STRATEGIES FOR MARKETING SUGAR CANE PRODUCTS IN NIGERIA: A CASE STUDY OF NIGERIAN SUGAR COMPANY LIMITED BACITA
STRATEGIES FOR MARKETING SUGAR CANE PRODUCTS IN NIGERIA: A CASE STUDY OF NIGERIAN SUGAR COMPANY LIMITED BACITA
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Date
1998
Authors
IBRAHIM, Ibrahim Salihu
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Abstract
This study is concerned with the determination of the marketing strategies being used
by Nigerian Sugar Company Limited Bacita in the marketing of sugar cane products which
is their main source of income.
The study investigated the extent of which the performance of Nigerian Sugar
Company Limited Bacita has been influenced by the strategy has adopted over the past six
years. Both primary data (through questionnaires) and secondary data (published reports)
were used in addition to interviews held with the principal officers in each of the functional
areas of the company.
It was found that the effective performance of the company as indicated by this
project covered by the period of study has been due mainly to the following
strategies/policies and other innovations which the company had developed over these years.
i. Operation of an open door policy as a system that allows interested buyers to purchase
consignments on availability at the time requested. The company operates this system
as opposed to appointment of distributors where by only selected organisations and
dealers would be privilege to buy sugar. This system equally allows for products
spread and alleviate the suffering of the populate. Indeed, the distributorship system
would not succeed in a situation where the company is involved in seasonal operation
which makes difficult to keep customer allegiance/ public commitment during the off
crop season. Here the company engage in dynamic retailing.
ii The price of sugar in the world market often determines the price of achieve by local
sugar producers in Nigeria. In adopting this as a marketing strategy, the company
usually starts production during period of high prices in the world market since
virtually about 95% is imported. During this period the company market share is high
bank there sugar product prices will be cheaper.
iii Yet another strategy adopted by NISUCO is that the company sell to a selected geo
graphical markets due to resource constraints the desire for effective use of resources.
This system is aimed at distinguishing carefully among the region which the company
might operate and chose those in which they could enjoy a comparative advantage.
Over 80% of the company 50kg white granulated sugar is being sold at the Northern
market mainly Kano. Maiduguri and Sokoto. The categories of those customers are
Pharmaceutical Companies, Soft Drinks Manufacturers, Distilleries, Breweries,
Bakeries, Confectionery Company, and individual organisations. Here the company
has curve out a riche for its self.
iv. The Company also supply differentiated sugar products package into sizes to market
to maintain marker presence and enjoy greater market share NISUCO uses this
product strategy of filling the vacuum of degrees of variation and distribution created
in the product market with different quantity price brands of sugar example are 50kg
bag white granulated sugar deal for industrial manufacturing process, sweet cane
sugar (both white and brown) in 500grams pack which is weal for domestic table use
they are in 20, 40, or 50 sachets in a carton.
v. Pricing policy which is aimed at implementing various price tactic that are geared
towards improving customer interest in the company's sugar products by providing
price discount to customers that purchase sugar Cane products from N5 million to N10
million.
vi. New product features is introduced to broaden the line and improve brand image.
Product like the Golden Brown Sugar which is not commonly use in Nigeria. Brown
sugar is more nutritions than the white sugar which has been subjected to chemical
process to arrive at its white colour. The company has been creating the awareness
of the benefits of Brown Sugar.
vii. Promotion on new product like the Golden Brown Sugar in been focused on this
specific product and its Unci attributes aimed at new customers who are easier to
convince them switchers.
viii. A marketing system focusing is adopted to co-ordinating company effort and establish
co-operate and marketing departmental objective consistent with the company profit,
growth, and social objectives.
Description
A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL,
AHMADU BELLO UNIVERSITY ZARIA IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR AWARD OF THE DEGREE OF MASTER OF
BUSINESS ADMINISTRATION (MBA)
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA.
Keywords
STRATEGIES,, MARKETING,, SUGAR CANE,, PRODUCTS,, NIGERIA, CASE STUDY,, NIGERIAN SUGAR COMPANY,, BACITA