An Empirical Study on Marketing Mix of Small Scale Product of Women Entrepreneurs in Madurai district
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1 An Empirical Study on Marketing Mix of Small Scale Product of Women Entrepreneurs in Madurai district N.Stella Asst.prof, Dept of Business Administration, Lady Doak college, Madurai (India) If you push through that feeling of being scared, that feeling of taking risk, really amazing things can happen -Marissa Mayer-CEO, Yahoo. ABSTRACT Women entrepreneurship has been recognised as an important source of economic growth. Women entrepreneurs create new jobs for themselves and others and also provide society with different solutions to management, organisation and business problems. However, they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based barriers to starting and growing their businesses, like discriminatory property, matrimonial and inheritance laws and/or cultural practices; lack of access to formal finance mechanisms; limited mobility and access to information and networks, etc. Women s entrepreneurship can make a particularly strong contribution to the economic well-being of the family and communities, poverty reduction and women s empowerment, thus contributing to the Millennium Development Goals (MDGs). Women entrepreneurs face a lot of challenges now-a-days, as they do not have proper guidance. The objective of the study is to give knowledge on promotion and marketing strategies of 4 P s and to identify the problems faced by the women entrepreneurs in Madurai. The study was started with an interaction to the women entrepreneurs in order to observe their needs. The sampling method adopted for the study is quota sampling. The research design used for the study is descriptive design. The sample size for this study is 120 The data collection method used is questionnaire and personal interview. The analysis and interpretation of the data collection was done using percentage analysis and chi square. From the analysis and interpretation it was found that the community was lacking in the knowledge on promotional activity and marketing strategies. They also lack in financial support too. From this study it was found that the women entrepreneurs in Madurai was interested in producing phenyl, snacks, flour, tailoring and flower selling. In India, the Micro, Small & Medium Enterprises development organisations, various State Small Industries Development Corporations, the Nationalised banks and even NGOs are conducting various programmes including Entrepreneurship Development Programmes (EDPs) to cater to the needs of potential women entrepreneurs, who may not have adequate educational background and skills. In addition to the special schemes for women entrepreneurs, various government schemes for Micro Small Medium Enterprises (MSME) also provide certain special incentives and concessions for women entrepreneurs. For instance, under Prime Minister s Rozgar Yojana (PMRY), preference is given to women beneficiaries. Madurai district women entrepreneurs are expert in producing the products and fixing the prices but they are lack in distributing and promoting the manufactured products. 280 P a g e
2 Keywords- MSME, Prime Minister s Rozgar Yojana, Marketing mix. I. INTRODUCTION The paper seeks to present the marketing mix of small scale product of women entrepreneurs in Madurai district. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements. Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good. Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product. Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes. II. IMPORTANCE OF THE MARKETING MIXES All the elements of the marketing mix influence each other. They make up the business plan for the women entrepreneurs to handle right, can give it great success. But handled wrong and the business could take years to recover. The marketing mix needs a lot of understanding, market research and consultation with several people, from users to trade to manufacturing and several others. III. WOMEN ENTREPRENEURSHIP IN INDIA. Women entrepreneurship has been recognised as an important source of economic growth. Women entrepreneurs create new jobs for themselves and others and also provide society with different solutions to management, organisation and business problems. However, they still represent a minority of all entrepreneurs. Women entrepreneurs often face gender-based barriers to starting and growing their businesses, like discriminatory property, matrimonial and inheritance laws and/or cultural practices; lack of access to formal finance mechanisms; limited mobility and access to information networks.women s entrepreneurship can make a particularly strong contribution to the economic well-being of the family and communities, poverty reduction and women s empowerment, thus contributing to the Millennium Development Goals (MDGs). Thus, governments across the world as well as various developmental organizations are actively undertaking promotion of women entrepreneurs through various schemes and promotional measures.women entrepreneurs 281 P a g e
3 in the four southern states and Maharashtra account for over 50% of all women-led small-scale industrial units in India. IV. POLICIES AND SCHEMES FOR WOMEN ENTREPRENEURS IN INDIA In India, the Micro, Small & Medium Enterprises development organisations, various State Small Industries Development Corporations, the Nationalised banks and even NGOs are conducting various programmes including Entrepreneurship Development Programmes (EDPs) to cater to the needs of potential women entrepreneurs, who may not have adequate educational background and skills. The Office of DC (MSME) has also opened a Women Cell to provide coordination and assistance to women entrepreneurs facing some specific problems.there are also several other schemes of the government at central and state level, which provide assistance for setting up training-cum-income generating activities for needy women to make them economically independent. Small Industries Development Bank of India (SIDBI) has also been implementing special schemes for women entrepreneurs. In addition to the special schemes for women entrepreneurs, various government schemes for MSMEs also provide certain special incentives and concessions for women entrepreneurs. For instance, under Prime Minister s Rozgar Yojana (PMRY), preference is given to women beneficiaries. The government has also made several relaxations for women to facilitate the participation of women beneficiaries in this