Mekelle University

College of Business and Economics

Department Of Marketing

ASSESMENT OF EFFECTIVE MARKETING STRATEGY IN TH

INCREASMENT OF PROFITABILITY IN THE CASE OF DES
ALCOHOLS AND LIQUORS FACTORY (PLC)

By

Aliyi Molla

ID. no UR ID No: 1020/03

A Research Project Submitted in partial Fulfillment of the Requiremen

for the Bachelor of Arts Degree
In
Marketing
Advisor
Gebrekiros Hagos (MBA)
 Table of content

Content page
CHAPTER ONE:

1 Introduction………………………………………………………………………………….

1.1 background of study……………………………………………………………….

1.2 background of the organization……………………………………………………

1.3 statement of the problem …………………………………….. ………………………

1.4 objective of the study……………………………………………………………………….

1.4.1General objective………………………………………………………………………..

1.4.2 Specific objective…………………………………………………………………………….

1.5 Significance of the study……………………………………………………………………….

1.6 Scope of the study………………………………………………………………………………..

1.7 Research methodology………………………………………………………………………………

1.7.1 Method of sampling……………………………………………………………………………….

1.7.2Source of data…………………………………………………………………………………………

1.7.3Method of data collection…………………………………………. ………………………

1.7.4Method of data analysis………………………………………………………………………….

1.8 Organization of the study…………………………………………………………….

ACKNOWLEDGEMENT

When writing this proposal I have been assisted by many individuals, for whom I am very much
great of all Almighty Allah for his help in many ways ups and downs. Secondly I would like to
appreciate and deepest thanks to Mr. G/kiros H. For his continues initiation, advising, guide and
patiently giving correction through all draft.

Third I would like to thank the manager as well as employees of the Desta Alcohol and liquor
factory who help me by sharing from their ideas and times and finally I would like to thank my
family for their support me through financial and other affairs.

At the end I would like thanks my friend Nigus mekonen for his support morally
Abstract
The research will be conducted under the title the role of marketing strategy in the increment of
profitability .in the case of desta alcohols and liquors factory special reference in mekelle
town .these study assess the overall role of effective marketing strategy to increase profitability.

The researcher was use both primary an d secondary data the date was analyze through
graph ,chart, table and percentage and also the finding would be presented and interpreted
through narrative descriptions ,summery statements .in order to give equals
ofrespondentstheresearcher was used simple random sampling data collection .

Marketing strategy pursue by firms are aimed at obtaining sustainable competitive

advantage .competitive advantage can be achieved in to different prospective .the external one
which focuses on industry attract i nes and internal one which focus on the internal l resource
endowment of the firm. at the end ,the researcher was suggest with full recommendation about
the finding problems
CHAPTER ONE

Introduction

1.1 Background of the study

Profitability is a key to the survival or success of any company. It is the net result of a number 0f
policies and decisions. Without profits a company or a firm could not have the internal drive to
proceed its active activity in the increasing connected world. They must be good at customer
relationship management and partner relationship management in order to connect effectively
with customers, Other in the company and external partners. However, to do this effectively
markets must understand all at their relationships (Katler, Philip, 1997:106).

The marketing concept of building on organization around the profitable satisfaction at customer
needs has helped firms to achieve success in higher growth, moderately competitive markets,
however to be successful in the markets in which economic growth has leveled and in which
there exist many competitors. Who fallow the marketing concepts a well-developed marketing
strategy is required. Such strategy considers a portfolio of competitive in the market. Today
marketing must understood nation the aid sense of marketing a sale ‘’telling and selling’’ but the
new sense of satisfying customer need (Koler, 2006).

Thus, the marketing strategy must be geared to the needs of customers as effective marketing
objective by delivering value to the customer. The purpose of competitive strategy is to achieve a
sustainable competitive advantage (SCA) and there by enhance the business performance. Bharad
waj (www.com marketing strategies profitability, 2002).
Competitive marketing strategy (CMS) has relationship marketing (RM) defined as the
identification, establishment, maintenance, enhancement, modification, and termination
relationship with organization by service of relational exchanges that have both a history and
future. Jundian Institutes of management (Bangolare, 2002) .

A company’s marketing environment consists of the acting and forced outside marketing that
affect marketing manager’s ability to build and maintain successful relationships with target
customer (Www. Business dictionary.com/profit impact of marketing strategy).

The marketing environments after both opportunities and treaties that successful watching and
adopting to the changing environment. Such pictures of the future give marketer plenty to think
about more than any other groups in the company marketers must be the trained trackers
opportunity seekers although every manager in an organization need to observe the outside
environment. Marketers have two special aptitudes.

They have disciple methods marketing intelligence, and marketing research to collecting
information about the marketing environment. They also spend more time in the customer and
competitor environment; marketing can adapt marketing strategy to meet new moment place.
Challenger and opportunities (Kotler, Philip 1997, 107). The purpose of this paper is therefore to
investigate the functions played by an effective marketing strategy taking in the case of Desta
Alcohol and liquors factory P.L.C.

