Global Marketing of Locally Made Products

Master's Thesis, 2019

32 Pages, Grade: 4.00


Table of Contents

Executive Summary

1. Introduction
1.1 Problem Statement
1.2 Research Objectives

2. Research Methodology
2.1 Sampling
2.2 Research Design
2.3 Data Collection
2.4 Data Analysis
2.5 Limitation of Study

3. Findings of the study

4. Conclusions
4.1 Summary and Conclusions
4.2 Recommendations



Executive Summary

The Snack Food industry is a billion dollar investment business. The demand for snack food is high both in local and international market. This provides opportunities for Nigerian investors to tap into this goldmine. This is the sector Nigeria entrepreneurs can leverage on, to create wealth, and reduce unemployment. In the light of this, local chips manufacturer need to be empower with the useful information to take advantage of the existing market opportunities for snack product globally.

To achieve this objective, the researcher conducted an explorative research using primary and secondary data collection method to gain market insight. This was informed by the research objectives based on categorisation that include International opportunity perception, product standardization, regulatory framework, penetration strategies and communication methods for attracting customers.

The researcher conducted a survey among 45 local groundnut chips manufacturer in Abuja, Nigeria and the years of business operation in the export business play important role in using a non-probability sampling method i.e. purposive sampling process.

The key findings of the study reveal the following

- There is market opportunities for local groundnut chips in the global snack market as the product continues gain dominance in the food industry.
- Respondents demonstrate willingness to sell at foreign market but they lack the capacity to implement an effective and proper international trade process.
- Respondents rely on family and friends to export their product and the major destination points are UK, UAE, USA and Canada.
- Social media play key role in the success made so far in the business. They use this platform to increase visibility and gain international customers.

The study recommended that local groundnut chips manufacturers can be successful in this industry if effort are made on producing quality and consistent products, certify product, and provide attractive packaging and labelling. The use of Google trends will provide an insight on market issues and more money should be spent on social media marketing. Local manufacturers should employ global trade marketing tools such as Globaltrade, Alibaba, Shopify, Ebay, Amazon, to exposure their products to international clients.

1. Introduction

The global market for the snack food industry is worth billions of dollars. The market is projected to increase by US$217.2 billion, which will be driven by a compounded growth rate of 5.6% in 2021, (Reportlinker, 2019). The significant growth in the sector is influenced by the changing lifestyle and the hectic work life of people who find it difficult to access traditional meal and opted for this snacks. The popular snacks in global markets are potato chips, popcorn, nuts, groundnut chips, etc.

This high demand for local snacks is also growing in Nigeria. This is an evidence for demand for emerging snacks such as Sesame snacks, Kilishi, Dankwa, Kokoro, Kuli Kuli, etc. This implies that the global surge for the snacks is on the growing. The country has the potential to dominate the global snack market because of the availability of the raw materials needed to produce the products and easy access to cheap labour. For example, Nigeria is the largest producer of groundnut crop in West Africa accounting for 51% of total production. The country contributed 10% and 39% to global output and Africa production respectively (, 2014). This has not translated to significant development of the crop. The crop has not been fully utilized despite the production capacity of the country. The producing states such as Kano, Kaduna, Nassarawa, Adamawa, Niger, etc., export the crop in the raw form without value-addition.

1.1 Problem Statement

The need to add value to many exported crops in Nigeria has become a burning issue among stakeholders. The majority of the crops where Nigeria has comparative advantage are exported in their crude form. This has limited benefit the country is supposed to derive from it and deprived the people to fully benefit from the full potentials of these crops. This trend is worrisome and stakeholders including researchers, policy makers and investors have been innovating on different ways of resolving the challenges. These crops include groundnut, soya bean, sesame, cashew nuts, etc.

One of the method, stakeholders have clamoured for, is the processing of the crops from their primary form to secondary stage. This will give more value to the crop and increase the number of products that can be accessed. For example, processing of groundnut crops will produce groundnut oil, groundnut cake, sludge, and groundnut paste and groundnut chips.

Local manufacturers in Nigeria are the forefront of this new value addition strategy. They are processing the crop to groundnut chips and they have continue to grow their revenue with this new initiatives. The production proces involve frying of the raw groundnut, peeling the brown skin, grinding the clean groundnut to paste and mixing to separate the paste from the groundnut oil. The process is painstaking, and involved hard labour. Some producer have introduced the use of equipment to simplify the production process. With this process settled, the need to tap into the global sales of the products is an important issue that need attention. The global snack food business is huge, and Nigeria manufacturers have to prepare themselves to take either partial or full control of the foreign markets.

The innovation and development of the groundnut chips is gaining acceptance locally and is opening new market opportunities for investors and local manufacturer. With the high rate of unemployment, this sector can reduce unemployment, poverty and increase the standard of living of the people. The investors have the potential to succeed. Nigerians are one of the major migrant in the world. The people want to keep in touch with their country and food is on the way this can be achieved. For producers, they need to position themselves to actualise this objective.

The diversification policy of government has also driven the quest for local groundnut chips manufacturers to be creative and explore new markets to sell their product particularly in the face of continuous growth in the snacks food industry globally. Although, the demand for product is high locally, scaling up to expand to new market will be an added advantage for investors and existing local groundnut chips manufacturers.

Due to these noticeable international trends in the global snacks industry, there is need to prepare a marketing research report for local manufacturer that sought to export their product to foreign market. This makes this report very important because it will provide valuable knowledge on innovative marketing strategies that local businesses can use to improve production, packaging, distribution, storage and access the global market. This will further increase the company sales and income as well as government revenue.

