report for training on market&marketing linkages …

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KUJENGA MAISHA EAST AFRICA-KUMEA AUGUST,2020 AUGUST 2020 REPORT PREPARED BY BRIAN GITONGA, PROJECT OFFICER & PETER OKAKA, PROGRAMS COORDINATOR, KUMEA REPORT FOR TRAINING ON MARKET&MARKETING LINKAGES FOR IGEMBE DAIRY GOAT PROJECT

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Page 1: REPORT FOR TRAINING ON MARKET&MARKETING LINKAGES …

KUJENGA MAISHA EAST AFRICA-KUMEA

AUGUST,2020

AUGUST 2020

REPORT PREPARED BY

BRIAN GITONGA, PROJECT OFFICER

& PETER OKAKA, PROGRAMS

COORDINATOR, KUMEA

REPORT FOR TRAINING ON MARKET&MARKETING LINKAGES FOR IGEMBE DAIRY GOAT PROJECT

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Contents

1.0 EXECUTIVE SUMMARY ................................................................................................. 2

1.3 ABSTRACT ........................................................................................................................ 3

2.0 Introduction ......................................................................................................................... 3

2.1 Marketing Channels ............................................................................................................. 3

Overview ................................................................................................................................... 3

2.2 Market, Market Linkages and Trade ................................................................................... 3

2.3 TYPES OF MARKETS ....................................................................................................... 4

2.4 MARKETING COMPONENTS ......................................................................................... 4

2.5 Marketing Plan .................................................................................................................... 4

2.6 TYPES OF MARKETING PLANS: ................................................................................... 5

2.7 MARKETING STRATEGIES. ........................................................................................... 5

2.8 TYPES OF MARKETING STRATEGY ............................................................................ 5

2.9 MARKETING LINKAGES: ............................................................................................... 5

3.0 Understanding Marketing .................................................................................................... 6

3.1 Product ................................................................................................................................. 6

3.2 Price ..................................................................................................................................... 6

3.3 Place ..................................................................................................................................... 6

3.4 Promotion ............................................................................................................................ 6

4.0 PROCESSING AND MARKETING DAIRY GOAT PRODUCTS .................................. 7

4.1 Milk ..................................................................................................................................... 7

4.2 Milk collection, processing, and marketing ......................................................................... 7

4.3 Marketing goats and goat products ...................................................................................... 8

5.0 MARKETING INTERVENTIONS .................................................................................... 9

5.1 IMPORTANCE OF MARKETING .................................................................................... 9

ANNEX 1: Workshop Photos

ANNEX 2: Workshop Program

ANNEX 3: List of Participants

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MARKETING AND MARKETING LINKAGES

1.0 EXECUTIVE SUMMARY

Marketing refers to activities a undertaken to promote the buying or selling of a product or

service. Marketing includes advertising, selling, and delivering products to consumers or other

businesses.

Professionals who work in a corporation's marketing and promotion departments seek to get the

attention of key potential audiences through advertising. Promotions are targeted to certain

audiences and may involve celebrity endorsements, catchy phrases or slogans, memorable

packaging or graphic designs and overall media exposure.

Marketing refers to all activities a company does to promote and sell products or services to

consumers.

Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place,

and promotion.

At its core, marketing seeks to take a product or service, identify its ideal customers, and draw

the customers' attention to the product or service available.

Marketing mix refers to a set of marketing tools the firm uses to pursue its marketing objective:

these tools have been put in 4 broad groups, called 4ps of marketing

The 4ps represent the sellers’ view of the marketing tools to influence the buyer.

1.2 From buyers’ perspective there are 4Cs

P4s 4Cs

Product Customer solution

price Customer cost

Place Convenience

promotion communication

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1.3 ABSTRACT

Dairy goat production is multi-faceted and various organizations in Kenya have promoted it with

the main objective being to make families food secure. However, marketing plays an important

function in ensuring better income that would improve the welfare levels of dairy goat farmers.

Dairy goat milk marketing in Kenya can be described as a relatively traditional or informal affair.

