The Effect Of Pricing Strategies On The Marketing Of Agricultural Products In Enugu State (A Case Study Of Udi L. Govt. Council)
These study on the effect of pricing strategies on the marketing of agricultural products in Enugu State. With particular attention to Udi L. G. A Council was carried out with the some for the following objectives.
- To evaluate the possible means of reducing or removing entirely the activities of middlemen to remove the problem of heading.
- To appreciate the channel of information flow which will help bridge the communication gab which exist in the rice market in the State.
- To evaluate the best possible means or best strategy to be used in making the product (Rice) available in the Urban town and Cities thereby eliminating the problem of price variations.
- To recommend based on the findings possible ways of activating the problem effecting rice marketing (pricing and strategies in Enugu State).
Table of Contents
- 1.1 Statement of the problem
- 1.2 Objectives of the study
- 1.3 Formulation of the hypothesis
- 1.4 Significance of the study
- 2.1 Distribution system in Nigeria
- 2.2 Choosing a channel of distribution
- 2.3 Pricing – meaning and strategy
- 3.1 Sources of the data
- 3.2 Method of investigation
- 3.3 Questionnaire design
- 3.4 Sample
- 3.5 Population size
- 3.6 Validation of instrument
Presentation and analysis of data
- 4.1 Test of hypothesis
Summary of findings, recommendation and conclusion.
- 5.1 Summary of Findings
- 5.2 Conclusion
- 5.3 Recommendations
Today, the mentioning of the word marketing has a lot of things and meanings to send to a lay man. The word marketing has to be understood and interpreted by any lay man as meaning the same things as trading. But to a professional, marketing is starts before production and ends after consumption. We also talk about societal marketing concept which puts the entire society into consideration when doing any thing unlike trading which emphasizes on selling.
In an attempt to define the term marketing, it is good to look at some definition given by some authorities and professionals in the field. It should also be noted that there is no generally accepted definition of marketing rather each person tries to took at marketing to reflect the functions performed by him therefore we would not make mistakes if we say that there are as many definitions of marketing as there are many marketer.
According to Philip Kotler (1980), marketing is “Human activity directed at satisfying needs and wants through exchange process.” This definition has some key words as the operative words, such as needs, wants and exchange, Needs, this defined as a state felt deprivation in person. Wants are the expression of human needs as they are sharped by a person, culture and individual development. And want must be backed with money for it to be meaningful to the marketer Exchange is obtaining a desired object from some one offering in return something of value.
Nwokoye (1981) defined marketing a s the “ set of activities that facilitate exchange transaction involving economic goods and services for the ultimate purpose of satisfying human needs. The activities here includes product development, production, packaging, branding, transportation, storage, promotion, distribution, pricing and so on.
Ifezue (1990) define marketing as’ a process which identifies, anticipates and satisfies consumes needs and wants through conception, promotion mutual exchange and physical distribution of economic goods and services.
Yet, Institute of marketing, london (1945) defined marketing as “a management process which identifies, anticipates and supply consumers requirements efficiently and profitably.
From the above definition, one can understand that market is said to encompass a lot of activities and emphasizes a lot on consumer satisfaction and puts the marketer at a profit.
From the above definitions, marketing of agricultural produce (Rice) can be looked at as the application of marketing knowledge to the marketing of rice.
One may be correct to say that market starts when farmers plan their output in respect to expected market demand to pricing of the produce in relation to the existing market price till the product gets to the ultimate consumer.
‘Because of the above, we picked up to find out in this study the pricing and strategies used in holding the produce. (Rice) and make some recommendation or how best to improve the marketing of the produce.
By the time we finish this work, we will be able to find out the strategies used in the pricing of rice and find out if the shortfall in the strategies (If any) are responsible for the inadequate supply of rice to the consumers who need the product (Rice).
1.1 Statement of the Problem
Before now, the production of rice used to be at the very low level and because this, rice was left for the rich man who can afford the cost. The reason for this being that because the production was left unmechanized through some attempts were made towards increasing the put but one much have been achieved.
