Marketing Of Local Made Product (A Case Study Of Local Made Hand Bags)

Project and Seminar Material for Marketing

Marketing Of Local Made Product (A Case Study Of Local Made Hand Bags)


Although the Nigeria economy has been characterized; with importation of everything ranging from machinery to private consumption commodities, the above idea of consuming imported goods has led the writer too question the effectiveness of the marketing of locally made products. This study was carried out on locally made hand bags in Aba, Abia state. Brand perception is a special result of a consumer‘s experiences with a brand. It‘s highly pivotal to a marketing strategy as it‘s often what elevates a simple product or company into a brand: the same as putting a face to a name. This study was conducted to know about the consumer preference on the foreign and local goods available in the market. The purpose of this study was to know about the consumer‘s choice of goods and the reason behind their choice. Consumer buying behavior is a key factor that determines this choice. The study also shows that motive is another factor that triggers the consumers to buy a product in order to satisfy their needs. The result of our findings suggests that the consumers are mostly unaware of the country of origin‘ of the brand they use and they have less brand awareness i.e. they are less familiar with the qualities or image of a particular brand of goods or services. It also suggests that most of them are quality conscious and price delicate customer. In order for them to have brand awareness publicity about the product should be given through advertisement, newspaper, internet etc

Chapter One


1.1 Background of the Study

The growing importance to satisfy perceived Nigerian sophisticated in demand for foreign goods has necessitated the application of imported restriction principles and policies by federal government in most of are economic decisions and policies.

This decision among other parts recognises the importance and supremacy of local industries, indigenous to the economic independence and growth of the country’s economic development.

Nobody talks about marketing without talking of the consumers whose demand patterns of has to be looked at before any marketing strategy will be effective in doing this a philosophy of marketing conceived with looking at the consumers a king was evolved. This philosophy is know as marketing concept.

Station (1982) says that marketing concept is a philosophy of business that the consumer want satisfaction is the economic and social justification for a firms existence. Consequently, all company activities must be developed to finding out what the customer wants and ten satisfying those wants, while still making a profit over the long run similarly, firmer (1976) observed that a customer is boss behind our boss. By serving him well, we serve ourselves as well. This is because when a customer wishes to satisfy his need, he expects value in what he buys. If he is not give the value in one place or product he will go elsewhere to find it or buy another product to have it.

The strategy is in keeping with the fact that a customer’s patronage cannot be bought or stole but can be freely gives in response to gifts of value from the between the locally made goods and tem counter part from the European counters his extended the requirements of this concepts to embrace the importance of high quality content of our locally manufactures goods.

If on the aggregate a country’s products are perceived as being satisfactory whenever use, it will means a great fortune for that country a demands for her product will be high resulting in a better economic position which ultimately leads to a higher standard of living for thhe citizens of that country is not well placed when the consumer’s particularly in that country view her product are lacking the basic satisfying elements.

In the presents Nigeria situation where the economy is declaiming and the consumer becoming more aware, it is vital to make sure he locally produced goods are of acceptable standards. There, this study will attempt to highlight the major factors, influencing the marketing of locally produced products, particularly Aba made bags. The prefer is further designed to empirically investigate consumer’s preference to importuned vis- a vis Aba made bags as well as any changes in the preference in response to the current recessionary period in Nigeria

Te result of the study is expected to help the consumers and Aba bag products achieve mutual satisfaction by bridging the communication gap between them.

Also kotter defined marketing as the set of human activates directed as facilitating and consummation exchange based on these definitions, there are important variables that need to be pointed out.

  1. We are made too understand that marketing is located in the realm of human activities. This means that marketing requires the degrees of intelligence possessed only by human benefits.
  2. Marketing aims at facilitating consummation exchanges. This means that satisfaction is of paramount importance in the continuation of marketing relationship. Therefore marketing has no meaning where there is no satisfaction. Since Aba producers offer services to consumers in order to satisfy their needs, this write up is based on how the producers in Aba apply their marketing concept in their satisfaction of their customers needs.

It is quite importance to note that Nigeria’s political and economic history has great influence on her marketing activities as well as the consumption behaviour of her citizenry. This fraud cannot be ignored I any meaning full study if the marketing of locally produced goods in Nigeria is to be achieved.

In the 1050 and 60%, Nigeria produced and exports mostly agricultural products as palms oil, cocoa and groundnut while the country in turn imported manufactured goods from the advances western countries the volume and value of these export of agricultural products gradually) increased in the 60 and 70 but with decaling percentage contrition t o the national income.

Teriba and kayoed (1977) observed that the agric sector contributed 67.5%, 53.8% and 41.80% of the national income in 1959, 1967 and 1972 respectively. They structure was such that private consumer product expenditures, dominated the import by constituting 84.4%, 85.3% and 72.9% of’ the total imports in 1959, 1965, and 1972 respectively.

