EFFECTIVENESS OF PROMOTIONAL STRATEGIES EMPLOYED BY AGRO- ALLIED INDUSTRIES IN NIGERIA
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EFFECTIVENESS OF PROMOTIONAL STRATEGIES EMPLOYED BY AGRO- ALLIED INDUSTRIES IN NIGERIA
This study examined the efficiency of promotional tactics used by agro-allied industries in Nigeria to promote their products such as meshing, casavita, yam flour, maize flour, animal feeds, and vitarice.
The researcher chose Olympic Maize Milling Agro-Allied Industries Ltd. Awka as a case study. He conducted an in-depth analysis of the numerous promotional aspects and available media, as well as their techniques.
Following a study of similar literature, respondents were asked a variety of structured questions. These questionnaires were distributed to Olympic Maize Milling Agro-Allied Industries’ customers as well as its management.
The researchers also conducted an oral interview with the company’s manager, from which I obtained most of the information not addressed in the questionnaire.
The researcher’s project topic served as the foundation for testing two hypotheses using “a chi square approach”. The analysis of our data revealed that the majority of consumers of Agro-Allied products (Olympic) Mesolina, Olympic cassvita,
Maize flour, animal feed, and so on became familiar with the product through advertising, with radio advertising being the most effective, followed by television advertising that began immediately after the national broadcast in the evening.
It was discovered that radio and television were the most effective media for promoting products, as judged by customers. Furthermore, the management affirmed this based on the research analysis.
The significant strategies in the promotional tools used by management, as discovered by the researcher in her interview with the marketing manager and some customers, are the jingles on the radio, which run as follows:
the more you buy it and cook for food, the more satisfaction you get, which consumers said was time. The one utilised in the campaign is also successful and noteworthy because of how they cook it after preparing the Olympic mesolina, setting it on the table, and the family sitting around the table nodding in affirmation and requesting that it be made into everyday cuisine.
Finally, we recommend what we believe are appropriate measures to improve the effectiveness of promotional strategies used in the marketing of Agro-Allied products and other similar establishments,
such as product research and development, hiring promotional experts and strategies, and maintaining good cooperation among citizens through community activities.1.0 Introduction
1.1. Back Ground
In the 1960s, Nigeria’s economy was characterised by agroindustries and the manufacturing of agricultural goods, which were exported in raw or semi-processed form to the rest of the globe. Before being exported, the items required to be stored and protected against decay or deterioration, which increased the cost of agricultural products.
The urgent need to extract greater value from agricultural products, as well as the cessation of importation of import substitution items, increased the development emphasis of agro-allied businesses in various parts of the country.
The agro-allied industries are those that employ agricultural products as raw materials to manufacture other consumer and industrial finished goods. They are referred to as agro-allied industries since 70.80% of their component raw material inputs are agricultural produce.
The federal government fostered the expansion of agricultural-allied products in order to reduce raw material imports or import substitutions. The agro-allied industries that required to be examined are listed below.
Industries (Agro-Allied)
Agricultural product utilised
Brewing Industries
Wheat sorghum, malt, and barley oranges
Wine Industries
Grapes with Lemon
Meat Processing Industries
Poetry: sheep and beef
Biscuit industries
Maize wheat, Guinea
Milling industries
Corn
Milling industries
Maize, wheat, cassava, yam, and rice
Promotional techniques are so planned efforts that encourage customers to adopt any product offering or service. It entails the application of suitable communication massage via point, media, electronic media, billboard vehicle advertising, and other methods. Strategy refers to the numerous technologies and methodologies used to achieve promotional goals.
According to the preliminary investigation, the key promotional techniques used by these Agro-Allied businesses include advertising, sales promotion, personal selling, and public relations.
It also demonstrates that these tactics are adopted due to the availability of massage therapists, who acquire broad audience coverage while also covering a big geographical area.
These bearers of point media include newspapers, magazines, and business journals, as well as electronic media such as television, radio, films, and videotapes. These mediums are used to influence, convince, and attract customers to make a positive purchase, hence increasing a company’s sales and profit position.
Agro-Allied Industries uses advertising to promote new products while also encouraging existing customers to buy them. These agro-allied industries rely on advertising to move their products through the distribution channels (from producer to wholesaler to local store) in order to build consumer loyalty to their brands and dealers and mitigate the impact of competition. They need volume to keep their factories running smoothly.
