AN ASSESSMENT OF THE ROLE OF MARKETING RESEARCH

TO BUSINESS DEVELOPMENT OF LOCAL INDUSTRIES

Mahinya Aman Samson

Tumaini University Makumira- Dar es Salaam College

2014

AN ASSESSMENT OF THE ROLE OF MARKETING RESEARCH

TO BUSINESS DEVELOPMENT OF LOCAL INDUSTRIES

By

Mahinya Aman Samson

A Research Report Submitted in partial Fulfillment of the

Requirement for the Degree of Bachelor of Human Resources

Management of Tumaini University Makumira- Dar es Salaam College

2014

CERTIFICATION

“The undersigned certifies that he has read and hereby recommends for acceptance by

Tumaini University – Dar es Salaam College a research entitled: “An assessment of

role of marketing research to business development of local industries: A case

study of Coca Cola Kwanza Dar es Salaam”, in Partial Fulfillment of the Requirement

for the Degree of Human Resources Management of Tumaini University - Dar es

Salaam College”.

Mr. / Ms. / Mrs. / Dr. / Prof:

(Mrs. Lois Singa Mbilinyi)

(________________)

July 2013

DECLARATION

“I, (Mahinya Aman Samson), declare that, this research study is my own original work

and it has not been presented and will not be presented to any other university for a

similar or any Degree award.”

Signature

___________________

COPYRIGHT

This research paper is copyright protected under the Berne Convention for the Protection

Of Literary and Artistic Works of 1886, as latest amended in Paris Act of 1979, which

Tanzania become party to the convention in 1994 and other international enactments, in

that behalf, an intellectual property. It may not be produced by any means, in full or in

part, except for short extracts in fair dealing, for research or private study, critical

scholarly review or discourse with an acknowledgements, without written permission of

The Dean, Faculty of Arts and Social Sciences, on behalf of both the author and Tumaini

University – Dar es Salaam College.

© 2014

DEDICATITON

This work I dedicate to my beloved family. Mr. and Mrs. Samson Mahinya, my sisters

Monalisa and Balbina: my brothers, Emilian, Noel and Isaac for being patient and

concern for the whole period of my study. May God bless them all.

ACKNOWEDGEMENT

Firstly, I wish to express my sincere appreciation to God who enables me to conduct this

study healthily. I wish to express appreciation to my family, for encouraging me to study

this course.

Then I present appreciation to management of Coca Cola Kwanza Bottlers Ltd, Dar es

Salaam for allowing me to collect data in their organization.

I wish also to thank Mrs. Lois Singa Mbilinyi for good supervision of this work. The

quality of this study report is a good indicator of her commitment to ensure that I

perform better.

On the other hand I wish to appreciate my friends I. Chuwa, N. Thadeo, D. Matogo, I.

David and J. Nkini for their close support during the study. The expressions in this

dissertation are those of my own and to a great extent I have indicated the source of used

materials. Therefore, I wish to express my gratitude to all people whose materials and

reference were used in writing this report.

ABSTRACT

The aim of this study was to assess the roles of marketing research to business

development of local industries: A case study of CCK. Specifically the researcher aimed

to analyze the contribution of marketing research to managerial decision making toward

business development, to find out if marketing research can make local industries more

competitive, and to assess the changes facing marketing research programs.

A case-study approach was adopted for the study with both qualitative and quantitative

techniques. Also purposive sampling and simple random sampling techniques were

employed. Key information interviews and questionnaires were the methods of data

collection for the study and SPSS software was used to analyze data collected from the

field.

Results show that, marketing research has a positive impact to the business

development.

Rational managerial decision making towards business development like product

development, marketing strategies, and achieving customers satisfaction is among of the

impacts of marketing research. Those impacts of marketing research can make them

more competitive in the global market. Also there are several challenges facing

marketing research programs, this are categorized to political challenges, economic

challenges, technological challenges and social challenges.

The research recommended that, Tanzanian industries had to conduct marketing research

effectively and efficiently in order to develop their business.

LIST OF TABLES

Table 1: Category of SMEs ............................................................................................... 31

Table 2: Age of respondents .............................................................................................. 42

Table 3: Gender of respondents ........................................................................................ 44

Table 4: Respondents level of education........................................................................... 46

Table 5: Respondent’s responses ...................................................................................... 49

Table 6: Respondents responses........................................................................................ 51

Table 7: Challenges facing marketing research at CCK ................................................... 54

LIST OF FIGURES

Figure 1: Age of respondents ............................................................................................ 43

Figure 2: gender of respondents ........................................................................................ 45

Figure 3: Respondent’s level of education ........................................................................ 47

Figure 4: Shows how marketing research makes CCK competitive ................................. 51

Figure 5: shows challenges facing CCK ........................................................................... 54

LIST OF ABREVIATION

AMA American Marketing Association

CCK Coca Cola Kwanza

IKCo Iran Khodro Company

NTP National Trade Policy

PRA Participation Rural Appraisal

SMEs Micro, Small, Medium, Enterprises

SPSS Statistical Package for Social Sciences

TSHs Tanzanian Shillings

USA United States of America

CHAPTER ONE

1.0 Introduction

This chapter was introduces the concept of marketing research and overview its rules in

local enterprises in Tanzania. The statement of the problem, objective of the study,

research questions, significance of the problem, as well as scope of the study was

explained in this chapter.

1.1 Background of the study

Marketing research has existed ever since the man on this earth first started exchanging

the merchandise. Although at the time marketing research was in a very crude form.

Evidently, the marketing research was first used in the United States in early nineteenth

century (around 1820). First time it was used by newspapers to predict election results.

Thereafter, the U.S. agricultural machinery manufacturers used marketing research for

estimating the potential demand for their products by collecting and using certain

information, Sharma (1999).

Sharma (1999), during 1907 to 1912, some quasi-marketing research firms came into

existence. Bureau of Business Research was established by Harvard Business School

followed by North-Western school of commerce in 1918. During that period, a few

publishing companies conducted business researches on their staff. It was around this

period (1918) that some books dealing with marketing research were also published in

United States. Up to 1920, a little data was available for marketing research except

government lists for population, agriculture, and manufacturers. In 1929, the first census

of population was undertaken which is forerunner for today’s census.

