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1.1              BACKGROND OF THE STUDY

Survival  strategy  involves the development of a well articulated marketing plan for successful introduction of the product into the market. This is not static and would most probably under go refinement and modification in subsequent stages.

The marketing strategy deals with the  marketing mix coordination that would be used, the market and the marketing budget.

  1. The first section should describe the market size structure, behaviour and the company’s intended share of the market. It should also describe product positioning and the possible project consequent on that.
  2. The second part will develop deeper into the marketing mix component, the planned product quality which follows from the first, the planned price, distribution  and production strategy. This section should also include the marketing budget needed to carry out the strategy

 The third  section is a fallout from the previous two it describes the long run sales and profit goals  based on  the first two section.       

 This is the process that continues through  development stage as new information is accumulated about the product and the market.

          Several analytical  tools are available to firms  technique risk  analysis and bays tan  decision theory. The key to whether a product should be developed is whether it will find   easily  to sufficient  market acceptance to return a satisfactory project to  its firm what are the expected minimum to maximum sales help determining risk involved.

          The models for estimating sales adopted by managers differs depending on whether they  are designed to estimate the sales of one turn purchased  products.  On  infriquenting purchased product ( koltered 210) .

          No matter what type of production the first task is to estimate first time purchasers may techniques are available for doing this , the method used depending on the estimate of the each period. The factors like a price etc which affect penetration are considered. product. One method is to just estimate the market potential and then the rate market penetration for

The company has to guess at the survival age distribution of the product, the lower end of the age distribution will indicate when the first replacement sales will take place. Several other factors influence replacement decision, the purchases discretion of the buyers. Small products desire that repeat purchase be estimated means sometime as first time seller. The company should try to estimate what happen in each repeat purchase ratio is likely to rise or fall.

Estimating sales is not the business analysis. Cost of subsequent product need to be estimated at the same time as sales, as it is in the nature of promotional expenditures to influence both sales of cost simultaneously we need to consider sales to cost against alternative marketing progress to determine the most favourable choice.

There a number of strategies a small scale outlet can choose. The first  is market retention which is established market through market development strategy which is when a firms concentration on market development growth sector/ tailored to the needs of new business in existing market.

However, the risk  involved are greater than the first two strategies described above .but well managed companies with a good track record will usually be adopting this strategy in the fulfillment of corporate objective for growth and improved profitability.  

          These components provide us the idea of the opportunity set for a company and how the company can perform its activities In the environment in order to achieve its object.

          The small scale can pursue more product line consistency or less,  depending on whether it want to acquire a strong reputation in a single field or participate in several fields. According to N.G.NWOKOYE, he suggested two alternative strategies which may in the degree of product assortment for planning the products .to offer customs product differentiation strategy (a limited line strategy)  

           Product differentiation refers to when a marketer attempts or a very narrow product line which he attempts to differentiate psychologically in the eyes of various consumer segment through advertising and sales production-example, a small-scale retail is one super market in New Heaven.

A super market and originally been defined as a complete departmentalized goods store with minimum sales volume of one million dollars a year and at  least the grocery department fully self service. In addition to the above definition, super market place heavy emphasis on price. As such, at least in the past, they offered minimum customer service.

Present day supermarkets differ a while, variety of merchandise as they aim towards a one stop shopping service to the consumer. Supermarket are departmentalized retail establishments but unlike department store, the department are organized on one large floor space.

The operating advantages of super markets are low operating cost as a result of minimum investment on fixtures and fittings, self service and the operating strategy of  low  margin but high turnover and mass display of merchandise. The result is low prices  to the customers. Super markets may not appeal to service desiring  customers but they do a very good job with the economy consumers who constitutes their target market.


This study seeks to generate empirical knowledge about the survival strategies adopted by small scale retail outlets inNigeriaspecifically the study as aimed at identifying the following

  1. The major problems that pose a threat to the survival of small scale firms inNigeria.
  2. The product market scope of  small retail outlets.
  3. The growth sector of small scale retail outlets.
  4. To identify the types of incentive adopted by these outlets.
  5. The effect produced by location of stores.
  6. To intimate the owners of the small scale outlets to the use of discount, product line and diversification.

The small scale firms come in for special mention line as a specially planed facility for retailing.   In the  past retail shops developed in the central business district and drew their customers from the entire city.  For example in terms of organized and unorganized retailing the area aroundOkpara Avenueand environs inEnugucan easily be described as the central business district.  Secondary business district develop with city expansion.  InEnuguthere are several, One is aroundOgui RoadO’Conner Streetaxis. Another is at the Zik Avenue Achara layout axis. There is also theKenyetta Street-Edinburghroad axis.

Other business district have developed many from the central city area in the adjoining areas of the old city such as chime Avenue business are in New Heaven, the area around Abakpa Nike market in Abakpa, the Agbani . Road area which includes the coal camp area. There are also free standing shop areas mostly in the neighborhood areas. All the above differ from shopping center which have been described by the American marketing Associate as a geographic Chester  of retail stores, collectively handling an assortment of good varied enough to satisfy most of  the merchandise  wants of consumers within convent traveling time and thereby providing attraction of general shopping trade modern shopping centers are much more than this as they are consciously planned. Integrated and the total areas of the shopping center including the building are owned by an agency.

          A planned and integrated shopping center aims at achieving a tenant mix which will produce optimum sales rent; service to the community and profitability of the shopping center.

          According to Kiaylin an ideal tenant mix service to achieve.

I     a balanced diversification of shops in the center by offering a wide range of product and services.

Ii   A specific image for the center eg specially convenient.

Iii  Maximal pedestrian flow in order to ensure that there is a 100% location advantage for all tenements.

Iv   maximum sales potentials in the trade area.

