ABSTRACT
The subject of
this project is survival strategies adopted by small-scale shops in Enugu state
urban. This recent changes in the Nigeria Business environment have forced
small-scale shops to formulate diverse survival strategy in order to survive
the turbulence in Nigeria environment.
This study process on
those things that small-scale shops can do and have done to accommodate market
changes such as downsizing, expansion, offering discounts, location and
relocation of the shops can do and have done to accommodate market changes such
as down, sizing, expansion offering discount location and relocation of the
shop at a better site, margin, cool structure, the product line,
diversification, free gifts and booms, differentiation and segmentation etc.
To achieve this the
researchers constructed questionnaire base on research question formulated in
chapter one.
The major findings in
these studies are as follows:
1. Location
and relocation of business at a better site is as important as the growth of
the business.
2. Down-sizing
small-scale shops encourages high profit margin from the specified field of
treatment.
3. Discounts,
free gifts and bonus, attracts customers patronage.
4. Product
line diversification, differentiation and market segmentation are the major
strategies that can be adopted and have been adopted by small-scale shops in
order to face and win its competitors.
5. To survive
a small-scale shop must be responsive to the needs of its consumers,
financially up to date etc.
The major conclusion
drawn from this study is that the survival strategies adopted by the
small-scale shops are discount bonus, and gifts offered to consumers based on
the quantity of purchased. The use of product line, product diversification,
location and relocation, differentiation and market segmentation are greatly
helpful for the survival of small-scale shop. Recommendations were made based
on the findings and conclusion drawn.
TABLE OF CONTENTS
Chapter one
Introduction
1.0 Background to study
1.1 Objectives of the study
1.2 Scope and limitation of the
study
1.3 Significance of the study
1.4 Statement of research problem
1.5 Definition of key terms
1.6 References
CHAPTER TWO
LITERATURE REVIEW
2.1
Retail shopping in Nigeria
2.2
Shop keeping as small business
2.3
Model retail strategies
2.4
Retal shopping in Nigeria
2.5
Problems of small scale business in Nigeria
2.6
Reference
CHAPTER THREE
Summary of
findings
3.1
The research of findings
3.2
Conclusions
3.3
Recommendations
3.4
Reference
CHAPTER ONE
INTRODUCTION
1.1 BACKGROND OF THE
STUDY
Survival
strategy involves the development of a well articulated marketing plan
for successful introduction of the product into the market. This is not static
and would most probably under go refinement and modification in subsequent
stages.
The marketing strategy
deals with the marketing mix coordination that would be used, the market
and the marketing budget.
1. The first section should describe the market
size structure, behaviour and the company’s intended share of the market. It
should also describe product positioning and the possible project consequent on
that.
2. The second part will develop deeper into the
marketing mix component, the planned product quality which follows from the
first, the planned price, distribution and production strategy. This
section should also include the marketing budget needed to carry out the
strategy
3. The third section is a fallout from the
previous two it describes the long run sales and profit goals based
on the first two section.
This is the process that
continues through development stage as new information is accumulated
about the product and the market.
Several analytical tools are available to firms technique
risk analysis and bays tan decision theory. The key to whether a
product should be developed is whether it will find easily to
sufficient market acceptance to return a satisfactory project to
its firm what are the expected minimum to maximum sales help determining risk
involved.
The models for estimating sales adopted by managers differs depending on
whether they are designed to estimate the sales of one turn
purchased products. On infriquenting purchased product (
koltered 210) .
No matter what type of production the first task is to estimate first time
purchasers may techniques are available for doing this , the method used
depending on the estimate of the each period. The factors like a price etc
which affect penetration are considered. product. One method is to just estimate
the market potential and then the rate market penetration for
The company has to guess
at the survival age distribution of the product, the lower end of the age
distribution will indicate when the first replacement sales will take place.
Several other factors influence replacement decision, the purchases discretion
of the buyers. Small products desire that repeat purchase be estimated means
sometime as first time seller. The company should try to estimate what happen
in each repeat purchase ratio is likely to rise or fall.
Estimating sales is not
the business analysis. Cost of subsequent product need to be estimated at the
same time as sales, as it is in the nature of promotional expenditures to
influence both sales of cost simultaneously we need to consider sales to cost
against alternative marketing progress to determine the most favourable choice.
There a number of
strategies a small scale outlet can choose. The first is market retention
which is established market through market development strategy which is when a
firms concentration on market development growth sector/ tailored to the needs
of new business in existing market.
However, the risk
involved are greater than the first two strategies described above .but well
managed companies with a good track record will usually be adopting this
strategy in the fulfillment of corporate objective for growth and improved
profitability.
