MARKETING ACCEPTABILITY OF LOCALLY MADE COSMETIC PRODUCTS IN NIGERIA
A CASE STUDY OF SOME SELECTED HAIR DRESSING SALON IN OBIAGU
TABLE OF CONTENTS
1.1 Background of the study
1.2 Statement of the Problem
1.3 Objective of Study
1.4 Scope of the Study
1.5 Research Question
1.6 Significance of the Study
2.1 Concept of Marketing
2.2 Historical Development
2.3 Nature of Cosmetic Product
2.4 Psychological Implications of Product Decision
2.5 Buyers behaviour and the cosmetics market
3.1 Research Design
3.2 Area of study
3.3 Population of Study
3.4 Sample and Sampling procedure
3.5 Instrument for Data Collection
3.6 Validation of Research Instrument
3.7 Reliability of the Research Instrument
3.8 Method of Administration of Data Instrument
Presentation and Analysis of Data
Summary of Result/Finding
Discussion of Results, Conclusion and Recommendations
5.1 Discussion of Results
5.3 Implication of Results
5.5 Suggestion of further Research
5.6 Limitations of Study
LIST OF TABLES
To what extent the degree of awareness and sue of made in Nigeria cosmetic among female users in Obiagu effect marketing acceptability.
To what extent the acceptability of made-in-Nigeria cosmetic among female consumers in Obiagu effect marketing acceptability.
What are the source of Cosmetic production effect the consumer.
To what extent made-in-Nigeria cosmetic among female influence price on the consumer brand preference.
To what extent the motive for the purchase and consumption of cosmetic products being determined.
To what extent packaging of consumer product influence brand choice.
In this study, an attempt was made to determining the acceptability of locally manufactured cosmetic product by user of cosmetic in Obiagu urban. Attention was focused on only female gender irrespective of their demographic specifications. The study did not cover the male genders.
From the analysis of data collected, it was obvious that user of cosmetic products preferred foreign manufactured product to locally made ones due to some reasons advanced. The result of the research showed that female in Obiagu Urban were fully aware of the locally made cosmetic products (79%) respondents but preferred fore achieve explosiveness, distinctiveness and egotism in their utility. They were attributing the rejection of locally made cosmetic to its price the respondents rented if high and not commensurate with its quality.
1.1 BACKGROUND OF 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 (1981) 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 (1985) 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.
The local manufactures still in attempting to face to challenge posed by the government, introduced a very wide range of cosmetic product into the market. Many brands of body lotions and creams soaps, hair cream, face care product perfumes etc are now produced locally.
Some of these products include lipstick, cutexes, relaxes, creams, lotions prosy chics, mascaras, curl gel activation. For Jerry curls and other hair treatments which were exclusive products of the foreign producers are now produced locally. These products are found in all markets and shops located at Obiagu. While they are manufactures were called out not only to join the competition in the domestic market but also to explore and take advantage of the opportunities in the foreign market.
SAP brought about trade deregulation. The local manufactures could no longer run to the government for as the Jingle has it.
“Protection of small-scale industries” commercial and development banks that constitute the major financiers of most firms were deregulation period.
Anammah reported that: “a recent result of some commercial bank and their lending polices revealed that most of them shy away from small-scale industries duce to their small size, low financial involvement and inherent risks”.
SAP also brought about high exchange rate to import same vital raw materials and machinery. This has been a major deterrent factor to industrialization firms that use both fabricated/locally product equipment and machinery as well as local raw material were facing the problem of high cost of foreign exchange. This reduced their operating capacity to less than fifty percent (50%). The government expects local manufactures even the cosmetic industries to fight on their own and survive the situation. The local manufactures, launched themselves into the markets with products whose quality are still striving to attain the standard obtained in the foreign products and lasted by Nigerian consumers.
They inculcate some marketing mix variables, which influenced acceptance of their product in their marketing efforts. Some of these mix include product price, place and promotion.
1.2 STATEMENT OF THE PROBLEM
This research intends to examine the impact, of locally made cosmetic products (BEAUTY AIDS) in Nigeria. Government of Nigeria on locally manufacture product through structural Adjustment Programme (SAP) constituted some problem on our made-in-Nigeria products.
1. There is no awareness on the sue of made-Nigeria cosmetic among female consumers in Obiagu.
2. Another problem encountered on this research is how does the female consumer in Obiagu accept made-in-Nigeria cosmetic products.
3. Lack of adequate information on the source of cosmetic product for the consumer especially the female ones in Obiagu.
4. One of the most economic determinant of any product is price on consumer brand preference.
5. How do we determine the motive for the purchase and consumption of cosmetic products.
6. Packaging of made-in-Nigeria cosmetic is poor.
1.3 OBJECTIVE OF THE STUDY
The objectives of the study include the following:-
(1) To determine the degree of awareness and use of made-in-Nigeria cosmetics among female cosmetics user in Obiagu.
(2) To assess the acceptability of made-in Nigeria cosmetic among female consumers in Obiagu.
(3) To determine the source of cosmetic products information for the consumers.
(4) To determine the influence of price on consumer brand of preference.
(5) To determine motives for the purchase and consumption of cosmetic product.
(6) To determine the influence of packaging on consumers product brand preference/choice.
1.4 SCOPE OF STUDY
The study cover Obiagu as a whole. It was divided into Obiagu towns and urban area. The national behind the coverage was to get a very good representative sample of female consumers of locally made cosmetic product (beauty aid).
The study did not cover male gender in Obiagu but female genders irrespective of their demographic specification.
1.5 RESEARCH QUESTIONS
(1) To what extent the degree of awareness and use of made in-Nigeria cosmetic among female users in Obiagu effect marketing acceptability?
(2) To what extent the acceptability of made-in-Niger cosmetic among female consumers in Obiagu effect marketing acceptability?
(3) What are the source of cosmetic production effect the consumers?
(4) To what extent made-in-Nigeria cosmetic among female influence price on the consumer brand preference?
(5) To what extent the motive for the purchase and consumption of cosmetic products being determined?
(6) To what extent packaging of consumers product influence brand choice.
1.6 SIGNIFICANCE OF THE STUDY
This study is significant in following ways:
The finding will help the cosmetic industries in particular, in planning and formulating their marketing activities to suit the desires of consuming public satisfactorily.
The study will help firms in the industry to improve their marketing strategies where necessarily through the first hand information about the consumers perception.