Marketing Problems Of Small-Scale Indigenous Pharmaceutical Manufacturing Companies
(A Case Study Of Encristo Pharmaceutical Industries Nigeria Limited, Enugu)
Small-scale indigenous pharmaceutical manufacturing companies face a myriad of challenges in their marketing efforts. These enterprises often grapple with limited budgets, restricting their ability to invest in extensive advertising campaigns or develop robust marketing strategies. Additionally, they may encounter difficulties in establishing brand recognition and credibility within a highly competitive market dominated by larger, established pharmaceutical corporations. Regulatory hurdles and compliance requirements further compound these challenges, particularly in navigating complex licensing and certification processes. Moreover, the lack of access to advanced technologies and resources can hinder their ability to effectively reach target audiences and promote their products. To thrive in this landscape, these companies must leverage innovative approaches, such as strategic partnerships with healthcare providers or emphasis on niche markets, while prioritizing cost-effective marketing tactics to maximize their limited resources and carve out a sustainable market presence.
This work was on the marketing problems of small-scale indigenous pharmaceutical manufacturing company in Nigeria (a case study of Encristo Pharmaceutical Industry Nigeria Limited, Enugu).
The researcher setout with the following objectives.
To find out if quality of products is a problem to Encristo Pharmaceutical Industry.
To find out the inadequate capital of the company and how it affects the marketing activities of Encristo Pharmaceutical industry, amongst others.
Four hypothesis were formulated. A review of related literature was also done to expose the researcher to what has been previously done to ensure a sound basis for the research.
A structured questionnaires were developed and administered by the researcher to staff and management, and customers/consumers of Encristo pharmaceutical industry products.
Chi-square was used to test the four hypothesis formulated.
The following findings were made the Encristo pharmaceutical industry have marketing problems, funds inhibit their expansion.
That the marketing problems of Encristo pharmaceutical industry as a small-scale industry include lack of finance, supply of enough quantity of raw materials, laboured managed problems, marketing/promotional problems. Until the government and management of small-scale industries including Encristo pharmaceutical industry wake up to the challenges facing them, small-scale industries cannot survive and flourish in sufficient numbers to complete the industry of the future.
The following recommendations were made.
The Encristo pharmaceutical industry should improve on t heir products performance by making use of research work.
The government should wake-up to their responsibilities by providing all the necessary requirement for the survive of small-scale industries in an ever dynamic marketing environment.
The researcher strongly believes that if these recommendations are carried out the Encristo pharmaceutical industry will serve their customers better and at a profit.
i. Title page
ii. Certification
iii. Dedication
iv. Acknowledgement
v. Abstract
vi. Table of content
CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the problem
1.3 Objective of the Study
1.4 Research Hypothesis
1.5 Scope of the Study
1.6 Significance of the Study
1.7 Definition of Terms
CHAPTER TWO:
LITERATURE REVIEW
2.1 Overview of Marketing
2.1.1 Product
2.1.2 Price
2.1.3 Place
2.1.4 Promotion
2.2 Overview of Small-scale Industries
2.3 Important Consideration in Establishing Small-scale industries
2.4 Government and Small-scale industries
2.5 Marketing problems associated with small-scale industries in Nigeria
2.6 Problems created by small firm themselves
2.7 Prospects of marketing in small-scale industries in Nigeria
2.8 Prospects of marketing in Encristo Industry
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1 Sources of Data
3.2 Population of Study
3.3 Determination of Sample Size
3.4 Research Instruments used
3.5 Validity and Reliability of Measuring instruments
3.6 Method of Data Analysis
3.7 Limitation of the Study
CHAPTER FOUR:
DATA PRESENTATION AND INTER-PRETATION
4.1 Presentation and analysis of data
4.2 Test of Hypothesis
CHAPTER FIVE:
SUMMARY AND FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Summary and Findings
5.2 Recommendations
5.3 Conclusion
Bibliography
Questionnaire
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
With the turn of economic events brought about by the structural adjustment programme (SAP) of 1985 – 1993, Nigerians were challenged to adopt their own technology and establish indigenous business other wise known as entrepreneurship.
Nigerian government introduced the indigenization decree in the 1970’s banning the whole ownership of certain categories of business by foreigners. (Ebue, 2001; 16). The essence of mapping out this objectives was to improved the technology/technical skills, making provision for business management, training, development of women’s skills in food processing, and energy saving and lobbies for training opportunities relevant to small-scale industries.
The comprehensive definition of small-scale industries/business was given by (Ani 1999; 4) derail as owned, managed by one or two persons, influenced by the family in decision making, has no undifferentiated organizational structure, market share is small and employ less than fifty (50) persons.