These components provide us the idea of the opportunity set for a company and
how the company can perform its activities In the environment in order to
achieve its object.
The small scale can pursue more product line consistency or less,
depending on whether it want to acquire a strong reputation in a single field
or participate in several fields. According to N.G.NWOKOYE, he suggested two
alternative strategies which may in the degree of product assortment for
planning the products .to offer customs product differentiation strategy (a
limited line strategy)
Product differentiation refers to when a marketer attempts or a very
narrow product line which he attempts to differentiate psychologically in the
eyes of various consumer segment through advertising and sales
production-example, a small-scale retail is one super market in New Heaven.
A super market and
originally been defined as a complete departmentalized goods store with minimum
sales volume of one million dollars a year and at least the grocery
department fully self service. In addition to the above definition, super
market place heavy emphasis on price. As such, at least in the past, they
offered minimum customer service.
Present day supermarkets
differ a while, variety of merchandise as they aim towards a one stop shopping
service to the consumer. Supermarket are departmentalized retail establishments
but unlike department store, the department are organized on one large floor
space.
The operating advantages
of super markets are low operating cost as a result of minimum investment on
fixtures and fittings, self service and the operating strategy of
low margin but high turnover and mass display of merchandise. The result
is low prices to the customers. Super markets may not appeal to service
desiring customers but they do a very good job with the economy consumers
who constitutes their target market.
1.2 OBJECTIVES
OF THE STUDY
This study seeks to
generate empirical knowledge about the survival strategies adopted by small
scale retail outlets in Nigeria specifically the study as aimed at identifying
the following
i.
The major problems that pose a threat to the survival of small scale firms in
Nigeria.
ii.
The product market scope of small retail outlets.
iii.
The growth sector of small scale retail outlets.
iv.
To identify the types of incentive adopted by these outlets.
v.
The effect produced by location of stores.
vi.
To intimate the owners of the small scale outlets to the use of discount,
product line and diversification.
The small scale firms
come in for special mention line as a specially planed facility for
retailing. In the past retail shops developed in the central
business district and drew their customers from the entire city. For
example in terms of organized and unorganized retailing the area around Okpara
Avenue and environs in Enugu can easily be described as the central business
district. Secondary business district develop with city expansion.
In Enugu there are several, One is around Ogui Road O’ Conner Street axis.
Another is at the Zik Avenue Achara layout axis. There is also the Kenyetta
Street- Edinburgh road axis.
Other business district
have developed many from the central city area in the adjoining areas of the
old city such as chime Avenue business are in New Heaven, the area around
Abakpa Nike market in Abakpa, the Agbani . Road area which includes the coal
camp area. There are also free standing shop areas mostly in the neighborhood
areas. All the above differ from shopping center which have been described by
the American marketing Associate as a geographic Chester of retail
stores, collectively handling an assortment of good varied enough to satisfy
most of the merchandise wants of consumers within convent traveling
time and thereby providing attraction of general shopping trade modern shopping
centers are much more than this as they are consciously planned. Integrated and
the total areas of the shopping center including the building are owned by an
agency.
A planned and integrated shopping center aims at achieving a tenant mix which
will produce optimum sales rent; service to the community and profitability of
the shopping center.
According to Kiaylin an ideal tenant mix service to achieve.
I
a balanced diversification of shops in the center by offering a wide range of
product and services.
Ii A
specific image for the center eg specially convenient.
Iii Maximal
pedestrian flow in order to ensure that there is a 100% location advantage for
all tenements.
Iv maximum
sales potentials in the trade area.
V A
synergy between the satellite tenants and logical layout of shops.
Vi A
pleasant shopping environment
Vii Enough variety
to create the maximum attractiveness to the population of that
specific trading area.
Viii Maximum
return on investment.
1.4 SIGNIFICANCE
OF THE STUDY.
In view of the service
of small scale outlets to the consumers, it becomes imperative for the survival
strategies to be clearly spelt out for the existing and intending owners. It is
the need for the study to make a viable and purposeful rectification so as to
clearly identify the impact survival strategies for small scale firms should be
in decision relating establishment, this study is aimed at how effective is
these strategies involved in the consumers satisfaction. It is also the need
for the study to arouse consciousness.
The important of the
research study consideration in making the choice have been identified as
follows:
i.
The size of the trading area: This is the area from which stores located within
the city regularly draw patronage.
ii.
The population size of the trading area and the trend therein usually
considered in terms of families or number of consumer spending unto and characteristics
of population, particularly those that denote socio-economic statues, such as
educational level, family size, extent of home ownership etc
iii.
