Problems And Prospects Of Marketing In Small-Scale Business

(A Case Study Of Aqua Rapha, God’s Healing Water In Enugu)

5 Chapters
|
76 Pages
|
9,390 Words

In the realm of small-scale business, marketing presents both challenges and opportunities. One significant challenge is limited resources, constraining small businesses’ ability to compete with larger counterparts in terms of advertising budgets and market reach. Consequently, these enterprises often struggle to carve out a niche and gain visibility amidst intense competition. Additionally, navigating the rapidly evolving landscape of digital marketing requires adaptability and technological prowess, which may pose hurdles for businesses with limited expertise and infrastructure. On the flip side, small-scale businesses have the advantage of agility and personalized customer interactions, allowing them to establish strong rapport and loyalty within their local communities. Leveraging innovative strategies such as social media engagement, influencer partnerships, and guerrilla marketing can help mitigate resource constraints and amplify brand awareness within targeted demographics. Embracing market research and analytics also enables these businesses to identify consumer trends and tailor offerings accordingly, enhancing competitiveness and sustainability. Thus, while small-scale businesses confront various obstacles in the marketing domain, they possess inherent advantages that, when strategically leveraged, can propel growth and success in the dynamic business landscape.

ABSTRACT

This research work is centered on the Problems and Prospects of Marketing in Small-Scale Business in Nigeria.
The study was aimed at identifying and examining the problems militating against the effective operations of small-scale business. Also the study was focused on analyzing and assessing the marketing activities of small-scale business, with a special reference on Aqua Rapha (God’s Healing Water) Company.
The data for the study were collected using questionnaires and oral interviews.
The hypothesis of the study were tested using chi-square. After analyzing and testing the hypothesis, the researcher made the following findings:
• Firstly, that Aqua Rapha (God’s Healing Water) Company practices marketing concept.
• That Aqua Rapha (God’s Healing Water) Company does not carryout marketing research. It was also discovered that the company promotes their product through personal selling.
• Furthermore, the researcher discovered that the customers of Aqua Rapha (God’s Healing Water) Company are satisfied with their distribution systems.
• Based on the findings the researcher made the following recommendations.
i) That Aqua Rapha Company should adopt and practice marketing concept.
ii) That the firm should always-carryout marketing research.
iii) That it is imperative for the company to carryout a proper blending of the marketing mix
iv) That Aqua Rapha should employ a marketing professional.

TABLE OF CONTENT

Title Page
Approval Page
Dedication
Acknowledgment
Abstract
Table Of Contents

 

Chapter One:
1.0 Introduction

1.1 Background Of Orientation Of Problems
1.2 Statement Of Problems
1.3 Historical Background
1.4 Objective Of The Study
1.5 Statement Of Hypothesis
1.6 Limitation Of The Study
1.7 Definition Of Terms

Chapter Two:
2.0 Literature Review

2.1 The Meaning Of Marketing
2.2 An Over View Of Small-Scale Industrial Development In Nigeria.
2.3 Definition And Characteristics Of Small-Scale Enterprise.
2.4 The Importance Of Small-Scale Industries For Economic Development
2.5 The Strategy For Marketing In Small-Scale Business
2.6 General Problems Encountered By Small-Scale Business In Nigeria
2.7 The Practice Of Marketing Concept In Small-Scale Business.
2.8 Marketing Of Product In Aqua Rapha (Healing Water For Every Body)
2.9 Prospects And Viability For Promotion

Chapter Three:
3.0 Research Methodology

3.1 Research Design
3.2 Source Of Data
3.3 Population Of The Study
3.4 Research Instrument Used
3.5 Sample Size Determination
3.6 Sample Technique
3.7 Method Of Data Treatments And Analysis

Chapter Four:
4.0 Data Presentation And Interpretation

Chapter Five:
5.0 Summary Of Finding

5.1 Recommendations
5.2 Conclusion
Bibliography
Questionnaire

CHAPTER ONE

INTRODUCTION
After about a decade and a half of adopting an industrialization strategy based on large-scale industries, mostly of the assembly type, Nigeria has failed to achieve industrial development. The large-scale industries, which were setup, tended to be capital intensive and in appropriate, given the country’s resources endowment. Their capital equipment and technical manpower have continued to be largely imported. As a result, the triple objective of setting up large-scale industries namely:
1. Achievement of high level employment
2. Local sourcing of raw materials.
3. And saving of foreign exchange acquisition materialized.
In response to the weakness of large-scale manufacturing government has sought to promote small-scale industries as a strategy for self-reliant industrialization. In Nigeria economy, attention has been drawn to the fact that small-scale enterprises have received very little attention where as it is providing employment for approximately triple the number engaged in large-scale manufacturing as well as playing their role which is crucial importance to our developing economy.
This is why it is important to reconsider the problem hindering the growth of his sector. Such problems the researcher has classified into managerial and financial inhibitions as well as some of the government policies, which do not favour small-scale industries.