1.2 Background of the Organization

Desta alcohol and liquor factory is one of the most important private companies which is
established under the law of Ethiopian proclamation of 1993e.c at the city of Mekelle, by the
name of Ato Desta and his family members. It is apparent company and it produces different
kinds of alcohols liquor’s. The company currently has different department. The most important
one is general managers and it have different division and unions. The main departments

1. Production departments
2. Quality control department
3. Sales and marketing department
4. Finance department
Currently the factory own 150 employees (permanent) and over 50 temporary employees. A firm
can strongly position its self by developing needs. Satisfying product and service to its customer.
The firm must know how price its offerings to make them attractive and affordable and how to
choose the distribution channels intermediates to make its advertise and promote products on the
contemporary. Desta Alcohol is liquors factory has some problem. Some of this are

 There is no enough professional personas

 The company promotional uses are less
 There is no market relation to complete the competitors and likes

1.3 statement of the problem

Marketing strategies’ is a process that can allow an organization to concentrate its resource on the
optimal opportunities with the goals of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long term activity on the field of marketing
that deal with the analysis of the strategic initial situation of a company and its marketing
objective. Marketing strategies serve as the fundamental under pinning of marketing plan
designed to fill the market needs and real marketing objective. Therefore every company has own
marketing strategy which is a plan that specified the benefit that the company hopes to achieves
on demand or product line in a given target market. It is an overall plan to achieve a company
goals this overall plan include

 the customer needs and wants of target market

 the mind of customer seek out
 the combination of marketing activity

Evaluating marketing programs and strategies need to reach and satisfy target customers better
and faster than its competitors. In relation to these Desta Alcohol & liquor factory marketing
strategy is not well organized specified and does not worked effectively for increment of
profitability.

In order to solve the above problems the basic question are raised.

1) What variables maximize the company profit?

 2) What are the elements increase the company sales volume?
3) What type of sales persons is needed?
4) How the company market strategy (production; price, promotion, distribution) strategy
will be effective and efficient

1.4 Objective of the study

1.4.1 General Objective

The main objective of the study is to investigate the effective marketing strategy play in the
increment of profitability in the company.

1.4.2 Specific Objective

 Outline the specific objective of marketing strategy of the company
 To identify factors that hinder the success of the business in the company
 To assess how the marketing strategy is employed to maximize the company’s
profitability
 To identify the strength and weakness of the company in relation to effectively
implementing its marketing strategy

1.5 Significance of the study

Marketing strategies play a vital role for any marketing activity however the company does not
give more emphasis about development of marketing strategy in order to increase their sales
volume for profitability. Hence assessing marketing strategy is used to give information for
managers or management of the company about their weakness in any marketing program.

- It is timely study in order to help much the company accomplish its target sales.

- It enables the management of the organization to know how well the organization is
saving its customer and identify exerting problems for potential action to be
- It may also serve as a reference material for those seeking deep study in the area under
investigation.
1.6 Scope of the study
The issue of effective marketing strategy is important to be conducted at all business
organization. It would be more interesting and effective to come up with real understanding on
marketing strategies to increase for profitability as well as customer attraction and market share.
Nevertheless, due to shortage of material and related document the researcher would be forced to
delimit this study only in desta alcohols and liquors in mekelle city

1.7 Research methodology

Methodology is the core of scientific research as it is the way through which findings are to be
achieved. Thus to do valid, reliable, and usable, research methodology were pre-regular element.
The study employs a quantitative research frame work through descriptive survey method.

1.7.1 Method of sampling

Sampling is the process of using a small number items or parts of large population to make
conclusion about the whole population and sample break dawn for this study is as followed.

Respondents Population Sample Percentage %

Managers 6 6 5%
Employees 114 42 35%
Total 120 48 40%
The non-probability sampling the sample would selected on the bases of personal judgment and it
does not give equal chance that each elements of the population would be every element in the
population has non-zero probability of selection. So simple random sampling is preferred so as to
give equal chance for all individual (element) under the study. Among the employees, the
researches would use a sample of 40% which accounts for 48 members.

1.7.2 Source of data

The data sources of this study were from both employees and managers of Desta alcohol and
liquor’s factory P.L.C.
The data were consider from both primary and secondary source. The primary data includes
respondents (seller, buyer of the company producers and other organizational employees) and
Structure questionnaires and interviews were be employed whereas secondary data are internets
and organization documents or manuals.

1.7.3 Types and Method at data to be collected

For conducting this study, the researchers was used both qualitative and quantitative data. The
qualitative was permit the researchers to study selected issue in detail and depth, these would
collected through narration.

The researchers would also use quantitative data, its requires the use of standardized
instruments. Perspective and experience of people can fit a limited number of predetermined
response category to which numbers would assigned.

1.7.4 Method (Techniques) of data to be collected

The student was used one or all of the following data collection methods.