Organized production and processing is limited in both absolute and utilized capacity, if not non-

existent, despite attempts to promote dairy goat production in the country. Lack of market

infrastructure and institutions in rural areas suggest markets are thin and imperfect, leaving

farmers to make their own efforts to market their milk. This has effects on sustainability of a

dairy goat breeding programme. The current study examined factors that contributed to market

participation of dairy goat farmers in Kenya and the implication for a sustainable breeding

programme.

2.0 Introduction

Dairy goat farming in Kenya is an enterprise that has grown in popularity over the past decades.

The option to use exotic dairy goats in the country has gathered momentum from the 1990’s to

the present, mainly due to diminishing land sizes and population pressure goat production has

multiple dimensions and objectives, with the main premise being that they quickly increase

animal production and, subsequently, improve economic returns and diet quality of smallholder

households adopting them. Other studies have shown that smallholder farmers face two decision

problems after production; the first being whether to sell or not to sell their produce and the

second being how much to sell into a market.

Market participation has been noted to hold considerable potential for unlocking suitable

opportunities necessary for providing better incomes and sustainable livelihoods for smallholder

farmers. As the marketed share of agricultural output increases, input utilization decisions and

output combinations are progressively guided by profit maximization objectives. Suggest that,

to increase farm profitability and sustainability of a livestock enterprise within an intensively

competitive environment, farmers should focus on a market orientation strategy

2.1 Marketing Channels

Overview --

A marketing channel describes the movement of a product or commodity from the site of

production to the place of consumption. It may include transportation, handling and storage,

ownership transfers, processing, and distribution

2.2 Market, Market Linkages and Trade

This theme is concerned with enhancing commercialisation of smallholder farming through

improved access to input and output markets. This will be done by analysing bottlenecks to input

and output marketing; promoting viable approaches that improve access to markets; and

advocating for an enabling policy environment. Viable approaches will be supported by

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technologies to promote value addition to agricultural produce. The theme also focuses on

continued engagement with value chains and innovation systems and emphasises the importance

of trade in driving market processes.

2.3 TYPES OF MARKETS

● Local market - In local market, perishable goods like fruits, vegetables, fish, meat and

milk are exchanged among the local people.

● Regional market- The market which occupies a large area is known as regional market.

This market may cover several villages and towns or even districts. People from different places

visit there to exchange the goods.

● National market- If the market of goods or services been expanded nationwide, it is

known as national market. Products like clothes, tea, coffee, cigarettes, drinks, cement, electrical

goods as T.V., computer, refrigerator, vacuum cleaner, heater, etc. are bought and sold

nationwide. This market is wider than regional market.

● International market. - International market is known as world market or import- export

market. If goods and services are sold and bought all over the world, it is known as international

market.

2.4 MARKETING COMPONENTS

● Marketing plan

● Strategy plan

● Overall marketing Actors.

2.5 Marketing Plan ● Framework from which strategy plan is derived from A marketing plan is composed of

strategy of strategies.

Factors to consider when making a marketing plan.

The 7 Ps:

● Place

● Product

● Price

● Promotion

● Physical environment

● People

● Processes

NB. Marketing plan should be:

● Clear (Exactly what to be done)

● Quantified (size)

● Focused (to controllable level)

● Realistic

● Agreed

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2.6 TYPES OF MARKETING PLANS:

● Marketing plan should be done/reviewed annually or yearly.

● Paid marketing plans- advertisements, promotion

● Social marketing – channels, campaigns, tactics

● Content marketing plan- highlight different strategies, campaigns to use to promote your

business

● New product launch marketing plan- Roadmap to strategies to promote your new

products.

What’s the difference between marketing plan and marketing strategy plan?

● Marking strategy- entails how to accomplish the business goal,

● Marking plan – Combination of strategies

2.7 MARKETING STRATEGIES

● Target your audience in a new way.ie add spice to the normal way.

2.8 TYPES OF MARKETING STRATEGY

● Cause marketing:

Links company, its products and services to a social cause or issue.