Total retail trade potential for the particular kind of business under
consideration which may be estimated from the amount of disposable income
available in the community situation, with attention to the number, size
and quality of existing business establishments handling related lines of
merchandise.
progressiveness of the community as evidenced by such factors
iv.
As new construction in progress, adequately of school system, chamber of
commerce and other civic activities police and fire protection , public
transportation, street improvement and public parking facilities.
v.
Benefits occurring from labour specialization and export services. These
manifest themselves in better buying, effective selling and better over all
management.
1.5 STATEMENT
OF RESEARCH PROBLEM.
In most Africa, most of the business organization are in size and operation.
There are some small large sized ones with big operations owned by
foreigners and wealthy indigence but small scaled one keep on
operating side by side with those large ones. The small scale business enterprises
survive the test of the time due to the
following .
i. Small
capital Refinement: The capital required to commerce business
operation in west African is usually small. That is say that the establishment
of business enterprise required small capital. Thus, there are many small
business enterprise in west African .
ii. Undeveloped
local market: The market influence are not
developed hence limited the extent of the firm’s production. This keeps the
size of the business and its operation in a small shape to enable it dispose
with is produced.
iii. Inadequate
Experience to manage large business organization . The business
man in west African .New Heaven are not well experienced in the
management of large business enterprises. They lack the
entrepreneurial drive to take large risks. The situation promote small scale
business enterprises which they have gained much experience in their
management.
iv. Nature of
services: these are some services that require personal and special
attention. The entrepreneur prefer to operate such services in a small scale so
as to achieve the objectives of the specialized services. Such services include
tailoring mediation, hairdressing, landing.
v. Management
conditions: “The management condition of a small business unit always
easy. Some entrepreneurs want an easy way out thereby prefer to operate to
small business unit for easy management.
vi. Need for
flexibility: The large sized firms are not adaptable to
changing times. The small business unit can easily be adjusted or changed to
adapt to the changing times and circumstances. There is greater risk in adjusting
the large firms than small sized firms.
vi. Desire
for independence: some entrepreneurs have the
desire to be in control
of all decisions of all decisions and actions taken in their business concerns.
The only way a business unit can be under the control of one person is
when the business unit is a small one. The desire to be independent prevents
some businessman to expend their business enterprises to a large
unit.
1.6 DEFINITION
OF KEY TERMS.
Strategy is a programme which an organization
employs in order to achieve her aim or the over all response of a local
organization to the demand of her environment.
Strategy provides
a business organization the concepts in business activities the logic of
the importance of strategy formulation is that every business has a strategy
either conscious or unconsciously formulated.
Small retailing as
a marketing institution has evolved over the years as is evident in the
different types of retailer and functions performed over time. These theories
have been advanced to explain evolution of retail institution that adopt best
to as environment will simile and grow. The wheel of retailing theory
maintains that retailing institutions pass through a life cycle.
This life cycle beings
with low-margin low price and minimum service offerings as competitive moves.
The next stage in the life cycle sees the small scale retailer up grading its
facilities and offerings and adding more services in a bid to increase the
volume of sales and hopefully profit. The above more increase lost and
therefore, price and makes the competitive environment attractive to a new low
cost, law margin and limited service competitor. Hence what is our business?
The logic of the importance of strategy formulation is that every business has
a strategy either consciously or unconsciously formulated. This is why
(Stoner 91982) defines strategy as the overall response of a business
organization over its environment.
Objective tells us where
an organization wants to go but strategy tells us how to get there. According
to Ansoff (1965) a good strategy has four major components. These are;
growth vector of the organization i.e. the opportunity set.
Competitive advantage: This means the differential advantage.
Product market
strategy: This simply is the mission of the organization.
Synergy : This means other advantages in the
strategy.
For effective management
of a scale business the manager is required to understand his strategy. Such
strategy must be consciously formulated by considering technological and
environmental factors.
Small Scale Business
Nigeria Bank for
commerce and industry defines small scale business enterprises as firms or
companies with assets (including working capital but excluding and not
exceeding N750,000 and paid employment up to 50 person. Such as establishment
must be wholly Nigeria enterprises promotion decree).
The central bank of
Nigeria in its monetly policy circular No.2 (1980) defines small scale business
as an enterprise where annual turnover ranges between N25,000 to N500.000.
OWNER / MANAGER
It is the owner of a
business, the capital supplier, and also an entrepreneur
He posses the
following
(a). Self employment
(b) Self reliance
(c) Need for achievement
(d) Risk bearer
(e) International locus
of control
(f) Innovator.
Department | Business Administration and Management |
Project ID Code | BAM0268 |
Chapters | 3 Chapters |
No of Pages | 49 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |