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Consumer's preferences for textiles: A study of Distributors Opinion

Consumer's preferences for textiles: A study of Distributors Opinion

Altering atmosphere for potential business

By: Daniel Tsegaye A graduate of Addis Ababa Universirty [email protected] + 251 911 36 61 57

June, 2005 Addis Ababa University

June, 2005

0

Consumer's preferences for textiles: A study of Distributors Opinion

A senior Essay submitted to the Department of management, Faculty of Business and Education, Addis Ababa University, In partial fulfillment For the Requirements of Bachelor of Arts In management

Addis Ababa University

June, 2005

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Consumer's preferences for textiles: A study of Distributors Opinion

Preface

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June, 2005

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Consumer's preferences for textiles: A study of Distributors Opinion

Acknowledgement bÇ à{x ux{tÄy Éy à{x áàâwç? \ zÜtàxyâÄÄç tv~ÇÉãÄxwzx à{x |ÇàxÜxáà tÇw vÉ@ÉÑxÜtà|ÉÇ Éy à{x ÅtÇç Çtà|ÉÇtÄ tÇw |ÇàxÜÇtà|ÉÇtÄ |ÇyÉÜÅtà|ÉÇ Éyy|vxá? ^ÇÉãÇ ãxu á|àxá? Çtà|ÉÇtÄ àxåà|Äx ytvàÉÜ|xá tÇw w|áàÜ|uâàÉÜá? á{ÉÑá? vâáàÉÅxÜá? ÜxáÑxvàxw |ÇáàÜâvàÉÜá Éy TTh@YUX? Åç uxáà yÜ|xÇwá tÇw Åç ÄÉäxÄç ytÅ|Ä|xá? ã{Éáx ätÄâxw táá|áàtÇvx |Ç âÑwtà|Çz à{x áàâwç tÇw ÑÜÉä|w|Çz ÑxÜà|ÇxÇà |ÇyÉÜÅtà|ÉÇ |á zÜxtàÄç tÑÑÜxv|tàxwA YÉÜ tÄÄ à{x wtçá ãx {täx uxxÇ àÉzxà{xÜ àÉ wxäxÄÉÑ à{|á áàâwç? Åç uxáà tv~ÇÉãÄxwzxÅxÇà zÉxá ÑtÜà|vâÄtÜ |ÇwxuàxwÇxáá àÉ Twä|áÉÜ `xÜÉÇ ^xuxw yÉÜ {xÜ w|Ä|zxÇà ãÉÜ~ à{tà xÇtuÄxw Åx àÉ vÉÅÑÄxàx à{|á ÑtÑxÜ áâvvxááyâÄÄçA [xÜ vtÜx |ÇáàÜâvà|ÉÇá tá ãxÄÄ tá wxxÑ Üxtw|Çz Éy à{x ÑtÑxÜ tÜx à{x xä|wxÇvxá Éy {xÜ y|Çxáà ãÉÜ~áA [xÜ táá|áàtÇvx ãtá zÜxtà tá ÇÉà ÉÇÄç tÇ twä|áÉÜ? uâà tÄáÉ vtÜx yÉÜ Åx tá t uÜÉà{xÜ àÉÉA [ÉÑ|Çz àÉ {xÜ t uxáà |Ç {xÜ vÉÇà|Çâxá xÇwxtäÉÜA gÉ xåàxÇw à{x ãtÜÅxáà à{tÇ~á àÉ tÄÄ à{x ÅtÇtzxÜá Éy w|áàÜ|uâàÉÜá vÉÅÑtÇ|xá tÇw Xà{|ÉÑ|tÇ v{tÅuxÜ Éy VÉÅÅxÜvx xáÑxv|tÄ xÅÑ{tá|á àÉ TàÉ [xÇÉ~ Tááxyt ;Táá|áàtÇà zxÇxÜtÄ fxvÜxàtÜç< tÇw jBà `tÜtÅtã|à ~|yÄx ;\ÇyÉÜÅtà|ÉÇ Éyy|vxÜ
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Consumer's preferences for textiles: A study of Distributors Opinion

Tables of contents Page Number Preface

2

Acknowledgement

3

Tables of contents

4

List of tables and List of figures

5

Section I

1. Introduction

6

1.1 Background of the study

6

1.2 The statement of problem

7

1.3 Objective of the study

8

1.4 Significance of the study

9

1.5 Methodology of the study

9

1.6Sampling methods and procedures

10

1.7 Scope and limitations of the study

11

1.8 Study organization

11

1. Time schedule

12

Section II

2. Literature review 2.1Conceptual definitions of consumers

13

2.2 Market Segmentation and Customer Benefit

17

2.3 Customers, service, and satisfaction

19

2.4Consumer interest and distribution

26

Section III

Section IV

3.Data Analysis and interpretation 3.1 Settings of the study

27

3.2 General overview of the study

32

3.3 Basic findings and data analysis

41

4. Recapitulation of the study 4.1 Discussion summary

58

4.2 Study conclusion

59

4.3 Recommendation

64

Bibliography

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Consumer's preferences for textiles: A study of Distributors Opinion

Appendix

Page Number

List of tables Table 1.1Selected factories and distributor

10

Table 1.2 Project work time schedule

12

Table 3.1 the major outputs and annual production capacity

30

of the eight state owned textile factories Table3.2 Qualities of the distributors

34

Table 3.3 Personal Profiles of Respondents

35

Table 3.4 Products and their nominal and unconscious benefit

43

Table 3.5 Respondents ‘opinion vs. purchase criteria.

46

Table 3.6 Textile demand among the regions

52

Table 3.7 Textile demand among the Cities

52

Table3.8 Ethiopian Family consumption decisions on textile

57

Table 4.1 Consumers Profile

59

Table 4.2 Consumers preferences to products, price advertisement and distribution.

61

Table 4.3 family’s role in purchase Decision

61

Table 4.4 marketing mixes

62

Table 4.5 Grouping consumers in to meaningful buyer group

63

List of figure Fig 3.1 Trade and distribution channels for textile in Ethiopia (Tailored to the study)

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Consumer's preferences for textiles: A study of Distributors Opinion

Section I 1. INTRODUCTION 1.1 Background Paving the way to reach at the needed point of being developed country, it is unquestionable task to use scarce resources of a nation effectively and efficiently. In this regard, what it comes immediately to individual’s mind is the Ethiopia has to utilize Agricultural product parallels to huge potentials of human resources. The miracle here is that Agricultural products of our country are organic. It asks to contemplate in wise to use and properly consume this treasury. These efforts becoming on - going of practicing, all concerned bodies must put their endeavors thought their activities. Of many struggles and as we have high demand in domestic market as well as getting different incentives from western countries like exempted of duty free and free from all quota restrictions, the textile industry in the country is a very attractive investment. Moreover, it plays a key role in the country’s economy. Ethiopia’s textile and garment industry covers 105 of the gross valve production. The reputation of this sub sector is accommodated 30% of the total work force employed by the industry sector. However, the sub sector has urgent soluble problems. According to the document prepared by Ethiopia Export Promotion Agency, solving this problem is a question of the survival of the industry. It says” to be competitive in international market as well as locally, fulfilling the quality type, price and preferences requirements of the customer are the one and only one. And to attain all these, enhancing the capacity of the sector is the necessity”. (Source: Ethiopia Export Promotion Agency 2003)

Thus, an increasing amount of attention has recently been given to the textile industry by government. The attractive incentives include an income tax holiday for a period of five to six years and exemption from the payment of import custom duties and many other considerations are given.

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Consumer's preferences for textiles: A study of Distributors Opinion

Following to enhancing the capacity of the industry, it is necessary to investigate the requirements of customers’ preferences to acquire an improved share in the globe market. Due to this, this study has been selected. With in the dramatic increase on the quality of consumer benefit, it will be a crucial way to fulfill their entire needs: better quality and cheap price. On top of this, the study will search the preferences of consumers to textiles. It is about local consumers-what they purchase and why they purchase the way they do. It is about marketing –how are local products compared to imported items. This will be conducted throughout distributors’ opinions by survey method. Here, the distributors are chosen because they are already serving customers with products. In the research, privatization is holding true. Therefore, government distributors are kept out of the game.

1.2 Statement of the problem Due to the textile products of our country are less quality compare to imported goods of higher quality and cheap price, now days they are at a point of recession. According to shama definitions, recession is a phenomenon of decreasing demand of raw materials, products, and services. "(Shama, 1993:63) To solve this severe problem, "recession requires marketing managers to modify their marketing strategy and action in order to say both profitable and consumer responsive. This generally means adapting the marketing mix and / or changing the target markets," (shama, 1993:63) In addition to this, our companies are dependent on other firms or groups. This dependency could involve obtaining resources, or the disposal of the firm's outputs. For example, the firms highly depend on the incentives of western countries and Federal Government. This idea, based on Bougand stamlchain called "vulnerability." It "refers to the degree to which a firm is dependent on other firms, croups, or individuals. "They also put the effect of this on their article. The company's vulnerability "can limit its ability to formulate and implement strategies for prosperity and survival. "(Bougand stamlchain, 1988:38) Based on the above two reasons, thus, this paper tries to concentrate on the subsequent matters:

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Consumer's preferences for textiles: A study of Distributors Opinion

•

To what extent the marketing strategies shaped and reshaped according to the consumer preferences in existing textile products.

•

Do the target customers and the market mix need to redefine.

•

To search the contemporary consumers needs and wants

•

How does effective marketing take advantage of knowing consumer needs, and contribute to increase of product demands.

•

What attempts will be made to improve products to desirable in competitive market?

•

What are some of the decisive buying factors that lead consumers to experience feelings of satisfaction and dissatisfaction?

•

Are consumers (users) satisfied in the already existing textile products?

•

What are the relevant requirements of consumers to meet their entire needs of consumers?

•

What do customers expect?

•

What action can companies take in the light of consumer preferences?

•

Is the distribution and marketing of textiles the most profitable of other industrial products? (To assess the)

•

Importance of textile for distributors, their capacity and profitability and attractiveness of the sector?

•

How do distributors act to stimulate customer interest in the product of their suppliers?

1.3 Objective of the study The foremost objective of the study is to examine and review consumers' preferences for textiles. Based on this, target market can be easily well-formulated. It can also produce a strong customer satisfaction. This is the best achievable aim to be the part of the rapid world and to be competitive in open global market. Moreover, the study has the following objectives: -

It helps to know the contemporary consumer needs and wants

-

To assess the level of participation of the consumers and distributors in the identification, modifying, and improvement of products.

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Consumer's preferences for textiles: A study of Distributors Opinion

-

To assess how the consumers and being interested to the benefit of the textile industry.

-

To see the future respects of the industry and treatments of consumers. To identify the major problems that are encountered in the textile products related to users preferences and to recommend remedies to solve the problems identified, if any.

1.4 Significance of the study The primary beneficiaries of the study are not confined to textile companies and distributors, but consumers. They are highly and original holder of a benefice on this study. A primary reason for studying consumer behavior is to make out bases for effective segmentation. Thus, the study will play a key role to segment market. This idea becomes strong based on stern and studivant on their article. They write "the first step calls for researching what customers want from the buying process and then using their preferences to group customers in to Market Segments. (Stern and studivant, 1987) They also put what researchers can do on their best findings. "Researchers can group these preferences in to market segmentation . . ."(Ibid) As indicated, the ultimate significance of the study is to direct consumers needs to market segmentation, which is one, are of marketing theory. On that, on over all marketing strategy can be developed. In addition to all of these, the study has the following connotations: -

Other researchers will have a chance to refer this material when they engaged in similar study.

-

Based on this study, our companies will have a chance to restructure their company's marketing strategies to be competitive in global market.

1.5 Methodology of the study The study will attempt to describe consumers’ preference in already existing textile product. It gives answers to questions risings in statement of problem. It enables the testing of the results of sample. In short, the research is descriptive. Moreover, the search will carry mainly based on questionnaire and becoming well built by interview

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Consumer's preferences for textiles: A study of Distributors Opinion

and observation. As the study is empirical research, the observations will be checked and tested by collecting relevant data and information. At last, the research will come up with conclusions. The maximum magnitude of the research will help for the managers in decision-making.

1.6Sampling methods and procedures

The sample will be drawn from the eight textile factories, which the country has, out of which the study will take three of the factories. The sample frame, i.e., the listing of all distributors will be obtained from selected plants. The site of the distributors will consist two distributors from each of the three selected factories. This will bring the sample size to six. The study will cover private distributors, which are engaged only in textile market. The following table shows from where the selected distributors are taken.

Table 1.1 Selected Factories and Distributors Almeda Textile

factory Kombolcha Textile S.C

AwassaTextile S.C

PLC 1

KK PLC.

Matyas PLC

Natnael PLC

2

Matad PLC

Amaga PLC

Negewo PLC

Data collection methods The research has aimed to use both primary and secondary sources of data. As the study requires primary data, to obtain the relevant information only the following methods of data collection will use.

Depth interview of key informants All concerned bodies will be helpful in order to develop this study. Before and after collecting the data, the assurance of covering the core point is opted for one method. This will help first to prepare questioner and to be trust the data secondly.

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Consumer's preferences for textiles: A study of Distributors Opinion

Direct observation Since the research involves consumers, direct visit of market places is important. In addition, marketing departments of factories have targeted for different purpose in the vein of preparation of questioners and to know more about distributors.

1.7 Scope and limitations of the study The scope of the study is confined only to the preference of consumers for textiles and comparing local products to imported items. The survey will be done on the opinion of selected distributors of textile products. All who try to survey opinions have trouble. There is resistance to respond either because the respondent does not wish to be disturbed or because they suspect some trap. There are also possibilities of the information being biased. Yet, all these difficulties not with standing, the study will try to synchronize the conditions as much as possible. However, budget constraint will monstrously persecute the research.

1.8 Study organization

Based on the proposal of the study, which in detail explains all the project work, the study's sections are organized. Resting on this, section I is a part of the course of action in that the study has. Section II will try its unsurpassed to enclose review concepts and theories and review previous research findings. It gives consideration on customers' services versus distribution as well as distributor's participation, satisfaction, and more on related concepts. By the directory of the study design, relevant data and information will be presented and analyzed in section III in brief and striking comportment. The efforts of the study will appear in section IV. It undertakes to scrutinize the portion of the target area and will put some remarkable results. These ideas will be concluded and got suggestion in section V.

"As the Twig is Bent, So Grows the Tree" Richard E.Byrd

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Consumer's preferences for textiles: A study of Distributors Opinion

1.9 Time – Table The time schedule is based on2004/05 Academic calendar of office of registrar, AAU.

Table 1.2 Project work time schedule Visiting day 1

and industry chamber of commerce

And

Report on literature

Consequence

organization

Dec. ----

Report

30/05

to

appointment

Jan 8/05

Jan. 13/05

Dec. 28/05

Direct observation - Marketing departments

By appointment

- Plants show rooms

By appointment

Dec. 30/05

Feb. 6 & 7/05

- Market places

4

Study

Visiting organization Ministry of trade By agreement

2 3

Field work day

- Merkato

Feb. 4/05

- Sholla

Feb. 5/05

By agreement

- Distributors

Feb. 8/05

&

Selection of in formats

Feb. 8/05

Consequence appointment

5

Preliminary preparation of questioners

Feb. 9 – 10/05

6

Preliminary data collections

Feb. 11 – 12/05

7

Final section of in formats

Feb. 13 – 14/05

Feb. 15/05

8

Revision of questioners

Feb. 16 – 17/05

Feb. 19/05

9

Actual data collection

Feb.20 – March 3

March 4/05

10 Data

presentation

and

preliminary

analysis

March 5 – 10/05

11 Data analysis

March 20 – 25/05

March 28/05 March 3/05

12 Report (data collection and analysis) 13 Report on 1st draft

-----

-----

May 3/05

May 12/05

14 Final report

-----

-----

May 25/05

June 2/05

* It helps to prepare preliminary questionnaire. The study has aimed to select one from the sample drawn.

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Consumer's preferences for textiles: A study of Distributors Opinion

Section II 2. LITRATURE REVIEW The aim of this section is to review some of the important literatures related to the study. Due to different problems in our country, it was very difficult to collect relevant and adequate information. However, it has been tried to review some basic conceptual literature as well as research findings from different Journals. This section, therefore, includes conceptual definitions, consumer behavior, distributor's characteristics; consumer satisfaction, distributor participation, delivery service and its prospects, and others related concepts. It also consists review of empirical research works in related areas. 2.1Conceptual definitions of consumers The term 'consumer' is defined to mean the end user, "Who is not necessarily the customer. Take the example of a mother or father who is buying breakfast cereals. The chances are that they are intermediate customers, acting as agents on behalf of the eventual consumers (their family) and, in order to market cereals effectively, it is clearly necessary to understand what the end consumer wants, as well as what the parents want. "(MCDONALD, 2002:106) so, consumer is a person who consumes or uses a product. But, a customer is a person who buys products from a market. For example, Distributors are customers, not consumers. "The term consumer is often used to describe two different kinds of consuming entities: the personal consumer and the organizational consumer: The personal consumer buys goods and services for his or her own use (e.g. sharing cream or shampoo), for the use of the household (a VCR), or as a gift for a fiend (a book). "The second type of consumers" buys products, equipment, and services in order to un their organizations. "(Schiffman and kanuk, 1997) 2.1.1Consumer Behavior Why we study it and its perspective Marketing starts and ends with the consumer from determining consumer needs to providing consumer satisfaction. Therefore, a clear understanding of consumers is crucial in successful marketing.

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Consumer's preferences for textiles: A study of Distributors Opinion

Any marketing manager seeks knowledge of consumer behavior in order to develop, evaluate, and implement effective marketing strategies. "As marketers and future marketers, it is important for us to recognize why and how individuals make their consumption decisions, so that we can make better strategic marketing decisions. If marketers understand consumer behavior, they are able to predict how consumers are likely to reacts to various informational and environmental cues, and are able to shape their marketing strategies accordingly with out doubt, marketers who understand consumer behavior have great competitive advantage in the market place." (Schiffman and kanuk, 1997:7 – 8) McDonald pointed out that there are two principal theories of customer behavior. "One theory refers to the rational customer, who seeks to maximize satisfaction or utility. "The second theory" describes the psycho-socio customer, whose altitudes and behavior are affected by family, work, prevailing cultural patterns reference groups, perceptions, aspirations, and life style. "(McDonald, 2001:128) McDonald further stated that ''the most practical way of explaining customer behavior has been found to be benefit segmentation, i.e. the benefits sought by customers when they buy a product. He also put the guiding principle of the marketing director of one of America's more innovative companies in the hair-care business: "customers don't buy products; they seek to acquire benefits." (Ibid) Consumer behavior is dynamic. It involves interactions and exchanges. It is inter disciplinary. Concepts and theories about people that have been developed by scientists in such diverse disciplines like psychology, sociology, cultural anthropology, and economics are the basis of consumer behavior. Generally, consumer behavior can be defined "as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products, services, and ideas that they expect will satisfy their needs," (Schiflamn and kanuk, 1997:8) ENGEL, et.al, define consumer behavior as "those actions directly involved in obtaining, consuming, and disposing of products and services, including the decision processes that precede and follow these actions." (Engle, Blackwell, and Miniard, 1993)

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Consumer's preferences for textiles: A study of Distributors Opinion

Three writers in their Book entitled "consumer Behavior - implications for marketing strategy" explain the need of consumer Behavior to business: "Today, as never before, we cannot take our business for granted. That's why understanding and therefore learning to anticipate consumer behavior is our key to planning and managing in this ever changing environment." (Hawkins, 1992:6) "When faced with a choice among several alternatives, an effective understanding of consumer behavior requires an analysis of whether choice occurs, as well as the relative preference among various alternatives. Many formal analyses that examine forced choice assume that features common to all the alternatives in the choice set are canceled in the process of choice (Trersk 1972). Although the relative preference for an alternative should not depend on whether its features are shared or unique in the choice context, recent research suggests that the evaluation of an alternative can very depending on the valence of its unique features (Houston and Sherman 1995). Given the importance of the unique feathers in comparative judgments, different choice contexts may highlight different features, and the valence of such features may influence the decision whether to choose as well as the relevant preference for a specific alternative (DNAR and Sherman 1996) 2.1.2Choice Consumer research reviewer, Hansen, reviews person walking down a road who hesitates at a fork in the road before choosing which route to take. We all agree that he is faced which choice. If, however, the example is changed slightly, it is more doubtful whether we are still talking about a choice. The person walking on a side walk, when conflated with a puddle, changes his direction slightly and continues. In this case few people would say that a choice that a choice is involved. A critical question is the basic difference between the two examples. In the situation, a particular pattern of alternatives, uncertainty. Psychologists say an '' orientation – reaction '' has occurred moreover, there is a difference in the context of the deliberation. In the first situation, conscious and unconscious brain processes occur, processes that may possibly be observed directly and are reflected in means women's such as electoral diagrams and galvanic skin responses. These suggest that a conflict is

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Consumer's preferences for textiles: A study of Distributors Opinion

present and that cognitive activities occur. Finally, the first situation is characterized by haring more than one acceptable alternative. Thus, when we talk about a choice, three aspects can be identified: There must be two or more choice alternatives. The choice alternatives must arouse a certain amount of conflict. Cognitive processes aimed at reducing the conflict must occur. Choice is characterized by conflict, uncertainty, and cognitive activity, and related psychological processes can be observed. Situations of this kind occur, however, where we do not talk about choices in any narrow sense at the word. Fore example, this is the case when the individual is '' thinking '' or exposed to information. When he is reading, listening to a message, or talking, conflict, uncertainty, and cognitive processes occur. All these stations have a number of things in common (Hansen, 1972 b), and they have been labeled '' conflict situations, ''since in all of them the individual is tiled with certain amount of uncertainty and conflict.(Hansen, 1976:117) David Mercer and Dr. Richard Mole wrote factors that influence buying behavior. "A customer does not always come to each buying decision with an open mind, and then rationally consider the options. For instance, any notion that price is the only important criterion is clearly wrong. In reality the decision making process is extended, complex and often confused. A wide range of factors, for example, may influence customer goods and services,, such as: •

Economic factors

 Social class

 Peer pressure

•

Age

 Occupation

 Lifestyle

•

Geography

 Culture

 Diffusion of innovation

(Mercer and Mole, 1996:6)

They advise as follows: "Try to keep in mind that by understanding your customers you will be better able to meet their needs. You are trying to predict their wants, needs, desires and behavior to the best of your ability in order to create satisfied customers." (Ibid) Others like Engel, Blackwell, and Miniard, grouped factors that influence consumer behavior in to three.