● Relationship marketing:

Focus on customers’ retention and satisfaction in order to enhance your relationship with existing

customers to increase loyalty:

● Scarcity marketing:

Creation of perception of shortage aiming to entice customers to purchase out of fear there will

be lack of commodity in future.

● Undercover marketing:

Stealth marketing -Marketing to customers in a way that they don’t realize they are being

marketed.

2.9 MARKETING LINKAGES:

Ways producers are connected to buyers:

TYPES:

● Brooker

● Intermediary

● Networks

● Public addresses

● Announcements

● Campaigns

● Adverts

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● Posters

● Billboards etc.

3.0 UNDERSTANDING MARKETING

Marketing as a discipline involves all the actions a company undertakes to draw in customers

and maintain relationships with them. Networking with potential or past clients is part of the

work too, and may include writing thank you emails, playing golf with prospective clients,

returning calls and emails quickly, and meeting with clients for coffee or a meal.

At its most basic level, marketing seeks to match a company's products and services to customers

who want access to those products. Matching products to customers ultimately ensures

profitability.

Product, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively

makes up the essential mix a company needs to market a product or service. Neil Borden

popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s.

3.1 Product

Product refers to an item or items the business plans to offer to customers. The product should

seek to fulfil an absence in the market, or fulfil consumer demand for a greater amount of a

product already available. Before they can prepare an appropriate campaign, marketers need to

understand what product is being sold, how it stands out from its competitors, whether the

product can also be paired with a secondary product or product line, and whether there are

substitute products in the market.

3.2 Price

Price refers to how much the company will sell the product for. When establishing a price,

companies must consider the unit cost price, marketing costs, and distribution expenses.

Companies must also consider the price of competing products in the marketplace and whether

their proposed price point is sufficient to represent a reasonable alternative for consumers.

3.3 Place

Place refers to the distribution of the product. Key considerations include whether the company

will sell the product through a physical storefront, online, or through both distribution channels.

When it's sold in a storefront, what kind of physical product placement does it get? When it's

sold online, what kind of digital product placement does it get?

3.4 Promotion

Promotion, the fourth P, is the integrated marketing communications campaign. Promotion

includes a variety of activities such as advertising, selling, sales promotions, public relations,

direct marketing, sponsorship, and guerrilla marketing.

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Promotions vary depending on what stage of the product life cycle the product is in. Marketers

understand that consumer’s associate a product’s price and distribution with its quality, and they

take this into account when devising the overall marketing strategy.

4.0 PROCESSING AND MARKETING DAIRY GOAT PRODUCTS

Any improvements made in the productivity of goats should be exploited as fully as possible.

Once a surplus to the family's requirements has been produced, attention should be paid to the

handling, processing, and marketing of goats and goat products. Goats can produce a huge range

of products which, if processed at home, or by a group of farmers or pastoralists, can increase

the owner's income. Products include:

• Milk and milk derivatives

• Meat and carcass products

• Butter

• Cheese

• Skins

• Fibr

• Manure

Improving the processing of these products can increase the value of the product; balance out

seasonal fluctuations in supply through processing and storage; improve human health; and

increase the income earned by farmers from their goats. Farmers should carefully consider the

costs of any processing equipment, the extra labour required, and the costs of marketing the

product, and match these to the higher price of the product sold. In most cases, if there is the

possibility of processing products at home, it is worthwhile to do so. Processing milk and meat

is one way to make use of surplus production. Perhaps in the wet season there is plenty of milk

and milk products, while in the dry season there is a scarcity, and the price rises. Farmers have a

choice of either trying to produce them during the dry season, which may be very difficult, or of

processing the surplus for storage and later consumption or sale. There are diseases which can

be transmitted from goats to humans through milk and meat. Farmers must always be encouraged

to improve the way they handle products, to reduce the risk of disease to their own families and

to other consumers of their products

4.1 Milk

Milk is a valuable source of protein (including essential amino acids), fat, calcium, iron,

phosphorus, and vitamins (including the important Vitamin A). With proper milking and

handling practices, milk can be a highly nutritious food. It is especially valuable for growing

children. The small size of the fat globules in goat's milk makes it easier to digest than cow's

milk. Some children who are unable to digest cow's milk can happily drink goat's milk. Milk

composition varies with breed, nutrition, stage of lactation, and age of the goat.