- Questionnaires

The student was be use primary and secondary data.

Primary data the studies were involved a direct structured face-to-face personal interview and
questionnaires that are relevant information were also collected for analysis.

The student was be collected those information by interviewing the manager and employees of
the Desta alcohol liquors company.

Secondary data to be collected.

The students were collected secondary data to know more about the background as well as the
history of achievements in the past years to supplement and back up the evidence. Written
material from the factory’s profiles, bulletins, and research findings would utilized in the study.
1.7.5 Method of Data Analysis
The collected information from both primary and secondary sources were analyzed and
interpreted. Then the edited data was coded to put in to a group to make ready for information
analysis. The finding presented and interpreted through narrative description summary
statements, tables, clarets, graphs and percentages.

1.8 Organization of the Study

The studies were organized in to four chapters, the first chapter addresses the problem and its
approach, the second chapter is concerned with presenting the review of the related literature.
The third chapter treats the analysis of the data collected. The fourth chapter brings to an end
with summary, can conclusion and reference.

CHAPTER TWO

2. REVIEW OF THE RELATED LITRATURE

2.1. Marketing defined

Many scholars from different perspectives have defined marketing. The American marketing
association ion(AMA)cited in Cohen(1994:4)defined marketing in early 1995 as the process of
planning and executing the conception, pricing, promotion ,and distribution of ideas, goods and
serves to create exchanges that satisfy individual and organizational objectives.

Today, marketing should be understood not its old sense, a sale but not in new sense of satisfying
customer needs by delivering greater value. According to kotler and arm
strong(2003:5),marketing is a social and managerial process by which individuals and groups
obtain what they need and wants though creating and exchanging products and value with
others similarly pride and Ferrell(2oo:4)defined it as the process of creating,
distributing ,promoting and pricing goods, service and idea to facilitate satisfying exchange
relationship in a dynamic environment .
In this century, successful companies, whether large or small, profit or nonprofit ,domestic or
global share strong customer focus and heavy commitment to the marketing is to build and
manage profitable customer relationships, and it seeks to attract new customer s by promising
superior value and to keep and grow current customers by delivering satisfaction(Kotler and
Arm srong,2003:33)

2.2. MARKETING STRATEGY

As remawamy and Nama Kumari (2002:137mentioned, marketing strategy is the set of guideline
as and policies used for effective matching of marketing programs or four‘s(4ps) product, price,
promotion and distribution with the target market opportunity in order to achieve organizational
objectives .it is establishment of goal or purpose of strategic business unit and the means by
which it to be achieved through management of marketing functions or the marketing mix.

2.2.1 Marketing mix

Marketing mix is a collection of marketing tools that is, product, price,promotion, and place. It is
the idea of mix of marketing function was conceived by a professor Neil Borden of the Harvard
business school as “schematic plan to guide analysis of marketing problem though utilization of :

A. List of important forces emanating from the market which bears up on the marketing
operation of an enterprise.

B. a list of the elements(procedures and policies) of marketing programs(science in

marketing,2001)”

The marketing mix refers to apportionment of effort, the combination, the design and the
integration of the elements of marketing in to program or mix, which on the basis of appraisal of
market force. Will best achieve the objective of an enterprise at a given time (J, Barker2002:159).
Product: product is anything that can be offered to the market for attention, acquisition ion, use
or consumption that might satisfy a want or need. Product is a key element in the market offering.
It is the heart of other marketing mix “that is price ,promotion .product and place marketing mix
planning being with formulating an offering. Product can be place, person, and idea.
(kotler ,2004:277).

Based on the type of consumers that use them, product can be either consumer product or
industrial product. Consumer product: product bought by final consumer for their home or
personal consumption purpose. Marketer usually classify these products convinces
product(consumer products that the customer usually buyers frequently, immediately, and with
minimum comparison and buying effort),sloping products(consumer goods that the consumer in
process of selection and purchase, characteristically compares on such bases such bases as
suitability quality, price and style),special product (consumer product unique characteristically
brand identification for use a significant group of buyer willing to make special purchase
effort )and un sought product about or know about but does not normally think of buying).
Industrial product: products are those purchased for future processing or for use in conducting a
business thus the destination between consumer product and an industrial product is based on the
purpose for which product is bought.(kotler;2004:280-281).

In recent years marketing have broadened the concept of product to include other market
offerings organization, person, place, and idea. Organizations often carry out activities to “sell”
the organization it self organization market consists of activities under taking tocreate, maintain ,
or change the attitudes and behavior of target consumer towards an organization. People can also
be through of as a product person marketing consists of activity undertaking to create, maintain
or change the attitude behavior can of toward particular people and organization practice person
marketing.(kotler;2004:281)
Place marketing involves actives under take to create maintain or change altitude or behavior
toward to particular place .ideas can also marketed. in one sense all marketing is the marketing of
the idea. this area has been called social marketing defined by social marketing institute as the
use of commercial marketing concepts. And tools in programs designed to influence individuals’
behavior to improve their wellbeing and that of society. (kotler; 2004:281).