The small-scale industries in Nigeria are faced with a lot of problems such as lack of initial capital to start up the business, low standard of production which bring about great lost in business and the incapacitation level of local machines and indigene technology which have not gone far to challenge the modern technology. This implies that Nigerian small-scale industries have to struggle for survival in the midst of sophisticated and highly equipped foreign competitors who have so influenced the Nigerian consumers to look down on made in Nigeria goods or products.
The Encristo Nigeria Limited manufacturer of liquid preparations is owned by Chief I.O. Meregim. The company Encristo Nigeria Limited manufacturers was established in the year 1994. The nature of the company is fully a sole proprietorship. The industry was being managed by the family which Chief Meregim is the Chairman and the Chief Executive.
He started his business life right before the Nigerian civil war and ever since then he had an immense growth in import and export business.
Construction, estate trading and pharmaceutical business. His wife has being of a great help to him by sharing her experience as an entrepreneurial and manufacturing business inclination. This has contributed largely to the growth of the company.
The company which in due time started immediately after inception started full operation on 1st June, 1994 with a foundation staff numbering 19, he also in the proper way registered by the National Agency for Food and Drug Administration Control (NAFDAC), pharmaceutical council of Nigeria, Manufacturers Association of Nigeria (MAN) and Pharmacist Manufacturing Group (PMG).
The company’s activities are being directed from its operative heading quarters located at No.8, 2nd Avenue, Independence Layout, Enugu and it is also from here that other sections of Encristo Industries since inception has invested heavily on the manufacturing of liquid drugs, otherwise liquid preparations. The products to the credit of the company’s brand name are includes: –
Cristolyn (cough syrup) Cristom (blood tonic) Ecristo (multivitamin) Cristumal (paracitamol) and Cristoquine (chloroquine).
These products are bottled in both 60ml, 100ml and 200ml amber bottle and 2litres plastic containers (hospital packs) and above.
The company’s giant step has being a contribution to the much desired improvement in the care delivery in Nigeria and to supplement the high demand and consequent importation of drugs which has been on the rise and treat to the national foreign reserve. Moreover, imported drugs have been on the high price side heavily concentrated with unrefined chemicals capable of dangerous after use reactions and affects.
As time goes on the number of the employees or staff has increased to 35 including managerial supervisors assistant manager and operatives.
1.2 STATEMENT OF THE PROBLEM
This research is very vital in the sense that the government is
interested in seeing that the made in Nigeria products are for self reliance through establishment of viable small-scale industries.
The problems of Encristo Pharmaceutical Industry which call
for critical evaluation are as follows: –
1. Encristo Pharmaceutical Industry have restraints in
promoting their goods and services.
This is as a result of their poor marketing orientation and low capital base.
2. They also have the problems of producing products that are
rarely competent because production facilities are not always available.
3. They are not always well located because of site cost
4. The Encristo entrepreneur and his marketing officials, lacks managerial know-how initiate policy, cost, control and marketing strategies.
5. Most of the goods produced by Encristo industry in Nigeria
have not adequate and appreciable market acceptance due to the negative attitude of Nigerians towards the made in Nigeria goods.
These are some of the problems of the Encristo indigenous small-scale industry in Nigeria and it is the interest of the researcher to critically examine these problems and find solutions to them.
1.3 OBJECTIVES OF THE STUDY
The intention of this research is to focus on the overall trend
of marketing problems and the performance of small-scale industries in Nigeria.
However, the objectives of the study are as follows: –
1. To find out if quality of products is a problems to Encristo Pharmaceutical
2. To find out the effectiveness and adequacy of the company’s promotional strategies.
3. To find out the inadequate capital of the company and how it affects the marketing activities of the company.
4. To evaluate the marketing efforts and performance of the Encristo Pharmaceutical Industry.
5. To know how the low standard of the production hinders the continuity of Encristo Pharmaceutical Industry.
6. To evaluate the distributor strategies being used by Encristo Pharmaceutical Industry in making their product available
7. To draw recommendations that will assist findings effectively check their marketing problems as well as help government formulate policies that will enhance the performance of small-scale industries.
1.4 RESEARCH HYPOTHESIS
The hypothesis tested for this research study are as follows: –
1Ho: Quality of products does not constitute a problem to Encristo pharmaceutical industry
Hi: Quality of products constitute a problem to Encristo pharmaceutical industry.
2Ho: Price of Encristo pharmaceutical industry do not
constitute a problem to the company.
Hi: Price of Encristo pharmaceutical industry constitute a problem to the company.
3Ho: Distribution methods of Encristo pharmaceutical industry to not contribute a problem to the company.
Hi: Distribution methods of Encristo pharmaceutical industry do not contribute a problem to the company.
4Ho: Promotional strategies of Encristo pharmaceutical industry do not constitute a problem to the company
Hi: Promotional strategies of Encristo pharmaceutical industry constitute a problem to the company.
