Assessment of Marketing Challenges and Opportunities of Ethiopian Tanneries in Addis Ababa

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Addis Ababa University


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.



Marketing Challenges, and Opportunities of Ethiopian