scheme. Similarly, under the MSE Cluster Development Programme by Ministry of MSME, the contribution from the Ministry of MSME varies between 30-80% of the total project in case of hard intervention, but in the case of clusters owned and managed by women entrepreneurs, contribution of the M/o MSME could be upto 90% of the project cost. Similarly, under the Credit Guarantee Fund Scheme for Micro and Small Enterprises, the guarantee cover is generally available upto 75% of the loans extended; however the extent of guarantee cover is 80% for MSEs operated and/ or owned by women. V. SMALL SCALE BUSINESS IN MADURAI In first field visit the researcher has identified 120 Women entrepreneurs who do various small scale products such as snacks, phenyl etc., and indentified few of their needs and found out they were lacking in the marketing side of their small scale products. Small scale business is a business that employs a small number of workers and does not have a high volume of sales. The developments of the entrepreneurs are much needed for the development of the country and it also encourages the development of small scale industries. VI. REVIEW OF LITERATURE TITLE: Assessing Marketing in Small and Medium sized Enterprises. ABSTRACT: Peter B. Fuller Regional Technical College, Dundalk, Republic of Ireland,European Journal of Marketing,(December 1994) Reports the findings of a study of marketing practice in five furniture manufacturing firms in the north east region of the Irish Republic. The research uses six models developed by Carson and reveals that the quality of marketing within the firms can be differentiated through the application of the models. This study supports the application of the models as a means of assessing marketing in small and medium sized enterprises, but the findings suggest that the models should be refined in relation to strategy, long term planning and the firm s description of its environment. The research proposes a new set of criteria to be used for deciding the classification sophisticated marketing. Whereas the Carson research was longitudinal, 282 P a g e
4 this study was synchronic. Suggests that the models could be of value to those working with small and medium sized firms, including consultants and lending agencies, many of whom may be consulted at a critical period for a firm when there would not be time for a longitudinal study. TITLE: WOMEN IN SMALLS SCALE ENTERPRISES DEVELOPMENT: ABSTRACT Author: Dignard. L. Havert. J (department of sociology, carleton university, Ottawacanada) Year: 1995 Book: women in small scale enterprises development Women's participation in small enterprises activities in developing countries has seldom been dealt with either in analytical discussions or in empirical illustrations. The book aims to increase the visibility of such women small entrepreneurs by bringing their concerns into the arena of research as well as policy and programme review. It mainly integrates a hands on approach in tune with current women in development and feminist argument that underline the relevance of women's Daily experience, grass root initiatives and de facto interface with development assistance programmes. Several can studies provided a greater understanding of the multi - dimensionality of women's work in poor developing country settings. It also tells about the improvement in police's, programmes that seeks to enhance the economic role of women in developing countries. TITLE: A STUDY OF SMALL SCALE PRODUCTS: MARKETING MIX ABSTRACT S.N.Arjun, Head of department business management, palamuru university, MahabubNagar, Andhra Pradesh, India (September 2012) did a study on marketing mix of small scale industries. Marketing is very essential though strenuous, in developing countries like India. Small, medium or large scale industries prospects depend upon how well they market their products, price and promote their products in the dynamic competitive markets. Effective marketing mix of small scale industrial products would ensure higher levels of income, consumption, and employment which increases the standard of living of the people. This empirical study covers the socioeconomic conditions, marketing mix of SSIs and identifies the marketing problems of SSIs. The aim of this research is to generate the awareness to the SSIs regarding the blind spots in marketing mix of their products. TITLE: Marketing Mix of Small Scale Industries ABSTRACT A Review Pawan Kumar and Kamal Department of MBA, MDU Rohtak, (HR) (Received 15 August, 2013 Accepted 10 September, 2013) The aim of the paper is to investigate the factors influence the price decision, selection of distribution channels by the SSI. In the era of globalization small manufacturers are facing lot of problem in area of marketing mix such as product planning and positioning, pricing and distribution issues. The entrepreneur s perception relating to these various issues have been highlighted in this paper. A number of statements indicating the marketing mix issue have been developed and the respondents were asked to express their level of agreement/disagreement with this statement on five point Likert scale the major finding reveals that small manufacture are not using well versed with the marketing mix techniques and do not use latest 283 P a g e
5 marketing tool such as e-marketing or web marketing. The promotion of the products by advertising is not prevalent among these units. The major findings reveals that government policies is not favorable for the small scale industries and government not providing any financial help to the small scale industries.the promotion of the products by advertising is not prevalent among these units. VII. RESEARCH METHODOLOGY The purpose of the study can be achieved with the help of the research methodology VIII. OBJECTIVES To provide the knowledge on promotion to the women entrepreneur. To identify the level of awareness about pricing strategy. To promote awareness about the government schemes available for small scale women entrepreneurs. To find out the problems faced by these women entrepreneurs. To create awareness about the marketing strategies. IX. RESEARCH DESIGN The research design adopted here is descriptive type X.SAMPLING DESIGN Non probability sampling is adopted Sampling technique The researcher has adopted quota sampling. The Madurai district was divided into 4 zones from each zone 30respondents were selected XI. SAMPLE SIZE 120 samples were selected by the researcher. XII. METHOD OF DATA COLLECTION Primary data has been collected from 120 women entrepreneurs in Madurai district by questionnaire and interview schedule method Secondary data has been collected from magazines, journal and websites. XIII. STATISTICAL TOOLS USED FOR ANALYSIS Percentage analysis and chi square analysis is the tools used for the study XIV. STATISTICAL TOOLS USED FOR ANALYSIS Percentage analysis and chi square analysis is the tools used for the study 284 P a g e
