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PROBLEMS ASSOCIATED IN MADE IN NIGERIA GOODS. A CASE STUDY OF SHOE

CHAPTER ONE

INTRODUCTION

1.1   Background to the study

In Nigerian, shoes have become one of the many principal products in the market, even in the biggest market so far in West Africa (Onitsha main market). Shoes are also among the priority products consumed by everyone; hence the market is a growing one.  With the restrictors on the importation of foreign shoes, the industry has a wider market to cover.   It is true in the sense that in addition to serving its former customers, it has to delve into extend hands these segments of the market, that were previously served by foreign shoes. It becomes obvious at this juncture to observe that shoes, has various market opportunities.   It segmented the way it will please customers, like we have infant market for shoes, youths market as well as adult market for shoes.  With the increase in birth rate resulting to more infant and youths respectively within the economy this market continues to grow in order. Historically, the marketing of shoes was not an easy job.   This was because a seller has to identify the individual that needed shoes and incidentally the buyer on his own part ought to have what the shoe seller wanted as well.   This was the period of barter characterized by the exchange of goods for goods and services.   The markets themselves not organized in retarded, the extent of demand for shoes because people could not find it very easy in locating the shoes sellers with their product. However, with the introduction of monetary system the various markets became organized and more formed as opposed to what was previously obtainable.   This resulted in increase in demand for products including shoes because this time around, traders have definite area for definite products and some people bought impulsively due to the way the product were displayed because there was no promotion of any kind.   The extent of the market growth attracted competitions owned chains, many chains of single.   Line stores owned and operated by manufacturers. These chains were responsible for the business done by all shoe stores.   Furthermore, franchised dealer ship emerged. 

A franchise dealer runs a single-line store that does all its purchasing from sponsoring manufacturers or wholesalers in return for the use of a well known name like that of “BATA” or “UTC. In order to compete seriously with independent retailer, some traders engaged themselves in scrambled merchanding. In this regard, they scramble shoes-adding shoes to unrelated products because shoe business was progressive.  Besides, during these periods, the marketing strategy was mainly that of achieving presently, this strategy has been supplemented by the use of billboards, signpost and sponsorship of contents. However, the industries were self-financed by part placed ban on foreign shoes in order to encourage local manufacturers. Despite the ban on importation of foreign shoe, the government has also instituted other measures to help the local manufacturer’s progress.   Such measures includes: Tax exception granted to them unwarranted loans, industries technical services, service grants and subsidies, provision of import licenses as well as export promotion and advisory services units.   In view of these efforts of both the manufacturers and the government to help local industries grow, the industries seem not to achieve its stated objectives.   It then became necessary to study the problems associated in made in Nigeria goods. A case study of shoes

STATEMENT OF THE PROBLEM

Having known that shoes is one of the prioritized products that is virtually consumed by everyone alike in any given economy.   It has a wider market as it has many consumers to sere irrespective of size and location.  However, one thing is certain.   The industry does not seem to yield much needed effort with respect to huge sacrifices of the manufacturers as well as the government.   This is true in the sense that most of the verge of liquidation.   For instance, a source disclosed that BATA, which originally produces ten million (10, 000, 00) shoes annually last four years, now produces less than half of that capacity.   In Kano Gagand Alhari shoes, makers of snakeskin shoes now produce forty-five shoes weekly as opposed to previous two thousand units weekly. In Onitsha, Chuberg Shoes Ltd has even laid off fifty employees.   The company could no longer cope with two thousand, three hundred and twenty units against fifty thousand unit that were previously produced.   It is therefore on this vein that the researcher is bent on conducting a study on this issue to identify attitudes of consumers towards locally made shoes and possibly the factors responsible for them.  Furthermore, knowledge of consumer attitudes may provide a sound basis for improving, redesigning and developing the product as well as evaluating promotional programmes.

 OBJECTIVE OF THE STUDY

The researcher is expected to;

1)  Find out factors that influence the attitude of Nigerian shoes consumers.

2) See whether this distribution and promotion strategies adapted by local shoes manufacturers affect sales of shoes made in Nigeria.

3) To find out if the presence of foreign shoes in Nigeria market affect sale of locally made shoes.

4) Make appropriate recommendation that will be beneficial to local manufacturers generally and shoes industry in particular based on the findings.

5) To know whether the Nigeria made shoes are inferior in relation to their foreign competing brands.

RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher; 

H0: there are no factors that influence the attitude of Nigerian shoes consumers

.H1: there are factors that influence the attitude of Nigerian shoes consumers.

H02: Nigeria made shoes is not inferior in relation to their foreign competing brands

H2: Nigeria made shoes is inferior in relation to their foreign competing brands

SIGNIFICANCE OF THE STUDY

The shoe industry is one of the major sectors of the economy that facilitates economic development within a given entity.   This could be justified by taking cognizance of the following. It helps to provide gainful employment to the citizenry.   Through exportation, it generates enough revenue for national development and consequently helps to conserve out foreign exchange reserves. It acts are a protective device to consumer against foot injuries and also beautifies the feet.   However, by not patronizing the locally made shoes, one should be expecting to see the shortcoming of the shoe industry or unemployment syndrome that has been currently rooting deep into the fabrics of the society. On the other hand, the insistences on the purchase of foreign shoes will not only reduce our balance of payment position but may also result to the depreciation of our national currency. In addition, consideration the federal government policy programmes that de-emphasized on the production consumption, and possibly exportation of locally made shoes.   It therefore becomes imperative or inevitable to study the attitude of consumers towards made-in Nigeria shoes with a view to revitalizing the shoe industry entirely.

 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers problems associated in made in Nigeria goods. A case study of shoes.  The researcher encounters some constrain which limited the scope of the study;

 a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study     

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities. 

DEFINITION OF TERMS

PROBLEM: Definition of problem - a matter or situation regarded as unwelcome or harmful and needing to be dealt with and overcome, an inquiry starting from given

ASSOCIATED: Anything usually accompanying or associated with another; an accompaniment or concomitant

MADE IN NIGERIA GOODS: Goods manufacture, constructed or made in Nigeria

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.  

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