1.2 STATEMENT OF PROBLEMS
For the period under review, the country’s economic objective were centered on reducing the level of important and promoting the expansion of domestic production especially in the small-scale manufacturing sector.
However, small-scale industries in Nigeria today are faced with a lot of problems.
These problems go a long way to hamper their prospects and growth in the country and thereby limiting their potential contributions to the development of the economy.
Such problems are as follows:
a) Many small-scale industries do not possess a visible feasibility study of their projects.
b) There is also the problem of loan misapplication and non-repayment of loans.
c) They keep poor accounting and business records, and
d) Because of the low capital outlay involved, experts are not often employed.
The researcher will therefore, focus attention on the problems and prospects of parts company limited and what the company should do to alleviate these problems hindering it’s prospects and opportunities available to it.

1.3 HISTORICAL BACKGROUND OF AQUA RAPHA INVESTMENT LTD.
The Aqua Rapha (God’s Healing Water) was established on 15 December 2004, by it’s sole owner Rev. Father Ejike Mbaka.
His ability to generate money out of little or nothing and his interest in business as whole made him engage in small business partnership dealing on the distribution of household goods.
The owner made the feasibility study. The report is not too far from what became the reality. The feasibility study was good, only that there were few under and over estimations due to the on-going inflationary trend in the country and reforms in the economic system of the country (NAFDAC).
The factory is located at 9th mile opposite. Ama Brewearer Plc in Enugu State. The factory is located in this area because f it’s proximity to the source of the raw materials for the productions. The major raw materials used in the production of sachet/packaged water are sourced locally. The manufacturer employs the services of different professionals in manufacturing of the packaged water.
These professionals from different field/department work together to ensure the success of desired quantities that will ensure the company’s targets, objectives and goals. The purchasing department plays their roles by getting all the necessary requirements for the production. The factory men will organize the raw materials and use it in production of complete products. After production, they will communicate stores and stores will pack those products and communicate marketing for sales there by realizing funds what the finance department will keep for the enhancement of the company.
The programme could have taken of long before now, but the company has a serious financial constraint. The availability and cheapness of the major raw materials also effected the choice of products.
Aqua Rapha Investment Company produces packaged water. Its product capacity is at minimum of Eight hundred and fifty (850) bags that contains (20) sachets, per day. Given an effective annual working period of 240 days the output is modestly placed at 203, 760 (Two hundred and three thousand, seven hundred and sixty) bags per year.
The management of Aqua Rapha Investment Company focus attention on the human side of the enterprises. In other words the behavioural aspect of management is primus. The proprietor of Aqua Rapha Investment Company believes that by rewarding workers adequately they tend to work harder and put in their best to achieve the organization set goals.

1.4 OBJECTIVE OF THE STUDY
The objectives of this study are:
1) To identify and examine the problems militating against the effective operations of small-scale industries via-the case of company in areas of finance, marketing, technical etc.
2) To identify the prospects available to the case company.
3) And to suggest ways or solutions of solving these identified problems.

1.5 STATEMENT OF HYPOTHESIS
Hypothesis I
Ho: Aqua Rapha (God’s Healing Water) does not practice marketing concept.
Hi: Aqua Rapha Investment Company practices marketing concept.
Hypothesis 2:
Ho: Aqua Rapha Investment Company does not carryout marketing research.
Hi: Aqua Rapha carryout marketing research.
Hypothesis 3:
Ho: Consumers are not satisfied with the quality of product produced by Aqua Rapha (God’s Healing Water).
Hi: Consumers are satisfied with the quality of product produced by Aqua Rapha (God’s Healing Water)