It is based on above reason that we have choosen to find out the problems inherent in the rice marketing in Enugu State. The problems which are identified fall in the following:-
1.2 Objectives of the Study
The major objectives of this study is to evaluate the marketing of rice (agricultural produce) in Enugu State.
This work wants to pay particular attention.
- Discover the problem (s) Inherent in rice marketing.
- Evaluate the possible means of reducing or removing entirely the activities of middlemen to remove the problem of heading.
- Evaluate the possible means or best strategy to be used in making the product (rice) available in the Urban town and cities thereby eliminating the problem of price variations.
- Appreciate the channel of information flow, which will help bridge the communication gab which exist in the rice market in state.
- To recommend based on the finding possible ways of achieving the problem effecting rice marketing (pricing and strategies in Enugu State).
1.3 Formulation of the Hypothesis
Bearing in mind the above objectives of this study, the following hypothesis have been put forward:
- Ho1 The marketing functions f rice distributions are still below the expectations of consumers.
Hpg The marketing functions of rice distributions are equal to the expectations of consumer.
- Ho2 Lack of information within rice market leads to price variations.
HA2 Lack of information within rice market does not lead to price variations.
1.4 Significance of the Study
The role of agricultural products and rice in particular in the nations economy and its importance cannot be over emphasized.
The deadline in the rice production and fluctuation in price and price and its effects on the citizen as well as the economy were not taken seriously, hence the study.
This study will of great importance to the government and other interested group (s) especially the farmers, processors, distributors and even consumers to know how to solve the problem inherent in marketing of it, say by way of revamping and revatalizing the industry so as to meet the needs of the society.
In the like manner, this study will recommend the best production and adequate strategy to make the product available to the consumers at the right time, place and at a lasers price. Also, it will aim at pointing out other areas in rice marketing that need greater and urgent attention.
Finally, this study will help the researcher in that it will expose him to the practical aspect of marketing research and widen his knowledge about rice production. Also, it will serve as a help to others who may want t carry out research in any related areas.
In this work, we studied Enugu State as whole. The reason behind our studying the entire state is to collect a broad information that will cover the variations involved in the pricing and strategies in the different areas of our study.
The areas covered in Enugu state zones are Abakaliki, Enugu and Nsukka zone. This spread was considered necessary because through some of the zones are more of production concentration than others, the reverse is the cause when considering marketing and consumption of rice. Example of this is the fact that Abakaliki and Ugboaka in Enugu Zone and Adani in Nsukka Zone have higher production, concentration for rice, Enugu and Nsukka happen to have higher consumption concentration.
It is based on the above that we have in this work chosen to study the entire state to find out the variation (s) in pricing and strategies
Summary of Findings, Recommendation and Conclusion
This chapter presents a summary of the findings.
A conclusion of the researcher made. Recommendation are then made in the light of these fgindings.
5.1 Summary of Findings
The marketing activities of rice distributors are still far below the expectation for the consumers.
- Lack of information within rice market lead to price variations.
- There is a general characteristic of seasonal variation in rice supply in contrast to its demand and this leads to ride spread disparities in prices.
- That apart from rice, not less than 70% of the other grains traded and consumed in Enugu State comes from outside states especailly from the northern States.
- That rice producers / processors / millers and even distributors do apart from those who undertake actual processing and distribution do not advertise their produce. It was also discovered that out of rice producers / processors / millers / distributors, only the privately owned enter prices undertake promotional advertise.
- The rice market generally is not organized and this disorganization hinders the flow of information with the rice market.
- Rice production and marketing has always been a minor attention by government except in times of general scarcity.
- Government does not undertake enough and appropriate regulation of the activities of these middlemen to ensure the satisfaction of the consumers, she is only interested in the collection of tenses and other fees from the distributors.
- It was also found that apart from normal transportation and storage cost, tenses paid by trader to governments of the producing areas amount to a substantial portion of the total cost.
- The rice distribution system is such complex that most of the times it is very difficult to say who is a retailer or wholesaler.
- Haggling and market forces (demand and supply) are the major determinants of prices at all level of rice marketing in Enugu State, ranging from farm gate level to that of ultimate level.
- The producer/processors/millers/distributors have various and associations that take care of their welfare.
