AKSUM UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

ASSESSMENT OF MARKETING OPPORTUNTIES AND CHALLENGES FOR

PRODUCT DEVELOPMENT

(A CASE OF ALMEDA TEXTILE FACTORY) PLC (ADWA TOWN)

Research proposal submitted to the partial fulfillment of BA degree
in marketing management in Aksum University
By: MELESE LIGABA
ID NO_: AkUR/0603/06
ADVISOR: SOLOMON ESHETU (MBA)

JUNE, 2016
AKSUM, ETHIOPIA
TABLE CONTENT
CHAPTER ONE
 1. INTRODUCTION………………………………………………………………………………………………..
2. 1.1Background of the research …………………………………………………………………………

1.2 Background of the organization……………………………………………………………………...…..

1.3 statement of the problem……………………………………………………………………………..……

1.4 objective of the study …………………………………………………………...........................................

1.5 significance of the study ………………………………………………………………..…………….…….

1.6 scope of the study ………………………………………………………………..........................................

1.7 limitation of the study ………………………………………………………….........................................

1.8 organization of the paper ……………………………………………………………………..…………..

CHAPTER TWO

2 REVIEW OF RELATED LITERATURE ………………………………………………...……..……..………..

2.1An overview of marketing ……………………………………………………..........................................

2.2 opportunity and challenges in domestic marketing ……………………………………………

2.3 Environmental scanning and management ……………………………..………………………

2.3.1 The company micro environment…………………………………………………………………………………..9

2.3.2 The Company………………………………………………………………………………………………………………….10
2.3.3 Suppliers, Distribution, and other Facilitators of marketing……………………………………………12
2.4 macro environmental forces……………………………………………………………………………………………………

2.5 source of marketing opportunity and challenges…………………………………………………………………….

2.6 How marketing challenges and opportunity are diagnosed…………………………………………………….

2.6.1 Marketing information system elements and its role………………………………………………………

2.6.2 Benefits of marketing information system for the company……………………………………….…..

2.7 Benefit of conducting SWOT analysis………………………………………………………………………………………..

CHAPTER THREE

3 RESEARCH METHODOLOGY………………………………………………………………………….………………………………...

3.1 research design…………………………………………………………………………………………………………………………

3.2 source of data collection………………………………………………………………………………………………………….

3.3 method of data collection…………………………………………………………………………………………………………

 3.4 sampling size…………………………………………………………………………………………………………………………….

3.5 sampling technique…………………………………………………………………………………………………………………..

3.6 data analysis……………………………………………………………………………………………………………………………

CHAPTER FOUR

4 DATA ANALYSIS AND INTERPRETATION…………………………………………………………………………………………….

4.1 Demographic information of the respondents………………………………………………………………………….

4.1.1 Source of marketing challenges……………………………………………………………………………………………..

4.1.2 Questions related with product dimensions for attraction…………………………………………………....

4.1.3 Respondents evaluation to their salary……………………………………………………………………………………

4.1.4 General questions about the factory…………………………………………………………………………………..…..

4.1.5 Questions related with customer high purchase……………………………………………………………………..

4.1.6 Product categories market demand………………………………………………………………………….…………….

4.1.7 Question related with distribution channel……………………………………………………………..……………..

4.1.8 Employee vertical integration…………………………………………………………………………………….……………

4.1.9 Question related with bases for price setting………………………………………………………..…………………

4.2 marketing area for product………………………………………………………………………………………….………………….

4.2.1 Question related to staff motivation……………………………………………………………………………………….

4.2.2 Question related with external treats……………………………………………………………………………………..

CHAPTER FIVE

5 MAJOR FINDING, CONCLUSION AND RECOMMENDATION…………………………………………………………….....

5.1 summary of the finding……………………………………………………………………………………………………………….

5.2 conclusion…………………………………………………………………………………………………………………………………..

5.3 recommendation………………………………………………………………………………………………………………………….

REFERENCES……………………………………………………………………………………………………………………………………..

APPENDICES……………………………………………………………………………………………………………………………………..
Acknowledgements
First and foremost All the praise go to my God!” for that I being created and
entrusted heath. He helped me to overcome the problems that I face in doing
this research proposal. So I am thankful again and again!
Secondly I would like to gratitude my advisor, SLOMON ESHETU (MBA) for his
patience and invaluable advice and fortunately to finish my research.
Thirdly I would also like to extend my gratitude to my family, for their financial
support and morality have contributed their best for the success of my
research project.
Finally I would like to extend my gratitude to my friend, for their morality,
their coordination in order to finish my research.

Abstract
The general objective of the study is assessment of marketing opportunities and
challenges in the case study of Almeda textile factory.

The researcher used descriptive type of study to describe the existing situation
together information a sample was selected through the simple random sampling
and come up with sample size of 50 employees in the case ofAlmeda textile factory.

In this study the primary data source and secondary appeared the data collected
through by preparing question for employees. Finally the data have been analyzed
by using table, percentage and based on the major findings; the researcher has
forwarded feasible recommendation.

CHAPTER ONE
1. INTRODUCTION
The ultimate goal of marketing is to satisfy customer need and wants profitability in manner of
the organization objective and goal will be achieved as need, However the materialization of
paperwork in to practical achievement require a huge degree of tolerance in assuming and
thinking the challenges encountered by the business will undertaking the challenges. Know a time
being face challenges and assuming marketing risk they should be corresponding marketing
opportunity at the back of the challenges that are capable for helping the company in realizing its
goal and objective (Perreault, 2002)
1.1 Background of the research
Market opportunity is potentially favorable condition in which a business can capitalize on
changing trend or an increasing demand for a product by a demographic group that has yet to be
recognized by its competitors. For a market opportunity to exist, a company must be able to
identify who is a potential customer are. The specific needs that need to be meet. The size of the
market, and its capacity to capture share (Kotler et al, 2008)

Marketing touches customer, prospect and industry thought leads via press release, magazines
articles, briefings, brochure, trade show, customer council, advisory boards, and lead generation
program (www.wikipedia the free encyclopedia)
Marketing opportunity derived from “fitness of a company” to serve a specific market. The result
from approaching competence, skill and resource that can be bought to serve identified customer
or segment profitability opportunity again in the marketing department plays a vital role in
determining the success of a new product of the service and ultimately the success of firm (Fraber
et al, 2006).

