The Marketing Implication Of Privatization Of Government Parastatals (A Case Study Of African Petroleum)

Project and Seminar Material for Marketing

The Marketing Implication Of Privatization Of Government Parastatals (A Case Study Of African Petroleum)

Table of Contents

Chapter One

1.0 Introduction

  • 1.1 Background History of Privatization
  • 1.1 Statement of problem of the Study
  • 1.2 Aims and Objectives of the Study
  • 1.3 Significance of the Study
  • 1.4 Scope of the Study
  • 1.5 Limitations of the Study
  • 1.6 Definition of Key Terms

Chapter Two

2.0 Literature Review

  • 2.1 Marketing Concept and Definition
  • 2.2 Petroleum Marketing Defined
  • 2.3 Pricing Policies and Strategy of Petroleum
  • 2.4 Channel of Distribution of Petroleum Product
  • 2.5 Implication of Privatization of Marketing of Petroleum Product 36
  • 2.6 Advantage and Disadvantage of Privatization of Petroleum Product

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Population of the Study
  • 3.3 Sampling Technique
  • 3.4 Data Collection Method
  • 3.5 Method of Data Analysis

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Brief History of African Petroleum
  • 4.2 Data Presentation
  • 4.3 Analysis of Data
  • 4.4 Discussion of Findings

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

  • 5.1 Summary of Findings
  • 5.2 Conclusions
  • 5.3 Recommendations
  • References
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

Privatization is the systemmatic and programmed withdrawer of government from those business activities which private person of companies could much effectively.

The government within the context of Structural Adjustment Programe decided that it would take step to take itself away from involvement in enterprises in which it has interest. Such investment has to make them more self sustaining and independent of continue government sustenance.

Therefore, privatization is process by which the size of an inefficient and ineffective public sector is reducing by transferring some of its function to a relatively more efficient private sector.

Privatization also mean the relinquishing of part of all of the equity and other interest by the federal military government.

Bureaucratic and monolithic structure of government argued by many analyst that the performance of public cooperation is quit so poor relatively to the investment with them.

The general problem that have been attributed to this are:

  1. It offer scope for political interference and nepotism, budget which reduces the likelihood of independent financial control.
  2. Problem of inefficiency is the order that is the public enterprises failed to achieved efficiency, because they little encouragement to their workers who in turn respond poorly to customer demand, quality, quantity and other characteristics of good and services provided by the enterprises.

1.1 Background History of Privatization

The word privatization entered popularly usage only recently and the activities with which privatization has become most closely associated the, the sales of public sector asset is a distinct of the 1980’s.

The growing appears of privatization especially in industrialized countries can in part be trace back to economic development of the mid 1970s. Rapid public sector expression in the 1960’s and early 1970s at that time was seen as major contribute not only economic growth but also to social and political stability.

In addition, substantial social benefit were expected to drive from the cleation of public enterprises. In many developing countries, public production as viewed as essential given the under developed nature of resources and market. However, the situation change drastically in the mid 1970s, when the inability of economic to adjust to external prices, in particular the first round of price increases by the organization of petroleum exporting countries led to a market determination in macro economic performance.

Subsequent recovery was slow, and part of the blame was leveled at large public sectors. Sector activities began to be seriously questioned in the industrialization countries.

Today, the developing countries as well where loss making public enterprises have been a drain on government resources. Strongly enough, numerous efforts have been made successive Nigeria government to diagnose the ills afflicting public enterprises and find remedies for them. A lot of recommendations were actually implemented but they seems to have had little positive impact on the performance of the organization.

Privatization as a final solution to the problem of some of the public parastatals.

The federal government has eventually promulgated a decree giving large backing to its privatization and commercialization policy and its manpower, the government to privatize partially holding in commercial enterprise.

1.1 Statement of Problem of the Study

The following problems are identified for the study:

  1. Lack of proper plan and coordination
  2. Inadequate or incorrect marketing strategies.

1.2 Aims and Objectives of the Study

  1. The aims of the study is to examine the marketing implication of privatization of government parastatls.
  2. To achieve this aim, the following objectives shall be pursued:
  3. To examine the adequate marketing strategy
  4. To discover marketing strategies to miligate the challenge within the environment.

1.3 The Significance of the Study

If the recommendation of this study is adopted by the African Petroleum, it will improve the economic efficiency and ineffective of this enterprises.

  1. The study is significant to the policy maker because the government to formulate policies relating to cooperation, antitrust activities, foreign trade, takation environmental protection.
  2. Another significance for the study is that it will contribute to the existing knowledge of the researcher.
  3. It increase or sharpens the knowledge of the researcher in the area of privatized parastatals and the implication for marketing practitioner.
  4. It serve as source of income to the government.
  5. It provide revenue to the government.
  6. It also serves as secondary data for further study on marketing.

