Marketing Of Diary Product In Enugu Metropolis (A Case Study Of Fan Milk Nigeria Plc)

Project and Seminar Material for Marketing

Marketing Of Diary Product In Enugu Metropolis (A Case Study Of Fan Milk Nigeria Plc)


Abstract


Dairy processing and marketing are not will developed with hand milking and marketing by Fulani women being a common feature. These local women process these products into ‘nono’ (fermented milk) and yoghurt and market these milk products in semi-urban and urban cities and in the communities. Identified key constraints to small and medium scale dairy farming were lack of suitable improved breeds of dairy cattle, lack of modern dairy technologies and facilities, and dearth of such infrastructure as electricity and access road network. Other constraints include the poor socio-economic status of dairy farmers, poor input supply and distribution system, lack of credit facilities and insufficient institutional support. In order to promote the development and commercialization of the dairy sub-sector, it is recommended that there should be sustained provision of dairy technologies, technical and business advisory services to dairy farmers, modern market development and facilitation and capacity build/training of dairy producers and processors. There is the need for institutional and infrastructural support and development of a strong public-private partnership (PPP) for enhanced business environment and private sector participation


Table of Contents


Preliminary Page(s)

  • Title Page
  • Declaration
  • Approval
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem
  • 1.3 Objective of the study
  • 1.4 Research Hypotheses
  • 1.5 Justification of the study
  • 1.6 Significance of the study
  • 1.7 Scope and limitation of the study
  • 1.8 Definition of terms
  • 1.9 Organization of the study

Chapter Two

2.0 Literature Review


Chapter Three

3.0 Research Methodology

  • 3.1 sources of data collection
  • 3.3 Population of the study
  • 3.4 Sampling and sampling distribution
  • 3.5 Validation of research instrument
  • 3.6 Method of data analysis

Chapter Four

Data Presentation, Analysis and Interpretation

  • 4.1 Introductions
  • 4.2 Data analysis

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix

Chapter One


Introduction

1.1 Background Of The Study

The starting point of marketing is the existence of human need and wants. Therefore the study and responsibility of marketing is to satisfy these needs and wants to the mutual benefits of all engage in marketing relationship. (Adrika E.O, Ebue and Nndim, 1997 p.4). the fact that man has needs and ants and there are products capable of satisfying them is necessary but not sufficient to define marketing. Marketing exist when man decides to satisfy his need and wants in a way that we shall call exchange i.e. giving something for something. Therefore (Kotler 1980:pg) define marketing as the set of human activities directed at satisfying needs and wants through exchange processes.

So marketing is the means by which organization identify unfulfilled human needs, converts them into business opportunities and create satisfaction for the other and profits for themselves. The capacity of the organization to survive and prosper depends on the ability to continuously create value for target market in an environment of ever – changing human needs and wants. The marketing solution calls for one than the ability of the organization to produce the needed goals and services, the organization must know how to produced better offer to the target market than its competitors (Kotler 1980 P.5.)

There is need to depend on marketing activities without marketing, companies would not be able to produced and sell goods at reasonable process. Efficient production and delivery at a reasonable price allow corporations to make the profit that is necessary to maintain to operation, provide employment, and attract capital, without this success, the company will fail which will affect our lives and the economy as a whole. Also the customer feed back that is provided by marketing helps in allocating resources and production to best satisfy the needs and goals of the society.

The fundamental objective of most business are survival, profit and growth. Marketing contribute directly to achieve each of these objective. It is concerned with activities vital to business organization such as assessing the want and satisfaction of present and potential customers and pricing policies developing distributional strategies and communicating with present and potential customers and to any body in business.

It is therefore the responsibility of those engaged in marketing to discover the wants and needs of customers and to stimulate and fulfill these demands marketing is performed by both individuals and organizations and it is intended to meet both commercial and non commercial objectives. Profit making organization used advertising and other promotional techniques to sell their products where as non promotional ventures perform marketing activities to win public support and generate needed funds.

Marketing is concerned with more than physical products such as appliance and entertainment and are intangible product than must be marketed as well the marketing process is not complete until the buyer exchanges something for something (Adirka, Ebue B.E and Nnolim, 1997 P.16). So with all these, one can imagine what would have been the condition of man and his need in the absence of marketing.


1.2 Statement Of Problem

The fan milk Nigeria plc is one of the best plc of the best producers of ice cream in Nigeria in that it forced a company who stood as its competitor out of the market (i.e. the will ice cream).

The researcher will state the problems facing sales decline. The performance of the product in the market is less satisfactory why is it’s product facing such sales decline? Could the decline be as a result of product quality or state? Or could this be as a result of its system of distribution? Or could this be as a result of its policy system and promotional tools.


1.3 Objective Of The Study

The research work is carried out in order to evaluate the marketing of diary product in Enugu metropolis there the following are the objective of the study.

  1. The researcher will evaluate the objective as related to the areas of study.
  2. To study the place of the diary product
  3. The researcher will also study how efficient and effective the distribution system used in marketing of diary product.
  4. To study the promotional tools used in the marketing of dairy product.
  5. To study the pricing system in the marketing of diary product
  6. To study the marketing problems facing be marketing of dairy product.

1.4 Research Hypotheses

  1. H0: the distribution channel for the marketing of diary product in Enugu metropolis is not effective
    H1:the distribution channel for the marketing of diary product in Enugu metropolis is effective
  2. H02:there is no significant relationship between the pricing system of the diary product and it marketability in Enugu metropolis
    H2:there is a significant relationship between the pricing system of the diary product and it marketability in Enugu metropolis

1.5 Research Questions

During the course of this project work, the following question serves as guide to the successful completion of the project.

