TRADE FAIR AS AN INSTRUMENT OF INCREASING SALES IN BUSINESS ORGANIZATION.
A CASE STUDY OF EMILY MILLIONAIRE INDUSTRY LIMITED, ENUGU.
1.0 INTRODUCTION
1.1 BACKGROUND TO THE SUBJECT MATTER
The introduction of this write up will not be complete without the knowledge or knowing some facts about the company in our case study that is Emily Millionaire Industry Limited. Their head office is at Lagos. The Industry commenced business by Late 1978 and they have successfully introduced their cosmetic products to the market.
The company’s management has made all necessary effort since its inception to improve and create quality of their products and also in the development of new products.
Emil Millionaire uses trade fair as an instrument in penetrating into the market and creating unawareness of their products in different parts of the country. Thus, they participated at Enugu, Lagos, and Kaduna trade fairs. The company after their first participation in the Lagos International Trade Fair opened their Head office at Lagos and they proceeded in Enugu in the third Enugu International Trade Fair on the 11th – 19th April 1992 and their participation gave birth to their Enugu depot at Ogbete main market in Enugu.
However, the company recently opened Benin and Warri depot to serve their customers in the former Benedel State. The management is still nursing the hope. Aspiration and dream to be the market leader in the cosmetic industries in the nearest future as the are planning to open regional depot at Kaduna to serve their Northern customers in Nigeria.
Sales in business organization is a phase in marketing activities where by management compares the sales in business organization of one territory’s performance. The previous year of against expected performance.
The purpose of business in organization analysis is to improve operation so that the sales personnel or territory or other factor sharing poor business in organization can be identified so that detailed analysis and corrective action can be taken. Sometimes, out standing performance an be analysed to see if the successes can be explained and made a general one.
According to Mc Carty E.J. (1990 p. 264) “marketing analysis looks for different”. They went further to explain that for a good marketing strategy to be known or achieved, there are some basic requirements or roots used and these are very vital in knowing the performance an organization in the market.
The vital tools are:
· knowing the market demand of each and every product of the organization.
· The market potentials of the products
· The sales budget
· The sales report
· The sales
The market demand of a product is the total volume that would be bought by defined customer group in a defined marketing environment under a defined programme. Looking at the definition above, the key words there are defined customer and defined market. When these two elements are carefully put used together are known, then the strength of the market can be assessed. With this, the organization is increasing or decreasing ie progressing or retrogressing.
The sales budget is a conservative estimate of the expected volume of sales used primarily for marketing current purchasing, production and discount.
The market potentials visualizes the level of market demand for a very high level industry market, and further increases market effort.
The sales force report along with other report and observations supply the raw materials for evaluating the number of sales (which is their performance).
Evaluation of the sales in business organization with effort mentioned tools ie (market demand, market potential, sales force and budget) lead to at least benefits. These benefits are namely:
· Sales territory
Sales representative training fully well they will explain and give account of their business success or failure to achieve their goat to the sales manager, will now be dedicated to every bit of action they takes. Having highlighted all these potentials of sales in business organization we can now x-ray trade fair to know how it stimulates sales of a product.
Trade fairs are time tested method of bringing buyers and seller together under mutually beneficial condition, emphasize, discussion, group and workshop and are directed, primarily at potential customer: while exhibition and both are features at trade fair when are designed to attract immediate prospects and create awareness. Visitors to these fairs have an opportunity to physically examine, compare and learn about new products, market movement, new source and competition. Thee shows are usually designed for special group in a particular geographical areas (as in domestic or made in Nigeria products).
Therefore, where the exhibits are well publicized, managed, softened, the result is an increased volume of sales for exhibits. Exhibits staffing is considered to be the most important factor in these shows and conventions because it is these staff who will attend to the customers by informing, educating and persuading them to try the newly introduced product.
Trade fairs help participating companies and enterprise to get in touch with their customers and getting many enquiries from serious minded enterprises and companies executives who end up making order. It is a good avenble for sales promotions and sales.
As an instrument of increasing sales in business organizations, trade fair creates a form for physical interaction between manufactures and their potential customers.
