EFFECTS OF DIVERSIFICATION STRATEGY ON MARKETING PERFORMANCE OF POULTRY ENTERPRISES IN ABIA STATE, NIGERIA.

ABSTRACT

Poultry business is lucrative and economically vibrant. This study ascertained the effects of diversification strategy on marketing performance of poultry enterprises in Abia State, Nigeria. The study had specific objectives which were ascertained. The study ascertained the diversification strategy adopted by poultry enterprises in the study area. It evaluated the cost and benefits of adopting diversification strategy, identified factors  that affect the extent of diversification among poultry enterprises and finally ascertained the effects of diversification in marketing performance of poultry farmers. The study prove that male are dominant in the business with relatively educated operators and marketers. the age boundary is about 38 years which showed that energetic persons are into the business with relatively high experience. The greater percent of the poultry farmers are married and the diversification or number of income yielding business is about 6 – 10 number of poultry animals. Distributing a product line was mostly practiced in the study area.  The greatest benefit of diversification was increase of income in the study area. Cost of diversification is the high cost implication and lack of expertise. Problems of poultry enterprises were bad road and transportation in the study area. The study proved that diversification improves the marketing performance and profit of poultry enterprises. Factors that affect diversifications were expertise cost of diversification, number of workers, income, resource availability and competitors’ activities.

TABLE OF CONTENTS

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgment v

Table of contents vi

List of tables ix

Abstract x

CHAPTER ONE

1.0   INTRODUCTION 1

1.1 Background of the study 1

1.2 Statement of the problem 2

1.3 Objectives of the study 4

1.4 Research questions 4

1.5 Research hypotheses 5

1.6 Significant of the study 5

1.7 Limitations of the study 6

CHAPTER TWO

2.0      REVIEW OF RELATED LITERATURE 7

2.1 Conceptual view of diversification 7

2.2 Motives for diversification 7

2.3 Demerits of diversification 8

2.4 Factors necessitating diversification 9

2.5 An overview of poultry in Nigeria 12

2.6 Categories of poultry birds 13

2.7 Various form of chicken 14

2.7.1 Other poultry business that abound in Africa 19

2.7.2 Poultry business in Nigeria 20

2.8 Profit potential in poultry business in Nigeria 20

2.8.1  Strategies for a successful poultry business in Nigeria 21

CHAPTER THREE

3.0 RESEARCH METHODOLOGY 24

3.1 Research design 24

3.2 Area of the study 24

3.3  Population of the study 25

3.4  Determination of sample size 25

3.5  Sampling techniques 26

3.6  Method of data collection 26

3.7 Method of the data analysis 27

3.8 Validity and reliability 29

CHAPTER FOUR

4.0 RESULTS AND DISCUSSION 30

4.1 Diversification strategy adopted by poultry enterprises and socio-economic characteristics 31

4.2 Evaluating the cost and benefits of diversification 38

4.3 Analyzing factors affecting the extent of diversification poultry

farmers 40

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATION 45

5.1 Summary of findings 45

5.2 Conclusion 46

5.3 Recommendation 47

REFERNCES

Appendix

LIST OF TABLES

Table 4.1 Distribution and return of questionnaires

Table 4.1.2: Distribution on age of the respondents

Table 4.1.3: Distribution on gender

Table 4.1.4: Distribution on marital status

Table 4.2: Distribution on household

Table 4.2.1: Distribution on education qualification

Table 4.2.2: Distribution on number of poultry animals

Table 4.2.3: Distribution on diversification strategy

Table 4.3.1: Distribution on the benefits

Table: 4.3.2: Distribution on the costs 

Table 4.4: Distribution on problem

Table 4.4.1: Analyzing factors affecting the extent of diversification among poultry farmers

CHAPTER ONE

3.0    INTRODUCTION

1.1 Background of the study

The effect of diversification strategy as a catalyst for enhancing the performance business organization is well established in the literature (Pawasker, 1999). The effects of diversification strategy on the marketing performance of firms include; Substantial increase in market power, creation of synergy in market operations, reduction in the probability of bankruptcy and minimization of risk (Amit and Livant, 1998; Ramirez and Epstipia, 2002; Kotler, 2003).

In pursuance of the benefit accruable from diversification strategy, most firms in Nigeria such as poultry enterprises Venture into the production of several related products in order to satisfy many of their customer’s needs and avert risk arising from operating in a dynamic environment, rather than focusing on a specific product targeted at a particular segment of customers.