Price:-another important element in the marketing mix is price

All profit organization and many nonprofit organizations must set price other products or service.
In narrower sense, price is the amount of money charged for products or services more broadly,
price is the same of all values that customer exchange for the benefit of having of using the
product or services.

Historically, price has been the major factor affecting the buyer choice. This is still true poorer
nation .among poorer groups ,and with commodity product price is different from the other
marketing mix elements because of it provides revenue where as other are create cost it is most
flexible elements of marketing mix(kotler,2004:345)

Price is the only marketing mix elements that the companies use to archive its marketing
objectives .price decision must be cooer donating which product design, distribution and
promotion decision to from consistent and effective marketing programs. decision made for other
marketing mix variables may affect price decision

Marketers must consider the total marketing mix when setting price if the product is positioned
on non-price factors ,then decisions about quality promotion and distribution will strongly affect
decision made about another marketing mix elements .but even when purchasing price cost
markets need to remember that customer rarely by on price alone. company’s or business
organizations set their price by selecting a general pricing approach that include one or more of
different sets of factor

 cost based approach(cost plus pricing. break even analysis ,on target profit pricing).is
setting a price adding standard mark up to the cost of the product(unit cost equal to
variable cost plus fixed cost divided by unit cells )

 the buyer based approach( value based pricing): setting price based on buyer’s
perception of value rather than on the sellers cost and

 the competition based approach (going rate and seal divi pricing) it is setting price
based on the price that competitors charge for similar products. (Kotler ,2004:351)

Pricing decision are subject to an incredibly complex area array of environments and competitive
forces. Accompany sets not a single price butanother pricing structure that covers different items
in its line. This pricing strategy changes over time as a product more though the life cycles.
(kotler,2004:352).

The company adjusts product prices to reflect change in cost and to account for variation in
buyers and situations .as the competitive environment changes .the companies considers when to
initiate price changes and when to respond them.(kotler ,2004:357)

Place or distribution:-a general term distribution include every function concerned which
transference of good from the point of origin until they come in the position of final buyers.
Including transportation, storage, merchandizing, promotion of out lets stocking in a design
attend product. (kotler,2004:358).
In other words, distribution or channel consists of all those stages and organization though which
a product must pass between its point of production and consumption. As its simplest, these may
be a single, direct translation between producer and consumer. on the other hand ,where
production is highly concentrated and consumers are widely distribute a number of different
channels may develop and co-exist with a variety of agents distributor ,wholesaler ,retailers and
other inerter me diaries acting as a channel though good will flow from producer consumer.
(Baker, 2001:92).

Place is the environment in which the services is as stabled and where the firm and customer
interact and tangible commodities which facilitates performance or communication of service
marketer the actual location of premises, of the premises and the channels of distribution used.
All of these aspects vary in importance of courses depending out services offered and the
preferred channels of distribution of the services market. As far as look of the premises is
concerned the client will be searching for physical dues in assessing the success of the company.
(Baker, 2001:511-512).

Marketing strategies for competitive advantage

To be successful, the company must do a better job than competitors of largest consumer. thus
marketing strategies must be geared to the needs of consumers and the strategies of
competitors .designing competitive marketing strategies begins with through competitor
analysis .the company’s constantly campers the value and customer satisfaction delivered by it is
products, price, channels, and promotion with those of close competitors. In this way it can
discern potential area of competitive advantage and disadvantage. Thus, it is important for the
company to ask: who are competitors? What are their objective and strategies? What are their
strength and weakness? And how will they react to different competitive strategies are might use?
(kotler and Armstrong ,2003:56).
Once the company had decided over all competitive marketing strategy, it should be ready to
begin planning the details of the marketing mix. (Pride and Ferrell, 2003:13) assert that
marketing mix is the set of controllable variables the company puts together to satisfy their target
market. It includes the four marketing activities. These are: product, goods and services
combination the company offers to the target market, price, the amount of money customers to
pay to obtain the product, price, company activities that make the product available to target
customers. Promotion activities that communicate the merits of the product and persuade target
customers to buy it. (Pride and Ferrell, 2000:14-15).

2.4. Marketing and consumer relationship management

Some people thing of marketing management, as it is limited only to finding enough customers
for the company’s current output and is concerned with serving all customers in every way.
However ,recently it is known that marketers want to be concerned with serving selective
customers that the can serve well and profitably.(kotler and arm strong,2003:11),stated
marketing management as it involves getting, keeping and growing customers by
creating ,delivering and communicating superior customers value. So, marketing management is
dealing with demand management, which in turn involves managing customer relationships.