Also Sharma (1999), continues to say that, in India also the history of marketing

research has a hazy past. There were exchange processes among Indian societies like

Indus valley, Mohanjodaro and Harrapa. But there is no separate record available on

techniques and processes of marketing research of those periods. Later on Indian

merchants, Muslim and British empires used marketing research in Indian but again no

systematic record is available about the systematic techniques and process. Through

various firms in India have started employing marketing research techniques to a certain

extent yet, not much literature on concepts and techniques of marketing research has

been generated till date. Now days, many firms both in public and private sector have

started realizing the importance of marketing research. Some firms have stared

employing marketing research officials (consultants) for conducting research on

marketing problems. They are also sponsoring research projects to marketing research

agencies. This shows that presently, marketing research policies and practice are being

formulated and utilized by various business organizations in India.

In Tanzania, the marketing research status is stated in the National Trade Policy (NTP).

NTP (2003) states that, In accordance with the National Development Vision 2025, the

goal of trade policy is that of raising efficiency and widening linkages in domestic

production and building diversified competitive export sector as the means of

stimulating higher rates of growth and development. The first specific objective is to

stimulate a process of trade development as the means of triggering higher performance

and capacity to withstand intensifying competition with the domestic market. This

includes improved physical market-place infrastructure and stimulating dissemination of

market information and increasing access to the market.

According to Malhotra,(1996) the American Marketing Association (AMA) redefine

marketing research as the function that links the consumer, customer, and the marketer

through information used to identify and define marketing opportunities and problems;

generate, refine, and evaluate marketing actions, monitor marketing performance; and

improve understanding of marketing as a process. Market research specifies the

information required to address these issues, designs the methods for collecting

information, manages and implements the data collections process, analyzes the results,

and communicates the findings and implications.

Kerin et al, (2009) says that, marketing research is the process of defining a market

problem and opportunity, systematically collecting and analyzing information, and

recommending actions. Although imperfect, marketers conduct marketing research to

reduce risk of and thereby improving marketing decision.

Therefore it was the purpose of this study to examine a role of marketing research that

once carried effectively will help the business development to local enterprises that can

make appropriate marketing planning and decision making, hence develop their markets

by identify potential products needed by potential customers as at the end of the day they

generate more profit and grow internationally.

1.1.1 Background of coca cola kwanza

The then called Tanganyika Bottlers, it was owned by Greek businessman Aris Cassolis.

The country gained independence in 1961 and changed its name to Tanzania in 1964,

following the union of Tanganyika and Zanzibar. Cassolis was quick to follow suit,

proudly changed his company’s name to Tanzania Bottlers.

In the decades that followed, growth was somewhat sluggish and the company changed

hands. In 1995, when Coca-Cola Sabco became the majority shareholder in Tanzania

Bottlers Ltd, the company’s name again evolved to become Kwanza Bottlers, (meaning

‘first’ in Swahili), and later Coca-Cola Kwanza (CCK).

Exciting developments followed, including a new, ultra-modern facility in Mikocheni in

Dar es Salaam. CCK also has bottling plants in Mbeya and Zanzibar.

Tanzanians enjoy a wide range of beverages, including Coca-Cola, Coke Light, Fanta,

Sprite, Dasani and those in the Krest and Sparletta groups.

1.2 Statement of the problem

Tanzania’s major challenge is to how effectively and gainfully participate in the

emerging global market. Globalization requires dynamic policies and strategies geared at

exploiting inherent opportunities. It is beneficial in terms of trade development through

enhanced access to the world market and the opportunity to convert current comparative

advantages into new sources of competitiveness based on the free flow of investment

resources, factors of production, assets and information, (National Trade Policy, 2003).

In order to solve these challenges, the NTP (2003) has set some specific objectives. The

first specific objective is to stimulate a process of trade development as the means of

triggering higher performance and capacity to withstand intensifying competition with

the domestic market. This includes improved physical market-place infrastructure and

stimulating dissemination of market information and increasing access to the market

(National Trade Policy, 2003).

Malhotra (1996), Market information is the result of marketing information. As the NTP

(2003), state that, stimulation of market information can solve market challenges facing

Tanzanian enterprises. The study was therefore, access the contribution of marketing

research to business development of local enterprises as well as challenges facing

marketing research programs.

1.3 Objectives of the study

1.3.1 General objective.

The main goal of this study was to analyze the role of marketing research to the business

development of Tanzanian Enterprises.

1.3.1 Specific objective

i. The study analyzed the contribution of marketing research to managerial

decision towards business development.

ii. The study needed to find out if marketing research can enforce local enterprises

to be more competitive.

iii. The study examined challenges facing marketing research programs in

Tanzania’s enterprises.

1.4 Research question

i. What were the contributions of market research to managerial decision making

towards business development?

ii. How does marketing research enforce local enterprises to be more competitive?

iii. What were the challenges facing market research programs in local enterprises?

1.5 Significance of the study

The study had much significance to both a researcher, organization (Coca Cola

Kwanza), and the country as whole. The study will help researcher to fulfill his

bachelor degree studies, as well as it was wide up the marketing and marketing

research knowledge. The study will help the organizations to understand the impact

marketing research has on marketing decision making for developing a business. The

study also will help the organization to know that, in order to compete in the market

they had to know market conditions by conducting marketing research. Also the

study will help local organizations to know challenges facing marketing research

programs. Lastly, it will help to guide other researchers interested in studying the

same or related topic.

1.6 Scope of the study

The study was conducted at Coca Cola Kwanza, in Mikocheni, Kinondoni District, Dar

es Salaam, especially in marketing department. Researcher believes that in Kinondoni

District, there were a lot of industries that can represent other industries in Tanzania.

However, the obtained findings were given a fair picture of marketing research condition

to other Tanzanian enterprises.

CHAPTER TWO

2.0 Literature review.

This chapter examines literature review, elaborates terms and concepts used in the study

and how these concepts have been defined from various authors views. It is divided into

two parties which are theoretical literature review and empirical literature review.

2.1 Definition of key terms

Marketing – is the process of planning and executing the pricing, promotion and

distribution of products, services and ideas in order to create exchanges that satisfy both

the firm and its customers, ( Bush et al, 2006)

Marketing research - is the process of defining a market problem and opportunity,

systematically collecting and analyzing information, and recommending actio ns, (Kerin

et al, 2009).