The biggest challenges facing marketers coordinating global campaigns challenges for product
development are internal coordination of marketing activity, how to reach customer in a
meaningful way. How to measure and report, learn and improve, how to handle the creative
development process, understanding customer wants and need across different segment, digital,
social and the new marketing, digital media is forcing campaigns to be much more engaging. The
new media is designed to allow people to talk back (Ronnie Beltran, 2008). The role of
technology in a campaign creation and implementation are the biggest challenges that affect
product development (Davida Aaker, 1999).
1.2 Background of the organization
Almeda Textile Factory PLC was established in 1985 E.C having initial capital of 526 million and
with 3300 number of employee. Recently the employee of Almeda textile factory P.L.C reach
5304 permanent employee.
Totally, Almeda textile Factory is located 7 km from the center of Adwa town on the main road
to Aksum and around 1000 km far from Addis Ababa
The factory is established by the private capital. The private owned which is manufacturing 100%
cotton product including yams, night blankets, jacket, and T-shirt and bed sheet.
1.3 Statement of the problem
Market opportunity is a fitness of favorable advantage for conducting a successful business and
it represents a favorable circumstance appropriate moment or promising cause of event that helps
for the attainment of a goal. Marketing work with development to define requirements, plan
products, and bring product to market. Marketing must be assuring the delivery of reliable and
complete product that includes documentation, training, and support (www.wikipedia the free
encyclopedia)
There is several power of tangible and latent challenges in undertaking the marketing activity
that strongly tempt the well going operation of the marketing department of the company in
particular. But the degree of impact exerted from this challenge on the smooth operation of the
business is exactly focus on the capacity of manager ability to develop, evaluate, select the
optimal selection of the existing problem at hand is very important. Beside the decision made
should be applied after feasible study gets successful and also the strength, weakness, opportunity
and threats (SWOT). Analysis ever after a new decision is made should be done to make sure that
the future is gain to be able either to reduce the challenges to minimum degree or to avoid them at
all as much as possible.
The assessment of marketing opportunity and challenges of product development in case of
Almeda textile factory PLC has not been assessed or study by identifying the impact of market
opportunity and challenges on product development. So this research is vital role in filling this
gap, beside this in my preliminary study in Almeda textile PLC. I have get there is a problem
related with the proper use of production system i.e. input up to final process. So this research
will conduct so as to fill this gap. The researcher will try to investigate the impact of marketing
opportunity and challenges on product development in Almeda textile factory PLC.
Almeda textile factory as a circle which operates in a dynamic environment that create gap on
its product performance should be provide with proper identification and definition of the product
development challenges in order to make them easy adjustable at minimum cost to harmonize the
product development challenges in order to make easy product development activity at planned
and needed.
Almeda textile factory provide job opportunity for employee some people and supply its
product for domestic and foreign countries. Additional factors faces that affect the process of
Production Company. Among these factors like transportation problem, shortage of raw material
and shortage of power supply, unskilled working force and breakdown production machine and so
on. This and other problems affect the company production system. At that matter creates
dissatisfaction for a customer. Due to presence of the above stated problem, the researcher is
interested to conduct or to make study on the company opportunity and challenges of product
development in Almeda PLC.
Research questions
The main research questions to be address in the study will be as follows:
1. What are the factors affecting the company internal and external operation?
2. What are the main factors that influence the company to expand its product development
at a national level?
3. What are the main threat of the company in today product development and main
opportunity of the company to current product development?
1.4 Objective of the study
1.4.1 General objective of the study
The general objective of the study will be to examine and review the measure product
development opportunity and challenges will face by Almeda textile factory PLC.
1.4.2 Specific objective of the study
 To indicate the product development opportunity the company faced.
 To identify the main factor that influences the company to its product development at
national level.

1.5 Significance of the study

The study contributes for the company by identifying its weakness with regard to the production
system based on this the company can improve its production, system and increase the amount of
production. After conducting the research the company improves its weakness the company
customers will be satisfied and also it is used for as a reference for further who will conduct
similar topic.
1.6 Scope of the study
The scope of this study emphasis on product development challenges and opportunity that faced
by on Almeda textile factory to the reason that every business and non-business organization
whether it is profit oriented or nonprofit oriented organization we may faces different
environment, so that this study will be mainly focused on major challenges and opportunities that
have been focused on Almeda textile factory.
1.7 Limitation of the study
 Time constraints for data collection and analysis
 Lack of research experiences
 Scarcity of reference books
. 1.8 Organization of the paper
This research contains four parts;
In the first chapter contains introduction, background of the study statement of the problem,
objective of the study, significance of the study, organization and limitation of the study. The
second chapter consists of related literature review; the third Chapter contains research
methodology sample size, technique. Chapter four contains data analysis and interpretation. The
last chapter five contains conclusion and recommendation of the study.
CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

In this chapter literature on the area of marketing, specifically and deeply on the marketing
opportunity and challenges written by different authors will be reviewed at large. to this purpose,
the review is focused on starting the major marketing opportunity and challenges that are
observed in any organization and argues the significance of detecting, identifying these core
attribute of product {opportunity and challenges} for achieving organization objective effectively
and efficiently to speed up its competiveness in the dynamic business environment. In this regard,
the researcher referred and gathered pertinent data from different sources to make the study more
organized and full enough to hold important points and solution to the problem as planned and
needed.

2.1 An Overview of Marketing

Person become fairly adopt at buying to meet their house hold needs, accordingly they also under
taking and selling their cars, selling personal service, organizations are more professional in
handling exchange process. They must attract resource from one set of marketing, convert them in
useful product and trade them in another set of market, nation also plan and manage exchange
relation with other nations.