4.2 Milk collection, processing, and marketing

In areas where there is a tradition of milk production, there are also likely to be traditional

systems of trading surplus milk with neighbours, or in rural or urban markets. Milking is

normally the responsibility of the women of the household, and it has often been found that they

have traditional systems of cooperation with neighbours to market milk in more distant and

lucrative markets.

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These systems should be investigated before any intervention to improve milk marketing is

suggested.

In countries with a national system of cow's-milk collection, such as Kenya, it might be possible

to market goat's milk through the existing system.

In situations where there is no traditional system, or only limited markets, a system of milk

collection and marketing might be organised as part of a project intervention. Milk could be fresh

and pasteurised in a central plant, or further processed into more valuable products such as butter,

cheese, or yoghurt. The scale on which the collection and processing and marketing take place

will depend on several factors:

The supply of milk, including seasonal fluctuations in supply;

market demand for goat's milk and milk products;

Transportation available for both collection and marketing;

Potential profitability of collection, processing, and marketing;

The technical capability of those involved.

4.3 Marketing goats and goat products

It is obviously important that any goat or goat product for sale, whether it is milk, skins, or live

animals, should earn the farmer a good price. Goat products which have been produced

traditionally will have a 'traditional', informal market. There are few State-run or private

marketing organisations for goat products in the tropics.

This is because most goat products are either consumed at home or are traded in villages, or

perhaps in district centres. Careful consideration must be given before any interventions are made

to improve the marketing of goat products. Local marketing systems are constantly evolving in

response to changing circumstances, and they usually function best when not interfered with.

From the goat-keeper's point of view, marketing is only partly for the sale of the goat or product.

It also serves a social function: people meet not only to buy and sell but also to eat, drink, and

chat together. If owners are selling directly to consumers, the balance between supply and

demand will normally create a fair price. If the owner is selling to a trader, provided there are

many traders, operating independently, and vendors have access to reliable information about

prices, there is no reason to suppose that the owner is offered anything but a reasonable price.

Farmers and pastoralists are in a weak position when, due to circumstances beyond their control,

such as a drought, they are forced to sell their goats and have to take whatever price is offered.

Interventions in markets should not be considered except in the following circumstances.

There is a very significant increase in production and the market cannot absorb it, which

causes the price to fall.

A new product is being introduced and there is no existing market.

There is an advantage to individual goat-producers if they cooperate and market a larger

volume of products together.

It must be decided whether the intervention will be for a short or long time period. Interventions

might be designed to overcome a short-term marketing problem, allowing the normal to adapt to

the problem. Setting up a longer-term, even permanent marketing organisation might, in some

circumstances, be desirable

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5.0 MARKETING INTERVENTIONS

Might take one or more of the following forms:

Collection of goats or goat products: collection may be from the farm itself or from

some central collection point, to which farmers bring their products.

Processing products: processing might include pasteurising milk, making cheese,

making butter, slaughtering goats, and sorting fibres.

Grading products: grading may be important in fibre production, or for the sale of live

goats, particularly for export.

Packing products: packing may be for easier transportation, for example baling mohair

fleeces, or for the final consumer, such as packing cheese or butter for retail sale.

Promotion of new products: if a new product has been made, example goat's milk

yoghurt, it may need to be advertised and promoted in some way. This does not mean billboard

advertisements! It might take the form of inviting neighbours round to a house of a woman who

is making cheese or yoghurt the first time, for a free tasting.

Transporting goats or products: transporting goats or goat products can be costly. It

helps if owners get together to rent or buy a bicycle, scooter, van or truck; if goats or products

are collected together and transported to a more distant market where prices are higher; and if

they are sold on a contract to a slaughterhouse or butcher's shop, or other retail outlet.