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Consumer's preferences for textiles: A study of Distributors Opinion

"Consumer behavior is influenced and shaped by many factors and determinants which fall in two categories. Environmental influences Individual differences and influences; and Psychological processes, "(Engle, 1993:3) However, the above variables (described by Mercer and Mole) summarize under these headings. 2.1.3Needs and Desires The ultimate task in consumer behavior is their (consumer) requirements. These are the perquisites to consumer buying process. They are the basic concept underlying marketing human needs and desires. Based on Lewision and Delofier, "the distinction between needs and desires is open to debate, the main difference is in their essentiality" According to them, "Needs are essential physiological or psychological requirements necessary to the general physical and mental welfare of the consumer." Were as, "Desires are more akin to wishes, in that they are conscious impulses toward objects or experiences that hold promise of enjoyment in their attainment. However, the attainment of desires is less essential to the consumers well being than is the satisfaction of needs." (Lewison and Delofier, 1989:123) They also stated "The essential difference between needing or desiring a product and buying it is the consumer's ability, willingness, and authority to purchase the needed or desired good, service, or idea." (Ibid) Engel and his friends indicated that "The need must be already exist even though it may be dormant and largely unrecognized; it is not created by the marketer. It is true that marketing communication stimulates desire to buy a product or service to satisfy that need, but the need itself lies beyond the influence of the business firm." (Engel, et.al, 1993:274) 2.2 Market Segmentation and Customer Benefit Marketing by its very nature has pivotal role in individual's life. Moreover, the dynamic world we are still highly demand verities of marketing concepts in different

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Consumer's preferences for textiles: A study of Distributors Opinion

dimensions of business activities. It brings about new technology advancement, economic integration of nations, and better and simple life. "Marketers need to understand very thoroughly the needs and desires of potential consumers and the way in which product features can be combined to satisfy these needs." (Hawkins, et.al 1992:9) It is wise to group unique needs in developing specific marketing programs. Smith and cooper pointed out that "Market segmentation, with its concomitant target marketing (targeting), is one of the most important concepts in marketing. The essence of market segmentation recognizing the differences among customers and choosing to target a segment of them with similar needs has reached its zenith in the late 20th century." (Smith and cooper, 1997). Market segmentation is the best mechanism that bringing the wants in to the form of goods or services. The launcher of market segmentation, Wendell smith, introduced the concept "as a possible means of solving marketing problems." (Barnett, 1969) it defines as "a group of consumers with homogeneous needs.' (Doyle and Sounders, 1985; page 24) Whether a company is in a service maker, fast moving consumer market, or industrial market, the need to segmentation is common to all. The request, however, is which one is the helpful factor to segment a market consumer or product benefit. Doyle and Saunders have pointed out that "In specialized industrial markets" the above definition "is often not managerially useful situation specific variable are usually much more relevant than general customer characteristics. In industrial marketing, benefit sought depends less on the internal psychology or socio economic characteristics of the buyer and more on the external end use of the product. The buyer needs different products for different purposes, and in specialized industrial markets, will often by multiple specialist products from different suppliers. For these reasons, it is often more relevant to segment by product benefits rather than customer. Such analysis gives a more effective insight into the structure of the market and the opportunities for repositioning new entrants." (Ibid)

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Consumer's preferences for textiles: A study of Distributors Opinion

McDonald also that, "Behind" Guiding Principal of American innovator statement" lies a basic principal of successful marketing. When people purchase products, they are not motivated in the first instance by physical features, or objectives attributes of the product, but by the benefit that those attributes bring with them. "He also added that" To take example from industrial marketing, a purchaser of industrial cutting oil is not buying the particular blend of chemicals sold by leading manufactures of industrial lubricants; rather, he is buying a bundle of benefits which includes the solving of a specific lubricant problem. "(McDonald 2001:128)

2.3 Customers, service, and satisfaction Because of time and space limitation and more, appropriately shortage of money, consumers cannot be completely satisfied. Therefore, consumers have their own interest and inclination to wards reaching their needs and wants. In addition, because of the above factors, excellent products are not the driving forces of customers to buy goods and services. If is advisable, however, for researchers and marketers to investigate and search deeply the already existing products, whether they are the most quality or not, can have enough potential to be preferred by consumers. The emphasis here is that good services and promoting products must be added on considering target consumers. Stern and Studivant: "It is important for the researchers to emphasize that the product's quality is not an issue. Not should there be any question at this stage of what may or may not be most practical for the company, whether a service company, a manufacturer, or a middleman. Rather, respondents should be encouraged to consider the delivery of the service, the convenience of shopping for the product, and the kind of additions there is sold a long with ether." (Stern and studivant, 1987) The underline ideas on considering consumers are the need of delivering service, convenient shopping, and different sell promotions. In market, however, less quality products will be automatically out of becoming a part of alternative when consumers buy wherever competition exists. Therefore, if a marketer considers all of this, the hallmark of consumer satisfaction appears. In addition, the company will be beneficiary. As Lechmann and Forneu indicated, "Higher customer satisfaction should lower the costs of transactions in the future. If a firm has high customer retention, if does not need to spend

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Consumer's preferences for textiles: A study of Distributors Opinion

as much to acquire new customers each period. Satisfied customers are likely to buy more frequently and in greater volume and purchase other goods and services offered by the firm." (Lechmann and Forneu, 1994) they further added that the more loyal customers become, the longer they are likely to continue to purchase from the same supplier. (ibid) The concept of satisfaction "is an emotional response that dictates the behavior and actions of a customer's purchasing abilities. Those products and services that provide satisfaction are likely to be purchased in the future. Given its attitudinal component, satisfaction is readily defined as the different between what a customer expects and what he or she perceives to occur. Therefore, managing these expectations and perceptions becomes critical for all businesses to maintain customer satisfaction and provide a unique and lasting quality experience. 'McLaughlin also stated that' satisfaction, as described, can not be fully measured. Evaluating satisfaction requires a measurement of customer expectations, perceptions, altitudes, bias, past experiences, and likes and dislikes.: (McLaughlin, 1998:173 – 174) He also added "satisfaction is greatly affected by environmental factors, previous outcomes and experience, bias, warnings, and pre-and post-consumption feelings and attitudes. In order to me, the manager must identify and measure the sources (causes) of both satisfaction and dissatisfaction." (McLaughlin, 1998:173 – 174) "Product selection is in part determined by the anticipated satisfaction with that product. Consumers wonder if the purchase will turn out 'good' or 'bad', if the product will work or not, whether he or she will be 'satisfied' or 'dissatisfied', if is inconceivable to argue that this inference is not determinant of product choice in virtually all instances in which consumer decisions are made. What determines the expectancy of 'success' or the subjective like hood of personal satisfaction for each of a number of alternatives? Before any initial choice, the antecedents of expected satisfaction are numerous and primarily non-attribution. For example, I may purchase a particular product because it is first on the list in consumer Reports, because a friend speaks highly of it, because I am convinced by an advertisement, and on and on." Dhar studied on consumer preference for a No-choice option.

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Consumer's preferences for textiles: A study of Distributors Opinion

'' Consumers often face situations that require choosing among several alternatives in the marked place. The traditional focus in the decision-making literature has been an understanding how people choose among a given set of alternatives. In reality, many decisions involving choice among several desirable alternatives can be difficult and give way to a more fundamental kind of preferences the decision whether or not to choose. A recent analysis of a sample of consumers finds that the difficulty of selecting a single alternative was one of the most important causes for delaying a number of purchase decisions (Greenlent and lehmann 1995)" (DHAR, 1997) 2.3.1 Customer Service "Factors which impact on customer service include; Frequency of delivery Time from order to delivery Emergency deliveries when required Accuracy of paper work Stock availability Reliability of deliveries, etc." (McDonald 2001:408 – 409) Stewart also started that "consumer service measurement relates of the speed and consistency of servicing orders in comparison to a standard of product availability." (Stewart, 1965) Stern and studivant also advised as follows: "Managers conducting the research concentrate on learning what their ultimate customers the end users want in the way of service. It is these people, of course, who actually benefit from the products a company makes." (stern and studivant, 1987) Generally, "The measure of physical distribution performance is the relation between customer service capability and associated total cost." (Bower sox, 1972) According to stern and studivant, "service fall in five categories" -

Lot size (buy unit or multiple unit)

-

Market decentralization (distance far, near)

-

Waiting time (immediate delivery or assurance of delivery)

-

Product variety (choice of many related products or do they prefer the store to specialize)

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Consumer's preferences for textiles: A study of Distributors Opinion

-

Service backup (repair immediate, wait for local repair service) (stern and studivant, 1987:34)

2.3. 2Customer complaints Lewison and his friend assured that "the rights to be heard and to be informed are key factors in the customer complaint process." They also put: "Most customer complaints result from one of the tree general causes: Product related:1.1 poor quality products 1.2 Damaged products 1.3 Incorrect products 1.4 Insufficient products Service related causes involve customer dissatisfaction with sales personnel and services such as checkout, delivery, workroom, and customer accounts. Customers make mistakes: sometimes they are international, sometimes they are not customer mistakes are also a cause of customer related complaints. "(Lewison and Delofier, 1989:460) Finally, based on Lewison and his friend, "the more common service objectives are to:  Increase from utility  Facilitate time utility  Enhance place utility  Promote possession utility  Increase consumer convenience  Create a desirable store image  Provide customer security  Increase store traffic  Establish a competitive position, and  Build demand (ibid, page 463) 2.3.3Distributors and consumers Whatever the product is attractive and has cheap price, end users should be able to get it with right quantity on the right time from the right supplier. Otherwise, excellent product with reasonable price will be invisible or out of the market. So, a distributor has a

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Consumer's preferences for textiles: A study of Distributors Opinion

crucial effect and has a key role on consumer satisfaction as well as company's profit. From Harvard Business Review, Narus and Aderson, strengthen this idea on the portion of disseminating products: "An recent McGraw-Hill Survey found that only 24% of all industrial marketers sell their products directly to end users exclusively; the remaining 76% use some time of intermediately of which industrial distributors are the most prominent." (Narus and Aderson, 1986) In 1976, "International Management" Magazine has indicated similar explanation by the title" selecting the right Agent": "An Agent an individual or organization given the right to market a manufacturer's products in a specified territory does not represent a sizeable investment of the company's money. Indeed, that is why many companies employ agents rather than set up their own branch sales offices. But nonetheless an agent can have a crucial effect on the company's performance." (Buck, 1976:18) Luck has also conducted similar study on Journal of marketing in 1969 as follows; "Wholesalers and retailers play major roles in the market success of products which they distribute. Relatively small shifts in shelf facings, out of stocks, displays, and other dealer support may produce favorable or dangerous friends. A significant portion of the product distribution strategy may be aimed at the distributors themselves to stimulate and maintain their interests through special programs, sales aids, and other trade promotion. Often the product managers concern includes monitoring the inventories in the pipelines in order to control production rates." (Luck 1969) Before 35 years, Lopota stated that: "The last two decades have made if clear that we can not do a way with the economic functions of wholesaling and distribution, and that, more than ever before, . . . " (Lapota, 1969) On the other hand, David Arnold said the need of distributors in an emerging market as follows: "An established corporation looking for new international markets makes a foray in to an emerging market, carefully limiting its exposure by appointing an independent local distributor." (Arnold, 2000)

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Consumer's preferences for textiles: A study of Distributors Opinion

Therefore, Risk avoiders, investment partners, economic facilitators, effective performer, Market successors and over all satisfier of customers. Distributors are generally known as: "Are usually held to be wholesalers who deal with industrial goods and sell them to small business and trades people, for example, in building trade." It is known that consumers need quality product and services. Thus, "Once the product is produced, it is a responsibility of the physical distribution system to maintain that level of quality from the point of production to the point of consumption." To maintain right quality companies must establish good channel system. This is the over all good quality product bringing to consumers. "Therefore, the distribution net work must attempt to minimize product mishandling, poor routing, and scheduling, and delays in transit." (Lambert and Stock, 1978:51) 2.3.4Distributors participation Hill in his book entitled "wholesaling Management" pointed out that: "Wholesalers who systematically study their markets, and an increase number of them do, can provide their suppliers with information about product usage, characteristics, buying trends and practices, potentials, and competition that few manufacturers could afford to collect for themselves." (Hill, 1963) As indicated above, they relevant information about products, buying selling process, and consumers want and interest. Nevertheless, sometimes they become dangerous and can influence marketing performance of manufacturers. "Suppliers may add new distributors to sales territories or cultivate sales directly to consumers through the Internet, there by potentially harming existing distributors and retailers. Sometimes, with out notice, suppliers drop products from product lines, depriving distributors of future sales opportunities and marking current inventories obsolete. Similarly, distributors can reduce the shelf, floor or catalog space allocated to suppliers, causing damage to the suppliers' sales, profits, and / or reputations. All these types of actions have negative repercussions and can threaten the well being of the relationships in the channels in which they occur." (HIBBARD, KUMAR and STERN, 2001)

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Consumer's preferences for textiles: A study of Distributors Opinion

Before seven years ago, Murry and Heide suggested Determinant factors of participation. According to them, "The three general mechanisms for structuring relationships between parties are motivated by self interest. These are: o Interpersonal attachments o The use of incentives o Monitoring efforts, intended to reduce information asymmetries that other wise might permit non compliance." (Murry and Heide, 1978) Of the three mentioned factors, the use of incentive is a highly motivated factor that encourages efficient physical distributions system. From Michigan state university, two writers, shimaguchi and later, had concepts on the benefits of forming relationship. They pointed out that: "Basically, rebates are provides as incentives for distributors originally, a rebates was deemed to be a portion of the business profits returned to distributors to motivate them to purchase and sell a manufacturer's products." (Shimaguchiand later, 1979) They also added "It has proven to be a powerful method by which manufacturers can motivate, stimulate, attract, and control distributors under conditions of keen competition." (Ibid) "Distributors, in turn, believe they will receive the largest rebates if they demonstrate great loyalty to their suppliers." (IBID, 1979) Lewison and Delozier stated that: "Based on the number and type of functions, wholesaling intermediaries fall in to several groups." These are: Merchant intermediaries Full function

General merchandise, specialty line and Single line

Limited function

Cash and carry, Truck distributor, Drop shipper and Rack Jobber

Agent Intermediaries Limited function

Broker, Manufacturer’s Agent, Sales Agent, and Commission Merchant and Auction House

Contractual Intermediaries

Full or limited function (cooperative group and Voluntary chain)

(Lewison and Delozier, 1989:471 – 473)

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Consumer's preferences for textiles: A study of Distributors Opinion

2.4Consumer interest and distribution Many different organizations and parties have presently given more attentions to women's rights, citizen rights, child rights, and so on out of these rights consumerism has been considered as a basic human life act and the question of survival. Thus, companies must establish good management to deal with consumer interests. Clearly, Marketing is concerned with user satisfaction in the identification of marketing opportunities. Thus, channel system will have a great responsibility in protecting user interest and satisfaction. As lambert and stock assured that "consumerism significant impact on physical distribution of a firm." (Lambert and stock 1978:49) "The role of the firm in a consumer oriented society will be explored interns of the current ad forecast scope of the consumer movement and the impact of consumer demands on the distribution function." (Ibid) Moreover, "the consumer movement promises to force to a reconsideration of the importance of the important of physical supply as a component of the marketing process." (Ibid) Generally, "Individuals, business, ad governments are demanding efficient and productive distribution systems which more products with a minimum of pollution, the maximum in energy efficiency, and with a minimum of systems delays such as those caused by transportation congestion." (Ibid) Otherwise, "inefficiencies in physical distribution result in higher costs thought the channel of distribution." (Ibid) This will have a great impact on consumer needs and wants, i.e, they will buy products at higher price.

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Consumer's preferences for textiles: A study of Distributors Opinion

SECTION III DATA ANALYSIS AND INTERPRETATION 3.1 Background of the study

INTRODUCTION This consumer’s preferences survey presents a side view of the local consumers for textile (including cloth) in Ethiopia. The stress of the surveys lies on those products, which are of imperative for domestic manufactures and online business partners. It is a key national concern to boost the industry with in basic strategic of the country. The survey includes contact details of distributors in particular emphasis and some sales persons and customers' informal contact in general. The study depends on secondary data (data that have been published earlier) and primary data (information that collected on the study). This study has also tried to identify what types of textile consumers prefer to buy; why they prefer it; where they buy it; and how often they buy it. It has been also considered what kind of consumers buy textile? What do they look for? The answers to these questions found through this study for textile. Although this study focuses how and why local consumers make decisions to buy products, the commitment goes for beyond these factors of consumer’s preferences. It has been done selected survey on what they expect from local products and what they response for imported products. Be it known, all of these questions have been solved through distributor opinion. In this survey, it has not been tried to study organizational consumers rather individual. Ethiopian consumers who buy goods and services for their own use or for household use are given privileged attitude of their display in searching for, purchasing, using, evaluating and disposing of products, services, and ideas.

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Consumer's preferences for textiles: A study of Distributors Opinion

Socio – Economic Performance during the 1990s This part is taken from the final document entitled sustainable development and poverty reduction program (SDPRP) for the purpose of this study. It is believed that improving local companies capacity by providing marketable products as a means of fighting Ethiopians number one enemy, poverty. It is a central contributing indicated factor forwards sustainable development and creating good economic health. -

Macro economic indicators of the performance of the economy during the 1990s give an overall picture of a declining tends of poverty. GDP grew at an annual average rate of close to 5% during 1992/93 –2000/01.

-

During the period 1992/93 – 2001/02, GDP per capital has been growing by 2.7% per annum.

-

Adjustment polices focused on liberalization of prices & markets, removal of subsides, reduction of tariffs and current account convertibility.

-

Over the period of 1995/96 to 2000/01, 262 foreign investment projects received certificate, of which 56 have become operational.

-

Gross enrolment for both sexes at primary level increased from 35% in 1995/96 to 51% in 1999/2000.

-

Increase in health coverage from 49% in 1995/96 to 52% in 2000/01.

-

Generally, the new economic policy took the creation of an enabling environment for both domestic foreign private investments as one of its objectives.

-

Besides these good achievements, the document has indicate the following challenges:

-

Rural areas are still the center of mass poverty.

-

Households with larger family sites, low lowers of literary louder heads of household are more likely to fall into poverty than those with smaller family sites, higher levels of literals, and younger heads of household

Source: Ministry of Finance and Economic Development of Ethiopia: SDPRP July 2002 A.A

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Consumer's preferences for textiles: A study of Distributors Opinion

Ethiopia: Macro economic and social indicators

1.

2002

2003

2004

Population (total), in millions

67.2

69.1

71.1

(O/w urban population, in %)

15.3

15.5

15.8

Urban

6.4

6.5

7

Rural

29.8

30.54

31.4

Total

36.2

37.04

38.4

2.7

2.7

-

51,932.80

57,077.30

Nominal GDP Growth rate (in %)

-4.2

9.9

21.2

Real GDP growth rate (in %)

1.6

-3.9

11.6

No of commercial bankers

8

8

9

No of insurance companies

9

9

9

Social indicators

Working age population/in millions

Natural rate of population Increase (in %) 2.

Economic indicators 2.1 GDP at current market price (in Birr) 69,195.70

2.2 Financial institution

No of Development Banks

1

1

1

No of Micro –financial institutions

21

22

23

1989 EEY 19961/97 GC

2

Source: National Bank of Ethiopia Quarterly bulletin (4th quarter, 2003/04) for more detail refer appendix.

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Consumer's preferences for textiles: A study of Distributors Opinion

FACTS ABOUT TEXTILE FABRICS IN ET`HIOPIA The textile industry sector is the largest manufacturing industry in the country. There are eight state owned textile factories and more than six major state owned and private garment factories. It employs about 30,000 workers having a share of about 36% of the manufacturing industry. Currently, most of the state owned textile and garment factories are under process of privatization. The main products manufactured in the country are cotton fabrics, nylon fabrics, acrylic yarn, and woolen and waste cotton blanker and sewing thread. The country’s spinning capacity is only 0.1% though; this capacity itself is not being fully utilized. Textile export is a very recent phenomenon for Ethiopia. The factories were setup for import substitution and as such were neither technically not managerially ready to enter the export market. Source: Ethiopia Export Promotion Agency –Potential for Export Development in Ethiopia

The following are the major out puts and their annual production capacity of the eight state owned textile factories.

Table 3.1 the major outputs and annual production capacity of the eight state owned textile factories No

Name

of

the Major out put

Annual production capacity

enterprises 1

Almeda T. F.

Yarn, poplin, sheeting, towels

36mil m2 per-annum

2

Awassa T. F.

Gray 100% cotton, drill gray, poplin

36.1 mil m2

3

Kombolcha T. F.

Poplin, bed sheet, Twill, towels

22ml m2 of fabrics

4

Arbaminch T. F.

Twill, poplin, drill, bed sheet

27.6ml m2

5

Dire Dawa T. F.

Cotton years, acrylic, yarn

3.1ml kg yarn 26ml m2 fabrics

6

Bahir Dar T. F.

Gray fabrics, gray sheets, poplin

12ml m2 fabrics 500,000kg yarn

7

Akaki Textiles W

Fabrics, thread, blanket, socks

8.1 ml mts fabrics

8

Ethio-Japan

Nylon, Rivan

5ml m2 Nylon

Nylon textile S. Co Source: Ethiopia Export Promotion Agency –The study on Ethiopia Textile and Apparel sub-sector

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Consumer's preferences for textiles: A study of Distributors Opinion

Product characteristic Product group of the study This analysis of textile includes bed linen, cloth, poplin, Towel, twill, drill gray and yarn. Bed linen: It is the most important market for household textiles. It includes bed sheets, pillow covers and blankets (excluding electric blankets) functions of bed linen are to protect the bedding, to enhance “Sleeping pleasure” and an aesthetic appeal. Cloth: It includes men’s clothing, women’s clothing, T-Shirts pullovers and babies clothing. T-shirts can be used for many purposes. Functions vary from outwear (plain, striped, printed) under wear (mainly plain while, part of a sport-out fit) plain with logo to night wear (over sited). It is know that about 90% of T-shirts is made of cotton. T-shirt is a

colorless

short-sleeved

or

sleeveless usually babies clothing cotton undershirt, also, an outer shirt of similar design. Poplin: -

cotton, wool, and other textile fabrics, crosswise rib. The filling is cylindrical. Two or three times as many warp as wetter per inch has a more pronounced filling effect than broad cloth. It is mercerized and has quite a high luster. If may be beloved, or duded usually vad dyes are used or printed. Heavy poplin is given a water repellent finish for outdoor as organize made with silk warp and or a heavier wool filling. Some also mildew proof, fire- retardant, and some given suede finish. American cotton broad cloth shirting is known as poplin in Great Britain.

Towel:

Absorbed cloth used for drying after washing. (Oxford Dictionary of current English 1998:966)

Twill:

A fabric with a twill wearer namely a textile weave in which the filling

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Consumer's preferences for textiles: A study of Distributors Opinion

threads pass over one and under two or more warp threads to give an appearance of diagonal liner. Drill:

A durable cotton twilled fabric. Twill Left hand twill from top left to lower right L2/9 or L 3/1 closer, flatter Wales that gabardine. Medium weight and course yarns are used. Also made in some other weights some left in the gray but can be bleached old dyed. When dyed a Khaki color it is known by that name. (Another definition for drill): strong cotton material similar to denim which has a diagonal 2 x 1 weave running up ward to the left selvage called Khaki when dyed that color used for uniforms, shirts, work clothes, ticking.

Yarn:

A generic term for a continuer stand spun from a group of natural or synthetic staple fiber, or filaments, used in weaving, knitting to form textile fabrics yarn definition.

Yarn dyed

1) the dyeing of yarn before weaving or knitting 2) Fabrics woven or knitted with yarns, which have been dyed.

Source: www.appareassearch.com/glossary-y.htm

3.2 General overview of the study As cited in the opening section of this study the major focus of this study is to understand and describe the opinions of private textile distributors towards consumers’ preferences for textile. Primary data were collected using questionnaire and deep inter view. Furthermore, textile shops have been observed. The target populations of this study were of 6 (six) different private distributors marketing out of which five have posts in marketing and one from operation department. These six individuals were identified as target population. Six questionnaires (which are the same type) were distributed. As of distributed questionnaires, all were returned and analyzed.

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Consumer's preferences for textiles: A study of Distributors Opinion

To boost the accuracy of the data gathered through questionnaires, sales persons of different shops were interviewed. These interviewees were selected based on their comparative exposure to marketing and contact with customers. Therefore, the subsequent results and explanation are done based on the collected data from the questionnaires, interview and observation. Be it well known, in this study, secondary data were pricelessly given to make out additional investigation about consumers preferences. Section 3.3 has detail information about local consumers.

Domestic Textile Distributors This gives background information on the selected distributors on which the study has been conducted. This part is limited to only giving type of organization, years of services, the number of employees they have, location, and Average annual turnover. The sampled six distributors are private owned companies, which are scattered through the city with a major concentration near to Merkato commonly known as Teklehaimanot. They have branches (shops) in Merkato, the country's largest market place. The distributors are engaged in buying and selling at profit of thread, fabric, yarn and garments. There are significant variations among the sampled distributors in terms of capital, sales, employee and capacity. The average year of services of these distributors is 10 years, ranging from 6 to 15 years. All of them are reluctant to show their income statement or to tell their annual profit. In short, the following table shows each attributes of the distributors.

Table3.2 Qualities of the distributors Respondent

Type

of Years

of Number

of Average annual turn over

Location

Id Number

organization service

employees

1

PLC

6

70

50ml

Teklehaimonot

2

“

15

500

160ml

National theater

3

“

‘10

20

20ml

Teklehaimonot

4

“

12

50

30ml

Teklehaimonot

5

“

10

30

40ml

Teklehaimonot

6

“

6

15

10ml

Merkato

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Consumer's preferences for textiles: A study of Distributors Opinion

Personal Profiles of Respondents Based on the responses obtained, the personal profile of respondents is summarized as follows: Of the six respondents were, one 12th grade complete, two diplomas, two degree and one masters degree (MBA). Except the one respondent (operational manger), the rest are working at marketing department out of which the three are marketing managers. All of them have worked for more than six years in textile market. Half of the respondents have knowledge on domestic and international marketing as well as managerial skills. One third of the respondents have had a chance to visit regional markets as well as foreign textile factories and markets (for example, China). To take you back, half of the respondents are female. On the behalf of the study, I would like to express my appreciation and my sincere thanks for the wonder full time I spent at their office. They have given pertinent, detail information, and completed all the questionnaires. The questionnaire has six pages. It contains 23 core and 9 all-purpose questions. Morever, it includes seven interview guide questions. The subsequent table contains the stipulate personal silhouette of the respondents:

Table 3.3 Personal Profiles of Respondents Work experience Respondent

In the filed

ID No

Marketing

Out of the filed

Experience

Education

Education

Sex

1

6

4

X

-

12th grade

M

2

10

10

X

-

Degree

M

3

8

10

X

X

Masters degree

F

4

15

-

X

-

Degree

M

5

6

-

X

X

Diploma

F

6

5

3

X

X

Diploma

F

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Consumer's preferences for textiles: A study of Distributors Opinion

Local Consumers Preferences Market Segmentation ETHIOPIAN CONSUMERS The general criteria for market segmentation of textile and apparel are: -

•

By age – babies and children’s, young, medium age and old age.

•

By gender – women and men

•

By area – rural and urban areas

•

By type of product and type of activity -

Formal clothing – coats, dresses, skirts, trousers etc.

-

Casual wear – shirts, pullovers made of cotton etc.

-

Consumption Patterns and Trends It has to be distinguished that demand for textile for clothing is determined by factors like income and spending power, consumer choice, price, demographics, life styles, developments in fashion, climate and environment.

DEMOGRAPHICS In order to know how much will be spent on clothing, the site and age structure of the population are the basic determinants. It is well known that different age categories have different clothing behaviors. The Ethiopian population has an increasing birth rate and young population. In 2003/04 working age, population is 38.4 million which is2.7 % of the population. Ethiopia is third populous country and one of the highest population growths in Africa. Based on the population growth of the country, surveys indicate that the population site will be doubled with in less than two decades. This articulates that there is a big domestic market to textile and garment, besides external markets.

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Consumer's preferences for textiles: A study of Distributors Opinion

INCOME AND SPENDING POWER Money and time budgets are the two budget constraints of consumer resources. Ethiopian consumers earn law income while bounded by excess time in the lives. In the exchange of goods and services in a market, they are reluctant to pay more money but enjoy spending more time in purchasing products. Although local consumers are facing a time money dilemma, they have a high ability to select a product. Today, Ethiopia has scored some achievements on economic and social patterns. It has been believed that family income rises every year due to:
Investment opportunities
Income from Diasporas (form Ethiopians living in western and Arab countries). It is known that income rises the percentage spent on food declines, the percentage spent on housing remains constant, and savings increase. Moreover, the market places have an advantage due to increase income, cost of living, and savings and borrowing conditions. The compile data attached in this section shows small and micro finance institutions have increased for the last ten years. It has a good fate for small and medium enterprises. In addition, priorities in consumer choice state owned enterprises are being privatized. All of this indicates that income and spending power have been increased for the last ten years. It also expects that income will be increased for the coming years.

Priorities in Consumers choices There are significant differences in consumption habits in Ethiopia due to differences in culture, traditions, tastes, and others. Local consumers give priorities for necessity goods. On the other hand, young consumers have a pleasure to spend many on fashion and modern textiles.

LIFE STYLES Now days, clothing, more than ever, serves as the means of expression of personality, character, ideas, and attitude to life will be emphasized by the way a person dresses. Fashion and styles are eminently suited to expressing a personal style.

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Consumer's preferences for textiles: A study of Distributors Opinion

In the present day, people do not mind spending their money on low price, and it is the main criterion to spend on goods. It creates a good opportunities for many clothing shops (including street venders) are going in for upgrading and opening each day in Ethiopia, By the same token, Life styles of local consumers are being changed due to education sports, western films, and many other factors.

Fashion trends According to a survey by Kurt Salmon associates (KSA: http://www.kurtsalmon.com), the following fashion trends are expected to continue or will be new in the 21st century: -

•

Fashion is no longer proposed by designers but driven by a desire for comfort, individuality, versatility and clean cut lines.

•

Fashion is also driven by sport, film, music, and art events and youth culture.

•

Consumers want a simplified, more flexible word robe and are spending less.

•

Styles are becoming increasingly streamlined with softer silhouettes, and as a result, fabrics are becoming important and with that the need to make the performance characteristics and aesthetics of a fabric appealing to the customers.

•

Young people are also looking to life style brands for them, the utilitarian is fashionable.

CLIMATE Climate weather has an impact on the timing of expenditure. Unexpected weather changer influences consumers in their purchasing decisions, consumers in warm, dry climates tend to buy cheaper clothing and less durable. It influences the share of clothing expenditure. Now days weather condition of Ethiopia becomes warm and dry climates.

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Consumer's preferences for textiles: A study of Distributors Opinion

Trade configuration -

Distributors •

They hold their own stocks at own risk.

•

There is one governmental owned distributor in the country and widely knows as MEWIT (Merchandise whole sale and import trade enterprise). It is not strong enough to distribute textile and clothing products as it has performed like during the post regime.

•

Private distributors are more active and effective. Their capacity have been increased for the last ten years. This is due to the privatization policy of the country.

-

Retailers •

Retailers constitute the final stage before products reach the consumer. There are many retailers in the country. Many textiles garment manufacturing and destroy enterprises and distributors have established retail shops mainly in Addis Ababa and production compounds. Some also do have their own shops in big towns. The factories and distributors sell textile and garment directly to the consumers and other users of these shops.

-

Others •

Production based on customers and government orders. Orders may be uniforms, bed sheets, working clothes etc.

-

Street markets •

Street vendors are involved in clearing up stocks from manufacturers or distributors. Some retailers have partners of street vendors.

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Consumer's preferences for textiles: A study of Distributors Opinion

Normally, trade and distribution channels for textile can be demonstrated as follow:

LOCAL PRODUCTS

MANUFACTURES

DISTRIBUTORS (IMPORTERS) PRIVATE RETAILERS

MANUFACTURING WITH RETAILER ACTIVITY

CONSUMERS STREET VENDORS

DISTRIBUTOR WITH RETAILER ACTIVITY

Foreign products

DISTRIBUTORS (IMPORTERS)

Fig 3.1 Trade and distribution channels for textile in Ethiopia (Tailored to the study)

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Consumer's preferences for textiles: A study of Distributors Opinion

MARKET Local consumer may buy textile products -

In known markets like Markato

-

From street renders

-

In fair and exhibition

-

Around known places church and other places.

Prices and Margins Margins As usual, consumers, distributor, retailers and others are looking for low-priced products. Some factors influence the margins of the various different levels of distribution. These are risk, volume of business marketing services; completion and others. Commonly, price is an important criterion, and suppliers may be tempted to cut costs in order to gain market share. They may do this by producing goods that are at as safe as they should be.

Retail Prices The market is intensively competitive and prices vary according to the product, type of outlet, purchaser behaviors and retailer’s judgment on the market. Because of the lack of finance and time, it has not been undertaken to know retail prices of textile, imported or local, products.

Sources of Price Information There is no central price source in the country. It is very difficult to get relatable trade center or printed survey at all.

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3.3 Basic findings and Data analysis This study identifies two types of actors, the most important of which are consumers. Consumers are the individuals that identify a need, purchase, and use products to satisfy that need. They are all Ethiopians. Marketers are distributors and textile manufacturers that satisfy consumer needs in exchange for money.

The most important expression of any business endeavor is to make available a product, which satisfies consumer needs. Product is, therefore, the keystone of a marketing mix. This study attempts to delve in to the subject of textile products and consumers preferences in detail. Let us start on considerations on textile products. It applies to any offering to a target audience of customers.

Product preference and why consumers prefer products Bed linen It has a highest demand in Ethiopia textile market because of the increase in population. It is useful for household, Hotels, and for other purposes. Since Ethiopia is a country of tourism, hotels are open dramatically increase in each year. This contributes its own share to increase the demand of bed linen. To all of this functions of bed linen are to enhance sleeping pleasure and an aesthetic appeal. People need to buy it for such purposes.

Cloth Cloth is a second necessity for human being next to food. In addition to this, people need clothes to express personality. Due to cultural differences, people choose different type of cloth for the purpose of weeding, birthday, and others. In most market places of Ethiopia, the demand for cloth is high. The reasons are mainly of four fold: 1.Population size 2. Increase in income sources of Diaspora (income from foreign) Increase in employees

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3.Low priced items Imported clothes (legal plus illegal) 4.A good attitude of consumers towards clothes

Women’s clothing Although the demand of women’s clothing is high, retailers are unwilling to sell or to stock such items. As most of the respondents replied, women’s preferences are becoming changeable due to their tendencies towards fashion and style.

Men’s clothing Since men are not inclined to fashion, the demand for one type of product exists for a long time in the shelves. For this reason retailers and distributors are very interested to stock and sell men’s clothes and it is a more profitable business. It has high demand in the country.

Tee-shirts Because it is fashion and it can use for many purposes as well as the hot weather conditions, the demand of Tee shirts increases, especially for young consumers. Moreover, functions vary from outerwear and underwear tonight wear, make it high demandable. About 90% of Tee shirts are made of cotton.

Babies clothing The mother is the customer. Any mother in Ethiopia not only dresses herself fashionably but also her baby. It ranges from during her pregnancy she thinks and collects the basic outfit for the baby. Often she is advised and helped by a friend or a neighbor. There is custom to give a gift of clothing for babies that help to strengthen friendship. On this study, it is known that the demand of babies clothing is high.

Poplin The demand is high because it has many purposes.

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Towel High demand. It uses for household, hotels, and offices. In rural places, it uses as blanket.

Twill High demand. It is useful to make trousers and coats. It also serves as to make readymade clothes. Since it is made of cotton, it is expensive.

Drill Gray Low demand. This is because of a low quality of Drill gray. Before a few years ago, it was useful to make trousers in rural areas.

Yarn It has high demand. Traditional Ethiopian clothes are made of yarn. In factories, it is used as raw material for making different products.

The succeeding table shows some of the products and their nominal and unconscious benefit:

Table 3.4 Products and their nominal and unconscious benefit Product Bed linen Cloth T-shirt

Nominal benefit Night cover Protect body Out and under wear

Towel

Absorb water on washing

Unconscious benefit Sleeping pleasure Express personality Self-expression and being young Relief

Local consumers This local consumers study has a great emphasis on individual and family inclination towards purchase of textiles in Ethiopian. To go at a greater distance in the analysis, the personality traits and family life cycle are contributive factors. Consequently, within the boundaries of Ethiopian accompaniment the two circumstances depict as proceed.

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Consumer's preferences for textiles: A study of Distributors Opinion

Personality traits of Ethiopian consumers Assertive

Pleasant

Cooperative

Self-confident

Warm

Emotional

Mannerly

Hard working

Peevish

Dependable

Responsible

Curious

These are found based on distributors, some retailers and sales persons opinion on market observation of the study.

Ethiopian family life cycle 1. Young singles Incomes are medium since they have a good income sources. They tend to buy textile.

2. Newly married Medium level of discretionary income because both or one of them are usually working. They need new products for their new house.

3. Married couples with children Most studies state that the average family size in the country is six. Unless they have a good income source, most of them are poor since they have more children. They are not active in buying textiles

4. Young working live with their families They have enough money for purchasing clothes, but dependant on parental support for food and house rent expenses.

5. Old age or young dependant on parents They are completely depending on parental support. Nevertheless, they have great intentions to spend money on clothes, if they have a chance to obtain money

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Consumers’ preferences Income has been an important variable for distinguishing market segments. It simply indicates the ability or inability to pay for a product. Moreover, it serves as a measure of social class.

Local consumers who earn between 150 to 600 Birr per month mostly visit textile shops. This is the fact that they have enough money to cover their basic needs such as food. In most cases, they are interested and able to pay for a product. Such persons usually visit shops, which located around Merkato. While those who earn less than 150 Birr per month mostly go to Kolfe to buy illegal imported salvages (used cloths.) Kolfe, which is found in Addis Ababa, is one of the known market place, which provides salvage clothes in the country. It is known that poor persons (earn less than 150 Birr per month) spend high percentage income on food.

On the other hand, rich persons include those who earn high salary per month and those who have a good income source from foreign, go to modern shops located around Bole and Pizza because they need high quality and fashion clothes. This survey assured these conditions through questionnaire and interview.

Gender is one of the segmentation variables in marketing. More domestic women consumers visit shops and buy products. Every day life shows that in Ethiopia, women have a great responsible to manage the housekeeping budget and men have a decisive role as well as the basic source of budgets. Mothers are the usual agents to select and buy babies clothes. Both workingwomen and working mothers spend most of their income in cloth, cosmetics, and household furniture. To remember Ethiopia is a country of Younger population. Young women those medium age and young have a great interest to visit shops and they buy products most of the time.

The study learned that the demand of products often vary with consumers age and sex. Based on the responses, more medium age and young women visit shops.

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Consumer's preferences for textiles: A study of Distributors Opinion

The following are the most important purchase criteria among Ethiopian consumers for textile products (on percentage base.) High quality (A good fit and comfortable) products

20%

Durability (will last/wear well)

60%

Value for money (reasonable price for the given quality) 20% Good price / Quality

15%

Cheap price with products

85%

Past experience with products

40%

As shown on the data, consumers need cheap price clothes. The thoughts are the ensuing:  Economy of the consumers  The need to allocate budget and that help to buy other products.  The need to success through purchasing product  Personal freedom to control one’s own money Wearing expensive and quality clothes are  A sign of material success  A statement of personal success The above data on percentage stand are found based on the average valve of a given percentage of respondents. Below is presented respondents ‘opinion vs purchase criteria.

Table 3.5 respondents ‘opinion vs purchase criteria. 1

2

High quality (H)

25%

20% 15% 20% 20% 20% 20%

Durability (D)

55%

45% 70% 50% 80% 60% 60%

Value for money (V)

15%

30% 25% 15% 10% 25% 20%

Good price/Quality (G)

15%

20% 15% 5%

Cheap price with products (C)

75%

95% 95% 75% 80% 90% 85%

Past experience with products (P)

55%

25% 35% 45% 30% 50% 40%

Addis Ababa University

3

4

5

6

Average

10% 20% 15%

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Consumer's preferences for textiles: A study of Distributors Opinion

At one time consumers usually spend on clothing is between birr 150 to 300. This expression is true for clothing markets today in Ethiopia, because most people dress to fit their self-images and adorn their home to include their own social-class membership. Young consumers need to differ themselves and their houses from others in terms of what they consider fashionable or in good taste. Most working young local consumers live with their family (mother and father.) This creates a great opportunity to spend their income on clothes. In Ethiopia today’s economic condition, spending up to 300 birr on cloth means a high expenditure relative to other products. This indicates local consumers give high value to clothes. Marketing specialists need segmentation to discover the needs and wants of specific groups of consumers. The reason behind this is that people who live in the same area share similar needs and that these needs differ from those of people living in other areas. For example, textiles have better opportunities for buying in every less than three months by one customer who live in urban than the one who live in rural area of Ethiopia. Incomes, considerations on fashion and style, and exposure to advertisements are the basic reasons to open a good opportunity to buy in less than three months for urban customers. Whereas, poverty and consequence of this like no shops around the rural areas, make the demand of textiles is low in these areas and they are forced to buy products once a year. On circumstance, if the harvest is very well, they go to near cities and buy what they need. This is accompanying reason to increase the demand of textile in urban areas. The respondents indicated that urban customers buy textile in less than three months, but in rural consumers buy with in one year. As anyone knows, Ethiopians love to celebrate major landmarks in the religious calendar. On these days, local consumers need, buy, and wear best and new clothes. For example, the popular Ethiopia Timket /Epiphany tour is a good evidence for the study purpose. Orthodox Christian believers buy new textiles for this day and there is a very popular saying “ letimket yalhone kemis yibetates.”This is one of the marketing days for Ethiopians. For the same reason, almost all-domestic consumers buy products for New Year, on weeding months, and on important events on family life. However, customers do not have habits to buy products on seasons whether be it summer or winter. The

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weather condition of the country is constant through the year (13 month of sunshine) can be considered the best reason for independent consideration of buying habit on seasons. Local customers prefer to face-to-face communication on buying a product. Mail order or Internet use on buying is not preferable way to purchase textile. Because consumers need to see the products physically and there is not enough access of Internet especially in rural areas. The following are the usual and highly preferable means to buy a product:

In Fair and Exhibition The demand of cloth is high. The society mostly believes that exhibition brings low price and new products. Therefore, they tend to buy products.