Advertising without sufficient product distribution is inefficient; yet, when products are widely distributed and appropriate media are employed to advertise the product, the effect can be flexible. The primary media utilised by Agro-Allied enterprises in the industry to sell their products are newspapers, magazines, network television, sports radio, and outdoor advertising.
According to the preliminary study, four of six agro-allied companies in the industry proved advertising to be effective in that they achieved 85%-95% of the expected revenue after their advertisement.
Although the Olympic Agro-Allied industry experienced a drop in sales volume, it was understood that they may not know the percentage that occurred as a result of advertising, as explained.
The favourable impact of Olympic advertising has allowed it to remain in business, as they use local and national newspapers, radio, and television. The rapid patronization by consumers, driven by advertising,
prompted retailers and wholesalers to stock more Olympic products, providing the company with a significant return on volume sales to cover the cost of the product and advertising.
This method encourages dealers to stock new items or build up a larger supply of an old product. This is accomplished by adding unique aftermarket services to the trade in order to fill gaps in a product’s patchy distribution while also gaining extra dealers and locations that are underrepresented.
How AGRO-ALLIED Uses Sales Promotion Strategies
CONSUMER PROMOTION
Sales promotions aimed at consumers include product launches through lower selling prices, samples, gifts, and extras that draw consumer loyalty and encourage testing of a new product, increased usage, and purchases of large-sized units by frequent buyers. Olympic maize milling Agro-Allied industry uses this strategy extensively, which has contributed to consumer loyalty.
Trade Promotion
The Agro-Allied industry employs trade marketing to win wholesaler and retailer cooperation. For example, Olympic maize milling enterprises sell maize and cassava flour and provide a purchasing allotment for a set amount of time.
This offer encourages dealers to carry a new item that they would not normally purchase, and these corporations forced dealers to use the purchasing allowance for instant profit.
Agro- Industries provides special incentives to wholesalers and retailer salespeople to display their products prominently, particularly by issuing a designed trolley carrier containing a large number of mesoline and vita race, which the retailer keeps in a strategic location in their large store. The effect is that consumers acquire them first before others.
Personal Selling
Agro-Allied enterprises utilise the promotional technique when their products are used as raw materials by other companies and require demonstration, such as explaining to biscuit industries the degree to which their granulated corn flour should achieve and be suitable for biscuit making.
They also employ this method to provide post-purchase reinforcement to reduce cognitive dissonance, which occurs when companies are dissatisfied with the input they purchased from Agro-Allied Industries.
Arome Form employs this when it supplies chickens to breeders and sends salespeople to inspect breeding space, housing, and chicken medications. They also convince, motivate, and receive the command.
As previously stated, these Agro-Allied industries (beer brewing, wine marketing, meat processing, livestock, biscuit, and milling) use these strategies in the distribution of their products, and because these products are perishable, they must ensure early distribution and dispersion of such products. This implies that the strategies of such product. This means that their promotion techniques must be both effective and durable.
As Dr. Little (1971) correctly stated, the goal of advertising (among other promotional elements) is to help sell a product, assist the sales force in reaching hidden consumers, increase market position, and build market preference.
It indicates that where these are met, the promotion is effective; otherwise, it is ineffective. These examples demonstrate that, in certain promotional tactics, advertising as a partner to human selling can yield sales that are more cost-effective and efficient than the salesman himself.
Some of the promotional methods used by these agro-allied sectors vary depending on the items being advertised; some of them include:
1) Launching all radio and television advertisements
2) Take part in all local and national exhibitions.
3) Buy space in at least three local newspapers.
4) Using prime time to attract housewives.
5) Showing the advertisement on local television right after national news.
6) Ensuring business responsibility in the community
7) Providing after-sales service where necessary.
The key follow-up to these measures implemented by Olympic Maize Milling Agro-Allied Industries is the extensive distribution of their products. Alternatively, the consumer can simply hear or see the advertisement and then go to any local business to see the product.
Before the discovery of crude oil in Nigeria, agriculture was the primary source of income for the country. Approximately 80% of Nigerians worked in agriculture. Nigeria gained foreign cash by exporting farm products in their natural and semi-processed forms to other countries.
Agricultural marketing includes all of the activities that dry the flow of agricultural products from the producer to the final consumers and industrial buyers or users at a profit,
thereby keeping farmers in business while also ensuring the promotional movement of these farm products. This act of marketing Nigerian agricultural products was carried out by the Marketing and Commodity Board (since disbanded).
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