Selling goats or products: producers who group together in some way will have more

bargaining power with buyers than if they negotiate separately. If they can offer a reasonable

price and a regular supply, they can probably negotiate a good contract with the buyer.

Organisations that might serve some or all of these functions are listed below.

Producers' groups, associations, and cooperatives: groups of farmers might get

together and form an informal (or more formal) group, in order to improve the marketing of their

goats and/or products.

Private companies may make a contract with producers to buy a product at an agreed

price, quality, and frequency. This arrangement can be beneficial to both parties.

Government organisations: an existing government marketing organisation, such as

one dealing in milk, might agree to help with the marketing of goats' milk. Alternatively a

government might decide that goats are important enough to need their own marketing

organisation.

Non-governmental organisations might help to set up a producers' marketing

organisation.

5.1 IMPORTANCE OF MARKETING

Marketing is very helpful in transfer, exchange and movement of goods.

Goods and services are made available to customers through various intermediaries’ viz., and

retailers etc. Marketing is helpful to both producers and consumers

Marketing Is Helpful In Raising And Maintaining The Standard Of Living Of The

Community: Marketing is above all the giving of a standard of living to the community. Paul

Mazur states, “Marketing is the delivery of standard of living”. Professor Malcolm McNair has

further added that “Marketing is the creation and delivery of standard of living to the society”.

By making available the uninterrupted supply of goods and services to consumers at a reasonable

price, marketing has played an important role in raising and maintaining living standards of the

community. Community comprises of three classes of people i.e., rich, middle and poor.

Everything which is used by these different classes of people is supplied by marketing.

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Marketing Creates Employment:

Marketing is complex mechanism involving many people in one form or the other. The major

marketing functions are buying, selling, financing, transport, warehousing, risk bearing and

standardisation, etc. In each such function different activities are performed by a large number

of individuals and bodies.

Thus, marketing gives employment to many people. It is estimated that about 40% of total

population is directly or indirectly dependent upon marketing. In the modern era of large scale

production and industrialisation, role of marketing has widened.

Marketing as a Source of Income and Revenue: The performance of marketing function is all important, because it is the only way through which

the concern could generate revenue or income and bring in profits

Marketing Acts as a Basis for Making Decisions:

businessman is confronted with many problems in the form of what, how, when, how much and

for whom to produce? In the past problems was less on account of local markets. There was a

direct link between producer and consumer.

In modern times marketing has become a very complex and tedious task. Marketing has emerged

as new specialised activity along with production.

As a result, producers are depending largely on the mechanism of marketing, to decide what to

produce and sell. With the help of marketing techniques a producer can regulate his production

accordingly

Marketing Acts as a Source of New Ideas:

The concept of marketing is a dynamic concept. It has changed altogether with the passage of

time. Such changes have far reaching effects on production and distribution. With the rapid

change in tastes and preference of people, marketing has to come up with the same.

Marketing as an instrument of measurement, gives scope for understanding this new demand

pattern and thereby produce and make available the goods accordingly.

Marketing Is Helpful In Development Of An Economy:

Adam Smith has remarked that “nothing happens in our country until somebody sells

something”. Marketing is the kingpin that sets the economy revolving. The marketing

organisation, more scientifically organised, makes the economy strong and stable, the lesser the

stress on the marketing function, the weaker will be the economy.