6 Null hypothesis (H O ):There is no relationship exists between level of awareness about government schemes and educational level. Table no.1 Awareness about government schemes and Educational level Observed frequency Expected frequency Oi Ei (Oi Ei) 2 (Oi Ei) 2 /Ei Total =4.97 Degrees of freedom =(r-1) (c-1) = (7-1)(2-1) =6x1=6 At 5% level of significance the table value for x 2 is Since the calculated value of x 2 than the table value of Hence the null hypothesis is accepted at 5% level. is 4.97 is less Therefore there is no relationship exists between awareness of government schemes and educational level. XV. FINDINGS All the women entrepreneurs are married and most of the single ladies. Unmarried women are not allowed to start their own business before they get married. 76% of the respondents started their business out of own interest and 24% started due to the financial crisis at home. 68% of women are into sole proprietorship whereas the rest are into partnership business. It is clearly known that the investment used by these women are less than Rs.10,000, as their business involves only with small scale products. 84% of the respondents source of investment was mostly through family and friends and the rest have started business with their own savings money. While starting their own business, initially 100% of the women have faced a lot of problem including financial, family and social problem. 285 P a g e
7 68% are interested in selling their products located in and around their local area like KK Nagar, Anna Nagar etc., they don't sell their products out of Madurai. only 58% sell their products on daily basis, weekly basis, twice a month and monthly basis. Mostly they price their products according to their customers and they are unaware of various pricing strategy. 96% women promote their products only through personal selling and word of mouth and they have got no sufficient funds and they are unaware of various promotional strategies. 66% of them sell their products in credit basis and rest of the half does not. The women who sell their products through credit basis state that, credit sales is the only reason why people choose to purchase from them. Only a few percentage of respondents are branding the products. 16% of the respondents are aware of the marketing strategies. only 18% knew the concept of packaging, labeling and pricing. Many feel their area is totally suitable for their production whereas the rest do not feel that it is suitable. All the women entrepreneurs are so active and they are actually willing to expand their business. Mostly all the women needed monetary and governments motivation to expand their business. All the women are also willing to undergo training if conducted by the government only 54% of the respondents are aware of the government schemes available for women entrepreneurs and small scale products. only 36% are aware of DIC and its functions. The only help they needed from the government is to arrange for a training session for them to start a new business or to develop the existing ones. XVI. SUGGESTIONS [1] After analysis and interpreting the whole data collected, the above information was found [2] regarding the needs and challenges faced by the women entrepreneurs in Madurai. [3] The policy implications raised from the study are: [4] Follow-up and support to women entrepreneurs by suggesting them label designing and logo designing of their product. [5] Women entrepreneurs can join hand with Remuki store for easy marketing especially for [6] flour making with proper packaging and brand name. [7] Proper technical education to the women entrepreneur may be provided. [8] Entrepreneurship development programs can be tailored for varying requirements of women entrepreneurs. [9] The students suggested to reduce the Market Retail Pricing (MRP) for the flour when the 286 P a g e
8 [10] customer brings their own vessels or container to carry them instead of asking for plastic bags. [11] Government has to create Proper awareness about DIC and cooperative agencies. [12] All ladies doing tailoring business can join together and do business under one roof so that the cost is shared by them equally. [13] An awareness program can be conducted through eminent resource persons covering various aspects of business such as investment sources, packaging, labeling, pricing, various Government schemes and marketing strategies. XVII. CONCLUSION Women's participation in small enterprises activities in developing countries has seldom been dealt with either in analytical discussions or in empirical illustrations. The research aims to increase the visibility of such women small entrepreneurs by bringing their concerns into the arena of research as well as policy and programme review by the government. In Madurai district the women entrepreneurs are willingly doing their business but they are unaware of the various government schemes. The government has to encourage the small scale entrepreneurs to develop not only their standard of living but also the economic developing of the nation. They are well experts in manufacturing all products like phenyl,flours tailoring, flower making etc. but they are in need of fund to distribute and promote their products at national level. Marketing mix is an essential input for the success of small scale industries REFERENCES [1] Kothari.C.R. Research methodology, New Delhi,New age international publishers, 1990, 2 nd edition. [2] Brown,J.J and Reingein,P.H.(1987), social ties and word of mouth referal behavior, journal of consumer research, vol 14.dec [3] [4] [5] [6] ociation.com [7] Peter B. Fuller Regional Technical College, Dundalk, Republic of Ireland, European [8] Journal of Marketing,(December 1994) [9] Author: Dignard. L. Havert. J (department of sociology, carleton university, [10] Ottawacanada) Year: 1995 Book: women in small scale enterprises development. [11] S.N.Arjun, Head of department business management, palamuru university, [12] MahabubNagar, Andhra Pradesh, India (September 2012) did a study on marketing mix of small scale industries 287 P a g e
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