Marketing management takes place when at list one party to a potential exchange to give through
objective and means of achieving desire responses other parties. We will use the following
definitions of marketing (management) approved in 1985 by the American marketing association.

marketing management is the process of planning and executing the consumption, pricing,
promotion, distribution of ideas goals and service to create exchange that individual and
organization this definition recognize marketing management as a process involving, analyze,
planning, implementation and control that is cover ideas goals and service that it resets on the
nation of exchange and that goal is to provide satisfaction for the parties involved (Philip Kotler,
1988).

2.2 Opportunities and Challenges in Domestic Marketing

Marketing challenges are any faces that create unfavorable condition for smooth operation of the
business that may be generated from internal as well as external environment unlike challenges,
marketing opportunities are favorable condition facilitates the smooth operation of the business to
achieve its goal through effective and efficient.

Utilization of the resource through the marketing forces is common in both successful
implementing the marketing management process. Marketing manager typically engage in a
sequence of activity called strategic marketing planning involving mission statement environment
analysis and the establishment of goal strategies programmed and controls.

Improvement on the job contributes for the achievement of organization objectives these are
achieved by improving the performance of the marketing staff in marketing a continuous effort
for opening their eyes to words marketing environment, which are forces that exerts influence on
marketing manager ability to create and carry out plans that satisfy organizational objectives and
target market needs (Philip Kotler, 1984).

2.3 Environmental Scanning and Management

Marketing environment consists of the actors and forces outside marketing that affects marketing
management; ability to build and maintain successful relationships with target customer. The
tenable fact is the marketing environment in general offers both opportunities and threats. As a
result, more than any other group in the company, marketers must be opportunity seekers.
Although every managers in an organization needs to observe the outside environment, marketer
have two special aptitudes. They have disciplined methods –marketing intelligence and marketing
research for collecting information about the marketing environment. Marketing environment we
have been discussing consists of a micro-environment and a macro- environmental force.

 Micro- environment includes actors close to the company that affect its ability to serve its
customers the company, suppliers, marketing intermediary’s customer market and
competitors.

The micro-environment consists of force that is part of an organization marketing process but is
external to the organization. These micro-environment forces include the organization; markets its
producer-suppliers, and its marketing intermediaries.

Micro-environmental factors like;

2.3.1 The company micro environment

Marketing management’s job is to build relationship with customers by creating customer value
and satisfaction. The success of marketing plans will require working closely with the company’s
micro environment. These actors are shown in figure 2.1. They include the company, suppliers,
market intermediaries, customers and publics, which combine to make up the company’s, value
delivery system.

Suppliers
Company

Marketing Customers

Intermediaries
Competitors

Public

Figure 2.1 major actors in the company’s micro environment

 (Philip kotler, john R Bowen and James C makens 2006, p, 364)

2.3.2 The Company

In designing marketing plans, marketing management takes other company groups in to account
groups such as top management, finance, research and development, purchasing, operations, and
accounting, all these interrelated groups from the internal environment. Top management sets the
company’s mission, objective, rand strategies and polices. Marketing managers make decisions
with the strategies and plans made by top management.

Marketing management must also work closely with other company department. Finance is
concerned with finding and using funds to carry out the marketing plan. The research
development focuses on designing safe and attractive product.

Purchasing worries about getting supply and materials, where as operation is responsible for
producing and distributing the desired quality and quantity of products. Accounting has to
measure revenue and costs to help marketing know how well it is achieving its objective.
Together, this entire department has an impact on the marketing department’s plans and action.

Under the marketing concept, all of this function must “think consumers”. They should work in
harmony to provide superior customer value and satisfaction. (Philip Kotler, 2006, p, 65).

Within the company itself, the marketing manager or marketing department will be involved in
three arenas. To succeed, the marketing manager must successfully interact with various
departmental representatives in the company to insure the marketing function is appropriately
stressed and promoted.

First is the battle for limited resources. Every department within a firm is seeking resources to
every out its roles within the company. Most departments feel they do not have enough money or
people to accomplish the work assigned to them. Most marketing department reflects the same
settlement .Seldom is there enough funds to satisfy everyone. On the average, most, firms spend
around 10 present of their sales revenue on the marketing function.

The second internal factor affecting the marketing function is gaining a save of the voice in
developing corporate strategic. Since marketing strategies are derived in developing corporate
strategies. Even in the development of the company’s mission statement. By having a voice at the
cooperate level, marketing managers can ensure that top level executives understand the
marketing function and the important of marketing in developing plans for the corporation. For
example, a decision to expend in to another region and country will involve understanding the
market positional and the capability of the firm to gain sufficient market share to make the
expansion profitable marketing influences decisions about production and product modification
based on understanding customer needs wants.

The third internal company force the marketing department has to address is developing a
marketing midst. It is important for every employee in the organization to understand who the
firm’s customers are and what is being promised. While product quality is important, so is the
manner in which customers are handled. A bad experience with a company walker can send a
customer to a competitor as quickly as a defective product. It costs approximately six times more
to gain new customers as it does to keep current customers, so it is imperative that company
employees understand the marketing goals of the organization.

Finally, shearing information and promoting interaction between the functional areas of the firm
is essential for company success. Companies that rate highly on interdepartmental connectedness,
sharing marketing information with all the other functional areas, such as research and
development, engineering, finance and purchasing and sharing non marketing information with
the marketing department are more successful in reaching overall organization sales and profit
objectives.

2.3.3 Suppliers, Distribution, and other Facilitators of marketing

While it is the purchasing department that primarily deals with suppliers, the outcome of this
relationship is important to the marketing department. For example, if the cost of the materials
supplies interests, it wills usually reverberate into price increase for the company. The marketing
department has to decide how much of a price increase is necessary to cover the additional cost,
what the impact will be on customers, and how it will affect compaction. The marketing
department may even be responsibility for communicating the price increase to the customer and
providing justification for why it is necessary.

Any disruptions in the supply, such as a labor strict or a natural disaster, such as a hurricane, can
impact the marketing function.
Similarly, a delay in product delivery can lead consumers to switch to competitors.

