participated in the distribution so far.
Notably, the company has the plan to backward integrate its production
system and intends to produce the yarn and other raw materials for its
consumption in order to reduce cost of production further and ultimately
increase its competitiveness.
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While appreciating the government‘s incentives for the export markets, the
company still expects additional support from the government such as land
for raw material production and availing foreign currency for the exporting
firms in special consideration to import production and production related
materials. Cognizant to this, the company identified that the core problem of
its internal environments is lack of marketing and production excellence.
Besides, the key informant explained that employee turnover in the
company is higher than average in the sector which may call for salary
adjustment for the company to retain experienced and qualified employees
longer which, however, needs board approval to do so.
Generally, the company rates itself as competent in the local market
although it gets most of its sales for granted (by the government). However,
it admits its inability to compete in the international markets due to its
production of less than international accepted product quality, poor
branding, and little export experience.
CASE 3
Case 3 has been in operation for about three decades in the market. Its
products are gray cloth, bed sheets, blankets and woven fabrics in general.
Its production capacity is spinning about 17 ton per day and weaving about
70,000 meter per day. The key informant explained that the attention given
to marketing in general is not satisfactory as he explained that the
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marketing professionals in the company are few in number when compared
to other professionals in the other departments. However, the key informant
explained that there are movements to make employees aware to act as
sales ambassador of the company for the simple and direct reason that the
company‘s existence is justified by the existence of its customers. The key
informant further explained that
‘’despite the growing awareness of the company to competition, still the focus
is on increasing sales volume and sales strategies. With this in mind, the
company sets annual sales plan and works towards that. And as to me, the
marketing strategy is not well defined and focused. Especially for the
international markets, we do not have any strategy and with this view, I think
we will not be competitive even within some years to come’’.
The marketing plan of the company substantiates this statement that the
company plans to maintain its local market share and enter international
markets with quality products. However, the plan does not clearly indicate
how it will enhance its product quality and doesn‘t indicate the marketing
strategy it will apply to the international markets.
The company has relatively long experience in the field and good reputation
in the local market. In the local market, it has accrued good brand image
and reflected by selling almost all of its products available for sale. The
company uses occupation and gender as major criteria for market
segmentation. Regarding the marketing enabling environment, the key
informant explained that;
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‘’we feel that enhancing the skills of our staff in general and marketing and
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