Business development - is the tasks and processes concerning analytical preparation of

potential growth opportunities, the support and monitoring of the implementation of growth

opportunities, but does not include decisions on strategy and implementation of growth

opportunities, (Sorensen 2012).

Micro, Small, and Medium Enterprises (SMEs) - cover non-farm economic activities

mainly manufacturing, mining, commerce and services. There is no universally accepted

definition of SME, (Ministry of Industry and Trade 2002).

2.1.1 Theoretical literature review.

Malhotra (1996) define marketing research as the systematic and objective

identification, collection, analysis, and dissemination of information for the purpose of

improving decision making related to the identification and solution of problems and

opportunity in marketing. He continues to say that, several aspects of this definition are

noteworthy. First, marketing research is systematic. Thus, systematic planning is

required at all stages of the marketing research process. The procedures followed at each

stage are methodologically sound, well documented, and as much as possible, planned in

advance. Marketing research uses the scientific method in that data are collected and

analyze to test prior notions or hypotheses.

Zalmatan & Burger (1975) also defines marketing research as the field which involves

the diagnosis of information needs and the selection of relevant interrelated variables

about which valid and reliable information gathered, recorded and analyzed. In this

definition, although an attempt is made to remove some of the limitat ions of the earlier

definition, yet it does not say anything on identification of problem, its formulation and

objective setting.

Kerin, et al (2007), says often marketing researchers face difficulties in asking

consumers questions about new, unknown products. For example, suppose your

company is developing a brand new product, never before seen by customers. Would

consumers really know whether they are likely to buy a particular product that they

probably have never thought about before? Or, imagine if you, as consumer, were asked

about your personal hygiene habits, even though they know the answer, would you

reveal it? When personal or status questions are involved, would people give honest

answer? Or, will consumers actual purchase be the same as their stated interest or

intentions? Will they buy the same band they say they will? The task of marketing

research is overcome these difficulties and obtain as much as information needed to

make reasonable estimates about what consumers will or won’t buy.

2.1.2 Marketing and the market research process

According to Hair, et al. (2006) defines marketing as the process of planning and

executing the pricing, promotion, and distribution of products, services, and ideas in

order to create exchanges that satisfy both the firm and its customers. The process of

creating this exchange is the responsibility of the firm’s marketing manager. Marketing

manager attempt to stimulate the marketing process by following various marketing

criteria. More specifically the focus on getting the right goods and services (1) to the

right people, (2) at the right place and time, (3) with the right price, (4) through the use

of the right blend of promotional techniques.

Adhering to these criteria ultimately leads to a success of the marketing effort. However,

the common denominator associated with each criterion is uncertainty. Uncertainty lies

on the fact that consumer behavior is unpredictable. In order to reduce this uncertainty,

marketing managers must have accurate, relevant, and timely information. Marketing

research is the mechanism for generating that information.

2.1.3 Types of marketing research.

Singh & Pandey (2009), says marketing research methods fall into two basic categories:

primary and secondary. The research might involve one or both, depending on the

company needs.

Primary Research

Involves collecting original data about the preferences, buying habits, opinion and

attitudes of current or prospective customers. By customizing “tried –and-true

approaches” – focus groups, surveys, field tests, interview or observation – you can gain

information about your target market. Primary research delivers more specific results

than secondary research, which is an especially important consideration when you are

launching a new product or service. In addition, primary research is usually based on

statistical methodologies that involve sampling as title as 1 percent of target market.

This tiny sample can give an accurate representation of a particular market.

Secondary Research

If you’re considering extending your business into new markets or adding new services

or product lines, start with secondary research. Secondary research is based on existing

data from reference books, magazines, and newspapers, industry publications, chamber

of commerce, government agencies or trade associations. It yields information about

industry sales trends and growth rates, demographic profiles and regional business

statistics. Although secondary research is less expensive than primary research, it’s not

as accurate, or as useful, as specific, customized research.

2.1.4 Steps of marketing research

Marketing research is conducted by following several steps. Kerin, et al (2007), argues

that marketers have tried to improve the results of their research by using more formal

and systematic approaches. According to them, there are for steps to follow when

conducting marketing research. There are,

1. Define the problem

-Set the research objective to be specific and measurable goals. Also effective

decision makers develop specific measures of success, which are criteria or standard

used in evaluating proposed solution to the problem.

2. Develop the research plan

-Identify data needed for marketing actions by wind up collecting a lot of data that

are interesting but irrelevant for marketing decision. Also you had to determine how

to collect useful marketing research data.

3. Collect relevant information

Collecting enough relevant information to make a rational, informed marketing

decision sometimes simply means using your knowledge to decide immediately. At

other time it entails collecting an enormous amount of information at great expense.

Primary and secondary data had to be collected.

4. Deliver the final report.

Marketing data and information have little value unless they are translated into

findings and recommendations that lead to marketing actions for the marketing

manager. In this step you deliver a useful report to marketing managers by analyzing

the data, presenting the findings and making recommendations.

2.1.5 Benefits of marketing research

According to Singh & Pandey (2009) marketing research allows you to pinpoint a

host of key business factors about a market. It can help the industry to identify:

1. Growth trends in their business sector

2. Size of their target market

3. Best location for their business

4. How their business stacks up against the competition

5. Factor that influence buying decisions

6. Degree of demand for their product or service

It also can reveal key information about their customers and prospects,

including:

1. Their demographic profile

2. The types of features or special service they want

3. What they like and dislike about their product or service

4. How they use product and services

5. How often they buy and how much they will pay for your product or

service.

2.1.6 Business development

Sorensen (2012), defines business development as the tasks and processes concerning

analytical preparation of potential growth opportunities, the support and monitoring of

the implementation of growth opportunities, but does not include decisions on strategy

and implementation of growth opportunities. These tasks and processes are performed

by "business developers." Given the nature of business development activities, the

business development function is typically organized as a staff function.

Forbs (2012), defines business development as the creation of long-term value for an

organization from an organization, customers, markets, and relationships. Business

activities are competitive, with procedures constantly entering and leaving the market

and consumer preferences providing signals for the development of different products

and services. Whereas some organization will succeed and achieve or surpass the

marketing objectives, others will inevitably not perform as well. Market research is that

vital link in the chain between buyers and suppliers. It enables those who provide goods

and services to keep in touch with the needs and wants of those who buy the services.