Generally the every motive of marketing management is to form good customer relationship
that will satisfy both the customer and the marketer .to have good customer
relationship ,marketers should have standardized customer relationship, management(CRM).as
kotler and Armstrong(,2004:16) assert CRM is the overall process of building and maintaining
profitable customer relationships by delivering superior customer value and satisfaction. Thus,
today’s companies are going beyond designing strategies to attract new customers and create
transactions with them. They are using CRM to retain current customers and build profitable,
long term relationships with them .so the new view of marketing is the science and art of finding,
retaining, and growing profitable customers.

However, changing demographics, more sophisticated competitors, and overcapacity in many

industries resulted in fewer customers to go around. Many companies are now fighting for shares
of flat or fading marketers. Sears cited in kotler and Armstrong (2003:16) noted that it costs 12
times more to attract a customer than to keep a current customer satisfied.

2.5 channels of distribution

Channel is defined as system of relationships existing among business that participate in the
process of buying and selling products and services. Some of the activities and involve great risk
and level of responsibilities than other channel members who take an ownership of the product
automatically increase there is always the possibility that they may not able to sell the product .
Subsequently: other activities, which, highly important of the process do not encounter some

Level of risk and are more specialized in nature. for example when channel members are pass
on market information to another participants. As economy group in size , sophistication, and the
need for intermediaries to perform varies activities increase .before accompany can consider
specific elements of channel structure. It has been identified three channel classification based on
dependence. They are:-

 single transaction channel

 conventional channel and

 vertical marketing systems(Baker,1999:200)

mostly manufacture helps to know the exact quality of goods required by consumes and the plan
his manufacture schedule according and may get a benefit of larger order from whole
sellers .they make take manufacture to maintain a constant level of production by placing orders
at regular inter Val and also demand of the consumers .they are also sufficient information which
is quite important to company(Michael J .Baker:2001:107).

Promotion:- Promotion Is Another Important Mix Element Of Modern Marketing Calls For
More Than Just Developing A Good Product, Pricing it attractively, and making it available to
target consumers companies must also communicate should not be left to chance.
All of their communication must be blended in to consist of and coordinated communication
program. Just as a good communication is important in building and maintaining any kinds of
relationship it is a crucial element in companies total marketing communication mix also called
its promotion mix, consists of the specific blend of advertising. Sells promotion, public relation,
personal selling and direct marketing tools that the company used to perse its advertising and
marketing objectives.(Kotler,2004:279).

 Advertising:- is nay paid form of non- personal presentation and promotion of ideas,
goods, services, by identified sponsor.

 Sales promotion;- is a short term incentives to encourage the purchase or sales or sales
of product or service.

 Public relation:- are building good relation with companies various publics by
obtaining favorable publicity building up a good ‘ corporate image” and handling of un
favorable rumors, stories and events.

 Personal selling:- is a personal presentation by the firms sales force for the purpose of
marketing sales and building customers relationships.

 Direct marketing: is direct communication with carefully targeted individuals to both

obtain immediate response and cultivate lasting customer; relationship. (Philip Kottler
and Armstrong; 2004:466).

The traditional promotion mix includes various methods of communicating the benefits of
services to potential customers: the mix is traditionally broken down in to four elements:
advertising. Sales promotion, relation and personal selling.

While the promotion mix for goods may appear similar to the mix for services, the promotion
services needs to place particular emphasis on increasing the apparent tangibility of a service
allowance, in the case of service marketing production personnel can themselves become an
important elements of promotion mix. (Palmer; 2001:15-16).

During the promotion of products, marketers push or pull promotion strategies. A push strategy
involves “pushing” the product through distribution channels to final consumer; the producer
directs its marketing activities: (primary personal selling and trade promotion) towards channel
members to introduce them to carry the product and to promote it to final consumers. Using a
pull strategy, the producer directs it’s marketing activities (primary advertising and consumer
promotion) to ward final consumer to introduce them buy the product. Ii full strategy is effective,
consumers will who will, intern demand it from producers. (Kotler;2004;483).

Profitability is a key to the survival or success of any company it is net result of members of
policies and decision; there are many measures of profitability. Each relates the returns of firms
to it’s sales, assets. Equity or share value. Without profit a firm could not attract outside market.
(Kotler; 2004:1060).

Marketers operational increasing connected world they must be good at customer relationship
amendment and partner relationship management in order to connect effectively with the
customers of the company and external partners. However, to do these effectively marketers must
understand out of the relationship. A company marketing environment consists of the actors and
forces outside marketing that affect marketing manager ability to build and maintained successful
relationship with target market (target customer).

The marketing environment offer both opportunities and threats. Successful marketing and
adopting to the changing environment such pictures of the future give marketing plenty to think
above more than any other group in the company. Marketing must be trend trackers and
opportunity seekers. Although every managers on an organs solutions needs to observe the
special attitudes. They have disciplined methods marketing intelligence and marketing research
for collecting and competitor environment, marketers can adopt marketing strategies to meet new
movement places challenger and opportunities. (Kotler; 2000:107)
CHAPTE R THREE

Data presentation, analysis and interpretation

This chapter demonstration the presentation of finding analysis an
interpretation of data tabular frequency and pie charts distribution of were
used in order to analyze and interpretation data using means and percentages.