However, despite the fact the percentage of the amount spent on consumer goods importation were high the monetary values, uninvolved were not such that could cause much concern considering the low level of the national income. Teriba and kayoed (1977) saw that the national income for Nigeria in 1967 store at N3,231.6 million only besides, the structure of the economy with many foreigners occupying key position in the economy went further to justify such spending. Also, most well placed Nigerians a re of the opportunity to consume foreign products regularly like, bag, clothing’s, canned beef, butter etc, while the rest Nigerian enjoyed them only on festive periods for then on regular basis but for their income.

Then the oil boom of the idle seventies gave them the opportunity to consume them on regular basis Ndu (1984) stated that huge oil money

Resulted in Nigeria recording impressive surpluses in her balance of payment from 1973 to 1975 and this created avenue for the importation and consumption of foreign goods.

Consequently, the corresponding result was for businessmen to rush into importation of foreign goods rather than marketing them locally in Nigeria. The Nigerian with virtually and foreign consumer products as bags, key holders, canned foods etc even imported said and refuse. Nigeria became used to foreign brand names for all product choosing between Taliban and chained bland names for bags, Amos and Hera wears, st, Michael and Gerizionmani wears, uncle bens and uncle Sam packaged rice and so on.

Ndu (1984) supported this observation when he contended that “Nigerians made affluent by the oil boom flooded the country with imported ready made goods of all classification and description commerce but frustrated industrialization in effect, the products of many local industries could not compete with imported good.

The effects of the declining oil revenue by 1978 and indiscriminate importation became pronounced and culminated in the balance of payment deficit fir that year. According to uke (1985) this them head of state, general coliseum the consumers preference for foreign products which result in the alarming one of the major social maladies of the Nigeria society especially in last 7 yrs.

(uke 1985) he therefore, urged Nigerians to “£ tighten their bets” while introducing the following measures to check the importation and consumption rates for foreign products in order to discourage the out flow of foreign exchange.

  1. Pre-shipment inspection for imports
  2. Form “m”
  3. Compulsory import despoil scheme (Nigerian to

additional, mar /Apr 1980) time was hardly enough to appraise the performance administration of these measure when on October 1st 1979. the new government relaxed the stringent import policy and also liberalised the importation increase in oil revenue for 1980 and 1981 budget years.

The new Nigerian foreign trade journal, (1986) recorded that the shagari government adopted a chain of reactions comprising penic foreign trade policy measures to deals with the self-fielded crisis .

The measures included.

  1. Economic stabilization measure of 1982 which imposed wide ranging restrictions on imported goods and foreign exchange expenditure.
  2. Removal of open general lances as residual list of imports.
  3. Introduction of new tariff structure simplify, streamline and rationalize the use of high tariff rates.

Despite the adoption of the above measures, the consumers, preference for imported goods persisted as the then heads of state major Gen-Mohammad Buhari, noted in his 1984 budget speech.

The seriousness of the country’s propensity of import is reflected in the fact that out of every N1 of the new naira crated; about 68k is spent on import . at N12 505 5m in 1982, imports of consumer goods were N5,471.8m an N3,489.9m higher than the levels in 1977 and 1980 .

Every increase in oil export receipts I a particular years was followed by liberalization leading to sudden jump in imports in subsequent years ( business time Monday, January, 1984) page 9 and 15. the buhari and idiagbon regime in pursuit of its admin. Goals took move stringent measures to check the patriotic attitude of the Nigerian consumer” by curtailing the importation availability consumption of foreign goods as stockfish, ay old chicks, ready made wears including bads.

IBB following sit by adopting the much talked a bout structural adjustment program which be lives in import substitution of almost all imported goods and placing ban on such products as barley, wheat, bags, shoes, cloths both fairly used and new ones most raw material etc.

These measure aimed at controlling consumers preference s gradually being effective and successful; anyway, the above cite instance claims that the average Nigeria has a negative preference towards locally made bags and prefer imported alternative to those made in Nigeria. Little wonder hen that the situation has continued to puzzle well meaning Nigerians when realize the effect of such preference if allowed to purist on the socio-economic independence of the country in the long run in the light of the above placement of he consumers the researcher was moved to investigate and e valuate the major factors influencing e marketing of locally made goods with emphasis on Aba made bags.

1.2 Statement of Problem

As stated earlier, it has often been said that Nigerians prefer imported products to the locally made acquirement. The out come of such preference on some Nigerian; industries, technology, goods and services can be very devastating and will invariably have negative effects on Nigeria’s economy in both the short and long runs. Hence the preference has become a problem that require immediate solution.

This study therefore deems to identify the causes of such preference and to suggest some possible marketing solutions to them the specific problem to address include the following Question.