2.1.7 Small and medium enterprises

Gunasekaran et al, (2000), says most of definitions of an SME focus the purpose and

goal of the research at hand. However, there were major inter-country differences and no

universal accepted definition of “a Small and Medium Enterprises”. Therefore,

definition and meaning of SMEs vary from country to country and within the same

country from one type of enterprises or sector to another. Different institutions present

different definitions that suit their own purpose. For example, the USA chamber of

commerce define a small business as any firm employing fewer than 100 people, where

European standards, a small business is one with less than 50 employees, and a medium

size is one employees between 50 and 100 people(Dickson and Hadjimanolis, 1998).

Ministry of Industry and Trade (2002), defines that SMEs nomenclature is used o mean

Micro, Small and Medium Enterprises. It is sometimes referred to as micro, small and

medium enterprises (MSMEs).

The SMEs cover non-farm economic activities mainly manufacturing, mining,

commerce and services. There is no universally accepted definition of SME. Different

countries use various measures of size depending on their level of development. The

commonly used yardsticks are total number of employees, total investment and sales

turnover.

In the context of Tanzania, micro enterprises are those engaging up to 4 people, in most

cases family members or employing capital amount up to Tshs. 5.0 mil. The majority of

micro enterprises fall under the informal sectors. Small enterprises are mostly

formalized undertakings engaging between 5 and 49 employees or with capital

investment from Tshs. 5.0 million to Tshs.200.0 million. Medium enterprises employ

between 50 and 99 people or use capital investment from Tshs.200.0 million to

Tshs.800.0 million. This is illustrated bellow;

Table 1: Category of SMEs

Category of Enterprise Number of Employees Capital invested (Tshs) in

Million

Micro enterprises 1 – 4 Up to 5.0

Small enterprises 5 - 49 Above 5 to 200.0

Medium enterprises 50 – 99 Above 2 to 800.0

Large enterprises 100+ Above 800

Source: Ministry of Industry and trade, (2002)

2.1.8 Related theory.

Market Driven Versus Driving Markets Approaches.

Jarowski et al, (2000)States that, “In general there are two main strategies to market

orientation: 1) Traditional market driven approach based on understanding and reacting

to the preferences of customers and action of players ( customers and competitors)

within a given market structure and 2). Driving markets by influencing the structure of

the market and / or the behavior of market players (customers, competitors) in a

direction which would enhance the position of the focal business”. They also argued that

these two approaches are complementary because a company can in beginning use

market driven approach to support its sales and generate profit and after, shift to more

market driving approach. So, an organization can use marketing research to shift from

traditional market driven to driving markets.

2.1.9 Conceptual framework.

The conceptual framework of this study was derived from one independent variable,

dependent variable and one situational variable. They were marketing research

(independent variable), business development (dependent variables), and local industries

(situational variable). These variables were influenced by different factors and take

different dimensions to appear as well as to be addressed. While factors influencing

marketing research were of two types, controllable marketing variables (product,

pricing, promotion and distribution) and uncontrollable environmental factors (economy,

competition, technology, law and regulations, social and cultural factors and political

factors): the business development is derived from competition, technology, economical

factors, political factors, and socio-economic factors but in different dimensions as

appear to marketing research. Local industries were the situational variable where

marketing research and business development had to be done.

Market research is that vital link in the chain between buyers and suppliers. It enables

those who provide goods and services to keep in touch with the needs and wants of those

who buy the services (Forbs, 2012). So any business that needs to develop had to

conduct marketing research.

2.2 Empirical literature reviews.

Worldwide literature.

Hultman and Hills, (2011) in their journal of Research in Marketing and

Entrepreneurship with a subject that titled “influence from entrepreneurship in

marketing theory” are pointed at some examples where entrepreneurship theory can

influence the developments within marketing theory. In this paper they present that

mainstream marketing theory can be criticized for emphasizing managerial marketing

behavior. Entrepreneurial activities are an important part of today's business world and

this should be reflected in how we teach and research marketing. They recommend that,

the research interface between entrepreneurship and marketing can, therefore, create

fruitful developments for marketing. Some examples are: opportunity recognition

processes; how marketing decisions are made and implemented; and strategic marketing.

Arkhipova & Pustovalova (2010) in their research titled “Marketing research and entry

mode suggestions” with the case study of Turijobs Tourism Services S.L., Russia. The

goal of this work was to investigate which factors are to be taken into consideration

when planning the entry into Russian market. The theoretical part consists of two

different sets. The first one describes how a marketing research should be conducted,

which techniques should be used and what marketing research divisions exist. The

second part contains the information about the international market entry strategies, the

SWOT analysis and factors influencing the decision making processes. The practical

part describes the application of the marketing research and the formulation of the entry

mode strategy. During the research the main competitors as well as potential customers

have been identified. It has been discovered that there are no competitors focusing on

tourism labor market specifically, but on labor market in general. The analysis has

shown that the Russian tourism market is narrow nowadays. However, on the positive

note it is slowly developing. The environmental research has given an understanding of

Russian tourism sector in general. Based on the results of research suitable pricing,

promotion and placement strategies have been chosen. After the research has been

completed, the conclusion that the Russian market can be seen as a niche market for the

tourism labor services has been made.

Another study is from Sepehri, et al (2006) in their research “the use of marketing

research during new product development process” in Iran Khodro Company (IKCo),

Iran. This study aims to study the use of marketing research through IKCo’s new

product development process. By explaining, describing and somewhat explaining

IKCo’s objective of market research during new product development process as well as

how this process should be implementing with comparison of the literature review and

also based on view point of interviewee. In this research, three major findings were

made. Firstly, the IKCo’s new product development has not well developed based on the

information achieved from marketing research. Secondly, IKCo’s managers accept

marketing research is an essential tool for new product development success. Thirdly,

today IKCo mostly use marketing research as a sales and marketing support system

during some of new product development phases, which should be revised to cover the

whole process of new product development.

Shaiderov (2012) on his research titled “Qualitative Marketing Research" in Masaryk

University. The purpose of this paper was to identify the ways on how to improve the

University overall attractiveness among this market segment based on best practice

solution in this sphere and obtained primary data. Exploratory research has been chosen

as a research design in order to clarify relevant issues and uncover variables associated

with research goal. Primary data was collected through structured quantitative

questionnaire which gathered 26 respondents.