Background of the respondents

In collecting the necessarily data questionnaire were distribute to both manager
and employees. The following tables represent the general information of
respondents. As indicated in the in the methodology section, questionnaires
were distributed to DestaAlchohols and liquors’ factory employees.

Out of the number of 120 employees, the researcher selected a sample 0f 40%
(percent) with give 48 respondents or employees and managers to accomplish
the finding.

Demographic characteristics of the respondents

Table 3.1
No Item Age interval Respondents Number &percentage

1 Age 12-40 35 72.9%

41-64 13 27.01%

Total 48 100%

2 Sex Male 29 60.4%

 19

Female 48 39.6%

Total 100%

Source; own survey,2013

In the study there are 48 respondents who give their response and the above
table shows that two items that is age and sex of the respondents. As the table
shows (72.9%) and (27.1%) found between this age. These indicated that most
of the respondents of employees are found in the age between (72.9%) that is
the production age they are more productive employees.

Item two indicates sex distribution of respondents. According to the above table
(60.4%) are respondents are male and the remain (39.6%) are females, this
indicate that in the company most of employees are male and female number of
employees are females.
Table 3. 2, educational background of respondents
No Education level Respondents Number
&percentage

1 Grade 1-6 - -

2 Grade 7-8 - -

3 Grade 9-10 8 16.67%

4 Grade 11-12 16 33.33%

5 Certificate 10 20.833%

6 Diploma 14 29.267%

7 Degree and above

8 Total 48 100%

Source; own survey,2013

Table 2, indicate that out of 48 respondents (16.67%) are educated up to grade

12, the others (33.33%) (20.833%) and (29.267%) certificate, diploma and
degree graduates respectively. As this table shows there is no below grade
10(ten) employees in the company it concluded that most of the respondents
are certificate level. Even if employees are literate, they are not skill full in sales
profession mostly employees do their activities based on their experience.

We can conclude that most the employee are not skill full in sales profession.
They job based on their experience.
Table3, availability of training for marketing activities
Item Yes No

1, does the company give you training No % no %

opportunity in relation to marketing
16 33.3% 32 66.7%
strategy.

2, does the kind of training benefit 23 47.95 25 52%

your working activity

Source; own survey,2013

From the above table, for the question does the companies give you training
opportunity in relation to marketing strategy? The majority of the respondents
(66.7%) replied that the company does not give training opportunity about
strategy. However (33.3%) of the respondents of the company respondents that
the company to marketing strategy.

Concerning item (2), (47.2%) of the respondents said that the kinds of training
activity benefits the working activities. However the majority of the respondents
respond that since the company does not give training activity, the grouse do
not know whether the training activity is benefit the working activity or not.
However the problem is they are not being trained.
Generally the company will not give training to employees

Table.4 pricing and strategies of the product

No Item Yes No

No % No %

1 Does the company have clear 18 37.5% 30 25%

pricing strategies on the
product?

2 Does the pricing of the product 15 31.25% 33 68.77%

dieter in a great variation with
the quality of the products?

3 Does the company product price 16 33.33% 32 66.7%

strategy consider the customer
ability to pay?

Source; own survey,2013

As shown in table (37.5%) of the respondents that the company has a clear
price strategy on the product. However, the majority of the respondents (62.5%)
respond that the company has no pricing strategy about the product. It is not
clearly stated that what kind of pricing strategies the company has.

Regarding to table 4 item 2, the majority of the respondents (68.75%) respond

that the pricing of the standard product does not differ in a great variation with
the higher quality product. Item 3 of table 4 shows that the majority of the
respondents (66.7%) respond that the product pricing system does not consider
the customers’ ability to pay. But some of the respondents (33.3%) answered
that the customers’ ability to pay.
We can conclude that the company does not consider the paying ability to pay.
Because most of the respondents respond the it consider the paying ability
wants of customer.

Table 5, the company’s consideration of the needs and wants of the

customer,

No Item Yes No

No % No %

1 Does the company’s marketing 7 14.6% 41 85%

of the product increased at
faster rate?

2 Does the company consider the 14 29.6% 34 70.08%

needs and wants of customer?

Source; own survey,2013

Form the table 5 most of respondents 41 (85.4%) of the workers replied that the
marketing activity did not increased at faster rate. On the other hand few 7
(14.6%) respondents respond that the marketing activity is increased at faster
rate.

From the table 5 item 2, (29.6%) of the respondents respond the company
consider the needs and wants of the customer. While the other (70.08%) of
respondents respond that the company does not consider the needs and wants
of the customers. But to have attractive marketing activity the company should
use and service of the customers.