1.5 THE SCOPE TO THE STUDY
The scope covers only the Encristo pharmaceutical industry in
Enugu metropolis, and it is on marketing problems and prospects of small-scale indigenous companies in Nigeria, this is due to some constitutions.
1.6 SIGNIFICANCE OF THE STUDY
The research study marketing problems of small-scale
indigenous pharmaceutical manufacturing companies in Nigeria is a very relevant one to the researcher and the company based on the primary purpose of this research which the purpose was to obtain the valuable and objective information on the marketing problems militating against industries and provide solution to them. This will also be useful and necessary to entrepreneurs especially small-scale industries and encourage investors to design their strategies because production starts and ends with marketing.
1.7 DEFINITION OF TERMS
Entrepreneur: – According to Collins et al in Nwachukwu
(1990:5), an entrepreneur is defined as a risk taker. He is a man who braves uncertainty. He is a person who strikes out on his own through native wit, devotion to duty and singleness of purpose some how creates a business and industrial activities where non-existed before.
Small –scale business: – According to Ude (1999:2) small-scale business is independently owned and operated for profit and is not dominated in its arrears of operation.
Strategy: – According to Adirika (2000) strategies is a game plan of any firm depicting its objectives, were it is and where it want to be and being able to maintain that state or position which has long term implications.
Marketing: – According to Odike (2001:155) market is defined as a place where the buyers and the sellers come into contact for the purpose of exchanging goods and services.
Production: – This is a process of producing or creating
new goods or products.
Product: – According to Markins (1997) A product is anything that can be offered to the market for attention acquisition use or consumption which includes physical, place, organizations and items.
It is also a burdle of tangible things that offers some levels of satisfaction , for instance, in managing a product variables embraces planning and developing the right goods and/or services to be marketed by the company.
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Marketing Problems Of Small-Scale Indigenous Pharmaceutical Manufacturing Companies:
Small-scale indigenous pharmaceutical manufacturing companies often face several marketing challenges that can hinder their growth and success in the industry. These challenges are influenced by various factors, including competition, regulatory constraints, and limited resources. Here are some common marketing problems faced by small-scale indigenous pharmaceutical manufacturing companies:
- Limited Budget: Small-scale pharmaceutical companies typically have limited financial resources for marketing activities. This can restrict their ability to engage in aggressive marketing campaigns, hire experienced marketing professionals, or invest in advanced marketing technologies.
- Competition: The pharmaceutical industry is highly competitive, with many established multinational corporations dominating the market. Small-scale indigenous companies may struggle to compete with these giants in terms of product development, marketing reach, and distribution.
- Regulatory Compliance: Pharmaceutical manufacturing is subject to strict regulations and quality control standards. Small-scale companies may find it challenging and costly to navigate and comply with these regulations, which can slow down product development and marketing efforts.
- Lack of Brand Recognition: Building brand recognition is crucial in the pharmaceutical industry. Small-scale indigenous companies often lack the brand awareness and trust that larger, well-established companies have, making it difficult to gain market share.
- Limited Distribution Networks: Access to a reliable and extensive distribution network is essential for getting pharmaceutical products to market. Small-scale companies may struggle to establish and maintain effective distribution channels, which can limit their market reach.
- R&D Constraints: Developing new pharmaceutical products and conducting clinical trials require substantial financial resources. Small-scale companies may lack the funding necessary for research and development, which can limit their ability to bring innovative products to market.
- Market Education: Educating healthcare professionals and consumers about the benefits and efficacy of their products can be challenging for small-scale companies. They may not have the resources for comprehensive marketing campaigns or medical representatives to engage with healthcare providers.
- Price Pressures: Price competition is intense in the pharmaceutical industry. Larger companies often have economies of scale that allow them to offer products at lower prices. Small-scale companies may struggle to compete on price, especially if they cannot match the cost efficiencies of larger competitors.
- Intellectual Property Challenges: Protecting intellectual property is critical in the pharmaceutical industry. Small-scale companies may face difficulties in securing patents and defending their intellectual property rights, which can lead to the risk of generic competition.
- Market Access and Regulation in Different Countries: Expanding into international markets can be challenging due to varying regulatory requirements and market access barriers in different countries. Small-scale companies may lack the expertise and resources to navigate these complexities.
- Changing Healthcare Landscape: Changes in healthcare policies, reimbursement structures, and healthcare provider preferences can significantly impact a company’s market position. Small-scale companies may struggle to adapt to these changes quickly.
To overcome these marketing challenges, small-scale indigenous pharmaceutical manufacturing companies can consider strategic partnerships, focus on niche markets, invest in research and development, seek regulatory assistance, and develop innovative marketing strategies that emphasize their unique strengths and offerings. Additionally, they should continuously monitor market trends and adapt their strategies accordingly to remain competitive in the evolving pharmaceutical industry.