V    A synergy between the satellite tenants and logical layout of shops.

Vi   A pleasant shopping environment

Vii  Enough variety to create the maximum attractiveness to the population of   that specific trading area.

Viii  Maximum return on investment.


The scope of this research is essentially focused on shops in these selected areas in Enugu Urban New Haven,Ogui Roadand Uwani. The study of this three areas equally covers other communities inEnuguurban for they seems to be a special and well areas inEnuguwhere great shops are located.

In the course of understanding the study, the researchers observed certain limitations to the study such as a lack of finance and time factors.

 1.4              SIGNIFICANCE OF THE STUDY.

In view of the service of small scale outlets to the consumers, it becomes imperative for the survival strategies to be clearly spelt out for the existing and intending owners. It is the need for the study to make a viable and purposeful rectification so as to clearly identify the impact survival strategies for small scale firms should be in decision relating establishment, this study is aimed at how effective is these strategies involved in the consumers satisfaction. It is also the need for the study to arouse consciousness.

The important of the research study consideration in making the choice have been identified as follows:

  1. The size of the trading area: This is the area from which stores located within the city regularly draw patronage.
  2. The population size of the trading area and the trend therein usually considered in terms of families or number of consumer spending unto and characteristics of population, particularly those that denote socio-economic statues, such as educational level, family size, extent of home ownership etc
  3. Total retail trade potential for the particular kind of business under consideration which may be estimated from the amount of disposable income available in the community  situation, with attention to the number, size and quality of existing business establishments handling related lines of merchandise.    

                   progressiveness of the community as evidenced by such factors

  1. As new construction in progress, adequately of school system, chamber of commerce and other civic activities police and fire protection , public transportation, street improvement and public parking facilities.
  2. Benefits occurring from labour specialization and export services. These manifest themselves in better buying, effective selling and better over all management.


              In mostAfrica, most of the business organization are in size and operation. There are some small large sized ones with big  operations owned by foreigners and wealthy    indigence but small scaled one keep on operating side by side with those large ones. The small scale business enterprises

survive the test of the time due to the following .

 i. Small capital Refinement: The capital required to  commerce business operation in west African is usually small. That is say that the establishment of business enterprise required small capital. Thus, there are many small business enterprise in west African .

 ii. Undeveloped local market:     The market influence are not developed hence limited the extent of the firm’s production. This keeps the size of the business and its operation in a small shape to enable it dispose with is produced. 

 iii. Inadequate Experience to manage large business organization . The business man  in west African .New Heaven are not well experienced in the management  of  large business enterprises. They lack the entrepreneurial drive to take large risks. The situation promote small scale business enterprises which they have gained much experience in their management.

iv. Nature of services: these are some services that require personal and special attention. The entrepreneur prefer to operate such services in a small scale so as to achieve the objectives of the specialized services. Such services include tailoring mediation, hairdressing, landing.

v. Management conditions: “The management condition of a small  business unit always easy. Some entrepreneurs want an easy way out thereby prefer to operate to small business unit for easy management.

vi. Need for flexibility: The large sized firms are not   adaptable to changing times. The small business unit can easily be adjusted or changed to adapt to the changing times and circumstances. There is greater risk in adjusting the large firms than small sized  firms.

  1. Desire for independence: some entrepreneurs have the

desire to be in control of all decisions of all decisions and actions taken in their business concerns. The only way a business unit can be under the control of one person  is when the business unit is a small one. The desire to be independent prevents some businessman to expend their business enterprises to a large unit.  


 Strategy is a programme which an organization employs in order to achieve her aim or the over all response of a local organization to the demand of her environment.

 Strategy provides a business  organization the concepts in business activities the logic of the importance of strategy formulation is that every business has a strategy either conscious or unconsciously formulated.

 Small retailing as a marketing institution has evolved over the years as is evident in the different types of retailer and functions performed over time. These theories have been advanced to explain evolution of retail institution that adopt best to as environment will  simile and grow. The wheel of retailing theory maintains that retailing institutions pass through a life cycle.

This life cycle beings with low-margin low price and minimum service offerings as competitive moves. The next stage in the life cycle sees the small scale retailer up grading its facilities and  offerings and adding more services in a bid to increase the volume of sales and hopefully profit. The above more increase lost and therefore, price and makes the competitive environment attractive to a new low cost, law margin and limited service competitor. Hence what is our business? The logic of the importance of strategy formulation is that every business has a strategy either consciously  or unconsciously formulated. This is why (Stoner 91982) defines strategy as the overall response of a business organization over its environment.

Objective tells us where an organization wants to go but strategy tells us how to get there. According to Ansoff (1965) a good strategy  has four major components. These are; growth vector of the organization i.e. the opportunity set.

Competitive advantage: This means the differential advantage.

 Product market strategy: This simply is the mission of the organization.

Synergy : This means other advantages in the strategy.

For effective management of a scale business the manager is required to understand his strategy. Such strategy must be consciously formulated by considering technological and environmental factors.

Small Scale Business

Nigeria Bank for commerce and industry defines small scale business enterprises as firms or companies with assets (including working capital but excluding and not exceeding N750,000 and paid employment up to 50 person. Such as establishment must be whollyNigeriaenterprises promotion decree).

 The central bank of Nigeria in its monetly policy circular No.2 (1980) defines small scale business as an enterprise where annual turnover ranges between N25,000 to N500.000.


It is the owner of a business, the capital supplier, and also an entrepreneur  

 He posses the following

(a). Self employment

(b) Self reliance

(c) Need for achievement

(d) Risk bearer

(e) International locus of control

(f) Innovator.


 Aguba K. ( 1990) The cause  of business failureEnugu, Fourth Dimension Publishers.

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