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STRATEGIES FOR MARKETING SUGAR CANE PRODUCTS IN NIGERIA: A CASE STUDY OF NIGERIAN SUGAR COMPANY LIMITED BACITA

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.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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