The manufactures use these medium to know how much interest buyers show in their products both the new products that are introduced and the old products that have been existing in the market, and how customers react to various features and terms, how many express purchase intention or place order, since the participating vendor expected several benefits including generating new sales. Lead, maintaining new customers contract (through the public relations officer at the trade fair stand) selling more to pre-sent customers at company’s price, meeting new customers, introducing new products and educating customers with publication, motion pictures and audio visual materials.
Trade fairs are organized at regular intervals mostly at the same locations and period of one year and it usually last from one week to ten days. There are basically two types of trade fairs that are organized in this country namely:
(a) International trade fair.
(b) Domestic Trade fair
The International Trade fair which is zoned into three in Nigeria, Lagos, Kaduna, and Enugu. The Lagos zone serve as avenue for any international trade fair that is being hosted in the Western state of Nigeria while Kaduna and Enugu serve the Northern and Eastern States respectively. These fairs are usually organized by various state. Chambers of commerce in collaboration with the Nigeria Association of Chamber of Commerce Industry, Mines and Agriculture (NACCIMA) which is the umbrella of all other chambers of commerce.
Fairs like the International trade fairs attracts customers within and outside the country, these fairs in turn increase the market potentials for a company’s product because with a good sales person or representative in the fair to persuade customers, customers are convinced and those expatriates who come as a result of the trade fair many be tempted to test a product serves its purpose, they may like to create market for such a product in their country profit does not take place or come in a vacuum, but it comes though aggressive and competitive selling with this these locally made products will exposed to those product from developed countries there by creating chances for development because for those locally made product to be able to compete efficiently an effectively with foreign competitors. It is when these standards are met that they can confidently participate in different trade fair organized by various countries or domestic.
1.2 PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER
The Enugu State chamber of commerce Industry mines and agriculture in since inception has conducted about ten trade fairs in Enugu State, along old Abakaliki road.
The organizer of this trade fair up to this year have helped many companies to create awareness of their existing products. There are some problems affecting this body (ECCMA) in reaching standard ie comparing it with other commerce Board in other countries such problem are:
1.3 PROBLEMS THAT THE STUDY BE CONCERNED WITH
There has been frequent failure in power apply (electricity). This had worried many participants such as this cosmetic industry we are discussing about who would apply these hair cream on their customer and the breweries companies that will like to offer cold drinks to their customers.
The frequent power failure posses a problem as it would be difficult to rely on the public electricity supply which is not constant.
SECURITY:
The chamber of commerce has the problem of security service through this problem has been solved partially. The breaking into stand as stated by the manager of NASCO when participants companies are gone there and some people parading themselves as security personnel the participating companies but on the other hand they are thieves.
STORAGE OF WATER
Since the trade fair allows many companies to participate, there are some companies that will use water during their service to customers eg. of such companies are the hair dressing salon or those companies that operate restaurant business also included are the traditional medical doctors who use water in mixing their drugs.
COST OF STANDS
The high cost of stand is still a problem to many participants as they complain that the stands are too expensive, that they hardly recover half of the money spent on stand before the end of the fair.
1.4 THE IMPORTANCE OF STUDYING THE AREA
The objective of this write-up is to critically uses how trade fair has increased the sales in business organization. And this objectives are
· How trade fair can keep stimulate product marketing sales in business organization. The inability factors in achieving those objectives would be looked into
· How trade fair can keep a company to increase its market share and profit.
· How cost incurred by participating customers such as the manufactures can be covered during the trade fair.
· If the sole aim of trade fair is to create awareness, how successful is this statement with reference to the past trade fairs.
· Whether participants or organizer and customers obtain their value for their money spent.
· The necessary steps or arrangement the organizers of trade fair can use in subsequent trade fair as to increase the level of trade fair in Nigeria.
· The participating companies progressing or retrognessing by taking part in the various trade fairs and adjust when the need arises? Hence no enterprises will like to operate at cost or below cost.
The main important behind organizing trade fair is to let people see products of various companies of similar products in the
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