1.4 Scope of the Study

The project cover the marketing implication of privatization of government parastatals.

The African petroleum at Ilorin Service Centre was the case study. The study was conducted within January to April of year 2012.

1.5 Limitation of the Study

Some factors have limited the study within the confines of the study scope covered these are:

  • The response of the people interviewed.
  • The limited financial resources to carryout the research.

However, some staff of the company gave necessary information that help to solve the problem.

The time factor was solve in sense that the researcher schedule her time like Monday to Thursday for lectures, Friday for field work on the project, Saturday for writing the project and Sundays for assignment and resting.

The financial problem was also solved through some uncles of the researcher that sent money to her.

1.6 Definition of Key Terms

The following word phrase are explained in the sense in which they are used in the research study:


It must be attractive or interesting to create attention of customer.

Advertising Budget:

Sum of money set aside for sending on an advertising campaign. It is the total amount of that marketer set aside for specific period.

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

The topic of this research study is to examine the marketing implication of privatization of government prostates using African petroleum as a case of study. In order to detect the effect of privatization on consumer product and whether privatization is actually improving the economic efficiency of these enterprises. To shown whether privatization has significant on the increase in the price of petroleum product, to determine the effect of privatization on the distribution channel used for distributing petroleum product. The research divided the study in to five chapter which focused on the bock ground information of the study, the scope of the study, limitation of the study, statement of the research problem, significant of the study literature review, include marketing, petroleum marketing, pricing polices and strategy of petroleum product, channel of distribution of petroleum product, implication of revitalization of marketing of petroleum product, advantage and disadvantage of privatization. In chapter three explain the research design, method used an collection of data. Chapter four however, the finding of the research among other thing are:

  1. That privatization has caused increase in the promotional activities of the company.
  2. That privatization has caused increase in the total sale of the company.
  3. That privatization has a significant effect on the increased in the prices of petroleum product.

5.2 Conclusions

The topic under study suggests an intensive and analytical appraisal and implication of privatization as a means of restructuring the economic expectations on privatization is to encourage increases in productivity, efficiency in terms of low ring productive cost and increase a locative efficiency.

Marketers are betters placed to execute this expectation because they are more capable of developing product that will meet customer satisfaction therefore, the knowledge on privatization gains in efficiency are more likely if certain major public monopolizes are privatized, but only if they are thereby exposed to competitions and can increase not only productive efficiency but a locative efficiency as well, in that it should lead to a structure of output that is more highly valued by consumers.

Based on data collected from the field survey and various literature reviewed on the research topic, it was discovered that since the announcement of privatization of public enterprises African petroleum as a case study. There has been a considerable effect on the price of petrol and petroleum product and price is one of marketing controllable the 4ps which used to implement marketing concept of satisfying consumer at a reasonable profit. African petroleum has committed it self fully to ways of funding enough convenience to consumer by apparent look of research in this respect competitors are increasing everyday especially in this industry and hence effects the activities of African petroleum in term of product design, packaging and provision of their necessary needs for the consumers.

In was discovered from the survey that African petroleum has been the leader especially in the performance of marketing activities and maintained of products quality. It was also gathered that the company is now investing heavily on diversification programmed to be self sufficient.

5.3 Recommendations

In order to fulfill the anticipated objectives of privatization of government parastals. African petroleum or the privatized companies in Nigeria should adopt the marketing concept and its practice this will enable them to develop more efforts to words satisfying the customer needs and wants. Though the company has experienced increased sales turn over after privatization, that is not enough to justify the applicability of the marketing concept.

In addition to the above the following are recommend to African petroleum plc.

  1. The selection of management and board of directors must be based on integrity and post performances of individual to ensure adequate rationalization and efficiency
  2. Research department should embark on continuous consumer research to elicit information as to what consumer needs and how best to satisfy them from time to time.
  3. African petroleum should improve on its present distribution channel. Apart from the present sales outlet should be opened on that the potectials in other states on the federation are easily reached.
  4. The company should embark on effective promotional strategy such as advertising to further reinforce, brand, loyalty, sales promotion should be organized at all time.
  5. On price, efforts should be made by the company to maintain so that fair pricing can be offered.
  6. The company should Endeavour to develop and maintain good, human and customers relationship by continuous training of its staff regularly by continuous of its staff regularly. Government should improve the efficiency of the company by limiting the scope for political to share holder.

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