Results suggest that current and prospective two most important criteria for choosing

Masaryk University: “People” which is competitive academic staff and employability

after graduation. Two other criteria: “Process” and “Physical evidence” were not in

students’ main concern, even though Masaryk University has above average scores of

those two criteria. So it has been recommended to improve previous two criteria

(“People” and employability) along with promotion the other two (“process” and

“physical evidence”).

African literature

Eregae (2003), in his study titled Participatory market research in business planning for

private pastoral veterinary practice in Turkana District, Kenya”. This thesis describes the

use of participatory rural appraisal (PRA) tools in marketing research necessary for

business planning of a private pastoral veterinary practice in Kokuro area of Lapur

Division, North-Eastern Turkana.

Tanzanian literature.

National Trade Policy (NTP, 2003) In accordance with the National Development

Vision 2025, the goal of trade policy is that of raising efficiency and widening linkages

in domestic production and building diversified competitive export sector as the means

of stimulating higher rates of growth and development. The first specific objective is to

stimulate a process of trade development as the means of triggering higher performance

and capacity to withstand intensifying competition with the domestic market. This

includes improved physical market-place infrastructure and stimulating dissemination of

market information and increasing access to the market.

Small and Medium Enterprises Development Policy (2002), Sustainability of a firm

depends largely on its performance in the market. Unfortunately, many enterprises are

facing problems of marketing due to poor quality of products, poor packaging,

inadequate marketing skills and stiff competition. Inadequate marketing services have

being prohibiting Small and Medium Enterprises (SMEs) to become competitive in local

and international markets.

2.2.1 Research gap.

The literature reviewed showed how marketing research is important in developing

markets. The literatures also showed how marketing research can be helpful during new

product development. Moreover, the literatures show that is marketing research that can

identify main competitor and potential customers.

The literature does not show the challenges facing marketing research programs in the

organizations. Also other reviews are not conducted in Tanzania environments, so it

don’t analyze the contribution of marketing research to managerial decision and business

development to Tanzanian industries, and do not show if marketing research can bring

competitiveness of local business versus foreign business. This was the gap that this

research was going to deal with.

CHAPTER THREE

3.0 Research methodology

This chapter was provides information of research design, area of the study, and unity of

inquiry, sampling techniques, sources of data and data analysis procedures and

interpretation that was used to obtain data.

3.1 Research design

Kothari (2004) defines research design as the arrangement of conditions for collecting

and analyzing of data in a manner that aims to combine relevance to the research

purpose with economy in procedure. It provides the systematic plan of procedures for

the researcher to follow. A case study design was used to obtain and analyze the

required information. Also it helped the researcher to collect the data on the variables so

that to get enough information about the findings. In this study, both quantitative and

qualitative approaches were employed. Rwegoshora (2006, p. 127) strongly suggest that

it is necessary that the measured units for the study be worthy measuring.

3.2 Unit of inquiry

Unity of inquiry (population) for research study was comprised Coca Cola Kwanza

marketing department which have 40 employees and 25 employees were selected in the

study. These are considered to be information reach with respective to the topic of the

study.

3.3 Sampling techniques

Saleemi (1997, defines sampling as the method used/applied to collect data in most of

the cases. According to this method, a few units from the whole population are selected

and the results obtained from these a few units are generalized for the whole population.

This study was use simple random and purposive sampling. Simple random sampling

was a sampling where by every person in a study had an equal chance to be selected.

The purposive sampling was selected as it was base to certain purpose.

3.4 Sources of data

The study was using both secondary and primary sources of data. Primary data were

those which were collected fresh from the people and for the first time, thus were

happen too original in character. This data were collected through survey using

questionnaires as a tool containing both the closed and open questions. Also it was

involves interview to few managers.

Secondary data are data which already collected, analyzed and have already passed

through statistical process. These data were collected from the internet, web page of

different people, reports and published materials like books. Krishnaswami and

Ranganatam (2005), say secondary sources contain data that have been collected and

complied for other purpose.

3.5 Data analysis procedures and interpretation

Data collected from questionnaire, interview and that of secondary source was organized

into a meaningful category. Qualitative and quantitative methods method was used. Data

was analyzed by explanatory method and Statistical Package for Social Sciences.

Therefore data was descriptively analyzed.

CHAPTER FOUR

Data Findings, Analysis and Discussion

4.0 Introduction

This chapter presents results from the field which answers the research examined

questions. The results comprise the data obtained from primary data through

questionnaire and interview. The stud was aim to assess the role of marketing rese arch to

the business development of local industries. The 25 questionnaire was distributed to

marketing department at Coca Cola Kwanza Dar es Salaam and a respondent rate of

100% was observed.

The data findings were analyzed qualitative and quantitative (by using Statistical

Package for Social Sciences).

4.1 Characteristics of respondents

The respondents were from sales and marketing departments. Their age was from 21 to

51 and above. Also both gender (male and female) were considered. The education

levels of respondent were diploma, undergraduate, postgraduate and other specified

levels.

4.2 Distribution of questionnaire

The total of 25 questionnaires was distributed to respondents from sales and marketing

departments at CCK as out of 40 employees. The questionnaire was distributed

physically and all 25 questionnaires were collected.

4.3 Demographic Characteristics of Respondents

The demographic characteristics of respondents were characterized by personal

information like age, gender and level of education.

4.3.1 Age of respondents

The aim of collecting these data was to establish the preferred age group employed at

CCK especially in marketing department. The table and figure below shows the

respondents data from field.

Table 2: Age of respondents

Frequency Percent Valid Percent

Cumulative

Percent

Valid 21-30 5 20.0 20.0 20.0

31-40 12 48.0 48.0 68.0

41-50 5 20.0 20.0 88.0

51 And above 3 12.0 12.0 100.0

Total 25 100.0 100.0

Source Data: Field Data

Figure 1: Age of respondents

Source Data: Field Data, 2014

From the table and figure above, 3 respondents (12%) were 51 and above, 5 respondents

(20%) were between 41 – 50, 12 respondents (48%) were between 30 – 41, and 5

respondents (20%) were between 21 – 30. shows that, CCK tends to encourage much

youths recruitment as the best workforce because are competitive, and that there is no

statistical discrimination at CCK. Statistical discrimination is the situation where by the

organization tend to recruit employees with high experience level. Olomi (2002)

supports this, that statistical discrimination assume that managers use past experiences

as a guide in selecting individuals for entry into occupations and entry-level positions

that lead to human capital formation.