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ANNEX 1: WORKSHOP PHOTOS

1.0 Participants in group discussions

2.0 Participants in plenary

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ANNEX 2: TRAINING PROGRAM (MARKET LINKAGES)

TIME ACTIVITY FACILITATOR 9:00 – 9:30 am Participants arrival Brian

9:30 – 10:00 am Participants introduction Brian

10:00 – 10:30 am Participants expectations & training objectives Brian

10:30 – 11:30 am Overview of marketing channels John Ireri

11:30 – 11:45 am Break

11:45 – 12:15 pm Types of markets John Ireri

12:15 – 12:45 pm Marketing components John ireri

12:45 – 1:15pm Types of marketing plans John ireri

1:15 – 1:45 pm Lunch break

1:45 -2:15 pm Marketing strategies Simon Nderitu

2:15 – 2:45 pm Marketing linkages Simon Nderitu

2:45 – 3:15 pm Processing & marketing dairy goats products Simon Nderitu

3:15 – 3:45 pm Marketing interventions Simon Nderitu

3:45 – 4:15 pm Importance of marketing Simon Nderitu

4:30 pm Training closure Brian

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ANNEX 3: LIST OF PARTICIPANTS

NAME ID NO PHONE NO 1.PETER MUSYOKA 21268777 0700445062

2.STANLEY MBAE 20609698 0713290336

3.JOSHUA MUTHAURA 25596898 0739653380

4.GLADYS KINYA 32493557 0706023912

5.EDDAH KAWIRA 21134693 0792700991

6.JANE MWENDE 28625794 0703396469

7.JULIA KAMENE 12890806 0718099228

8.REBECCA NKATHA 21201899 0739162089

9.DORCAS KAGENDO 31684161 0718211333

10.SARAH KAMBURA 33645855 0718120360

11.JOSPHINE MUKWERURI 22778885 0701556695

12.AGNES MUKWANJIRU 8693142 0700724224

13.MONICCA KATHONI 35063207

14.LUCY KINYA 14639030 0795468333

15.PAUL KIRIMI 12890829 0728085696

16.JOSEPH KARIUKI 2040229 07285256711

17.SABINA SYOMBUA 27211623 0796244170

18.STANLEY NTOITHA 11697477 0732479682

19.EUNICE KANANU 25776235

20.TERESIA MWAKIRIA 33029157 0782479588

21.ERICK MUTUMA 34907320 0758850358

22.REGINA MUTUNE 2502706

23.STELLA WANJIRA 1208307 0743115557

24.SARAH KABERENGE 8697724 07340201746

25.JULIUS KINOTI

26.LUCY KANARIO 0703463109

27.ALICE KANINI

28.ELIUD MUNENE

29.ELIZABETH NTHINGA 7766144 0704491986

30.PRICILLAH KANANU 1358076 0751945285

1.ESTHER NKATHA 13402568 0703103572

2.FLORENCE KATHAMBI 21754789 0727515533

3.MARY KAREA 20567679 0700848942

4.KATHOMI DORIS 31858503 0705676621

5.BEATRICE NKIRINA 14604475 0704977824

6.ESTHER KAOME 31892221 0758376170

7.MARGRET KAINDA 7672603

8.CATHERINE MUTHENYA 21576379

9.PURITY KAGWIRIA 31124120 0710661434

10.ANNITA MUKOMAUA 2503765 0746421963

11.ESTHER KENDI 35234091

12.MIRIAM KARIMI 21356482 0723800673

13.JULIA KANGAI 2464477

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14.ANN MUKOITI 255776137 0710415408

15.ANN KAGURI 32719709 0700089230

16.ANGELINA KAREA 7673443

17.MONICA KANANU 25613093 0702806307

18.HARIET KAREMA 21284461 0740477061

19.FLORENCE KAMAMI 31280091 0716870341

20.HELLEN KAMAMI 21208613 0799999759

21.AGNES NCORORO 34249845 0743363531

22.GLADYS KANARIO 29836153 0729017739

23.JERUSHA NCORORO 8863858

24.REBECCA KARAUKI 13596866 0754953373

25.CATERINA KANJIRA 2532270

26.MARION KAOME 13402854 0795705423

27.JANET KAGWIRIA 26887590 0725336274

28.EDDAH KARENDI 34833449 0707681812

29.FRANCIS MUGAA 21457455 0719527402

30.ATANASIO MUGAMBI 0719527402

Simon Nderitu Facilitator 0725417573

John ireri Facilitator 0733448802

Brian Gitonga Kumea 0700297739