So, the company marketing of the product does not increase at faster rate at
the same time company does not consider the needs and wants of customer.
Pie chart 3.1 does the company design an effective marketing strategy,

33.3

no
yes

66.7

Source; own survey,2013

concerning the company marketing strategy (66.7%) of the respondents gave a

response of “no” answer, the other (33.3%) of the respondents gave response of
“yes” answer. From this figure most of time the company does not design the
marketing strategy & achieve the marketing objectives. Profitability market
share and like. Because of majority of employees are certificate levels. There is
lack of know how about the importance of marketing strategy. How to design
marketing strategy, It there is no good marketing strategy there will be no good
profits and there is no good marketing activities organization at all.

Generally the majority of the employees are certificate level due to lack of know
how to design marketing strategy, so there is no good marketing strategy there
will be no good profit and there is good marketing activity in business
organization at all.
Pie chart 3.2 does your company under take marketing researcher?

Column2

16.70%

no
yes

83.30%

Source; own survey,2013

According the above pie chart 16.7) respondents are respond the desta alcohols
and liquor’s factor can undertake the marketing research.

Whereas the remaining (83.3%) are respond the company does not take
marketing research. From this data, it is implied that there is no a marketing
research in the company. Because researcher requires knowledge and creativity
skill full person not only this who also, the research requires high incomes time
and enough in short so as to study good marketing research.

From the pie chart3.2 we can conclude that the company does not take
marketing research because mast of respondent respond the company is not
take marketing research so, the company must take marketing research.
Bar graph 3.1 price of the company product compared to those of competitor.

60.00%

50.00%

40.00%

30.00%
56.20% Series 1

20.00%
29.20%
10.00%
14.60%

0.00%
aboute the same hgh very hgih

Source; own survey,2013

Price is a major focus of any business organization; effective setting price is

advisable for any Company for all marketing programs. Which is attracting
retaining of customers, compete with other competing company’s making of
protects, increasing of sales and the like; price is also very sanitizing factors to
attract customers in developing country. Like Ethiopia where majority of people
are living poor standard. For instance it a few cents increase in make on the
product give that other factors remain constant, significant number of
customer’s case to buy the product from the time the increment is male.

Concerning the selling price of the company’s product it is at the bit higher
than other competitor company.
As indicated in the above bar graph 3.1 (56.25%) of the respondents replied
that the price of the company product is high competitor price (29.2%) of
respondents answered about the same as competitor and the remaining
7(14.6%) of respondents replied very high. This shows that price of the
company product is not fit with others competitors. Want which is one of the
reasons why the company not set its product in large volume

Bar graph 3.2 the base to make pricing decision of the product

Column1
60.00%

50.00%

40.00%

30.00% Column1
57.10%

20.00%
28.60%
10.00%
14.30%

0.00%
based on the csot of the based on quelity of based on competitors
product product prodct

Source; own survey,2013

Different companies decide their prices in different ways so as to create (get)

good marketing opportunities for the company. As it is reported in the above
bar graph 3.2 which is 57.1%, 28.6% and 14.3% of the respondents replied that
the company decide their selling price of the product on the base of purchase
consist of products as well as competitors selling price of similar product. Even
if the price of the company is higher than the competitor’s company in above
bar graph 3.1 it cannot serve more customers and not satisfied the existing
customers because of in poor living standard of country people the customers
look lower price with quality some times and lower price with quality so the
times and lower price with quality of the product most of the time.

Pie-chart 3.4, market segmentation

Sales
1.2

10.4
no
yes

89.6

Source; own survey,2013

Market segmentation is dividing the market is no to distinct group with

district needs. Characteristics or behaviors, who might require separate
products or marketing mix’s (that means product, price, place and promotion)
(Philip kotter and arm strong 2004:239) from the above pie chart, most of the
respondents 43 which is (89.6%) replied no and 5 which is 10.4% replied yes.
From this we can inter that the company could not use marketing segmenting
so as to achieve the marketing programs. Segmenting of product based on the
futures of characteristics (such as profitability, durability, quality, technicality
and the like) and promote those products depend, on their nature customer
attention of needs and wants or both the actual and/or potential buyers of
customers.

Customer satisfaction is the primary objective of any organization and profit is

the second objective of the business. Because of customers are higher satisfied.
They are loyal to the company on other case it the company has higher price
than their rival company only serve and satisfied customers but also the
company does not compile with those rival in terms of sales volume and
profitability. So in order to compete with those competitors the company
should give considerable attention to marketing activity at all.
Bar – graph 3.3, profitability of the producer

60.00%

50.00%

40.00%

30.00%
56.20% Series 1

20.00%
29.20%
10.00%
14.60%

0.00%
aboute the same hgh very hgih

Source; own survey,2013

As it is responded in the above bar graph most of the respondents replied that
there is high profitability of the company s product, that is out of 48
respondents, which is 56.2% answered high which is 29.2% answered the
same as the rival companies product andwhich 14.6% of the respondents are
replied very high. This indicated that the company has a good opportunity to
attract customer. Even through the profitability is high. The price of the
product is similar and the price of the product is lower than Dasta Alcohols and
liquids factory. Due to this the company is not profitable nowadays of currently.
Pie Chart 3.5, promotion tools of the company