4.3.2 Gender of respondents

The aim of collecting these data was to establish the male/female ratio recruited at CCK

especially in marketing department. The table below shows the gender distribution from

the field.

Table 3: Gender of respondents

Frequency Percent Valid Percent

Cumulative

Percent

Valid Male 16 64.0 64.0 64.0

Female 9 36.0 36.0 100.0

Total 25 100.0 100.0

Source Data: Field Data 2014

From the table above, 16 respondents (64%) were male and the rest 9 (36%) were

female. These show that women have not encouraged much in business oriented

departments like marketing department. This evidently supported by Rutashobya, (1995)

that women mostly in developing countries are socialized to be non-argumentative,

passive and easy to accept defeat. This as reported by Olomi (2002), significantly

affected their self-confidence, achievement, motivation and even their willingness to

take risks, qualities that are closely linked to success in business.

Figure 2: gender of respondents

Source Data: Field Data, 2014

4.3.3 Level of education

The aim of collecting these data was to establish the education levels of CCK

employees. Results of the study show that CCK has employees of various levels of

education like diploma, undergraduate (degree), postgraduate (master’s degree), and

others like CPA and PHD. The table and figure below depict the respondent’s levels of

education.

Table 4: Respondents level of education

Frequency Percent Valid Percent

Cumulative

Percent

Valid Diploma 4 16.0 16.0 16.0

Undergraduate 7 28.0 28.0 44.0

Postgraduate 10 40.0 40.0 84.0

Other 4 16.0 16.0 100.0

Total 25 100.0 100.0

Source Data: Field Data, 2014

Figure 3: Respondent’s level of education

Source Data: Field Data, 2014

From the table above, results show the respondents from marketing department were in

different education levels as 4 respondents (16%) diploma, 7 respondents (28 %)

undergraduate, 10 respondents (40%) were postgraduate, and 4 respondents (16%) have

other levels like CPA and PHD. The distribution indicates that CCK tends to employ

candidates with higher education level like degree, master’s degree, and PHD. These

levels of education are most competitive in the labor markets. This shows that, they are

potential, the potential that comes to be a competitive advantage to CCK. Organizations

believe that, employees with higher education level are skilled and competitive enough.

Collins et al, (1964) supports that, those personal values and characteristics, on the other

hand, and the acquisition of business skills known to be crucial to entrepreneurial

success, on the other. For example, direct or indirect access to managerial knowledge

and skills is an important resource in the competition for scarce resource.

4.4 Specific findings related to the study

The main objective of this study was to assess roles of marketing research to business

development of local industries. This study was involving three specific objectives

which are;

i. To analyze the contribution of marketing research to managerial decision

towards business development.

ii. The study needed to find out if marketing research can enforce local

enterprises to be more competitive.

iii. To examine challenges facing marketing research programs in

Tanzania’s enterprises.

The findings of these objectives were analyzed by using field data from CCK

respondents.

4.4.1 Contribution of marketing research to managerial decision towards business

development

This was the first objective of this study that aimed to know if marketing research can

contribute to managerial decision making towards business development. The table

below shows the respondent response.

Table 5: Respondent’s responses

Frequency Percent Valid Percent

Cumulative

Percent

Valid Positively 25 100.0 100.0 100.0

Source Data: Field Data, 2014

From the table above, all 25 (100%) respondents agree that marketing research

contribute positively to managerial decision making towards business development.

These data were obtained from respondents questionnaires in question number 6 and

number 7.

The question number 6 was ask that “how marketing research emphasize managerial

decision making?” All 25 (100%) respondents were answers that, marketing research

emphasize positive managerial decision making towards business development. This

shows that, marketing research have big positive impact towards CCK managerial

decision in business matters. Also question number 7 was asked that, does marketing

research contributes to CCK business development. Also all 25 (100%) respondents

responded clearly “YES” that marketing research contribute to CCK business

development.

This also supported by Singh & Pandey (2009), that once you analyze the results of your

market research, you will be in a better position to create a focused business plan, to

develop a targeted advertising campaign, set competitive prices, select a new business

location or take other steps to help your company grow.

Also respondents were shows how marketing research contributes to CCK business

development as follows,

I. Through identifying new customers and new products.

II. Through identifying customers’ needs and resources for product development.

III. Through identifying market segmentation of CCK products. Example, by

dividing CCK products due to market needs.

IV. Through identifying new marketing ways of CCK products.

V. Through identifying the future marketing condition.

VI. Through identifying market competitors.

4.4.2 Marketing research can enforce local enterprises to be more competitive

This was another objective of this study that was aim to know whether marketing

research can make Tanzanian industries competitive in the global market. The table and

figure below shows the respondents response from the field.

Table 6: Respondents responses

Does marketing research make CCK competitive?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Yes 25 100.0 100.0 100.0

Source Data: Field Data, 2014

Figure 4: Shows how marketing research makes CCK competitive

From the table and figure above, the field data shows that all 25 (100%) respondents

were agree that marketing research makes CCK more competitive in the market. In

respondents questionnaire two questions were sited aim to analyze this objective. This

was question number 11 and question number 12.

The question no. 11 asked that, Do marketing research make CCK competitive than

other enterprises? All 100% of respondents were responding clearly “YES”, that

marketing research makes CCK competitive in the market than other enterprises. Also

respondents were explaining how marketing research makes CCK more competitive in

market than other enterprises, there are as follows,

I. Through the creation of new products (product development). Example, the

introduction of Zero Coca that is non-sugar.

II. By making CCK products more marketable in the market.

III. It is a competitive advantage as it helps to know competitor’s weakness and

strength, hence help them to make marketing plan.

IV. By helping the management to know where to train employees in marketing

matters.

This was supported by Hultman and Hills, (2011) in their journal that, Entrepreneurial

activities are an important part of today's business world and this should be reflected in

how we teach and research marketing. They recommend that, the research interface

between entrepreneurship and marketing can, therefore, create fruitful developments for

marketing. Some examples are: opportunity recognition processes; how marketing

decisions are made and implemented; and strategic marketing. These things will make a

business to be competitive in the market.