  1. What are the preference of Nigerians towards imported and local made bags when price and quality for both types of bags are help constant?
  2. Can the locally made bags compete favourably with imported bags especially in quality?
  3. Is the locally made bags over-priced for the quality?
  4. Are he marketing strategies of the locally made bags encouraging?
  5. How is he government helping the locally made bags industries?

1.3 Purpose of Study

  1. 1. To empirically identify and examine the main Factors Influencing Nigeria preference for bags.
  2. To compare preference towards locally made bags against imported ones.
  3. To find out whether the locally made bags can compete favourably with the imported bags in the marketing.
  4. To find out if the locally made bags are over-priced in relation to their quality.
  5. To evaluated the adequacy and effect likeness of the meeting activities of the locally bags manufactures the locally made bags manufactures.
  6. To know how the government is encouraging the bags manufactures in Nigeria.

1.4 Objectives of the study

  1. To analyze consumer preference towards Nigerian and foreign brands.
  2. To understand consumer brand perception and its effect on local brands.
  3. To understand the demographic factors that affect consumer behavior.
  4. To know the consumers level of brand awareness.

1.5 Research Questions

  1. What is consumer preference towards Nigerian and foreign brands.
  2. What is the consumer brand perception and its effect on local brands.
  3. What are the demographic factors that affect consumer behavior.
  4. What are the consumers level of brand awareness.

1.6 Significance of the Study

This study use a contribution to the recovery of the Nigeria economy. It is expected to provide the basis upon which conclusive statement could be made in the purpose of study . such conclusions will invariable give some insight into the marketing of bags n Aba and helps the consumer and manufacturer of bags in Nigeria to achieve the much desired mutual satisfaction objective, which will further stimulate demand and supply of bags as well as other relevant resources thereby resulting in increased economic activities and ultimate paid economic recovery.

1.7 Scope of the Study

In this content the researcher aimed at investigating the marketing activities for Aba locally made bags, consumer preference for their bags and their comported counterpart. the study tries to make inference as to hoe imported bags are being marketed and compare with the marketing activities of locally made bags on the sales volume, consumer preference, quality of the bags, market share and the economic and physical condition of bag industry in Abia state in particular and Nigeria in general.

1.8 Organization of Study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.

Chapter Five

Summary Of Findings, Conclusion and Recommendation

5.1 Summary of Findings

  1. Majority of the respondents were female(72%).
  2. More number of respondents belongs to the age group of21-25.
  3. Majority of were respondents qualification is PG(52%)
  4. It is revealed that 60% of the respondents check the country of origin of theproducts
  5. 66% of the respondents does not buy imported goods forstatues
  6. Respondents become price delicate when the price arehigh
  7. Majority of the respondents use both foreign and localbrands.
  8. Most of the respondents are satisfied with the products they use(80%).
  9. The factor that leads the respondents to buy a particular product is advertisement(34%).
  10. 90% of the respondents have less brandawareness.

5.2 Conclusion

This study was carried out on marketing of locally made product with emphasis made on locally made bags in Aba, Abia state.In today‘s dynamic world, the competitions among different producers are becoming more and more intense. For a marketing of a product, whether foreign or local to the successful it is important to bring together products and market in such a way that products and consumers demand is correlated. A product should satisfy both the needs and desires of the consumers. Nowadays, products are becoming very much similar to each other so it is important to give distinct identity through brands. The word ‗brand‘ is the comprehensive term. A brand is a sign, name or symbol given to a product in order to distinguish it from products of other sellers. There are so many products in the market, which we don’t even realize that they are not Local, but foreign. A very few people were able to distinguish between Local and foreign brands. If we frequently buy foreign goods and the earnings per products will be in the hand of foreign people this is the reason why our economy is collapsing, prices are rising up , every single thing is becoming costly, dollar price is rising and people are complaining government for all economic imbalances. It is the people who show off their prestige in buying foreign goods need to be blamed. Nigeria has the complete resource to make all the products domestically but the two hindrance that is face are high cost production and people won‘t buy something which is of poor quality just because it was made in Nigeria .the solution for this problem was brought by the prime minister of Nigeria that is make in Nigeria foreign investors and multinational companies were encourage to invest in Nigeria this will help in solving the issue faced by the Local economy. Brand awareness must be given to the consumer so that they can distinguish between Local and foreigngoods.

5.3 Recommendations

  1. Brand awareness much be created in the minds of the consumers in order for them to distinguish between foreign and localgoods.
  2. Quality of the local products must beimproved.
  3. By fixing moderate price for each local product the consumers will become prices sensitive.
  4. Giving attractive and colorful packaging to the product can also attract theconsumer.
  5. Introducing Varity of items in a single product line will grab the consumerattention.
  6. Consumers can be encouraged to buy products by givingdemonstration.

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