Distributions are middleman whose task is to insure the convenient, timely and safe distribution
of the product to consumers. Manufacturers rely on distribution to deliver their products, to
advertise and promote the product, and offer, to offer financing to other distribution down the
channel, or to the consumer, and thus facilitate purchase often, they use the service of physical
distribution firm, such as warehousing firms, transportation firms and other facilitators of the
marketing function, such as banks, insurance companies advertising firm and market research
firms.(Dana Niccoleta Lascu and Kemcth.E.Clow 2004,p,33)

Suppliers a company can benefit it from developing good relation with suppliers by dealing with
them fairly and honestly and granting them favors, it possible select those suppliers who supply
quality standard row material with quantity.(W.GRIFFIN 2006:41)

The success of the company production processes depends on UN interrupted supply of raw
materials. This is possible when the company selects those suppliers who have potential capacity
and when there is good relation between the supplier and the company. (AHUJA 1989:15

Suppliers from an important link in the company’s overall customer value delivery system. They
provide the resources needed by the company to produce its goods and services. Supplier problem
can seriously affect marketing. Marketing managers must which supply availability supply
shortages or delays, labor strikes, and other events can cost sales in the short run and damage
customer satisfaction in the long run. Marketing managers also monitor the price trends of their
key input. Rising supply cost force price increases that can harm the company’s sales volume.
Most marketing today treats their supplies as partners in creating and delivery customer value
(kotler 2006)

 Macro-environmental forces consist of the larger societal force that influences the micro-
environmental force. Macro-environmental force consists of demographic, economic,
natural, technological, political and legal and cultural forces. These forces are largely UN
controllable by management; but they are not totally UN controllable. A company may be
able to influence its external environment to some extent. (WWW.wikipedia the free
encyclopedia)

Fig. 2.4 Macro-environmental forces

 economic condition

company
marketing
program

Political and legal

forces

Source; (Philip kotler , Armstrong ,2007)

2.5 Source of Marketing Opportunity and Challenges
As far as the marketing environment is concerned there are broad are source under it that concern
marketing manager to understand respond to and make relevant adjustment to assure the survival
stability as well as the growth of the company.
The organization environment accompany all the areas of the company outside the marketing that can
affect the marketing exclusion, such as accounting, purchasing, manufacturing, angering and finance
marketing manager should likewise remain abreast of trends in other area of organization not only to
identity problem but also to recognized marketing opportunity that may otherwise go un noticed
(Baggoz, Rosacelly and Corn, 1988).

A Basic under of how belief about the environment held by marketing manager can helps them to find
use marketing information their preferred approach to solving marketing problem and their strategic
orientation. Even though marketing manager have under stood all the marketing attribute they can
influence their environment only to limited external within the organizational environment for example
the actual management acquainted with the concern and objective of the marketing area they cannot
follow on marketing demand.

In spite of the limited ability of marketing to manage the environment overlooking of opportunities can
impose un necessary limitation on marketing activity in addition not management of the environment
need to be direct one way in which marketing can entering influence on the organization environment
in by informing other department of how their action affect customer and profitability effective
marketing management can explore new opportunity through informing their customer about important
internal development such as change in engineering standard, product, schedule or payment police
(Bagozi et al, 1988).

The mission statement vision the objective or goal denoting from it is has been based on analysis of
external environment and internal environment that helps to identify and define target market and pin
point threat and opportunity in penetrating these markets analyst conducted both within defend
boundaries of the organization and beyond in the external cooperate environment the analysis conducted
both internally and externally with the leads to decision proposal which related to the internal
organization environment in the contest of the under external company environmental.

2.6 How Marketing Challenges and Opportunity are diagnosed?

Today, thanks to technology there are several means by which marketing manager can find relevant
marketing information to take the advantage of the marketing and to make quick and sound decision.
This is because the part and shift of marketing scope to brooder level. marketing is becoming battle
based more on information that on sales power to sating information need of marketing manager
accompany should design and install marketing system (MIS) in order to have large scale of awareness
about the overall marketing condition everywhere at any time the role of management for installation of
management information system varies from organization its own organizational culture towards
information.

2.6.1 Marketing Information System Elements and Its Role

Consists of people equipment and procedures to gather, sort, analyze, evaluate and distribute needed
timely and accurate information to marketing decision makers (Philip Kotler, 1996).
Even though the role of marketing information system is dramatically increasing and various from
company to company it has the following role for the organization in general perspective
1. To assess marketing manager information needed or decision making.
2. To develop needed information.
3. Information analysis.
4. Distribution of information.
According to Kotler (1996), the researchers want to define clearly and show the significance of
information briefly.
1, to assess information needs: a good marketing information system balances the information manager
would liked to have against what they really needs and what's feasible to offer. The company begins by
interviewing managers to find out what information they would like
2, it develops needed information from internal company records marketing intelligence activities.

Must span and bridge the defined bonding to enable the company to be valued as an "open system"
which internal with its environmental both, taking from and adding to the dynamic status of the "word"
beyond the immediate boundaries of the company (Lanchester and Masseghiam, 1993).

 internal company record:- consists of information gathered from success with in the company to
evaluate marketing performances and to identify marketing problem and opportunity
 Marketing intelligence: everyday information about development in the marketing environment.
The marketing intelligence system determines what intelligence is needed collects it by searching the
environment and delivers it to marketing managers. Marketing intelligence can be gathered from many
source, for example companies own personal executive engines and scientist purchasing agent and sales
force.
 market research:- The function that link the consumer, customer and the public to the marketer
through information, information used to identify and define marketing opportunity and challenges to
generate refine and evaluate marketing actions to monitor marketing performance and to improve
understanding of the marketing process.
3. Information analysis: - information gathered by the company's marketing intelligence and marketing
research system often requires more analysis and sometimes managers may be need more help to apply
the information to their marketing problems and decisions.
4. Distribution of information marketing information has no value until managers in to make better
marketing decisions the information gathered through marketing intelligent and marketing managers at
the right time.

