Marketing and Sales Strategies of ELFORA Argo-Industries Plc.
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Date
2007-07
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Addis Ababa University
Abstract
The main purpose of the research was to analyze the marketing and sales strategies of
ELFORA Agro-Industries Plc. Since its establishment, the company’s profitability and return
on investment has been very low, even when it is compared to the current bank saving rate of
4%. The study tried to identify the major marketing and sales problems that contributed to
such unsatisfactory level of financial performance.
In order to address those problem issues, the researcher conducted interview with the relevant
company managers and referred secondary data sources. The collected data and information
were compiled and analyzed for possible indications of problem areas.
It was found that the main marketing and sales factors that contributed to the low profit level
to be the under utilization of existing production and auxiliary facilities, inconsistency in
product supply and delivery, inadequate and inconsistent demand for some of the company’s
products, high cost of production due to low capacity utilization and untimely purchase of raw
material inputs, which resulted in higher prices than competitors leading to loss of market
share.
It was finally recommended a series of measures that the company should take in order to
improve the current situation. These measures will ultimately provide the company with the
advantage of cost-leadership that will strengthen its market position in terms of market share,
price competitiveness, and eventual customer satisfaction.
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ELFORA Agro-Industries