Sales

no
yes
45.80%
54.20%

Source; own survey,2013

As indicated clearly in the above pie chart 54.2%of the respondents replied
that Dasta Alcohols and liquors factory does not use promotion program, and
the remaining 45.8 % of the respondents replied that Dasta Alcohol and
liquors factory did promotion program rarely. From the data we can conclude
the company is not use effective promotion.
Chapter four

Summary of Findings Conclusion and Recommendation

4.1 Summery Of Findings

In this section the major findings results are highly lighted correlating with the
objective of the study which is assessment of marketing strategy to increase
sales profitability in desta alcohols and liquors factors.

According to the data the majority which is 76% of employees are males. And
the employees are educated up to certificate level and he age between 21– 40
about 73.3% is under his age group.

The company does not make or design any goal and objectives relating to their
marketing activities. Most of the respondents about 70% replied that there no
market design in the company. Concerning about marketing research most of
the respondents that is 83.3 %which is 40, respondents replied that there no
need of market research in the company.

Most of the respondents confirmed that the price of the company’s product is
higher than that the competitor company. According to the data in figure (bar -
graph3.1) 14 (29.2%), 27 (59.2 %), 7(14.6%) replied that about the same, high
and very high. from this summarizes there is high price in the product that the
company sales to the customers.

Regarding the base to make price decision in bar-graph 3.2 of respondents

replied that the company decides their selling price based on the product.
As indicated in the analysis part, the company does not consider the competitor
selling product and quality of their products.

The company does not have well trained sales person. This is due to the lack of
professional sales person graduates in marketing and sales management and
other related professions.

As it reported in bar graph 3.3 of the respondents, said that prefer ability of the
product in the company is higher than that of the competitor product. This is
indicated that the company has good opportunity to attract new customer and
old (current) customers.

With regard to market segmentation, majority of the respondents that means

90%replied there is no market segmentation in the company. According to the
data in bar in bar graph 3.1 of respondents replied that the demand of
company’s product is higher that of the competitors. In indicates a good
opportunity of the company to sell more.

Concerning about promotion majority of respondents, about 53% replied, the

companies do not use any promotion.
4.2. Conclusion
The following conclusions are drawn based on the finding of the research

 The company does not consider the needs and wants at the customer.
This is due to financial constraints of customers

 The company failed knows the customer ability to pay for product. This
was due to the in ability to pricing the product at a reasonable price that
fits with the customer’s income.

 The company s pricing strategies did not address the employees to be

attracted on the price of the product. This was due to the pricing system
of the product was not clearly examined or stated.

 From the data, it can be conclude that in the company there is shortage
of trained man power that means lack of professional sales persons.

 The company does not deign their marketing strategy so as to achieve

their marketing objectives.

 The selling price of the company is high compare with the competitors
those are having similar product quality features and style.
4.3. Recommendation
 The quality and quantity of the product should be increased or improve to
get satisfaction. Once customer are satisfied with the product marketing of
the product should be increased should be increased at a faster rate.

 The company should know the customer ability to pay for the product.

 The company should train employees on marketing strategy.

 The marketing sector should be flexible and give more attention to users
when the users are satisfied with different features at the product.

 Concerning about promotion the company does use any promotional

activities in order to attract either actual or potential and to create
awareness products in the customer mind.

 The company should employees professional sales people graduate in

marketing and sales management and other related field.

 The company should design their marketing strategy so as to achieve their

marketing objective. Since marketing strategy is an important concept in
any profit company in order to achieve marketing objectives, profitability,
market share, sales volume and the like.

 In these competitive words, market strategy is preferred to attract new

customers and retaining the old or actual customers and satisfy them.
Because of customer are highly satisfied are in the company product or the
brand if there is a highly satisfied customer there will be a high profit.
 The company should conduct market research identify the forces operating
there in like competitors and governments, so as to enhance it competitive
strength in the market place.

 The company should set price of the product effectively and efficiently.
Because of price is a major factor for any business organization.

 Effective setting price is advisable company all marketing programs;

attracting and retaining of customers, compute with other rival or competing
companies, marketing of profit increasing sales and the like.

 The company also use market segmentation concept to achieve the

marketing objective and goal.

 In order to attract new customers the company should promote their

products by considering the cost effectiveness, the importance, availability
and the like of promotional tools. Even if the promotes through internet it is
not enough for attracting of customers as well as to create awareness
between the customer and company’s product or brand. So the company is
better to use the following promotion tools;

 Advert on Ethiopia television by using different pictures of the product,

radio.

 Intermittent advertising though business journals newspapers, Be Kure,

Addis Zemen E.T.C

 Preparation and distribution of calendars more over the company used

other promotional tools such as different trade shows (Bazars)
conducted Mekelle town where customers can see and know the
products.
APPENDEIX