2.6.2 Benefits of Marketing Information System to the Company

Marketing information system help the company installing marketing manager’s information on
customers buying preference, personal demographic details and whim and fancies strength and
weakness of competition the territory. The strategies and tactics used by them and how the customers
purchase the competitors brand, governments, business police and also about the general perception of
the public , consumer interest groups and other facilitators (Lanchester and Messingham, 1993).
In this regard, the company will be benefited from designing and installing marketing information
system all this information helps the company to

 Evaluate and control its current marketing strategies.

 Make relevant adjustment of business policy that is to improve or change it at all.
 Get ready advance to exploit the marketing opportunity and to tackle marketing challenges.

Forecast about the business in the near future and to develop a plan to realize the vision

Specify the organic objectives mission and goals of the company.

2.7 Benefit of Conducting SWOT Analysis (Strength, Weakness, Opportunity and Treat)
SWOT analysis can be understood as the examination of an organization internal strength and weakness,
and its environmental opportunities and threats. It is a general tool designed to be used in the
preliminary stages of decision-making and as a precursor to strategic planning in various kinds of
applications. An understanding of all external factors, (threats and opportunities) together with an
internal examination of strength and weakness assist in forming a vision of the future.

SWOT analysis- draws the critical strength; weakness, opportunities and threats (SWOT) from the
strategic audit. SWOT analysis distils these data to show the critical items the internal and external
audits (Gross ethal, 1988).

SWOT analysis is acronym of strength, weaknesses, opportunities, and treats.

 Strength; is areas of distinctive competence that must always be looked at relative to the
competition. It manage properly they are basis for competitive advantage and derive from the
marketing asset base.
 Weakness; is areas of relative disadvantage that indicate priorities for improvement. High light the
area and strategies that the planner should avoid.
 Opportunities; means it is environmental trends with positive outcomes that offer scope for higher
level of performance if pursued effectively.
 Treats; trends within the environment with potentially negative impacts that; increase the risks of a
strategy, hinder relative requirement and reduce performance expectation.

CHAPTER THREE

3 RESEARCH METHODOLOGIES

Methodology refers the process used to collect information; data for the purpose of
making business decision .the methodology may include publication research, interview,
survey and other research technique and could include both present and past information.
But this research contains some of methodology technique because of difficult to apply
many technique .so that the researches select some of methodology technique such as
interview questioner for employees and observation.

3.1 Research Design

To conduct this study the researcher has been used descriptive type of research .Because
descriptive type is used to describe data and characteristic about population or about the
study. Therefore the researcher was conduct this study the description of frequency and
average that would take from employee of Almeda textile factory PLC.

3.2 Source of data

To make study were fruitful the researcher was used both primary and secondary data.

 The primary source were gain through questioner by conducting both open ended
and cloth ended questioner for employees
 The secondary source was collected from different book report, Journal that is
related with the product development opportunity and challenges.
3.3 Method of data collection
To conduct this researcher would use questionnaire containing both open –ended
and close-ended from the employee and semi – structured interview for the
manager.

3 .4 Sampling size

In order to make the researcher feasible and scientific the researcher was used simple
random sampling techniques for it is appropriate and it is simplicity to conduct the
questioner.

The sample size of 5304 employees which is studying based on probability simple
random sampling to give equal chance to be selected for all employees. Generally 50
employees was taken sampling size event through the employees cannot precisely
represent the total studying population but the variable are homogeneous because the
company employees have almost common perception with regard to product
development challenge and opportunity, Therefore the sample size relatively satisfy the
study as whole.

n = N/1+N (e2) NB: n= sampling size

n= 5304/1+5304 (0.142) N= total population

n= 5304/1+5304 (0.0196) e= margin of error

n= 5304/105 =50

3.5 Sampling Technique

To collect relevant data from the total of respondents the researcher used simple random
sampling method .Because of it is more appropriate and simplicity to conduct the
questionnaire.

3.6 data analysis

The researcher collected data by the method of intention data analysis method and the
interracial data analysis methods are uses it includes process of sampling in addition to
this analysis Undertaken by using of percentage frequency table.

CHAPTER-FOUR

4. DATA ANLYSIS AND INTERPRETATION

This sub topic deal with the analysis and interpretation of the data collected through
questioner. The
Questioner where distributed to different employees of ALMEDA Textile PLC
Employee Respondent
In order to acquire frank and honest opinion of employees 50 questioners were
distributed for different employees of the factory .
4.1 Demographic Information of The respondent
The first part of the questioners consists of the demographic information of the
respondents. This part of the questioner requested a limited amount of information related
to persons and professional characters of respondents. Accordingly the following
variables about the respondents were summarized and described in subsequent table. This
Variable includes age, sex, marital status and education level.
Table 1.1 summary of number and percentage of resonant by age, sex, marital status and
level.
Respondents
Number Percentage (%)
S/No. Description
Gender
1 Female 15 30
Male 30 70

Total 50 100
Age
18-25 18 36
2 26-33 24 48
34-50 8 16
Total 50 100
Marital Status
Married 15 30
3
Unmarried 35 70
Total 50 100

Educational
background
Diploma 10 20
4
Degree 80
dfghfhg 40
Total 50 100
Source; survey Data 2016
Tables 4.1.1 above (30) 70% of their respondent were males and the remaining 30% of
respondent were females .Regarding the age of respondent were females. Regarding the
age of respondent the large group(24) 48% was in the a group of 26-33,the second largest
group 36% indicated their age as 18-25 years, about 16% of respondent indicated that
under the age group of 34-50.
The marital status of employess70% are, unmarried and the rest (15) 30% of employees
are married. and also the education level of employees indicated that a majority of
employees (80) are degree and above, where as the rest of 20% of employees are
diploma.

