MARKETING PROBLEMS AND PROSPECT OF THE BAKERY INDUSTRY IN ENUGU METROPOLIS

 (A CASE OF STUDY OF IFY BREAD INDUSTRIES)

ABSTRACT

This research looked into the marketing problems and prospects of the bakery industry in Enugu metropolis with references to Ify bread industry.

            To solve the research problem both primary and secondary data were collected. The research instruments used in collecting the data were questionnaires and oral materials. The respondents of the study comprised customers, distributors, management and relevant staff of ify bread industry. The size was determined using bourley’s formular and also top man’s formula.

            In organizing and presenting data collected table frequencies and percentages were used from the data collected and analyzed, the researcher made some findings among which are:

1.                  That the case organization does not literally involve in extensive promotion and this is hampering the effective functioning of the firm.

2.                  That the increase in the price of the product is as a result of raw material scarcity and high cost of production.

3.                  That Enugu state has underdeveloped market that bakery can identify and satisfy.

 Based on these finding, the research made recommendation among which are:

i.                    The Ify bread industry should adopt effective promotional strategies for it customers, distributors as well as the employed of the firm such as awards, training discounts and allowances and so on.

ii.                  That bakery industry should embark more on marketing research to find out more of its prospect.

iii.                The operations of public facilities such as electricity, transportation and so on should improve on their cost of production and distribution.

The conclusion of this is that ify bread industry has a good prospect but can only benefit from it if prosper measures are taken among which are mentioned in the recommendation of his research.

TABLE OF CONTENT

            CHAPTER ONE

1.1.            Background to the study                               

1.2.            Statement of the problem                              

1.3.            Objectives of the study                                              

1.4.            Research question                                                                  

1.5.            Significance of the study                                           

1.6.            Scope of the study                                                                 

1.7.            Limitation of the study                                                          

1.8.            Definition of terms                                                                

CHAPTER TWO                Literature review                                                                                

2.1.      Overview of marketing                                              

2.2.            The marketing mix variables                                      

2.3.            Marketing problems of the baking industry               

2.4.            Marketing prospects of the baking                            

2.5.            Ify bakery and the marketing problem.                     

2.6.            Ify bakery and the marketing prospect.                     

CHAPTER THREEResearch methodology                                                          

3.1.            Sources of data collection                              

3.2.            Population of the study                                                         

3.3.            Determination of sample size                                     

3.4.            Sampling techniques                                      

CHAPTER FOUR   4.1.            Data presentation, analysis and interpretation                       CHAPTER FIVE

5.0.            Summary of findings, recommendations and conclusion      

5.1.      Summary of findings                                                 

5.2.            Recommendations                                                                 

5.3.            Conclusion                                                                 

Bibliography                                                              

Appendix                                                                   

CHAPTER ONE

1.1       BACKGROUND TO THE STUDY

With the population Conesus of 1991 as a yardstick one can easily assert without any prejudice that Enugu metropolis is one of the density populated areas of the federal republic of Nigeria.

            The population density of the state is synonymous wit its great market potential especially in the area of food items. At this point, the researchers have say that marketing in the state is still that of a developing economy with such characteristics of scarcity of products and raw material low completion, low rate of product exchange and lot of others. Most business in Enugu metropolis and the nation as a whole operates in the seller’s market, that is offering whatever product they have, without considering consumer’s satisfaction. It is this approach that describes marketing as a selling concept.

            It is pertinent therefore at this point to say that marketing is not just selling as it is often misinterpreted to be. Marketing is not only much broader in scope than selling but strictly encompasses the enter business and its drive to achieve its goal and objectives.

            Whereas selling is a distributive process, marketing according to the institute of marketing, London [1983:17] as the identification, anticipation and efficient satisfaction of the wants and requirements of the customer at a profit to the form.

            Also marketing as a social and managerial process by which individuals and groups  obtain what they need and want though creating offering and exchange products of value with others Ekotter, 1994:13] it then means that marketing goes far beyond pushing the product or service for sale.

            The consumption of bread in Enugu metropolis and Nigeria as a whole has increased immensely. Surveys have shown that consumption of bread has spread even to the rural areas. In the words of Ukwu (1988) bread was introduced into Lagos in the 1630 by returning exclaves from Brazil. Bread consumption quickly spread among urban communities, first at the ports then inlands along the river and raul routes and finally to cities and villages.

            Bread is categorized as a convenience good with a very low unit value and as such as deemed that consumers make purchase with deliberation and without much planning and for thought. Bread can also be termed an impulse good, since it does not require special knowledge and effort to purchase.

To be profitable, such a convenience good as bread must be sold in as stores and locations possible in most cases, consumers seeking bread knows what type of bread or brand that they want.

            However, the most important product characteristics of bread are that of freshness, softness and colour of bread and these varies among various brands. Consumers sincerely have shown that consumers develop audient loyalty to a particular brand of bread they feel is of high quality and good taste.

But, it as a known fact that price plays an important role in the consumer demand for a product,  Queen bread. This means that no matter the extent a consumer sticks his neck to a particular brand of bread that a kobo off or on can’t shake the consumer it will either cause the consumer to buy more or less or even change brand.

