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2013/14 export report that the company is indeed the number one textile
product exporting firm in the country.
And as a general comment to the textile sector in general, the key informant
had
his final say as;
‘’the raw material should be improved both in terms of quality and quantity in
order to make Ethiopian textile companies become competitive. It is known
that the sector has huge potential but yet far from being competent when
compared with the Pakistanis, Chinese, and the like textile industries.’’
And raw material production in the local market with both quality and
quantity consideration and the branding issue are
of major challenges which
both the sector players and the government should do together to figure
them out for the sector to be competitive in the international markets.
CASE 5
This company is selected as a representative company
for the remaining four
case companies because all of the remaining four case companies which are
considered in this research have similar marketing enabling environment,
marketing strategy, and market performances. In this case, performance is
mainly measured in terms of export amount and proportion relative to total
company production. Hence, on matters of data saturation, this case
company is selected to best represent the remaining four case companies.
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2015/2016 fiscal years). The key informant explained that the government‘s
support increases parallel to export (the more the company exports, the
better it benefits from the government‘s incentives). And this is the very
reason why companies keep on exporting despite profitability.
The new product development base for the company is customer order. The
company has increased its product width somehow and wishes to expand its
product line in the future. The company has also tried to position its
product of having good quality in the local market and gets considerable
acceptance. And for the export market, the company produces a
differentiated product with relatively higher quality and width assortments.
The company‘s pricing strategy is cost plus for the local market and going
price for the international markets. Regarding the export product pricing,
the
key informant explained that;
‘’for me exporting in the current practice is not profitable to the company. It is
surprising and out of competition logic to sell an exported product with lower
price than its price in the local market. However, as the company is operating
in government’s priority sector, exporting is inevitably mandatory for us both
in terms of long term benefit and to remain relevant in the promising sector.
The government incentive packages work for exporting textile company, and if
you do not export then you will not be eligible for the incentive’’.
Hence, exporting as a marketing strategy remains both a challenging and an
opportunity to the company.
The company uses television advertisements in selected periods such as in
the beginning of Ethiopian New Year and first week of Easter. And it also