4.1.2 Source of marketing challenges

Based on the responses gathered from the employees of the firm, I have tried to discuss
the marketing challenges of ALMEDA textile factory. The questioner is designed to
know were marketing challenges are more affecting the factory operation, for more
information see the following table.
Item Respondent in

2 Which marketing challenges is /are

more affecting the company No Percentage (%)
operation process?
Domestic 28 56
International 15 30
Both 7 14
Total 50 100

Source; survey Data 2016

From the above table we can observe that majority (56%)28 of the employees ,indicated
that the factory highly affected its operation by the domes take factor and (30%)15 of
employees respond that the company affecting its operation by international factors .The
rest% of employee’s show that the company affect its operation by both domestic and
international factors. From this we can understand that the company probably affects its
operation by domestic, international factories respectively. In order to alleviate from such
kind of problem, the company should must realize which factors are highly affect the
company operation and protect themselves from such kind of problem by considering
their severity and consequences.
4.1.3 Question related with product dimension for attraction.
NO Item Resp
ondent in

No Percentage (%)
3 Which textile product feature are the most
important buying criteria for customers?
Quality 22 44
Durable 13 26
Price 11 22
Accessibility 4 8
Total 50 100
Source; survey Data 2016
The above table indicated that the respondent in relation to buying criteria. The majority
(44%) 22 of employees has shown the major buying criteria of buyer is quality and (26%)
13 of respondent indicate durability is the another buying criteria for buyer. And also
(22%) 11 and (8%) 4 of respondent reflected that, price and accessibility of the product is
the customer buying criteria for the company product respectively. All this indicated that
the most buying criteria of customer are quality, durability, price and accessibility of the
product respectively.
Therefore In order to fulfill the need and wants of customer, the company should be
produce products by considering the major buying criteria of buyer such as quality and
durability of the product respectively.
4.1.4 Respondent evaluation to their salary

NO Item Respondent in
HOW do you rate your salary? Number Percentage (%)
4 very satisfied 15 30
Satisfied 24 48
Indifferent 4 8
Dissatisfied 7 14
Total 50 100
Source; survey Data 2016
The above table shows that the majority (48%) 24 and (30%) 15 of empl
oyees are satisfied and very satisfied with the salary paid by the company respectively.
About (14%) 7 and (8%) 4 of employees are dissatisfied and indifferent with the salary
paid by the company respectively. From this we can understand dissatisfied employees
are there .this situation have its own impact for the company operation process. Therefore
in order to work effectively the company should improve their salary to all of their
employees.
4.1.5 General Question about the factory
No Item Respondent in
Which marketing environment(s) Number Percent (%)
do you think mostly affect the
5 factory operating process?
Competition 18 36
Physical environment 15 30
Economic environment 7 14
Technological environment 10 20
Total 50 100
Source; survey Data 2016
According to the above table the majority (36 %) 18 and (30 %) 15 of the company
employees responds competition and physical environment are mostly affect the
company operation process respectively. The rest (20 %) 10 and (14 %) 7 of employees
show that the company affects their operation process by technological and economic
environment respectively. From this we can observe that the company highly affected
their operation by competition, physical environment and technological environment
respectively.
Therefore in order to alleviate from such kind of problem the company should improve
their product with regard to other competition and uses technological oriented
production system. This help for the company to become a leader and preferable by
customer with regard to competitors and the like.
4.1.6 Question Related with customer high purchase season
No Item Respondent in
When do customers buy product Number Percent (%)
of the company?
On holiday 13 26
6 On birthday 8 16
On rain season on Hot/Wind 9 18
season
For a new year 16 32
On weeding month 4 8
Total 50 100
Source; survey Data 2016
In the above table shows that majority of customers intention to buy product are largely
for a new year (32 %,) 16 succeeded by (26 %) 13 on holiday.(18 %) 9 and (16 %) 8 of
respondent show that the customer intention to buy a product on rail season on
hot/wind season and birthday respectively, and also the rest (8 %) 4 of respondent
reflect the customer buy the company product on weeding month. From this we can
understand that the majority of customers to buy the company product on holiday, for
New Year, on rain hot/wind, Birthday and on weeding month respectively. Therefore
the company should produce their product by considering the above situations in order
to balance Demand and supply situation of the company.
4.1.7 Product categories market demand
No Item respondent in
Which type of product has good Number Percentage
7 market currently?
men clothing 17 34%
women clothing 13 26%
t-shirt pullovers 10 20%
babies clothing 10 20%
Total 50 100%
Source; survey Data 2016
The above table showed that the majority (34%) 17and (26%) 13of the respondent
indicates men and women clothe are good market respectively and the rest (40%) 20 of
respondent shows t-shirt pullover and babies clothing have equal contribution for good
market of the company product respectively. from this we can understand that men
clothes and women clothes are the main product that are highly needed by customer in
current market. Therefore the company should focus to produce products that are highly
needed by market in order to increase their sales ability and market share.
4.1.8 Question related to distribution channel
No item respondent in
Which type of distribution channel Number Percentage
8 does the company use?
sole sale 24 48%
Retailer 18 36%
door to door van sale 8 16%
Total 50 100%
Source; survey Data 2016
According to the above table the majority 49%of respondent shows the company
distributes their products by sole sales. More over 36%of respondent reflect the company
distribute their product to retailer the rest (16%) 8of respondent indicate the company use
door to door van sales. From this can understand that the company distributes their
product largely by sole sale and retailer respectively. This distribution channel has its
own advantage and disadvantage. In order to increase suitable and selection for customer
during to buy the product the company should uses additional distribution system.
4.1.9 Employee vertical integration
No Item Respondent

