“Surviving Competition in the Cocoa Food Beverages and Confectionery Industry; a Case of Ghana’s Cocoa Processing Company Limited (CPC)
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Date
2004-11-21
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Abstract
The increasing competitive market environment which C.P.C finds itself in is threatening. The company’s survival and growth calls for an evaluation of the efficiency of the prevailing marketing strategies so as to craft new ones for the attainment of set objectives, which would make it competitive enough on the local market. The review of strategies for survival was done basically from distributors, wholesalers, retailers and consumers perspective.
All these category of customers and consumers from the survey results, rated C.P.C Limited as an average performer as far as its domestic business was concerned. Attaining average performance, however, is not sufficient enough for the growth of the company in a market environment which is increasingly becoming very competitive. A descriptive research design was used to evaluate customers’ views, attitudes and reactions vis-à-vis the marketing programmes of CPC and that of major competitors.
Sales of Cocoa products from Cocoa Processing Company Limited, Cadbury Ghana Limited, Nestle Ghana Limited as well as sales of chocolate products imported into the Country from 1998 to 2002 indicates a 9.6% market share for Cocoa Processing Company, 56.9% as the market share for Nestle Ghana Limited respectively. The implications are that CPC has a very difficult task of catching up with such high performance of Nestle Ghana Limited. It is very clear that competitors in the industry have put in place certain strategies which are making them beat CPC to competition.
Some of these strategies include payment terms. Customer care services, distribution strategies, pricing and sales promotion.
To grow, CPC will have to capture some more market share from its competitors. To cope with this growing competition in its domestic business, the company should be proactive in the strategic management of its marketing operations.
The Company should give particular attention to the provision of customer care services. C.P.C Limited has to adopt strategies that will expand market access of the company.
Ascertaining the problems facing the distributors, wholesaler and retailers in the marketing of the company’s products as well as assess the effectiveness of facilities available, for marketing of the confectionery products are prerequisites for effective customer service delivery.
Finally, management has a responsibility of embarking on public education about the many health benefits and nutritious values of chocolate and other cocoa beverages through advertising to encourage more Ghanaians to patronize the products. Efforts should be made to encourage the drinking of cocoa at all state functions. The relevant ministries, departments and institutions should be encouraged to adopt this policy.
Description
A thesis submitted in partial fulfilment of the requirements for the award of Master of Business Administration degree, 2004