In known markets Open market is the outmost market area all over around the country. Consumers are not

usually use modern market places such as supermarkets. However, all cities have

large supermarkets and some customers, especially educated persons prefer them. There is no textile supermarket in the country at all.

Street vendors Today, street market is becoming popular market place in urban areas. Any person can purchase different textiles there. Moreover, it has been longer time known places serve as good marketing places in urban and rural areas. For example, churches. Respondents say customers usually buy products in fair, in known markets, from street vendors, and around known places. Ethiopian marketers spend money each year on advertising, and have many forms and uses. However, it is in its infancy stage. Domestic consumers are highly receptive towards advertisement and promotional activities. They need to know about what, where, how, and how much to buy is the reason. It is true that watching television program or others involves exchange something of value for something the consumers’ needs. The need is information or relaxation. In concise, people want to know more about what they buy. Because of this they are highly expose to media and other promotional materials. All respondents agreed the consumers are highly receptive towards advertisement. For a consumer to make a decision, a choice of alternatives must be available. Since textile is not like ‘prescribed medication’ and there are different type of textiles as well as

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there are different market places, consumers have a strong choice between making a purchase and not making a purchase. They have also a choice among different products. Ethiopians consumers need to choose what they thought to buy. Every purchase can be influenced by acquired needs. However, they need supportive idea, approval, or common understanding from close friends, families or other persons. This indicates that consumers have more than one reference group. There are several reasons that local consumers allow other people to guide their consumer behavior. These are, among the others: ♦ They need information to reach a purchase decision ♦ Consumers can buy and use their purchases to make a statement about the image they want to project Urban local consumers can be considered as the most stylish and have a good taste. Fashion plays an important role in purchasing decisions in particular for women. These aspects led to a tendency to enjoy cheaper, comfortable, and practical textiles. A more attitude to colour, design, and decorate products resulted an increased focus on imported items. This driven by a desire for individuality, comfort, and expression of personality. Another important factor for such desires is the more young population in the country and families are highly imposed on decision to purchase a product by their sons or daughters. Aesthetics of a fabric are a primary concerns for customers. Regularly, young consumers are looking to life style brands. Notwithstanding, rural consumers are conservative on fashion, color design, and comfort to buy a textile and new products take time to be preferable. In most cases, relatives who live in urban cities advise them to buy fashion products. Sometimes they are reluctant to decide. In the other hand, since they buy products in urban markets, these make the demand of fashion items is high in general.

The trends are the following: 

Quality and fit remain the most important criteria



The feel for comfort and simplicity will bring extensive use of textile



Apart from real textile, which looks almost real, is becoming popular



The interest of consumers in natural materials has a positive effect on sales



Consumers need any thing that is new in the market



Women are not very critical concerning price

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Consumer's preferences for textiles: A study of Distributors Opinion



Changes in fashion are frequent in the textile sector



Beyond the basics of fashion and style, the perception of good fit from the consumer be on of the preferences



Many consumers, particularly female, feel somewhat personally inadequate when clothes do not fit properly



Posture, back curvature, hip position, bust shape, and legs are considers in choosing of clothes

The color wheel in Ethiopia  White: The color of weddings  Black: The color of funerals  Red: The color of warnings  Yellow: The color of hope  Green: The color of Environment Men prefer blue, gray, and yellow colors. Women prefer red and brown. Both need black, pink, and purple colors. Colour plays a dominant role on textile market. Local consumers need black, purple, pink, stripes, and different shined textiles. This is just based on respondents.

As a matter of course, consumers in Ethiopia are more interested in textiles and cloth. Clothing is the first priority in housekeeping budge next to food and expense of health. However, as soon as time is becoming hard, expenditure on clothing is reduced. This attitude has created a good environment of sales and price reductions, which have become the best strategies in the competitive retail market. The need to buy in street vendor or low price shops raise.

Ethiopian customers buy products for the purpose of the functional value of the products. Moreover, they highly use clothes for expressing personality in rural and urban areas.

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Additional reasons for the high interest towards textiles by Ethiopian consumers are:
To decorate their homes
To celebrate holidays and family’s important days
Desire to be smart
Desire to be modern
Desire to be young
Personal satisfaction
Positive state of mind towards fashion and style
Good stance towards cloth It can be concluded that consumers tend to be more rational in their purchasing of textiles. This is why they buy products at holiday and weeding days. Be known it, two consumers of the same age, same family, and same income have different product preferences. This is because of:  They vary in both background characteristics such as valves and psychological characteristics  In the way they use behavioral processes to complete the activities It is known that Addis Ababa is the central economic, social, and political place in the country. According to the latest estimation, the population of the city is around three million. This resulted in high demand for textile. Because of illegal products imported, in the East of the country, the demand for products in particular local is prone. The demand of textile is high in southwest cities and rural areas especially coffee growing areas. In addition to this, northwest and east areas requests textile in high quantity. The reasons behind these are spending pattern, good harvest seasons and land, growth employment, and living standards. Dire Dawa, Mekele, Bahir Dar, Gonder, Jimma, Netheret, and awassa score the highest demand among the cities. High population and living standards are the reasons. The following tables show this trend.

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Consumer's preferences for textiles: A study of Distributors Opinion

Table 3.6 Textile demand among the regions Addis

South

North

East

West

Ababa Low

North

South

South

North

east

west

east

west

X

X

X

X

X

Medium High

X

X

X

X

Table 3.7 Textile demand among the regions Dire

Mekele

Dawa

Bahir

Gonder

Dessie

Jimma

Natherethe Awassa

X

X

X

X

Dar

Low Medium High

X

X

X

X

Local textile products Local products are comfortable and good for health. This is the fact that the products are made of cotton. It is known that cotton clothes are good for health and expensive in price.However.local textiles are low in price due to raw cotton grown and produced here. On the other hand, local textiles have low quality, durability, design, attractiveness, packaging, and finish. They are not available at high quantity. The reasons are the following:
Ignorance on quality and cost control measures
Absence of systematic marketing and product innovation
Old technology
Low capacity
Low labor productivity
Low in Research activities
Inadequate design schools

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It has been found that domestic textile products are useful for making clothes in rural areas and they are rarely useful for cities. However, most textile factories produce products for the use of uniforms and working clothes. Local textiles also use for curtain and other household need. Local T-shirts are highly produced and sold in foreign and domestic markets. Moreover, the local firms produce textiles for a purpose to make traditional clothes (yarn), and to other export products such as T-shirts and bed linen. On the other hand, more respondents added that from the viewpoint of the factors of consumers’ demand of ◊

High quality

◊

Competitive prices

◊

Wide selections of products and

◊

Quick response to changing needs

Domestic products have stumpy performance as compare to imported items. These indicate that their futures, the target to satisfy customers, and value creation are very derisory and have low successes. The following are the grounds:
Products do not have unique futures
Lack of research and development
Lack of finance
Lack of training
Inability to remain competitive
Inability to develop a means of product differentiation
Inability to meet customer expectation In most cases, firms could not understand consumer’s perception of physical comfort, psychological comfort, and appearance which all impact the consumer decision process.

Homes, offices, hotels and others require large quantities and variety of textiles to update their interior environment. In household textile products, includes: blankets, pillowcases, hand and bath towels, tablecloths, and kitchen and glass cloths. Others

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textiles, which are used for: window coverings, upholstery, decorative pillowcases, and ceiling coverings. Consumer expenditure on household and other textiles increases each year. The positive developments in the household and other textiles in Ethiopia are the result of some factors, like:  Economic, such as rising employment and consumer confidence  Intensive price competition among retailers  Growing imports from low-cost countries Textile for expenditure on household and other textiles comprise a wide range of products: from traditional made to very modern textiles. Customers are willing to spend money to decorate their houses, offices, or hotel interiors based on the current fashion. Specially, the need rises dramatically in holiday and weeding days. Young consumers have a great interest in more fashionable interior textiles. Even if rural consumers and old people of city inhabitants need to update their interiors, they are highly conservative in buying fashioned textiles.

Observation summary This summarizes the survey of the distributors opinion and market observation based on the interview guide.  Most consumers do not look at the label before they buy textile, and follow the instructions on the labels when washing clothing  Most consumers do not have habits to read care labels before making a purchase decision  Care instructions do not affect local consumers impressions  Most consumers do not want to buy easily color fade textiles even if they are fashioned and modern  Fabric content 100% cotton textile

consumers need such of type textile because of its appearance, attractiveness, and absorbency. It is good for health, comfortable, and expensive in price. It needs care on using and washing .It can be easily

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shrunk. 100%polyster

It can not be easily shrunk and it is cheap in price. Consumers need it because of its price. To be frank, it is not good for health. It creates warm on body in warm times and the same characteristics for Cold weathers.

Blend

Most textiles sold in the country are made of the blend-cotton and polyester. Clothes made of these are cheap in price, attractive, and not that much need care on using and washing.

 Consumers need flame resistant fibers; and less shrinkage textiles when wash  Consumers spend more time and effort searching for information when purchasing  Young consumers tend to believe that price is a good indicator of quality  Consumers learn from past and present purchase experiences. It extremely affects upcoming purchase.  Women consumers are more likely to credit when making purchases.  Young consumers buy the same clothes and dress or update their houses the same way as a celebrity, peers, or attractive persons.  Local consumer behavior includes influencing others, using the product, complaining, and disposing of the product and watching television advertisement and many other activities.  Overall, given the choice between two similar articles of textile, consumers prefer to buy the one, which is new, low price, and fashioned products. In addition to this, they need and prefer brand familiar products in most cases. The respondents agreed that they response quickly when price is reduced. It is noted that the study confirmed that most consumers important purchase criteria are price, easy care and durability.

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Consumer's preferences for textiles: A study of Distributors Opinion

 Most household textiles are the following: Bedding, bags, curtains, furniture coverings, towels, table clothes, and Drape. Flags and umbrellas are high demand in the country. Flag marketing in national ceremonies as well as sport games especially in Olympics it has high demand and has good profit. Almost all women buy umbrella on rain seasons. Some men also buy it in the same seasons.

