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
To find out if quality of products is a problem to Encristo Pharmaceutical
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
The Encristo pharmaceutical
industry should improve on t heir products performance by making use of
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.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
Background of the Study
Statement of the problem
Objective of the Study
Scope of the Study
Significance of the Study
Definition of Terms
CHAPTER TWO: LITERATURE REVIEW
Overview of Marketing
Overview of Small-scale Industries
Important Consideration in Establishing Small-scale industries
Government and Small-scale industries
Marketing problems associated with small-scale industries in Nigeria
Problems created by small firm themselves
Prospects of marketing in small-scale industries in Nigeria
Prospects of marketing in Encristo Industry
CHAPTER THREE: RESEARCH METHODOLOGY
Sources of Data
Population of Study
Determination of Sample Size
Research Instruments used
Validity and Reliability of Measuring instruments
Method of Data Analysis
Limitation of the Study
CHAPTER FOUR: DATA
PRESENTATION AND INTER-PRETATION
Presentation and analysis of data
Test of Hypothesis
SUMMARY AND FINDINGS, RECOMMENDATION AND CONCLUSION
Summary and Findings
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: -
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.
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
The problems of Encristo
Pharmaceutical Industry which call
for critical evaluation are as
Encristo Pharmaceutical Industry have restraints in
promoting their goods and
This is as a result of their
poor marketing orientation and low capital base.
They also have the problems of producing products that are
rarely competent because
production facilities are not always available.
They are not always well located because of site cost
The Encristo entrepreneur and his marketing officials, lacks managerial
know-how initiate policy, cost, control and marketing strategies.
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.
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: -
To find out if quality of products is a problems to Encristo Pharmaceutical
To find out the effectiveness and adequacy of the company’s promotional
To find out the inadequate capital of the company and how it affects the
marketing activities of the company.
To evaluate the marketing efforts and performance of the Encristo
To know how the low standard of the production hinders the continuity of
Encristo Pharmaceutical Industry.
To evaluate the distributor strategies being used by Encristo Pharmaceutical
Industry in making their product available
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.
The hypothesis tested for this
research study are as follows: -
Quality of products does not constitute a problem to Encristo pharmaceutical
Quality of products constitute a problem to Encristo pharmaceutical industry.
2Ho: Price of Encristo
pharmaceutical industry do not
constitute a problem to the
Price of Encristo pharmaceutical industry constitute a problem to the company.
Distribution methods of Encristo pharmaceutical industry to not contribute a
problem to the company.
Distribution methods of Encristo pharmaceutical industry do not contribute a
problem to the company.
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.
OF THE STUDY
The research study marketing
problems of small-scale
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.
- 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
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
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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