            This present, research is devoted strongly to identifying the various marketing problems and prospects of the bakery industry in Enugu

metropolis with a particular reference to Ify bakery. Many of the bakeries has failed or is at the edge of facture because they have failed to take cognizance of the marketing problems inherent in bakery industry.

A greater percentage of the bakery owners are totally ignorant of the marketing function and some deliberately neglect the necessity of a programmed marketing activities. Quite often these entrepreneur appear goody optimistic about sales. They do not seem to know that even the best product still needs stimulants to be able to sell well. As of now, the identification of the re-current problems and prospects in the marketing efforts of the bakery industry and its solutions still remain a puzzle to many bakery entrepreneurs in Enugu metropolis.

            The organization of Ify bakery industry is made up of the managing Director, with the production manage and sales. Manager finance manager and sales manager reporting directly to the managing director.

1.2       STATEMENT OF THE PROBLEM

There has been a rapid growing popularly of what products particularly bread, so has there risen problems in the bakery industry. The expanding demand for what coupler with the economic depression and constant devaluation of the Naira is passing a big problem to the bakery industry in Enugu metropolis. This is no doubt have effectcted the performance of the company,  in this research, the researcher examines problems and prospect of bakery industries in Enugu metropolis with particular interest on Ify Bakery.

A critical analysis of the predicaments of the bulky industry in addition to the economic constraints facing business reveal absolute ignorance of the importance of the marketing concept. It also shows total neglect of the necessity for a well programmed marketing activities. Generally most bakery forms like any other small scale business still have the negative optimistic that consumers will always buy if a product is of a high quality. They fail to realize that consumers need to be stimulated with invectives and even information in order to purchase more.

Ify bakery experienced a lot of marketing problems. The total neglect of  a complete marketing arrangement is creating up its share of the marketing. Also, competition from new bakeries in the industry is becoming stiff and strong. If bread that used to be one of the most patronized brand is losing it’s prestige title by little. This is because the firm has not considered a complete marketing arrangement which include effective and efficient distribution, consumer oriented business approach, proper matching of the product with the market proactive salesmanship and other promotional effort. These problems and to other and the center to focus in this study.

1.3.            OBJECTIVES OF THE STUDY

The major objectives of this study is to proceed and our view of marketing problems and prospects of the bakery industry in Enugu methropolis with particular reference   to Ify bakery Enugu. It also aims at identifying how far these problems affect the efforts and activities of this bakery firm.

The researchers therefore have the following set objectives to enable achieve the aim of this research work.

1.                  To find out the marketing problems and prospects inherent in the bakery industry in Enugu metropolis.

2.                  To find out how consumers feel and what they think as regards the product quality and availability of Ify bread industry.

3.                  To find out whether consumers are satisfied with the price of Ify bakery product.

4.                  To investigate and analyze the distributive channel used by Ify bakery and their limitations.

5.                  To find out the promotional strategy adopted  by ify bakery in marketing it’s product of bakery products in Enugu metropolis

6.                  To evaluate the extent to which poor marketing activities affect the effective and efficient running of the Ify bakery.

1.4.            RESEARCH QUESTION

1.                  Are consumers in Enugu metropolis satisfied with the quality of Ify bread?

2.                  Are consumers in Enugu metropolis satisfied with the price of Ify bakeries?

3.                  Does Ify bread available in Enugu metropolis?

4.                  Are consumers in Enugu metropolis aware of Ify bread?

5.                  Does marketing activities of Ify bakeries lead to increase profit to the organization?

1.5.            SIGNIFICANCE OF THE STUDY

This research is very timely especially now that the economy is experiencing a state of depression and flux-considering the important role played by various bakeries in Enugu metropolis as an memo generally avenues for their proprietors, as very good sauces of employment opportunities for the teeming population of Enugu metropolis. This study will therefore be of use to the following individual(s) .

1.                  The proprietor of Ify bakery: The proprietor of ify bakery stands to gain from this study. This can be achieved if the recommendations of this study are implemented by the management of Ify bakery.

2.                  Competitors and other bakers: Competitors can also benefit from this study by properly analyzing and implementing the recommendations.

3.                  Customers: customers of Ify bakery with also benefit from this research.

4.                  Government: Government will benefit from this study analyze the particular marketing problem facing the nation.

5.                  Readers and Research: This study will be of benefit to other researchers in related and similar profession as it will stand as a reference material and guide to further research.

6.                  The researchers will not have anything to loose but rather will gain more experience for further research work.

1.6.            SCOPE OF THE STUDY

This study was arrived out in Enugu metropolis it was further divided into sex zones to make it easier for the researchers to study. The study used Ify bakery as a case study.

Response:

            The articled of the responses was that of reluctance.

1.7.               DEFINITION OF TERMS

       MARKETING

                        Marketing has been defined by kotter (1994:13) as a social managerial process by which individuals and groups obtain what they need and want through creating, offering and exchange products of values with others.

            PRODUCT

A product is anything that can be offered to customers to arrest their attention for their acquisition, use consumption and satisfaction of needs or wants (OLAKUNORI,1991:163)

PROBLEM

Ozor et al. (1999:25) defines problems to be unanswered question, a missing link, an imbalance in the system or unsatisfactory state of affairs.

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