The question no. 12 in respondents questionnaire was asking that, what things from

marketing research makes CCK more competitive? Respondents were mentions the

follows,

I. Marketing information like those includes customers, products, and competitors.

II. Rational managerial decision. Example, what to do in order to expand markets,

product development and price changes.

4.4.3 Challenges facing marketing research programs in Tanzania’s

enterprises

Also it was the purpose of this study to analyze the challenges facing marketing research

programs in Tanzanian enterprises by using CCK as the representative field of other

industries. The following figure shows the challenges facing marketing research at CCK.

Table 7: Challenges facing marketing research at CCK

Frequency Percent Valid Percent

Cumulative

Percent

Valid Political challenge 6 24.0 24.0 24.0

Economical challenge 6 24.0 24.0 48.0

Technological challenge 8 32.0 32.0 80.0

Social challenge 5 20.0 20.0 100.0

Total 25 100.0 100.0

Source Data: Field data, 2014

Figure 5: shows challenges facing CCK

Source Data: Field Data, 2014

From the above figure, shows the challenges facing CCK marketing research programs.

This shows that many Tanzanian enterprises are facing many challenges in their

marketing research programs. . The respondent’s questionnaires were used to analyze

this objective in question no. 8 and question no. 9.

Question no. 8 was asking whether there are any challenge do CCK face. All 25

respondents were directly responding “Yes”, that there are challenges facing CCK

marketing research programs. This shows the fair picture that most of Tanzanian

enterprises are facing many challenges in marketing research programs.

The question no. 9 was asking which challenges CCK face. The mentioned challenges

were political challenge, economical challenge, technological challenge, and social

challenge. 12% of respondents they said that CCK is facing political challenges like

policies and laws. 28% they said CCK facing economic challenges like global economic

crisis. Also 40% of respondents said CCK is suffering from technological challenges.

The last 20% of respondents were said that CCK is facing social challenges. The

following graph below shows distribution of marketing research challenges as responded

by respondents.

SMEs Policy (2003), states that, generally, SMEs are confronted with unique problems

including heavy costs of compliance resulting from their size. Other constraints include

insufficient working premises and limit access to finance. On the other hand, SME

operators lack information as well as appreciation for such services and can hardly

afford to pay for the services. At the same time, the institutions and associations

supporting SMEs are weak, fragmented and uncoordinated partly due to lack o f clear

guidance and policy for the development of the sector.

NTP (2003), states that, essentially the development of trade within the domestic market

depends on three factors; enhanced economic efficiency based on wider participation;

improve market infrastructure; and access to the market information. These aspects

highlight the need for the development of modern market place facilitates and

dissemination of information on trends in the markets.

CHAPTER FIVE

Conclusion and Recommendation

5.0 Introduction

This chapter presents the summary of the study, conclusion of the study, and

recommendation for the findings of the study.

5.1General Summary

This study aimed to assess the role of marketing research to the business development of

local industries and CCK was selected as the case study that represents other Tanzanian

industries. Therefore, the study analyses the contribution of marketing research to

managerial decision making towards business development, its enforcement to

competitiveness and challenges facing marketing research programs in Tanzania.

5.1.1 Summary according to first objective

According to the first objective that needed to analyze the contribution of marketing

research to managerial decision making toward business development. As 100% of

respondents agree that marketing research had positive impact to managerial decision

making hence lead to CCK business development.

5.1.2 Summary according to second objective

The second objective was requiring knowing if marketing research can enforce local

industries to be competitive. This objective was needed to find out if, when marketing

research conducted effectively can lead CCK to be much competitive in the market.

Also all 100% of respondents were agree that marketing research help CCK to be

competitive.

5.1.3 Summary according to third objective

The third objective needed to analyze the challenges facing marketing research programs

in local industries. The respondents from CCK also agreed that there are challenges

facing their company in marketing research programs. 12% of respondents said that

CCK is facing political challenges, 28% of respondents said CCK face economic

challenges, 40% said CCK facing technological challenges and 20% said CCK is facing

social challenges.

Therefore, the followings are the conclusions according to each objective of the study.

5.1.4 General conclusion

The study analyzes many findings from all objectives. There are big role made by

marketing research to the business development if it carried effectively and efficiency.

This end the business to be much competitive due to rational analysis of markets. Apar t

of its contribution, the study also found that, there are different challenges facing

marketing research programs in Tanzania. These challenges were categorized to political

challenges, economic challenges, technological challenges, and social challenges.

5.1.5 Conclusion with the respective to first objective

The first objective requires the researcher to assess the contributions of market research

to managerial decision making towards business development. Findings established that,

there is strong contribution of marketing research to managerial decision making

towards business development. All 25 (100%) of respondents from CCK was agree that

marketing research has positive impact to managerial decision making, hence contribute

much to CCK business development. This shows that, how marketing research can help

management to decide what to do in order to develop their markets, product

development, and future determination.

5.1.6 Conclusion with respect to the second objective

The second objective was needed to find out if marketing research can make local

enterprises more competitive. The findings show that marketing research can help much

local industries to be competitive. Also 100% of respondents agreed that marketing

research makes CCK more competitive in market than other enterprises. Therefore this

will satisfy the one of National Trade Policy (2003) objectives, which is to stimulate

dissemination of market information and increasing access to the market. Hence, it will

help Tanzanian industries to become competitive in the global market.

5.1.7 Conclusion with respect to the third objective

The third objective was to assess the challenges facing market research programs in

local enterprises. The findings show that CCK is facing different challenges in their

marketing research programs. All 100% of respondents said that, CCK facing political

challenge like government policies and laws, economic challenge like global economic

crisis and financial problems, technological challenge like on- line marketing research,

and social challenge like customer and consumers response when needed to provide

some information. These are challenges that face other Tanzanian industries too.

Considering the Market Driven Versus Driving Markets Approaches that is guiding

the study, driving markets by influencing the structure of the market and the behavior of

market players (customers, competitors).

The research findings show that CCK use marketing research to drive market by to

influencing the structure of the market and the behavior of market players who are

customers and competitors. Most of respondents show that marketing research has big

impact in influencing rational managerial decision like product development, marketing

strategies and customer’s satisfaction. Therefore, CCK easily drives the market.