9 How do you see your relation with Number Percentage (%)

your bosses?
Very good 21 42
Good 16 32
Average 9 19
Poor 4 8
Total 50 100
Source; survey Data 2016
The above table shows that majority (42%) 21 and (32%) 16 of employees have Very
good and good relation with their bosses respectively the rest (19%) 9 and( 8%) 4 of
employees have average and poor relation with their bosses respectively. From this we
can understand that the majority 74% of employees have excellent relationship with their
bosses. Therefore the company works to protect this satisfactory relationship in order to
create suitable working environment and should improve all of its relationship with the
whole employees.
4.2 questions related with bases for price setting
No Item Respondent in
What type of consideration is taken Number Percentage
10 by the factor to set price for the
product?
Income of the consumer 29 58%
Cost of the product 13 26%
Fashion /style of the product 8 16%
Total 50 100%
Source; survey Data 2016
According to the above table the majority (58%) 29 of employees reflects the company to
set their price depending on the income of the consumer. (26%) 13 of employee said the
company sets their price depends up on the costs of the product and the rest (16%) 8 of
employees said the company set their product price based on fashion/style of the product
from all this we can understand that the company set their product price based on income,
cost, and fashion/style of the product respectively.
Therefore in order to satisfy customer the company should set its price by considering
customer purchase due to this reason demand base pricing is the most appropriate type of
pricing strategy.
4.2.1 Marketing area for products
No Item Respondent in
Where do you buy customer Number Percentage (%)
11 frequently buy your product?
In fair and exhibition 23 46
From stress vendor 13 26
In known boutique / shop 7 14
Around known place 7 14
Total 50 100
Source; survey Data 2016
The above table indicated that the majority (46%) 23 of the company products sells
during in fair and exhibition and around (26%) 13 of the company products sell by using
street vendor, in known boutique and place sells the company product around (14%) 7 for
each respectively from this we can understand that the majority of the company supplies
majority of the company product sells during in fair and exhibition and from street
vendor due to this reason the company supplies majority of their product during at the
time of fair and exhibition and street vendor this helps for the company to sell large
portion of their product with minimum distribution and selling cost.
4.2.2 Question related to staff motivation
No Items Respondent in
12 What is your comment on the staff Number Percentage (%)
motivation of the factory?
Very good 19 38
Good 15 30
Indifferent 10 20
Poor 6 12
Total 50 100
Source; survey Data 2016
According to the above table the majorities 19(38%) of staff motivations of the factory
are very good and (30%) 15 of the factory staff motivation is good, (20%) 10 and (12%)
6 of the company staff motivation are indifferent and poor staff motivation respectively.
All this show that the majority of the company staff motivations are very good, therefore
the company should continue this situation by fulfilling the need and wants of employees
and the company should offer reward and bonuses for on different or unsatisfied
employees in order to create effective working climate and yielding maximum
productivity.
4.2.3 Question related with external threat
No Item Respondent in
Which external factor mainly Number Percentage (%)
13 affects the company operation?
New entrant 11 22
Price of raw materials 11 22
Substitute product 20 40
Change in technology 8 16
Total 50 100
Source; survey Data 2016
The above table show that the majority 40% of the company external factor that affect
company operation comes from substitute products, 22% of respondent show that the
companies external threat comes as a result of new entrants, and the next 22% of the
company external threat comes from price of raw material and the rest 16% of the
company external threat comes due to technological change.
From this we conclude that the major external threat of the company is substitute product,
price of raw material and new entrant’s respectively. Therefore in order to alleviate from
such problem or protect the company from such hazards the manager should improve
their productivity by providing their product to customer with in minimum price, by
using strong brand for the product and offer superior product for customers. When as to
balance or control the price of raw material the company should develop strong log-term
relationship with suppliers, this help for the company to buy the supplier product at
minimum price with regard to other purchaser.

CHAPTER FIVE

5 MAJOR FINDING, CONCLUSION AND RECOMMENDATION

5.1 summary of the finding

The result of the data collected and analysis is presented in the following finding or
summery

 The researcher used both primary and secondary source of data to collect the
information.
 From total respondent majority (58%) of respondent are male and (42%) are
female.
 Out the total respondent majority of the respondent (49%)fall under the age group
of( 26-33)the next( 36% ) of the respondent under the age of (18-25) and the later
(16%)of respondent fall under the age of (34-50).
 In case of marital status the majority (70%) of the respondent is un married and the
rest (30%) are married.
 With respect to education level the majority (80%) of the company are degree and
above and the remaining (20%) of the respondent diploma.
 The respondent shows that majority (56%) of the company operation affected by
domestic factor.
 The company considers difficult factors during producing a product this factory
include quality (44%), durability (26%), price (22%), and accessibility of the
product (8%).
  The majority (79%) of employees shows that the company follows good payment
system. We’re as the rest (14%), and (8%) of the respondent show that they have
dissatisfaction and in different with regarding to the company payment system
respectively.
 The major (36%) and (30%) of respondent show that the company operation
mostly affected by competition and physical environment respectively.
 The company used both direct and in direct channel of distribution based on the
constraint of budget.
 The majority (42%)and (32%) of respondent shows that the relationship with their
bosses are very good and good respectively but the rest18% and8%of employees
shows they have average and poor relationship with their bosses respectively.
 The majority 59%of respondent indicate that the company sets their product price
based on income of the customer and the rest 26% and 16%of employees show the
company sets their product price by consider the cost and fashions/style of the
product respectively.
 The majority 40%of respondent shows the major factor that affect the company
operation is substitute the products.

5.2 Conclusion

The major purpose of the study as listed in the first chapter is to asses and identify the
problems that hinders the smooth operation of the company marketing practice and
associated marketing challenges and opportunity in general terms are concluded and
corresponding possible recommendation to the problem identified and defined.

In accomplishing this purpose questioner is distributed to employees of effective analysis

and presentation of data about the company. Based on the data collected analyzed and
interpreted in the previous part, the conclusion of the major finding is presented below.
  The major factor that affects the company operation is domestic and followed by
international factors but domestic environment has the main factor that affect the
smooth operation of the business.
 Quality, durability, price and accessibility of the product are the most important
feature in buying criteria that consider in utilizes the textile product. The major
buying criteria of the company buyer have quality durability and price this shows
the company can produce their product by considering quality, Durability and price
of the product that are suitable for buyers.
 Competition, physical environment and technology environment has the major
factor that affect the company operation process.
 T-shirt pullovers and women cloths are the main product that has high demand into
day’s market. So, the company to produce high quantity of this product in order to
sell effectively.
 The majority of respondent shows the company sets their product price based on
income of the customer and cost of the product.
 The majority of customer buys the company product during infer and exhibition
and from street vendor.
 The major external factor mainly the company operation are substitute product,
new entrant and price of raw materials in order to alleviate from such kind of threat
the company should must improve the product quality with that of competitors and
consider the competitor price during set their product price.

