Effects Of Economic Depression In The Marketing Of Paint Products

Effects Of Economic Depression In The Marketing Of Paint Products
(A Case Study Of Andy Group Of Company)

Effects Of Economic Depression In The Marketing Of Paint Products
(A Case Study Of Andy Group Of Company)

This research works in designed to investigate and unraval the problems. Consequences and prospects of marketing paints product in Andy group of company under the present facing Nigeria industries and businessmen.

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The Nigeria environment underwent a fundamental change of the class of 1986 in a view of the intensity of the level of unemployment and wide spread of inflation. The situation in the hate 2970 reflected on the fact that consumers disposable income was on the increase and individual buyers expectation were raised emphasis shifter to the creation of an increased capacity for creation of an increased capacity for production as the range of purchases become cordoned.

Today’s marketing environment is more turbulent and consumption patterns among various marketing segments especially the paint companies are more diverse static while just a negligible populace has deemed lucky enough to record marginal rise.

Marketing is not only a mean by which the present day business will survive the means bulleting of the uncontrollable variable, it is also a philosophy which have emerge as a sophisticated approach to managing business enterprise through the stimulation command of consumer demand.

Generally the different marketing mix have not be well supplied by the paints companies in the state of study much is still to be done to create the much needed for the companies for survival. This calls for a proper integration of marketing mix particular reference to promotional mix.


Paints companies in Andy group of company are faced with a lot of problem as it is found in their counterparts in other firms in Nigeria. These problems have prevailed against the marketing and distribution of paint products in Enugu state and Nigeria in general.


1. The effects of the present economic crunch on the marketing of paint product.

2. The impact of government economic policies and the operation of paint products.

3. The paint companies also experience the decline rate of demand under the present economic situation.

4. Another problem face is grouping intense competition among firms in the company.


Regarding the paints enumerated above in the statement of the problem the objectives of the project will be as follows:

1. To find out the inference the present economic situation has on the paint companies with particular reference to Andy group of company ltd.

2. To find out whether the proper application of the marketing mix variable can help alleviate the problems faced by the paint companies under the present economic situation.

3. To know how the firms under this study are adjusting to the situation

4. The study aims at highlighting the various policies of the government and it effects on the paints companies.

5. To make recommendation on the appropriate measure the Andy group of company should take to ensure rapid growth.

6. To ascertain the profit and loss level of the firm.

7. To know the consumers behaviour in the buying of the paint product.

8. To know how they can capture their customers during situation of the country

9. To see how the firm can be able to combat the solid economic situation of the country.


The importance of these studies lays in its attempt to unreliable the problem confronting the marketing of paint products in Enugu state under the present Nigeria economy. It will seek to estimate the impact of the paint companies with a view of suggesting applicable measures in line with modern marketing concept in the states under the present economic situation with particular reference to the study area Andy group of company ltd.

The study also helps other researches and student in the business field as a project to add to their knowledge in the discipline.

More so, it aimed at exposing the damagers of marketing paint products in the state.

Finally the study helps the marketing of paint products to point their mistake in organizing and operating marketing paint products for then to achieve the optimum benefits.


a. Economic buckle: economic hard time in business environment

b. Inflation: general rise in price

c. Revamp: reconstruction or improvement

d. Unraval: separated

e. Economic depression: situation where the economy or a country is beyond standard

f. Ailing economy: troubling situation or troubling economic

g. Crunch: eager willing to act

i. Endemic: always present

j. Bulletin: written report.



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A depressed economic has two phases which were the inflationary and deflationary period. These periods exist in isolation, as the two cannot be experienced at the same time in any economy.

In the words of the set of Philip Kotler (1984) marketing can be defined as the set of activities directed at satisfying the consumers need and want through exchange process.

On depression several definitions have been given by some renowned authors until recently when a generally economy activities slides down the normal economic growth rate.

Nwankwo (1981) writing on similar subject titled the facts of economic depression” gave the characteristics of a depressed economy as under employment workers lose their jobs stagnation, inflation difficulties in reaching break even points companies overstocking of warehouse rapid define in level of national income and expend capital goods debtors find it difficult to pay their debts demand for bank credit reaches it how ebb investments in stock become less profitable and general decline in the standard of living. In (1986) Omorugi delivered a lecture titled marketing in a depressed economy” This lecture x – raged the influences depression has on marketing and general business operation. To economic down turn. The demand for good and services are usually industries depend on the importation of raw materials resulting in large foreign debts. Specking further he said that there will be increase in completion with foreign goods since the precedes of the locally produced goods will be brought down foreign made goods syndrome de said will be continuant discourage infant industries while sucking the foreign reserve with its characterizes high cost of living and low standard if living.

