Analysis of marketing problems and opportunities of small-scale industry products: case study of Yilo Krobo District In Ghana

In developing countries, including Ghana, small-scale industries are being accorded more emphasis because of their significant contribution to the national economic and social objectives. In the context of Ghana, the commitment of the government and nongovernmental organisations in promoting small-scale industries is reflected through various policy measures and assistance programmes that have been designed for the development of the sector. However small-scale industries in Ghana, like other African countries, are facing various development problems and constraints. Research results and practical experience of various assistance programmes in the county cite that one of the main development problems of small-scale industries is lack of market for their products. With a view to addressing such problem within planning context of promoting small- scale industry, the study investigated basic marketing problems and opportunities of small-scale industry products by taking Yilo Krobo District of Ghana as case study area. Some of the specific objectives of the research were: to examine the measures and strategies used by the small-scale industry owners in marketing their products, to identify specific problems and opportunities in marketing small-scale industry products, and to come up with possible options to enhance marketing performances of small-scale industries in the district. Using multi-stage sampling procedure, three settlements were taken as study units and then specific numbers of small-scale industries were sampled from each study unit. Due to lack of “sample frame” the study adopted an explorative sampling approach that involved anticipating different kinds and numbers of small-scale industries in each study unit. By assessing general characteristics of the sampled small-scale industries, investigating their main development constraints, by evaluating their marketing performance, and also by assessing the internal and external factors that were considered to have significant influence on marketing small-scale industry products in the district, the study enabled to come up with specific findings. Generally the small-scale industries in the district were found to be characterised with very small in terms of the size (manpower and capital employed), rudimentary and inefficient technology of production, poor working condition, and low level of educational background of the entrepreneurs. The small-scale industries in the district face different development problems and specifically, it was found that their marketing problems are mainly: lack of appropriate selling places, severe competition from domestic industrialists and importers of used goods, the local potential customers’ biased attitude of preferring imported goods, and poor marketing strategies of the small-scale industrialists themselves. On the other hand, existing industrial policy and support programme of the government, penetrating the neighbour West African markets, and existence of different associations of small-scale industries both at national and at the district level were found to be possible opportunities of improving marketing performance for the small-scale industries. To solve the above-mentioned marketing problems, the study came up with the following recommendations: I. Conducting regular market research and provision of reliable information about marketing possibilities of small-scale industry products; 2. Improving the accommodation of different market centres of the district and providing priority to small-scale industries and other business enterprises in allocating appropriate selling and working premises; 3. Establishing mechanisms to increase the public office’ purchase of small-scale industry products at district level; 4. Launching effective awareness and advertisement campaign to influence the consumption behaviour of local potential customers; 5. To provide effective training and follow up or extension programmes to small-scale industrialists in the district; and 6. Linking small-scale industries with large-scale industries and other potential buyers of small-scale industry product.

Source: KNUST