanket
Factory. This questionnaire is prepared by SisayAyalew who is a Master of Business
Administration student at DebreBerhan University College of Business and Economics,
Management Program. The purpose of this questionnaire is to collect data on marketing strategy
practices and challenges at DebreBerhan Blanket Factory in partial fulfillment for the
requirement of Master of Business Administration (MBA).
The information that you provide will be valuable for the success of this research project. I
sincerely request you to respond all questions honestly and genuinely. I would like to confirm
you that it will never bring any negative impact both on your job and company, in addition to
this the information you will give never be disclosed to any public. Your cooperation is very
much appreciated.
The questionnaire has two parts:
Part (1)-General information
Part (2)-questions related to marketing strategy practice
Thank You for your cooperation!
48
General Instruction: -put tick mark (√) on the box provided
Part (1): General Background Information
1) Gender. Male Female
2) Age18- 25 26-35 36-45 46-55 56-65
3) Educational qualification?
8th -12th grade Technical school graduate College diploma
B.S.C or BA degree Postgraduate and above
4) What is your position in the company?
General Manager. Manager Department head. Staff
5) How long is your experience in the company?
Under 5 5-15 16-25 above 25
6) Your monthly income (in Ethiopian Birr)
1,000-2,000 2,001-4,000 4,001-6,000 6, 001-8,000 above 8,000
part (2) : Questions related to marketing strategy practices of the company .
I) Questions related to Product strategy
7) Do you agree that the management uses a strategy of product differentiation to be?
Competitive in the market?
Strongly disagree Disagree Undecided Agree Strongly agree
49
8) Which product mix strategy is practiced effectively in the company?
Product tools Least Least
Effective
Effective Very
Effective
Extremely
Effective
Developing a new
product
Modifying the existing
product
Maintaining the
existing product
Product identification
9) Does the company produce its product the need of its target market?
Strongly agree Agree Undecided Disagree Strongly disagree
10) What is the customer’s opinion about the company’s products quality?
Very good Good Medium
Poor Very poor
11) How you rate the quality of your product?
Very good Good Medium
Poor Very poor
Comments:
_____________________________________________________________________________________
__________________________________________________________________________
50
II) Questions related to pricing strategy
12) Which pricing methods are used by the company?
Value pricing Target returns pricing
Cost plus (mark up) pricing Competitor’s based pricing
13) Which one of the following pricing strategy does the company consider when setting price
for existing product?
Maintaining the existing price Reducing the prices Increasing price
14) From your perspective, what is your opinion regarding the price of the company’s
Products as compared to other similar company product price?
Very expensive. Expensive Affordable
Cheap Very cheap
15) How is the process of selling the products of the company?
Very fast selling process Fast selling process Medium selling process
Slow selling process Very slow selling process
16) Which factor can affect the company highly in setting price?
Internal factor External factor
Comments:
_____________________________________________________________________________________
__________________________________________________________________________
III) Research questions related to promotion strategy
17) Does the company set sufficient promotional budget every year?
Yes No
51
18) What will you suggest as the best strategy of advertising the company’s product?
Newspapers Radio Television
Public relation participating in trade fair
19) Within a year how many promotional activities the company performed?
One times Two times Three times Four times Five times
Comments:
_____________________________________________________________________________________
__________________________________________________________________________
IV) Questions related to product distribution strategy
20) What factor is used by the company in selecting distributor?
Financial capacity Market factor Product factor
Competitive factor Distributing capacity
21) Where can you find your target buyer?
Trade Online Inside the factory
Own branch office Sales agent office
Part (3):-Overall effectiveness of the marketing strategy
22) Who are the company's major effective customers to achieve its goal or objective?
Major Customers Least Effective Effective Very Effective Extremely Effective
Other textiles Wholesalers Individual Customers
52
23) Does the company make continuous improvements for its marketing strategies to meet its
customer needs?
Strongly agree Agree Undecided
Disagree Strongly disagree
24) What marketing mix strategies does the company use?
Product Price Promotion
Distribution All of the mix
25) What is the market segmentation strategy of the company?
Geographic location Behavioral Economic situation
Demographic Psychological (life cycle)
Comments:
_____________________________________________________________________________________
__________________________________________________________________________
26) If you have any comment on the marketing strategy practice and challenges of the company please
provide on the space provided below -
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
________________________________.
27) As a company worker, what are the main challenges of the factory with regard to the marketing
strategy practices?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
53
_____________________________________________________________________________________
____________________.
28) What do you think is the solution for the challenges of the company?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________.
29) Are there any specific date that can trigger and increase or drop of sales?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________.
30) Who are your competitors?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________.