Assessment of Marketing Challenges and Opportunities of Ethiopian Tanneries in Addis Ababa
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Date
2011-04
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Addis Ababa University
Abstract
The Leather and leather sub-sector occupied a place of importance in the Ethiopian economy
with a potential for employment, development and as a source of foreign exchange. There are
large and diversified numbers oflivestock population which make the sector more competitive in
both local and foreign markets. These and other related opportunities are not properly utili zed
due to lack of effective marketing integrations and sustainable quality raw materials. Measures to
resolve these challenges were limited because of less emphasis given to continuous marketing
research. The objectives of the study were to assess the existing marketing opportunities and
challenges of the Tanneries and identifying and analyzing both domestic and export marketing
problems with the aim of increasing marketing capabilities in both domestic and export market.
The study was conducted based on the data gathered from 10 tanneries found in Addis Ababa
and the available relevant secondary data with the aid of close-ended and open-ended
questionnaire. The analysis of the marketing challenges and opportunities was made with the
help of explanatory description and SPSS software tools. Effolis were made to uncover the
existing marketing opportunities and challenges of the tanneries. In addition, overall problems
related to the marketing mix variables of the tanneries were also identifie·d and analyzed.
Furthermore, activities carried out by the company to overcome some of the challenges were
mentioned. Regarding to the marketing opportunities; Ethiopian's endowments in high livestock
population, institutional supports and the growing demand for leather products in the world
market were identified. On the other hand, the study revealed the poor quality raw materials
supplied to the tanneries, the low demand for fini shed products in export markets and other
related problems as major marketing challenges. Promisingly, attempts were made to tackle these
problems by hiring ski lIed man power and importing technology to produce competitive
products. Therefore, to increase the success and competitiveness of the tanneries in both local
and foreign markets, identifying the right target markets, improving the quality and sustainability
of raw hides and skin, facilitating backward integration and marketing chain coordination,
harmonizing the flow of products, using integrative marketing communications and preventing
environmental pollutions were recommended.
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Keywords
Marketing Challenges, and Opportunities of Ethiopian