Finally he tinted that at this period some wise managers only resort to sourcing for local material by integrating backwards. This he said reduces the cost of production thereby marking the final goods cheaper for its consumers.

Looking further into the views of many authors like Osadebe (1979) writing on “financial weekly publication compared Nigeria understanding of SAP and how it looks like operation in advanced countries. He argued that the industrialization ratio off inflation adverse trade balance and negative growth rate index


In the school to though he contended further approximates to the phenomenon referred to as stay inflation. The price system he went on has been used in the western countries especially after the Second World War to build the economy.

He said that SAP (structural adjustment programme meaning an acronym for price system restoration can this be assessed against the back meaning of being used for an equivalent purpose in Nigeria.

In the view of Adebowale “Raw materials and associated problems” he indicated the industrialists for not being guide optimistic over the realization of objectives of our industrial policy in the height of socio-economic constraints.

Alukon- Olokum (1989) in his publication business concord of January 31st commented on the fate of paints user in the period of economic depression. He highlighted that the paints users were to pay 40% (percent) more on the prices they used to pay for paint before he stressed that this may or price increase is traced to the recent review on the tariff in some imported raw materials in puts in paints manufacturing. The markets he said argued seriously against the increase in duty of chemical rising from 3% to 40% (percent).

Sincerely they also see no justification for the increase of duty on all Oke resins on code 39 series from 15 percent to 25percent. The development he contended brought about the consequent new prices announced by major paint firms.

Another researcher said in his write up “To bring scarcity in the Nigeria business system the greatest problem we have is corruption and lack of integrity. Stressing further he forwed at the idea of boarding of goods by the so-called producers and seller, which he said, helps in making the economy more depressed. The therefore challenged the producers distributors and sellers of goods in Nigeria to shun and help revamp the ailing economy. Concluding his writing he pointed out that within the producers in various firms there exist unhealthy competition, which he said is at times not in the interest of the consumers.


As a means of revamping the meaning economy another researcher called for co-operation among all departments of an organization where he said ever one should think like the manager.

According to him with this organization are seem working together towards achieving the general objective of the organization. Buttressing this point further he said that since the objectives of most firms is satisfying the needs of the people while making an optional profit with integrated marketing efforts companies who produce what can be sold make enough profits while satisfying the consumers have their life span extended and embrace upon expansion and diversification of business thereby creating more employment opportunities rising the general standard of living of the people as well helping to revamp the depressed economy.

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More so, Nicholas A.H Stacey in his book titled Nigeria in modern business”. In this he said the traders don’t have the merit of selling something new and different and without meeting a local need that is many instance he has lived under the shelter of restrictionism such as resale price maintenance (RPM) and that one year out of three or four he has made enough money to cast along and survive the lean period.

This is the question that must be asked about such trader is whether he is prudently maximizing his assets form his own point of view and that of the nation that if the marketers fails to understand these fact then the marketing of their product will readdressed economically.

Also he said that little demonstration that if the number of models and umber of marketing were reduced the advantage of the twentieth first century mass production and sale would drastically cut manufacturing cost with attendant price reductions passed on to the consumers that product should be produced locally and abroad so long as manufacture of any product remain atomistic and in some instance remains it is inexplicable why this should be so. The benefit of long production and setting cannot be reaped.

The saw to it that inadequacy of financial resources in developing sales makes sale to be retail some of their resources could be scarce and the development must be guided by the optimum return obtainable from the varied activities of the firm.

More so, it may occur that the. Small subsidiary of a large concern may not have proved a very profitable investment yet the operation would be highly regarding with another specialist organization


He explained that if there is no need for professionalism in the firm, there could be waste of executive time going on the carry out the necessary plans of the business.

There could be lack of an outside viewpoint, i.e. They could not know the view of the consumers in the market and the opportunity for investigation of prospect companies by revealing or with holding the clients name. There is no familiarity with diversified procedures of different places for their marketing and technologies there may be no experience of negotiation under varied circumstance and finally there is no counsel with respect to the complex legal requirement so for the need for professionalism the above statement should be held firmly.

The practice of both seller and buyers of companies’ products indicated third party is rapidly growing.

The previous write- up has helped in the accomplishment of the current problems as a result of the educational awareness given to the paint industries on how to run a smooth marketing of paint products without much problems.

The difference between the previous review an the current study is that the current work contains more and has exposed some of the hidden problems of marketing paint product. And economic depression in details, which are still prevailing against the marketing of paint products and also the subsequent new recommendation for this problem.