These questions are as follows.

  1. What is the marketing system of fan milk Nigeria plc?
  2. How do they blend their marketing mix variable to satisfy human wants and needs as well as attaining the organizational goals?
  3. What are the marketing problems facing fan milk Nigeria plc?
  4. What are the marketing problem facing fan milk Nigeria plc?

1.6 Significance Of The Study

This project work will be of great benefit and importance to students, lecturers and academics. Other who will benefits are the company (fan milk Nigeria plc) other competitors, consumers readers as well as researchers who would want to the marketing of diary product.

The company (fan milk Nig. plc)

The form this research, the area of study will benefit by knowing their success and failure as well improving their marketing network and efficiency in order to increase sales which leads to increase profitability the company will endeavor to make other products available to consumers in Enugu metropolis. More so this project work will enable the company in planning and developing its marketing system efficiency.

Other competitors

Other competitors will device benefits in the area of improving their marketing efficiency of their products as well as combating marketing problems that will fade its product in future.

Consumers

When fan milk Nigerian limited makes provision of such diary product at right prices, times and at the right place, the customers may increase their demand for such products thereby, creating market for the company as well as devising satisfaction from consumption of such products.

The researcher

The researcher will benefit from knowing the fan milk Nigeria ltd. Their product and historical background. Again the researcher knowledge will be broadened on the aea of marketing system, problems and possible solution to fan milk Nigeria limited in the marketing of its dairy production.

Readers

Reader’s knowledge will be advanced after going through the project work, as well as understanding events activities, phenomena and problems existing within the marketing system.


1.7 Scope Of The Study

This project is restricted to the fan milk Nigeria plc operation in Enugu metropolis. This project work focused on the marketing of dairy product by the researcher with efficient and effective blending of its marketing mix variable. And the geographical scope of the study.

a) Availability Of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.


1.8 Definition Of Terms

The team will be defined in order to enable the study easily understandable. target marketing, positioning, freezing centre, distributing channel, etc.

Target market

This is that segment of market or group of potential customers that a marketer is willing to serve with his offer.

Positioning

This is the act of establishing a viable competive positioning of the firm and its offering on the selected target market (Adrika, Abue and Nnolin 1996, P.34).

Distribution

The process of making sure that a product is available when and where it is needed or desired (Schewe 1987 P.32).

Freezer center

A store specializing in the bulk frozen food supplied for home freezer owners. (Hoodridge; 1987 p.24).

Distribution channel or channel of distribution

Rout through which product can get on the way to the final consumer (Schewe: 1987 P.410).

Middle men

These are people (agents) that get on behalf of the company in distributing the company’s product to the ultimate consumers and they are paid commission (Edoga and Eke 1996 P.71).

Marketing mix

This is the term used to describe the combination of the four variable which constitute the core of a company’s marketing system i.e. the product price, the distribution system, and be promotion activities.

Packaging

This is the activities of designing and producing the containers or wrappers for a product (A. Nwokoye 981: p 99)

Product

This is something that is viewed as capable of satisfying a want (Adirika, Ebue and Nnolim 1997: p15).


1.9 Organization Of The Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain the technic for marketing dairy products in Enugu metropolis.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of marketing diary product in Enugu metropolis.


5.2 Summary

The most important lesson learnt from the study is that smallholder agro pastoralists in Nigeria can supply milk to urban centres. It is evident, however, that dairy development requires considerable amounts of skilled manpower for milk handling, processing and marketing, for organizing farmer associations and for training farmers how to manage these associations. This skilled input has been required even though the volume of milk (490,373 litres in 5 years) collected and marketed has been lower than that expected. A valuable lesson learnt from the pilot scheme is that trained and experienced manpower would be very useful in expanding the programme in Enugu State and the nation in general. The pilot Dairy Co-operative Development Programme has had a profound impact on the socioeconomic status of the participating pastoralists, especially the women. Women have benefited most, because collection of milk from their doorsteps has relieved them of the enormous burden of hawking their milk to markets far away from their places of abode. The programme has also provided the pastoral families with a regular income. A few of the societies have used their commission to carry out some community development programmes.


5.3 Conclusion

In conclusion, restoration of endangered niche breeds can undoubtedly give a boost to local products and to conservation of livestock biodiversity; FAO sustains livestock biodiversityas a “safety net for the future”, mainly in developing countries, as reported in a recent document, FAO, 2010. These principles can also be extended to developed countries with the aim to better exploit local resources and preserve relic breeds from an impending extinction which would mean the loss of a priceless legacy. In the forthcoming years, the peculiar nutritional and nutraceutical aspects present in milk and in dairy products deriving from biodiversity farms will hopefully show up.


5.4 Recommendation

It is recommended that Government should appreciate the fact that a new institutional playing field is emerging between civil society, government and private parties in the quest for socioeconomic and rural development. Thinking about the relationships between government, the private sector and civil society has changed considerably. Instead of being perceived as passive beneficiaries, dairy farmers should be seen as citizens who have the right to participate and to demand good local governance. Local governance for rural dairy development should be addressed as a multi-stakeholder process with interactions taking place at different levels amongst actors with different ambitions or perceptions. The private sector should engage in partnerships for pro-poor development. The role of governments should shift towards creating an enabling environment and facilitating development rather than steering it.


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