SURVIVAL STRATEGY ADOPTION BY SMALL SCALE RETAIL OUTLET IN NIGERIA. (A CASE STUDY OF ROBAN SUPERMARKET G.R.A. ENUGU)
ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
SURVIVAL
STRATEGY ADOPTION BY SMALL SCALE RETAIL OUTLET IN NIGERIA.
(A CASE STUDY OF
ROBAN SUPERMARKET G.R.A. ENUGU)
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.
AFFILIATE LINKS:
Comments
Post a Comment