The activities of poultry enterprises contribute significantly of the Gross domestic Product (GDP) of our great country –Nigeria. It generates employment opportunity to about 80% of Nigeria populace. Poultry production is the quickest source of meat and its production process is less hazardous and arduous when compare with other livestock enterprises (Adejoro, 2010). However, in Nigeria most poultry practice small scale farming with little opportunity for diversification.

Poultry enterprises are exposed to production and marketing risks. The production risks include; sudden and exhibitant increase in the cost of feed, sudden outbreak of epidemic (Bird Flu), increase in the price of check, etc. on the other hand, the marketing risks. Unstable demand, logistics difficulties-occasioned by poor road network, the activities of competitors, instability of government policies  etc. the above risks affect the volume of output, market coverage, income generated by poultry farmers etc.

Ansoff (1997) postulated that diversification is the entry into a new market with new products. As such the poultry farmers in Abia State can diversify into other income yielding ventures like; crop production, livestock production, fisheries, artistry, bead making and weaving. Diversification into the above listed income yielding ventures will not only reduce the risk poultry enterprises are expose to but will also increase their income and market coverage.

1.2 Statement of the problem

The effect of diversification strategy on market performance of firms in Nigeria has not received much attention thus limiting the generalized ability of finding and the development of a global theory of diversification (Acharya et al., 2002). The  extent to which to firms in less developed countries are using the diversification options, the nature of the diversification strategy they rare pursing and the extent to which such diversification moves help to improve the firm’s market performance and growth are yet to be extensively explored.

Poultry enterprises, like every other business establishments in Abia State are not immune to the risks arising from operating in a dynamic business environment. These risks come in the form of an outbreak of diseases, low patronage, increasing cost of feed, amongst others. Thus, poultry farming in Abia State need to diversify into other income yielding ventures in order to avert, or curtain the risks encountered in their marketing activities.

Diversification involves the use of capital. This capital is not readily available and accessible by most poultry farmers in the state. Hence, they find it very difficult to diversify into other income yielding ventures like Bead   making, weaving, artistry etc.

The poor road network in Abia State makes it difficult for most poultry farmers to comfortably distribute their product among their customers with encountering one form of damage or the other.

The government on the other hand do not create enabling environment for poultry farmers to embark on a research in order to isolate different diversification options available in the state. The non-challant attitude of research institute in the state does not encourage poultry farmers to source for more information on various forms of diversification option available in the state.

1.3 Objectives of the study

The general objective of the study is to ascertain the effects of diversification strategy on marketing performance of poultry enterprises in Abia State. However, in order to achieve the main objective, the following listed specific objectives are pursued; which are to;

i. ascertain the diversification strategy adopted by poultry enterprises in Abia State.

ii.    evaluate the cost and benefits of adopting diversification strategy

iii. identify factors affecting the extent of diversification among poultry enterprises.  

iv. Ascertain the effects of diversification on marketing performance of poultry farmers.

1.4 Research questions

The following questions were designed to guide the study.

i. What are the diversification strategies adopted by poultry enterprises in Abia State?

ii. What are the cost and benefits of adopting diversification strategy?

iii. What are the factors that affect the extent of diversification among poultry  

    enterprises.  

iv. What effect does diversifications have on marketing performance of poultry farmers?

1.5 Research hypotheses

The following research hypotheses were formulated and tested in the course of the study;

Ho₁. Diversification does not significantly improve the marketing performance, of poultry enterprises in Abia State.

Ho₂: Diversification does not increase the sale and - profitability of poultry enterprises in Abia State.

1.6  Significant of the study

This study would be of immense benefits to poultry enterprise and other business establishments that operate in Abia State. In that, it exposes the numerous benefits accruable from the adoption of diversification strategy in a dynamic business .environment.

The study provides potential researchers, the unique opportunity of embarking on further research on the topic. It provides additional knowledge to the existing one, on the effects of diversification strategy to corporate growth and market performance of any business organization.

1.7 Limitations of the study

Financial constraints are one of the researchers challenges encountered. This difficulty came while sourcing for relevant data and distributing questionnaires among selected respondents in the course of this work.

Time Constraint is another limitation of this study. The limited time allocated for the development and completion of this research work was very limited. Hence, the researcher was under pressure to meet up with this research work within the allotted time.

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.