Therefore, this research study focuses on the internationalization of locally made groundnut chips, which is one of the product from process groundnut crops. This is why supporting snack business growth is an important task for stakeholders in the industry. The country can benefit from the surge in the global market when the right policies are provided to support the industry.

1.2 Research Objectives

Base on observations and trends in the global chips exportation, the existing and potential locally made groundnut chips manufacturers required a detailed marketing research to be successful and explore the opportunities in this food chain sector. This observations has necessitated the need to design the following research objectives:

- To identify foreign countries that patronize locally made Nigeria groundnut chips
- To find out suitable product packaging and labelling that meet international standard;
- To understand international legislation on food importation in the UK and USA;
- To leverage on simple and innovative techniques for global market penetration;
- To expose chips producer to unique and available communication tools to attract international clients

2. Research Methodology

The methodology adopted in this study is exploratory in nature and influenced by the five (5) research objectives earlier identify. In this situation, the mixed research method that involve primary and secondary approach will be used to draw conclusions. This will involve the use of questionnaire, focus group, interview, consulting peer review journals, obtain data from recognised industry websites, etc.

2.1 Sampling

The study use non- probability sampling. In this case, the purposive sampling techniques will be use to target the respondents. Based on this non-probability approach, the researcher will give attention to variables such as the years of business operation, certification status of products, sources of acquiring customers, packaging design and income from sales of product at foreign market to guide the decision on the choice of participants. This approach will provide the researcher with sufficient information on their international business experience and knowledge of opportunities that exist in the market. The researcher visited the production location of the selected businesses and 50 locally made groundnut chips manufacturers were selected. Out of this number, 45 manufacturers’ respondent properly.

For the questionnaire, the opinion of the respondents were sought in the area of international market opportunity perception, product packaging and labelling, meeting basic legislation requirement for food exportation, marketing penetration techniques adopted and communication method used to reach obtain international patronage.

2.2 Research Design

Research design is the foundation of the study, which deals with addressing problems such as what questions to study, what are the relevant data, what data are needed to be collected, and how will be data to analysed, (Yin, 1994). This implies that research design serve as the blueprint for researchers to actualise the research objective. The researcher has adopted a mixed research method. This approach combine primary and secondary method. The researcher use the primary method to collect specific data as it relate to the need of the research. The secondary research method help the researcher to collect data from secondary sources including internet, government research agencies, development institution, conferences, workshops, trade journals, etc.

2.3 Data Collection

The general approach is to identify locally made groundnut chips manufacturer. The questionnaire are carefully prepared to capture the subject matter. These questionnaire were distributed after assurance of timely response. The researcher also put a backed-up strategies in place, by recruiting a research assistant who ensures timely collection. The researcher also assures the respondents of receiving a copy of the research findings. This approach motivated the participants to timely response to the question and also assisted in recruiting other local groundnut chips manufacturer.

The researcher design a self-administered questionnaire that included a total of 23 questions. These questions are categorized based on the research objectives. These are

- International Opportunity Perception
- Product standardization
- Law regulating food exportation
- Market penetration strategies
- Communication channel and techniques

The first five questions are based on basic personal and business data of the respondents relating to age, gender, business ownership status, annual sales income, number of employee. Question 6, 7 and 8 are about international opportunity perception structure. Question 9, 10, 11, 12 and 13 focus on product standardization, Question 14 and 15 relate sources of customers for groundnut chips. Question 16, 17, and 18 inquire about market penetration strategies for local manufacturer. Question 19 and 23 enquire how the respondents communicate the brand to customers.

2.4 Data Analysis

The researcher analysed the data with the aim of applying the data collected to the research objectives. That is, to determine how local groundnut chip manufacturer can access international market in an effective manner and how to leverage on the result of this research for better performance.

To accomplish this analysis, the researcher use simple percentage method to analysis data collected. This method will help the researcher to ascertain how the observed variables such as business status, years of operation, frequency of product exportation, and return on sales affects the exportation of locally made groundnut chips in Abuja, Nigeria.

2.5 Limitation of Study

The study adopted both primary and secondary data collection method. The researcher rely on data from questionnaires, data from industry players’, government agencies, journals, professional articles, trade journal, chamber of commerce, blogs, conferences, workshop reports, etc.

There is limited data on groundnut chips exportation from government research agencies in Nigeria. The data collected are secondary data. It is difficult to determine the extent of the opportunities for local producers in foreign market. This situation affects the researcher to provide detailed background information about the potential of the market to business owners and prospective investors.

Additional, there was no enough time to fully engage major stakeholders in the industry and the cost payable to the Research Assistant within the short period was high.

3. Findings of the study

This section presents the questionnaire results, analysis and the related graphics. The researcher distributed 50 questionnaires, out of 45 were properly completed and returned. Therefore, the research finding is based on the 45 respondents. This indicates 90% response rate.


Table 1: Gender of Respondents

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Field Work, 2019.

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There are 14 males representing 31% of the sample size and 31 females representing 69% of the sample. Size. This result implies that the business is dominated by female.

Table 2: Age bracket of respondents

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Field Work, 2019.

Table 2 shows that 9 respondents are in the age bracket of 20 – 29. There are 25 respondents who between the age of 30 – 39 and 11 respondents are above the age of 40 years. This demonstrates that there are higher number of respondents in the age bracket of 30 – 39 while the least respondents are in the age bracket of 20 – 29 years.

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Excerpt out of 32 pages


Global Marketing of Locally Made Products
Catalog Number
ISBN (eBook)
ISBN (Book)
global, marketing, locally, made, products
Quote paper
Monsuru Sodeeq (Author), 2019, Global Marketing of Locally Made Products, Munich, GRIN Verlag,


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