1.6 LIMITATION OF STUDY
Research study in Nigeria is best with a lot of problems, which include mass illiteracy, little supply of reliable secondary data. Prejudice against the researcher themselves. Under secrecy as well as time and financial constraints. Many of these limitations were experienced the course of our study. However, prominent among these limitations were time and financial constraints. As final year student we had too short time at my disposal for the study, as I had to combine it with other academic work. Some problems were therefore encountered in the conduct of the fieldwork and it was not quite easy to arrange for personal interviews with the general manager, proprietor or the production manager of the Aqua Rapha Investment Company. Our insufficient to financial resources was also a major constraints in limiting the scope of field work at Aqua Rapha Investment Company, the National Directorate of Employment as well as the Nigerian Bank of Commerce and Industry Limited (NBCL).
Other limitations of the study and the inherent short comings in the research methodology by employed. These limitations not withstanding, it is believed that the findings and conclusions reached would be useful for better management of Aqua Rapha Investment Company as well as some other related small-scale enterprises in Nigeria.

1.7 DEFINITION OF TERMS
The following terms used in this study should be taken to mean the following:
MARKETING: Marketing is defined as all-important set of creative human activities aimed at identifying; anticipating and satisfying human needs and wants through exchange as efficiently and as effectively as possible.
Marketing is located in the realm of human activities; marketing needs the degree of intelligence possessed only by human being. Two monkeys cannot market. It is directed at facilitating and consummating exchange, it covers both transaction and exchange relationships. The transaction relationship is a short run affair (transaction is the unit of measurement of exchanged) whereas the exchange relationship is a more durable and continuous relationship.
PROSPECTS: Prospect may be defined as a person or institution who will benefit from your product or service and who can afford to buy or pay for it.
STRATEGY: Strategy is a process of planning that involves deciding what the major goals of the entire organization in its pursuit of their goals.
SMALL BUSINESS: Small business is any industry which is independently owned and operated and not dominate in its area of operation. It is requires at most one man who is not engaged in any other functional work required.
INDUSTRIALIZATION: Industrialization is the process of building up a country’s capacity to process raw materials and to manufacture goods for consumption or further production.

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Problems And Prospects Of Marketing In Small-Scale Business:

Marketing in small-scale businesses presents a unique set of challenges and opportunities. Let’s discuss some of the problems and prospects associated with marketing in small-scale businesses:

Problems:

  1. Limited Budget: Small-scale businesses often have limited financial resources to allocate to marketing efforts. This can make it difficult to compete with larger competitors who have more substantial marketing budgets.
  2. Lack of Expertise: Small business owners may not have a background in marketing, which can lead to ineffective strategies and campaigns. They might not fully understand the complexities of digital marketing, branding, and market analysis.
  3. Limited Market Reach: Small-scale businesses may struggle to reach a broader audience, particularly if they operate in niche markets or rural areas. This can limit their growth potential.
  4. Intense Competition: Small businesses often operate in highly competitive markets where they compete with larger, more established companies. This makes it challenging to stand out and gain market share.
  5. Resource Allocation: Balancing marketing efforts with other aspects of the business, such as operations and finance, can be challenging. Deciding where to allocate limited resources is a constant struggle.

Prospects:

  1. Niche Market Focus: Small-scale businesses can often specialize in niche markets that larger competitors may overlook. This specialization can help them establish a strong presence and build a loyal customer base.
  2. Local Advantage: Small businesses have an inherent advantage in serving the local community. They can build strong relationships with local customers and benefit from word-of-mouth marketing.
  3. Flexibility: Small businesses can adapt quickly to changing market conditions. They can experiment with different marketing strategies and pivot when necessary without the bureaucratic hurdles that larger companies face.
  4. Digital Marketing Opportunities: The rise of digital marketing and social media has leveled the playing field to some extent. Small businesses can use cost-effective online strategies to reach a wider audience and compete with larger rivals.
  5. Personalization: Small businesses can offer a more personalized and customer-centric approach. This can lead to higher customer satisfaction and loyalty, which is especially valuable in the long term.
  6. Partnerships and Alliances: Small businesses can collaborate with other local businesses to cross-promote each other’s products or services. This can be a cost-effective way to expand their reach.
  7. Unique Selling Proposition (USP): Small businesses can develop a strong USP based on their unique qualities, such as personalized service, locally sourced products, or a distinctive brand story.

In conclusion, marketing in small-scale businesses can be challenging due to limited resources and competition, but it also offers opportunities for niche focus, local advantage, and flexibility. Success in marketing for small businesses often involves finding creative ways to leverage these prospects while addressing the associated problems.