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company not only in buying the product but also in communicating
feedbacks which they obtained from consumers.
The key informant believes that export is a must for the company not just
because it is the government‘s policy but more importantly the company
needs to expand its market in the globe and get foreign currency as a result.
The company plans to export about 30% of its total production in 2014/15
fiscal year. However, its past experience indicates considerable amount of
return. Hence, it needs to enhance its product quality to meet the
international customers‘ expectations in addition to promotion. This implies
that the company needs relatively more than one year to do so. Hence, the
stated plan is highly unlikely to be performed in the stated fiscal year.
The company applies different pricing strategies for products to domestic
and international markets. In connection to this, the pricing strategy for the
international market
is usually competitive based;
‘’price is based on the prices of international competitors (going price). But the
pricing base for domestic market is cost-plus and it is relatively perceived that
the company’s products are set relatively higher than competitors and still the
customers are willing to pay for the difference for our well perceived product,
bed sheet’’.
The company‘s international market destination is mainly Europe. The key
informant explained that the company couldn‘t penetrate the USA market
despite the AGOA advantage. In this regard, the textile institute helps the
company in searching for international markets even through directly
contacting and persuading customers. And through that help, the company
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exports both finished and semi-finished products like gray sheet and it is
this product which has a relatively better demand. However, the government
encourages the companies to export finished products and it is still to the
benefit of the company to export value added products. But the key
informant explained that due to low perception of the international
customers to ‗made in Ethiopia‘ products, they prefer to buy such semi
finished and unbranded products to finished products. Hence, branding has
remained number one challenge for the company in the international
markets.
The company tries to promote its product in the international market
through attending trade fairs and exhibitions, mainly through the
opportunity created by the Textile Institute. Besides the key informant
explained that the company produces standardized and ‗quality‘ product for
the international market which is different from the products for local
markets but yet exporting remains challenging for it.
The key informant explained that the company has identified key marketing
and related problems
and he explained that;
‘’ branding is the major challenge for the company. Packaging is the other
major problem. The company cannot import plastics due to foreign currency
and working capital shortage for packaging and hence people complain about
our packaging in general. Hence, a lot should be done in the company’s side
because in the future there will be stiff competition even in the domestic
markets as many international companies with better experiences in the
textile production and marketing are being established here in Ethiopia’’.
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Markedly, the company exports more than 85% of its finished products. It
sets out networks with channel members abroad through creating strategic
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