5.3 Recommendation

In this part the researcher tries to give certain recommendation that can help to the
factory to improve its activities
 To overcome the problem posed by the competitors the company should make
customer more aware of the difference in its quality and other attribute that exist
between the company and its competitor brand to create brand loyalty of customer.
 The company should improve quality, durability and accessibility of the product
they produced and minimized its price to attract new customers and retain the
existing customer.
Conducting a marketing research regarding to market area and create a smooth
relation with different research and development sectors and government to be
accessible for up to date market information to know the customer performance.
 It should improve the technology instrument to goes beyond the competitor
position and win competitive advantage on the market. The company bosses
should continuous their relationships with employees in order to create conducive
working climate.
 The company is recommended to transfer forward integration a sense to distribute
its product by its product by itself instead of through intermediaries for the sack of
having cloth relation with final customers.
 The company is recommended to create smooth coordinate among the staff
members of different department and with the management bodies of company to
improve product quality and productivity.
 The company should improve the payment system for employees, this creates for
stimulate employees and yielding maximum result.
 The company should improve their production capacity by considering high
demand and low demand season and search other new market in addition to current
market in order to sell high volume of product.
 To overcome the problem posed by substitute product new entrant and price of raw
material, the company should must improve the company product with regard to
quality,
REFERENCES

 Davida aker, (1999), production management, 9th edition, prentileHall India.

 Dana niccoleta and Kenneth E, claw (2004), paper back on line study guide
edtion.
 Hodgetts, Richard M.Kuroakt, Donald F. principle of marketing; a contemporary
approach 4th, edition, the drydenpress, (1998).
 Mayer and Allen (1994), entrepreneurship and small business management by
the glucose division of Macmillan,(MC GRAW high school publishing company).
 Philip Kotler and Gray Armstrong (2006), principle of marketing, 11th edition
prentice Hall
 P. N. mukherjee T.T Kachwala,(2009) operational management and productivity
 APPENDIEX
Aksum University
College of Business and Economics

Department of Marketing Management

The questionnaire filled only for the employees of the company

This questionnaire is organized by marketing management student in Aksum

University. The objective of this questionnaire is to collect information regarding the
‘MARKETING OPPORTUNTIES AND CHALLENEGES FOR PRODUCT DEVELOPMENT IN
CASE STUDY OF ALMEDA TEXTILE FACTORY PLC’ in order to fulfill the requirements for
awarding of BA Degree in Marketing Management. The information obtained from this
questionnaire will be kept confidentially and will not be used for any other purposes. It
is only for academic purpose.
‘THANK YOU IN-ADVANCE FOR YOUR COOPERATION’

General Direction
 No need of writing your name
 Put your right information in the box (x) signs.

Part I: Background of the Respondents

Personal information
1.1 sex: Male Female
1.2 Age: 18-25 26-33 34-50 above 50
1.3 Marital status: Married Unmarried
1.4 Education level: Below High School Diploma
Certificate Degree above

Part II
1 Which market challenge or challenges is/are more affecting the factory
operation process?
 Domestic International Both
Other, please specify ……………………………………………………………
………………………………………………………………………………………………………
2. Which textile products feature is most important buying criteria that consumer
that consider?
Quality Durability price Accessibility
3. What is your opinion on your salary?
Very satisfied Satisfied indifferent
Dissatisfied very Dissatisfied

4. Which marketing environments do u think mostly affect the factory’s operation

process? (You can tick more than one)
Completion economic environment
Physical environment technological environment
Other specify……………………………………………………………………………...……
…………………………………………………………………………………………………………….
6. When do customers buy products of the factory?
On holiday on birth day on weeding month for a
new year
Other specify……………………………………………………………………………...…………
……………………………………………………………………………..……………………………
7. Which type of product have good market currently
Men cloth women clothing
T-shirt pullovers babies clothing
8. Which type of distribution channel does the factory use? (you can tick more
than one)
Sale sales retailer door –to door vans lees
9. How do you see relation with your bases?
V.good good average poor very poor
10. What type of consideration is taken by the factory to set for the products?
Income of the consumer cost of the product
 Fashion/style of the product
Other specifies………………………………………………………………………………………
……………………………………………………………………………………………………………..
11. Where do customers frequently buy government products?
In fair exhibitions from street vendor
In known boutiques /shops around known place
Other specify……………………………………………………………………………………………
12. What is your evolution on the staff motivation of the factory?
V.good good indifferent poor very poor
13. What looks the coordination of the management staff with other employees for
the success of the factory?
Very good goood average poor very poor

14. Do you know that the company faced raw material problem?
Yes No
15. If you say “yes” for question no. 14, what measures the company undertakes?
Replacing raw material suppliers
Informing the suppliers to come across their weakness
Specify others
16. Company production performance in comparison with product requirement?
Very satisfactory Satisfactory Neutral Unsatisfactory
17. The decrease in the production capacity results?
The decrease in the market share Los the customer by other competitors
Both
Specify others ____________________
___________________________________________________________________________
18. What methods are the companies used to improve its production system?
Hiring of trained man power and providing incentives for employees
Sharing of experience with other company and cooperate with different
department
Specify others
 Aksum University
College of Business and Economics
Department of Marketing Management
Interview for Manager
1. What are the strategies of the company to reduce the challenges of product development?
_________________________________________________________________________
__________________________________________________________
2. What problems do you face in relation with raw material?
_________________________________________________________________________
___________________________________________________________
3. What the condition of road transport the company?
_________________________________________________________________________
___________________________________________________________
4. How to reduce turnover rate of employees?
_________________________________________________________________________
_________________________________________________
5. What are the strategies of the company to develop marketing opportunity at domestic
level? ______________________________________________________________
____________________________________________________________________
6. What are the strategies of the company to maximize market opportunities at national
level? ______________________________________________________________
_________________________________________________________