Ethiopian customers needs To fully satisfying customers contemporary requirements it asks a sound understanding of what products, sales and marketing attributes customers expect and need. On indication, it identifies with why they make or do not a particular purchase. On this common sense, the needs of different local customer types are summarized as tag on:  The benefit that the customers seeking from the product are two fold: 

Tangible: texture and shape which make it easy to use



Intangible: Appearance and absorbery which the product brings

 The customers have any other needs, which are related to the products like: 

Knowing how to wash



Understanding how to use the products

 Consumers seek brands with which they are familiar rather than risk using an unknown supplier  Local consumers wishing to buy different textiles for some purpose, definitely they need to purchase all of the items in one store if the store stocks all the items.

As any one recall, a family is made up of multiple consumers who collaborate to complete the steps necessary to purchase and use a product. The following table illustrates the roles family members play in reaching family consumption decisions.

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Roles played by family members in Ethiopian household textile consumption decisions 3.8 Ethiopian Family consumption decisions on textile Role

Description

Example

Initiator

Recognized need

Wife hears or sees about fashioned or new products

Influencer

Searches and

for

alternatives Husband watches television

information

to

use or hear from his wife

evaluation Decider

Responsible for the decision Husband decide to buy a product

Purchaser

Purchases a product

Wife picks up a product

User

Uses the product

All the family

Overall, consumer’s need ⇒

Basic clothes that guarantee survival

⇒

To be protected against textile those are hazardous to health

⇒

To be given the facts needed to make an informed decision

⇒

To have access to a variety of products at a competitive prices

⇒

To a physical environment that will enhance quality of life.

"To be a bullfighter, you must first learn to be a bull." Spain Anonymous

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4. Recapitulation of the study 4.1 Discussion summary To summarize and make it all work, what the study identities and marks the most valuable result of analyzing the operating environment of an understanding of the composition of a firm's customers. The study provides a framework for under standing feed back effects from consumers' preferences thought distributors opinion and observation of the known market places. In developing a profile of present and prospective customers, managers are better able to plan the strategic operations of the firm, anticipate changes in the size of markets, and allocate resources supporting forecast shift in demand patterns. Four principal types of information are useful in constructing a customer profile: geographic, demographic, psychographics, and buyer behavior, as illustrated below in the table. Summarized local customer profile on consideration of textile in market Type of Information Geographic

Factors

Typical breakdowns

population Density

urban 70 million (large customer) Urban 20% rural 80%

Demographic

Psychographics

Buyer behavior

Marketing

Age

Young (most)

Sex

Equal ratio (female more buyers)

Income

between 150-600 birr

Occupation

Rural – Farmers / Urban – workers

Autonomy

Independent

Conservatoire

Rural- conservatives/Urban- liberal

Usage user

Heavy user

Readiness stage

Tier and interested

Benefits savant

Economy status

End use

Diverse with the product

Brand loyalty

Light

Factor sensibility

Price, Durability of the product, Advertising, and better service

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Generalize the study is able to find the local consumers need as well as it is able to explain some of the mixed problems of local products that deter them to get better market in local and abroad. It also tries and identities and manufacturers tendencies in texture businesses. In a brief summary of consumers’ profile, the findings and observations are summarized as follows.

Fundamental marketing concepts

Descriptions

Most buyers and consumers

Young, special women

What they want.

Simple and attractive textiles

What they Expect

New and low price products

Exposure to fashion & Advertisements. High Market places.

Urban known markets

Decision to purchase

Take time and gather information to decide

A Great value

Color, fashion, and style

Care instructions liable, old fashions

Almost no valve

Purchase time

On holidays, weeding, and special affairs

Table 4.1 Consumers Profile

Study conclusion The purpose of this study is to investigate the consumers’ preferences for textiles. It also further went in to seeing the tendencies of local products as compared to imported products. Although the main aim of study is as stated above, it does not claim to have exhausted all the preferences of the consumers. It does not clime to have exhausted all the textile products. However, through investigation of the consumers need and its impact has been made through this research and this has enabled the marketers to come up with valid and reliable outcomes that could later be used for further research in this area.

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Consumer's preferences for textiles: A study of Distributors Opinion

The findings obtained through in depth inter views with distributors, sales persons, and some customers as well as questionnaires are presented, summarized, and analyzed using both quantitative and qualitative methods.

Generally, the consumers preferences is the most prominent one for making a patter profit as well as to satisfied consumers need. Age, sex, family, and income have led the consumers to make a particular purchase decision.

Following the analysis of the findings, the central marketing concepts in this study can be put in the following summarized points.

A. The preference of consumer can give us insights into why an individual makes a particular purchase. B. Consumers face conflicts involving how much time and effort to spend on decision to achieve the best results. C. On any given occasion, a consumer can be an influences, purchase, and / or user. D. The important key stresses here are that consumers' preferences are influenced by several factors.

E. The final insight recognized that consumer behavior differs for different people. This assures that the process by which we identity meaningful target groups with in a larger consumer market are extremely important.

Core conclusion marks Conclusion preferences can range widely for effort given to the choice and in time. The study tells us what type of textile they buy and when they buy it. An the findings of this study disclose, the core findings of the study put us follows in the table:

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Consumer's preferences for textiles: A study of Distributors Opinion

Consumers’ preferences To Products

To Price

-

New fashionable textiles

-

Purple, pink, stripes, and different shined textiles.

-

Simple and comfortable textiles

-

Natural materials (100% cotton textile)

-

Flame resistance fibers and less shrinkage textiles when wash.

Low

Top Advertisement To know more on the product plus to know fashion To Distribution

Good service, advice, and quantity

4.2 Consumers preferences to products, price advertisement and distribution.

Further Conclusion marks -

On the study, the stated important demographic trends are very important for marketers and they created some ways marketers use the explained demographic information in making decisions such as choosing retail site locations and choosing advertising media. For example, see the table below.

Table 4.3 how marketers use family’s role in purchase Decision

Advertising

Focus on

Need

Reason

Wife

New products

Initiator

Husband

To

encourage Decider

decision

Retailer location

Wife

Packaging set of

Wife

Select

Purchaser

place Purchaser

convenient to wife

-This study states that firms (local companies) must to match their products to meet the needs of potential customers. Thus, understanding the analyzed consumers preferences is crucial for marketing success. by means of in marketing, a set of management decisions conclude in what has came to be known as the marketing mix. The study indicated marketers can know develop and formulate their marketing mixes.

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Consumer's preferences for textiles: A study of Distributors Opinion

The following table shows this trend

Old mix Products

Drop

New Mix Focus on

Young and women

Need

Continually develop fashion products

Strategy

Some very substantial changer

Participants

Marketers, designers, engineers

Manage

Competition

Price

Good

Continually Considers consumer response

Place

Need change

Focus on Service, delivery time and quantity Problems Creating good business relation Strategy Try to making business partner of Distribution and retailers

Promotion

Needs change Focus on refer the above table

Table 4.4 marketing mixes The funding of this study divides the consumer in to meaningful buyer groups who signify opportunities for distinct marketing programs. It plays the primary role in the first point of market segmentation .In helping marketers to make a good decision, it is providential that the research actually discloses there types of classification. - Group characteristics of the consumer - Benefits sought - Behavior of the consumer

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Consumer's preferences for textiles: A study of Distributors Opinion

Table 4.5 Grouping consumers in to meaningful buyer group

Sex

Group

Description

Benefit sought

Behavioral measures

Women

A convenience oriented shopper

High quality in cloth

Buys fine clothing offer

Men

Active decider

Price oriented buyer

Not loyal

Huge market but low in come

Conservative

Loyal

Location Rural

Urban

Activity buyer but small in New fashion clothes

Not loyal

number

Learning about the consumer market represent a first step for a host of managerial decisions, ranging from investment in new plants, to hiring workers, to planning advertising campaigns. Thus, the study helps marketers to know about

Market composition - Who

Young, female, urban, inhabitants newly, married, and Young working live with

- Who does not

Old, men, rural, inhabitant married couples with children

Market trends -What will the future bring

- consumer satisfaction -Attractive business profit - Involvement protection

- Society gets benefit Market Location -Where are the buyers

-In the main market places (Consumers need face-to-face communication)

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Recommendation Thirty years back Car. H. poedtke wrote a very fine article on Management Advisor. He said ''Each morning's headlines each evening's news broadcasts, remained us once again that we live in a world of accelerating true any change. Things that have been taken for granted for years are not necessarily true any longer. To quite the rule of Siam in "The king and I', 'when I was a boy, world was better spot. What was so was so, and what was not was not. The king's plativelament could very well be the most enduring truth of our time. That truth has meaning to each of us in the business community, aside from our concern as citizens. That article on its special underling says '' The rapid changer is politics, in economics, in society itself, are inheritably reflected in the business work. This means that old methods that once worked there are so longer necessarily valid. Perhaps it is time we all restructured our thinking. Thus, we all must fast to restructure our thinking to be a part of a global market .The market that is very complex in the fast moving world. The question here is that what to do we restructure, but not when do we restructure, because it has a very fast answer, now. The restructure things must follow on the responsibility to the customers. With out them we would have no reason for being. We strive to appeal to a broad spectrum of consumers, catering in a professional manner to their needs. The thinking to words to the customer includes a wide selection of quality produce profiling

reseanable price and

delivery products with courtesy and professionalism. Now, the study indicated that local marketer must shape are reshape their strategies to be effective and efficient in practical market. To be a modern professional marketer the marketers must understand how consumer will respond to different product features prices, and advertising appeals. Understanding consumers’ preferences is complicated for markets with in the borders of a single country. For products that have high demand in international market, understanding and serving the needs of consumers can be disheartening. This is because consumers in different countries have different values, altitudes and behaviors. It is

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Consumer's preferences for textiles: A study of Distributors Opinion

necessary to recognize such differences and adjust the product and marketing programs accordingly. Therefore, in our country textile marker practices all marketers must organize and do their best on the reshape of the existing marketing strategies: This plan can be better called as "flexible restructuring" (F.R). Why? The changes in Demographic trends can have an adverse impact on demand. Ever increasing in fashion and tastes can have a great and unpredicted effect on organizations. Beyond doubt, textile market is a superior and magnificent exemplar in this fact. More outstandingly, today's incrustation concern about information technology and its result ( a better access to relatively accurate information),companies could be highly affected by the consumers' awareness and instantaneous changes of consumers' preferences. Correspongly, marketers especially textile industry which is one of the results of highly developed technology can have a great chance to change radically with a change in different factors. Due to this fact, companies will face the problem of rising in consumers' preferences in particular and marketing in broad. The need to search ways of establishing priorities may be the concern of all companies. Managers may or may not understand that they live and operate in extremely dynamic environment. Nevertheless, the concern now is that much different from the preceding ;we are just in different world.Therefore,to share the global market and to compute with excellent companies, it is a must and the outstanding choice t adjust and review the existing strategies with a nonstop improvement as per changes.

The End

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