CHALLENGES FACING HANDICRAFT BUSINESSES IN IMPLEMENTING PROMOTION STRATEGIES FOR THEIR PRODUCT
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing and promotion are strategic tools for business development that aid in the proper growth and endurance of micro, small, and medium-sized businesses. It is critical to the success of any enterprise, and while large corporations have hired employees to handle marketing of their products or services, micro (Handicraft industry) and other small businesses lack the financial resources to invest in marketing of crafts products. As we all know, finance is the lifeblood of any industry, allowing it to fight any crisis, but these businesses lack strong financial backing, making them self-sufficient in making decisions about the well-being of their operations. Governments started various marketing schemes to raise public awareness, such as exhibitions, handicraft emporia, training, publicity through painting and electronic means, market and product assessment tours for artisans (Annual Report 2010-11, Ministry of Textile). Shopping matrix analysis helps to understand consumers’ purchasing behavior and to overcome differences between what firms provide and what consumers expect from firms. It also aids in the development of a marketing strategy that aids in the effective resolution of problems (William, 1965). Marketing Support & Services Scheme is a new scheme that was created by combining two previous schemes, Marketing Support Scheme and Export Promotion Scheme, in the Eleventh Five Year Plan (Annual Report, 2010-11, Ministry of Textiles). Now is the time for small
In the globalization era, a large enterprise acts as an engine, promoting product innovation, broadening economic development, and having a significant presence in international markets. In the Globalized era, entrepreneurial orientation is an important characteristic of the entrepreneur, who formulates marketing strategy based on firm performance (Gary Knight, 2000). Marketing Support and Services Scheme is the only subsidiary of the handicraft industry that focuses primarily on marketing activities in domestic and international publicity through various modes of communication (Annual Report 2011-12, Ministry of Textile).
Tero and Erkki (1979) discovered that the formulation of marketing or promotion strategy is influenced by various market conditions and objectives such as non-adaptive, time-dependent, competitively adaptive, sales responsive, and profile responsive strategy. Due to changes in seasonal growth, merchandising, and competitive aspects of the markets, it aids in market capture. According to Yoram et al. (1973), sophisticated management approaches play an important role in developing international marketing strategies, and four types of altitudes or orientations have played a significant role, including ethnocentrism (home country orientation), polycentrism (host country orientation), regiocentricism (a regional orientation), and geocentrism (a World orientation). These are determined by the various market environments and intra-company factors based on the firms’ costs and benefits. According to Nigel et al. (2011), the role of strategy management is critical in marketing management because traditional marketing approaches have not played a significant role in the real world of business. The educational institution
The strategy management of a training center faces a difficult task in designing and delivering education. Yihao and Yuning (2010) discovered that consumer psychology is an important strategic aspect for industries to consider when designing their crafts products. The handicraft industry is facing a variety of issues, including a disconnect from modern manufacturing techniques, a lack of design flexibility, and a lack of knowledge about various types of promotional activities, among others.
According to R. Ramaswamy (2013), the handicraft promoting federation should play a significant role in increasing competition at the local, national, and international levels, and marketing research is a component of marketing management that must be aware of the test and preferences of customers in the craft markets. The various clusters have been working in different parts of the country, each with their own product specialties, such as Assam Bamboo crafts, and these clusters need to provide a common platform where they can exchange ideas and techniques about the crafts, which is also important for buyers and sellers. At the present time, advertisement plays an important role in making people aware of the uses and availability of products, but the unorganized and low profitability of this industry makes it inefficient for craft product manufacturers to invest money in advertisement. According to Noor et al. (2012), the handicraft industry in Nigeria has played an important role in terms of employment and foreign exchange, but this industry is far from sustainable. away for the implementation of the modern concept in manufacturing and retailing activities. Handicraft products have been an important medium for any country to show their culture and tradition in order to attract domestic and foreign tourists. Most handicraft producers made products for their own and local users because they had no information about the demands for craft products at the national and international levels, and they never gave their best effort because most artisans worked on a part-time basis. According to Kumar and Rajeev (2013), this is the e-commerce era. The internet has played an important role in providing a common platform for all businesses. It is a low-cost and powerful medium through which consumers can easily communicate. learn about a product’s features, price, availability, and accessibility, order the product, pay the price, and so on. The handicraft industry requires this medium to market their products because it is an effective way for small retailers to reap these benefits with a small investment and it covers a large proportion of customers including local, national, and international customers when compared to other forms of advertising such as banners, posters, pump lets, exhibitions, and so on.
1.2 STATEMENT OF THE PROBLEM
The increasing intensity of competition in global markets is a challenge for firms at all stages of international market participation. As markets open up and become more integrated, the rate of change quickens, technology shrinks market distances and reduces large firms’ scale advantages, new sources of competition emerge, and competitive pressures mount at all levels of the organization.
The majority of handicraft entrepreneurs sell their products locally and through agents, and the majority of them never promote their products internationally. This has been attributed to a lack of marketing skills as well as financial resources to support marketing efforts. High packaging and shipping costs, high and constantly changing tariffs, certification and quality standards set by importer countries are the most significant challenges for handicraft export. Counterfeiting and a lack of patent laws, as well as a lack of innovation and creativity among artisans in order to meet market specifications and demanding contracts (Ndungu, 2012). All of the difficulties raised piqued the researcher’s interest in learning more about the difficulties faced by handicraft entrepreneurs in implementing product promotion strategies.
1.3 OBJECTIVES OF THE STUDY
The primary goal of this study is to identify the obstacles that handicraft entrepreneurs face when implementing promotion strategies for their products. More specifically, the study intends to;
1. Learn about the challenges of the Nigerian handicraft industry.
2. Examine the impact of these challenges on the growth of the Nigerian handicraft industry.
3. Determine the impact of implementing promotion strategies on handicraft business sales in Nigeria.
4. Provide solutions to handicraft business challenges
1.4 RESEARCH QUESTION
1. Are there difficulties in the handicraft business in Nigeria?
2. Is there any impact of these challenges on the growth of the Nigerian handicraft industry?
3. What effect does implementing promotion strategies have on the sales of handicraft businesses in Nigeria?
1.5 RESEARCH HYPOTHESIS
Ho: There is no discernible impact of challenges on the growth of the Nigerian handicraft industry.
Hello: challenges have a significant impact on the growth of the handicraft business in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
The study’s findings will serve as an empirical foundation for future policymaking in Nigeria on handicraft issues. The findings of this study will be useful to the government in formulating policy decisions with the goal of providing an enabling environment that will help facilitate the global market of handicrafts traders in Nigeria. The findings of this research project are a source of reference material for future research on related topics for academicians and researchers; and will also help other academicians who are studying the same topic may use the findings of this study to restart undertaking activities aimed at reducing the challenges faced by handicraft traders in accessing the global market.
1.7 DELIMITATION OF THE STUDY
Obtaining funding for general research work will be difficult during the course of study. Correspondents may also be unable or unwilling to complete the questionnaires provided to them.
However, it is expected that these constraints will be addressed by making the best use of available materials and devoting more time to research than is necessary.
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