- Producer/processors/millers, mostly sell their produce (rice) through the wholesalers retailers, and atoms they sell direct they sell directly to the consumers but it is not substantial
- Most of the consumes of rice buy from the retails and wholesalers
- Majority of the consumers of rice prefer the foreign for reasons of quality.
- The people involved in the marketing of rice ranging from the producers / processors) nulls / distributions are mostly people who did not have formal education or who had their first school leaving certificate
- And finally, the people involved in the rice marketing most at time do not have or make use of adequate standard measures in selling rice.
Generally, research are conducted with a view of finding out better and new method of improvement in all field is of human endeavor. This study concerned , However played by rice distributors in Enugu State.
The roles of rice producers / processor nuliers, were also briefly highlighted as they constitute an importance aspect of the agriculture marketing functions furthermore, an assessment of the performance of grain distributors on relation to the marketing concepts was manner. The view of the above, it can therefore be concluded from the study that the rice distribution system is somewhat complex. The complexity of thus system arises from the fact that there us little or no cleaving defined role on the pat of distributors. A situation whereby a single individual acts as wholesales and retailer and the same time handling if even response to consumer’s satisfaction. Should the marketing concept be adopted the distributors are they reminded that marketing is a dynamic determinants of the directors of then marketing efforts to be adopted. The consumers is not just the king but a “ Dictating king” Unfortunately, the consumers reverse is the case in our society.
It is the above problems and others that has led t the recognition by the F. A. O. during the third F. A. O. regional conference reports “ the need to developed better marketing channels both by improving existing private and comparative system or through government sponsor marketing organization was widely acclaimed as an important factor in encouraging increase commercial production.
The identification of a firm’s institutions problem is a good step in the right direction toward soloing such problem. Nonetheless, the process is known.
Based on the problems identified by the research affecting rice marketing in Enugu State and right Nigeria as a whole the researcher makes the following recommendations.
That standard measures be introduced and frequency supervised by the authorities concerned.
Government through its organs such as the Enugu State grains reserve and marketing (Enugu State marketing and the technical committee on Agricultural production (TCAP), should assume the role of buyers of last resort. This way the rice and other grain farmers in general, would be sure of some money income at the end of the faring season, also it will help at establishing prices and has tensing decision making.
These programs are still in paper and should not be allowed to gather dust.
To ensure price stability, price control board should be established. However establishment of such board is not just enough. The government should make sure this board do not fix prices that are inconsistent with the farm gate prices.
Government should also assist in building silos for the producers and rice storage, falling this, government should encourage indigenes or indigenous companies with 100% Local equity participation to build sill or rice store in local government areas by giving them capital allowance, accelerated depreciation, especially silo development, low interest rate and other creative.
More Federal made should constructed old ones, maintained and transportation modes defined to provide linkages with rice production areas. This will make for easy erection to the consumption areas in the State and outside States.
Since pre ponderance of the producers/millers processors and distributor, received no formal education, efforts should be made to enlighten them especially in the use of fertilizers.
Young hopeful production/distributions should be encouraged to attend schools of Agriculture. Curriculum developers in the ministry of Education should emphasis much on primary and secondary pupil studying Agricultural cinches.
Improved grains (rice), fertilizer, nidimentary mechanical unplanted, earth moving and faring machinery should be made available to the small scale farmers through the auspices of the local government areas to boast rice production.
Simple and complex machines should be designed to help small and large-scale producers. Government should cult held in building new rice mills as well as revamping and revitalizing old ones in each of the zones.
Producers / millers / processors, should be encouraged to form producers co –operative societies, this will arrest the prospect of rice fluctuation. It can also help the producers, distributions and even the consumers by providing useful within the producers or distributors co- operation would look against boarding and also help balance supply and demand in a particular market and thus avoid gut and simple with its corresponding fluctuation in price.
Government should establish distributive agencies tat will leave an exempting life by way of their performance so that those individual distributors, who have neither the knowledge of the marketing concept or adopt, it emulate them so that this concept when widely adopted will help to providing ti consumers the required marketing activities instead of being myopic in their activities. And also establish a visible information system to determinate information to Vance glade of agricultural productions.
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