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CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

During the pre-and post-independence period Nigerian market were flooded with foreign goods including cosmetics, There was a greater enthusiasm for specialization in importation for sale rather than in local production sale.  The scramble for the importation of ready- make –goods into the country for sale was so great that people gave little attention to local production of even simple goods that were not otherwise very difficult of produce.   Nigeria suddenly became a market for all sorts of good as a result of the trend that Nwokoye (2011) reported in this books that during this period, “Nigeria had become a dumping ground for all manner of foreign goods” An observable fact for consumption activity in Nigeria during this periods consumers marked preference for imported goods.  This attitude has been attributed to many factors by various authors. For instance, Oyegunle (1982) attributed it to “poor quality and high price of made-in-Nigeria goods”.

Oluzoga (1982) on his part pointed out that “Nigeria business attach little importance to the marketing function into management decision making and that in Nigeria, the business do not care much about customer satisfaction”. Abonifo (2015) attributed it to psychological factors.  He said that some individuals searching for distinctiveness, exclusiveness, egotism and in the course of buying seek our those product which can confer these qualities.

A situation that worsened the condition was the issue of Nigeria big market and stores being filled up with foreign made products.  The researcher observed that mot classic shops and market stock more of foreign made cosmetic product (beauty aids) then the locally made ones. These stones and market display more of foreign made cosmetics (beauty aids) than locally made ones for consumers.  Locally made cosmetic (beauty aids) are sold more by petty traders, because of inadequate capital.  This dependence of foreign goods continued up till the period of oil boom in Nigeria.  Later on, many Nigeria businessmen were courageous enough to set up some manufacturing plants in Nigeria.  These Nigerians could not continue seeing their market being taken a way from them by their foreign counter parts.  Among the manufacturing firms that were set up were the cosmetics firms.

Marketing of cosmetic products (beauty aids) in Nigeria is one of the most developed market sector in the economy.  This is as a result of the stiff competition in the cosmetics market even at the time, of scarcity of manufactured product who ventured into the market during this period were edged out and they then concentrated on the very low income group as their target market.  Big cosmetics companies like the Patterson and Zochonis P.2 Nigeria Limited, Christilieb. (Nig) Ltd, G.B Olivant (Nig) Ltd etc. and the imported cosmetics took advantage of this situation and edged out the small-scale manufacturers our of the market.

In order to encourage local manufacturer of products including cosmetics, import restrictions were introduced under the comprehensive import supervision scheme in 1978.  Certain classes of goods were banned from being imported and restrictions imposed on importation of certain other goods through the requirement of import licenses or increase in import duties.  This was a tremendous opportunity presented to indigenous producers to launch new Nigerians brands that would be for consumer acceptance in the product categories affected. Also in 1996, the structured Adjustment Programme (SAP) was introduced and a new industrial policy as well as expert scheme programme was promulgated. These introductions improved the manufacturing sectors in the economy.

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