5.2 Recommendations

This part is showing the recommendations to bring the attention to CCK and public as

well, to bring effectiveness and efficiency in the process of supplier selection and ways

of eliminating the challenges facing CCK as other Tanzanian industries.

Recommendations are given basing on the findings obtained from each objective.

5.2.1 General recommendations

Researcher found that marketing research has big constructive impact to any b usiness

organization. As government have the National Development Vision of 2025, that need

Tanzanian industries to be much competitive in the global market. It must insist much in

conducting marketing research programs that will help Tanzanian organizatio n to know

the market condition. CCK shows this as all 100% of respondent agree that marketing

research contribute much in their business development.

5.2.2 Recommendation according to objective one

Researcher found that marketing research has positive impact to managerial decision

making towards business development. CCK management use market research to

develop their products, to make marketing strategies, to set price, and to allocate new

markets. Therefore, the government must emphasize and insist local enterprises to

conduct effective marketing research in order to archive the National Development

Vision of 2025 as stated in NTP (2003).

5.2.3 Recommendation according to objective two

Research found that, marketing research can make local industries much competitive.

100% respondents agree that marketing research makes CCK competitive in the market.

This is by identifying the key customers, key competitors, marketing techniques, sales

techniques and product performance.

5.2.4 Recommendation according to objective three

Also the research found that there are many challenges facing market research program

in local industries. CCK as the case study, that there are different programs like political

challenge, economic challenges, technological challenges and social challenges.

Therefore, organizations had to ensure that they solve all challenges in order to conduct

effective marketing research. Also the government must help this industries to solve this

challenges like to set clear marketing research national policy. As McClelland (1961),

Ideally state can influence not only the supply of a new stock of entrepreneurs in the

economy but also the allocation of their resources by designing polices that affect their

objectives, accessibility to the resources, technology, factor and product market.

5.3.0 Recommendation for further study

It is recommended that further study can focus on the contribution of marketing research

to growth of small industries. The sample size can be enlarged and can use two or more

case study.

REFERENCE

Collins O.F., Moore D.G., & Unwalla D.B. (1964). The Enterprising Man. M.S.U.

Press: East Lansing, Michigan.

Hair J.F., Bush R.P., & Ortinau D.J. (2006). Marketing Research, 3rd Edition. McGraw-

Hill, New York.

http://www.startofthedeal.com

Kerin R.A., Hartley S.W., & Rudelius w. (2007). Marketing: The Core. 2nd Edition.

McGraw-Hill, New York.

Kerin .R.A., Hartley S.W. & Rudelius W. (2009). Marketing: The core. 3rd Edition.

McGraw-Hill, New York.

Malhotra K.N. (1996), Marketing research.2nd Edition. New Delhi, India.

McClelland D. (1961). The Achieving Society. Van Nostrand: Princeton

Ministry of industry and trade (2003), National Trade Policy.

Olomi D.R. & Rutashobya L.K. (1999). African Entrepreneurship and Small business

Development.

Rwegoshora H.M.M. (2006). A Guide to Social Science Research. Mkuki na Nyota

Publishers, Dar es Salaam.

Saleemi N.A. (1997). Statistics Simplified. N.A. Saleemi, Nairobi, Kenya.

Sepehri K., Bayat H.R, & Najafi V. (2006). The use of marketing research during New

Product Development

Sharma D.D. (1999). Marketing Research: Principle, Applications and Cases. 2nd

Edition. Sultan Chande & Sons, New Delhi.

Singh Y., Pandey M. (2009). International Business and Marketing Management. 2nd

Edition. A.I.T.B.S., India.

Sorences H.E. (2012).Business Development: A market research oriented perspective.

John Willey & Sons.

The United Republic of Tanzania, Ministry of Industry and Trade (2002). Small and

medium enterprises development policy. Business Printers Ltd, Dar es Salaam.

www.cocacolasabco.com

APPENDIX I

QUESTIONAIRE FOR COCA COLA KWANZA DAR ES SALAAM

Dear respondent,

I am a student researcher from Tumaini University Dar es Salaam College, conducting a

study on “An assessment of marketing research to the business development of local

enterprises”. The aim of this research is to examine on how marketing research can help

business development of Tanzanian enterprises.

I would like to assure you that this study and its findings are purely for academic

purposes. Under no circumstances shall be disclosed to any other part without your

consent. I kindly request you to offer the maximum cooperation by responding to the

following questions that will assist me to accomplish this study.

Researcher name: Aman Mahinya

SECTION A: GENERAL INFORMATION

Please tick appropriate.

1. Gender

(a) Male { }

(b) Female { }

2. Age

(a) 21 – 30 { }

(b) 31 – 40 { }

(c) 41 – 50 { }

(d) 51 and above. { }

3. Level of education

(a) Diploma { }

(b) Undergraduate { }

(c) Postgraduate { }

Other, specify……………………………………………………………

SECTION B

4. Does your industry conduct marketing research?

(a) Yes { }

(b) No { }

5. If yes, how effective is conducted?

(a) Strongly effective { }

(b) Effective { }

(c) Strongly ineffective { }

(d) Neither effective nor ineffective { }

6. How marketing research emphasize managerial decision making?

(a) Positively { }

(b) Negatively { }

(c) Neither positive nor negative { }

7. Is marketing research contribute to Coca Cola business development?

(a) Yes { }

(b) No { }

If yes, how? ……………………………………………………………………………

8. Is there any challenges facing marketing research programs at Coca Cola Kwanza?

(a) Yes { }

(b) No { }

9. Which challenges do Coca cola kwanza face?

CHALLENGE TICK APPROPATE

Political challenge

Economical challenge

Technological challenge

Social challenge

Any other ……………………………………………………………………………

10. What solutions can Coca cola kwanza use to overcome those challenges? Please

suggest.……………………………………………………………………………………

…………………………………………………………………………………………….

11. Do marketing research make Coca cola kwanza competitive than other enterprises?

(a) Yes { }

(b) No { }

If yes, please explain how

……………………………………………………………………………………………

……………………………………………………………………………………………

12. Which things from marketing research make Coca Cola kwanza more competitive?

……………………………………………………………………………………………

……………………………………………………………………………………………

13. Please give your suggestion on what can be done by coca cola kwanza in order to make

effective marketing research.

……………………………………………………………………………………………

……………………………………………………………………………………………

THANKS FOR YOUR COOPERATION