Dr. Alex N. Ifezue said in his book titled international marketing page 60 said that the firm has to decide on the marketing mix and the means to combine them together to promote the marketing programme some question used to be ask what products do we sell? What pricing policy should be adopted? What type of distribution strategy should we adopt? And how do we promote the sale of our product for it a firm to answer these question it may lead to the depressed on the marketing of their product which will affect the firm in their inflow and out flow of their resources.

He further explain that “whatever we sell in our domestic market promotions patterns” to some firm their policy proves to be successful but to together it lead to failure. Those firms with a strong production and limit cost orientation favour standardization while others who are more culturally sensitive propose the policy of a different marketing programme for each market.

In this case decision can only be made in the high of profitability using cost revenue analysis.

It is obvious that significant cost saving can be realized from having standardized products packages distribution strategies and pricing policies but this makes sense only if there is adequate demand for the product is not up to standard it may result to an economic say of that product which will also affect the finance of that same firm.



This study was aimed at finding out the problems and subsequent solution to the marketing of paint products in Enugu as the scope of its limitation because he researcher felt that it is better for then to solve problems within the environment of Enugu State.

The research method to be used in any research was seen to be logically under consideration. It is because descriptive research is basic for all type of research work.

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At this level the researchers are limited to the use of secondary data hence the use of hypothesis and questionnaire were ignored in this study information was gathered from secondary data only. The researcher had taken their information from collection of books journals lecture notes and periodical complied over the year general reference materials etc.

The researchers were able to complete their work with information’s which they collected from different authors materials and some knowledge from their findings.

The data’s used for this study and research are collected from the libraries such as the national library in Enugu the state library Enugu.


In the course of the study the researchers made the following findings

It was discovered that the company dose not clay much emphasis on promotion of its products through a reasonable source of information’s

It was very found out that the industries are very competitive as most paint companies wants to over shadow others in the market.

The Andy group of company management believes that since their products are of high quality there was no need for promotional activities.

The researcher discovered that economic depression has made the paint-producing firms in the state to innovate as most of them were found integrating backwards especially the studies area.

It was found out that as a means of revamping the cilling economy organization should co-operation among their departments to produce and sell at high rate. And it was also discovered that the company has poor distribution system.

The company now has problems of low result of the high rate of their product caused by the 45% (percent) increase of Oke resin.

It was also found out that lack of capital for business renewing and expansion has greatly prevailed against the effects of economic depression in the marketing of the paints product in the state. Here were no control of investment merchandise personnel equipment and building to ensure maximum use of resources.

More so there was no proper record keeping so as dictating any profit o less in the business.

The market before embarking on selling this had lead to low patronization of the paint products by the customers more so the salesmen were not efficient.

They fail to understand and the four marketing (P.S) production, price place and promotion where more emphasis should be laid upon promotion to win the demand of the customer.


From the analysis of the data the researchers hereby make the following recommendation:

a) The industrialist should tend to lay more emphasis can the promotion of its product through a reasonable source of in formation and they should have functional education and employ qualified and experience staff.

b) The should improve in their distributive system and have a co-operative society with other firm so that they can have one voice to be able to influence the government decision as they affect them

c) The government should help give loans tot here firms with which to facilitate the production of raw materials locally.

d) The bar on the importation of chemical used in the production of paints should be lifted so that these (chemicals) not produce locally could be imported

e) The should try to emphasize quality products since this help them to have competitive edge over firms.

f) The firm should try to create awareness for both their product and the company by embarking upon serious promotional activities.

g) They should co-operate with other department to produce and sell their product at moderate price

h) The should also try to increase their demand in the marketing by improving their product with moderate price

i) They should embark more on promotional activities of their product

j) They should try to combat the competitive firms to win more customers in the market.


With regard based on the finding of the study the following conclusion were derived.

a) The marketing industrialist were not managed properly due to lack of basic and functional educations on the part of the managers who find it difficult to attract or employed qualified and experienced staff.

b) It could also be concluded that as a result of lack of business accent on the part products, failed to plan and co-ordinate their marketing product mix, product price place and promotion.

c) Finally, the Andy group Company should continue in their efforts to finding solutions to the problem caused by this economic depression.

Effects Of Economic Depression In The Marketing Of Paint Products
(A Case Study Of Andy Group Of Company)

To place an order for the Complete Project Material, pay N5,000 to

GTBank (Guaranty Trust Bank)
Account Name – Chudi-Oji Chukwuka
Account No – 0044157183

Then text the name of the Project topic, email address and your names to 08060565721.  

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