CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND

Marketing and distribution strategies of suppliers on the mine

establishments in Kitwe have been termed as the “tools with which

the companies involved in this trade are able to remain healthy

and improved” Timothy (2002), and that after all ,it is the

reason for any organization to remain in business. Strategies

employed on the other hand are the “pilots” of the business.

Marketing and distribution strategies are formulated in such a

manner that they are endowed with the necessary ways as to

whether to invest or not. Hence any form of development in these

establishments primarily rests on strategies.

The decision to undertake a study of this nature was motivated by

two factors; firstly, the author, being a finalist student for

the award of a Diploma in Management Studies has interacted with

various organizations and believes that one of the factors, if

not the crucial one is the technical know-how of these firms to

formulate marketing and distribution strategies that would make

organizations efficient and effective. The second factor stems

from the first one, motivated by the urge to contribute in

providing a solution to this situation among mine supplier

establishments, highlighting such issues with appropriate

surveys.

1

It has been observed from the author’s perspective that “the

radical change in role of marketing and distribution has a number

of implications. One of the implications is the requirement for

effective and efficient strategies to keep afloat in the

competitive environment. The competent firm in the mine supplier

business must be able to define precisely strategies that are

needed, Timothy (2002).

Also Mine suppliers must adopt a continuous self development

policy. Skill obsolescence is a reality in all mine supplier

firms and thus, only a proactive approach to develop will sustain

such firms. Kitwe has witnessed the result of failure of many

mine supplier establishments to cope with changing mine demands.

Formulating of marketing and distribution strategies and

correctly using organization capabilities is fast becoming an

essential requirement for all firms in mine supplier business.

Therefore, success is heavily dependent on marketing and

distribution strategies.

Thus this paper is primarily concerned with the current levels of

marketing and distribution strategies that mine supplier

establishments in Kitwe employ. “For it is a foregone conclusion

that organizations that involve themselves in well tailored

strategies are most likely to be at the forefront in business

success” Gibson (2002).

1.2. PROBLEM STATEMENT

2

The fall of ZCCM or the privatization of the Copper mines on the

copperbelt led to new owners acquiring the mines. Several

articles have been written on the same and one such article in

the Readers Digest of March 2002, reported a Zambian cabinet

minister commenting on the levels of marketing strategies

employed by the local suppliers in Kitwe. He commented that mine

supplier establishments in Kitwe have inadequate strategies to

stand up to the requirements of the new mine owners.

But if what we read is true, that the employment of marketing and

distribution strategies in mine supplier establishments are at

low level, then this means lagging behind in modern business

requirements. For an organization to achieve competitive

advantage, it requires its competitors to be laggards in

strategy. Obviously a competitive advantage can be achieved in

short term but over long term competitors are likely to catch up.

This study will examine the present levels of strategy use in

marketing and distribution of mine supplier establishments in

Kitwe. It must be noted from the on set that strategy use in

business game plan is a weapon by the more enterprising

organizations. Organization success is all about developing an

appropriate strategic plan and consequently it is important to

learn what mine supplier establishments in Kitwe are doing to

acquire the skills in this area.

3

1.3. STUDY OBJECTIVES

1.3.1 General Objective

To explore the present level of marketing and distribution

strategies used by suppliers on mine establishments.

1.3.2 Specific Objectives

(i) To ascertain information on the types of strategies that are

used vis-à-vis short/long term;

(ii) To examine the dangers of doing business as a mine supplier

company without marketing and distribution strategies

(iii) To elicit the views of respondents on the impact which

marketing and distribution strategies have made or are likely to

make on their business

(v) To recommend proposals for systematic training needs for

appropriate marketing and distribution strategy formulation.

1.4 RESEARCH QUESTIONS

1. What are the existing marketing and distribution strategies

of mine supplier companies on the copperbelt province of

Zambia?

4

2. What are the dangers of doing business as a mine supplier

company without marketing and distribution strategies?

3. What is the impact of established levels of marketing and

distribution strategies for the development of the mine

supplier company business?

4. What training needs should be implemented for appropriate

marketing and distribution strategy formulation?

1.5 STUDY SCOPE

The research has been restricted to the city of Kitwe only; it

could have been imperative if the research was done on all

Copperbelt province towns.

5

CHAPTER TWO

2.0 LITERATURE REVIEW

Drucker (1994) acknowledges that the use of strategy in

developing countries has attracted a considerable amount of

attention in recent years. However, the research in this area is

largely fragmented. From 1964 to 2000, there has not been much

written on marketing and distribution strategies used by mine

suppliers. However, some of the literature gives the following

scenario:

The application of marketing and distribution strategies by mine

suppliers on mine establishments has been under continuous and

6

rapid change over the last decade, which has been characterized

by an explosion of advanced ways of doing business. The diffusion

and effective utilization of strategy in business, however, has

not been evenly spread business over. On the other hand, some

business sectors have experienced the greatest diffusion of

marketing and distribution strategies, Timothy (2002).

The impact of marketing and distribution strategies on socio-

economic development in these organizations appears to have been

high. On the other hand, a research undertaken by Timothy (2002),

found that supplier companies on mine establishments in Kitwe

have penetration of strategy use of around one per cent of that

of other types of business, consequently, the impact of marketing

and distribution strategies on socio-economic development on

supplier companies on mine establishments has been low, Moreover,

even among other business types themselves, there are variations

in use of marketing and distribution strategies. Gibson (2002) in

his research found that, other types of businesses such as retail

and service providers are well equipped in marketing and

distribution strategies.

Within supplier firms on mine establishments themselves, major

disparities exist. For instance, international firms in supplier

business are ahead of local firms in marketing and distribution

strategies, Moyo (2003).

As we move in this new century terms such as business strategy

are being used to characterize a situation of establishing a

competitive advantage over others, Hofer (2001). Nonetheless,

7

there is still a lot of speculation as to what will actually

happen. Consequently, it will become necessary to map out

marketing and distribution strategies for these mine suppliers to

harness potentials that exist in this type of business. The

greatest challenges for firms in this business type are the

backward way of doing business. There is need to move away from

being mere suppliers to being technology adaptors i.e. increase

the ability to adopt and develop their marketing and distribution

strategies. A study conducted by Hoffer (2001) found that, as we

move in this new century, marketing and distribution strategies

will increasingly control our business destinies. This will

create high demand for skilled personnel in marketing and

distribution strategies. He further points out that mine

suppliers for modern days and beyond must be able to:

Manage, operate and maintain their market shares;

Build and customize appropriate marketing and distribution

strategies and;

Train future work force to copy with changing ways of doing

business.

In Kitwe none of the above is being done on a broad scale because

most supplier firms lack the technical and human resource

capacity to do so, Timothy (2002).

Timothy (2002) concludes that most supplier firms on mine

establishments in Kitwe are in the process of transforming their

businesses using marketing and distribution strategies. In

addition, their cultural attributes are significantly different

8

from current situation in doing mine supplier business. He adds

that supplier firms on mine establishments from South Africa make

extensive use of marketing and distribution strategies in Zambia.

It is therefore evident that if Zambian supplier firms in Kitwe

have to “catch up” with world class South Africans in the use of

marketing and distribution strategies, they need to utilize and

assimilate their strategies at a faster rate, something that

calls for concurrent learning and innovation.

Hofer, (2001) concludes by acknowledging that organization

“leaders” must seek to understand inhibiting and facilitators of

marketing and distribution strategies. These factors can be used

as leverage points for marketing and distribution s\strategies

enabling organization effectiveness. He further points out that

identification of inhibitors is most valuable for identifying

“causes” of resistance to change.

Moyo (2001, states that in the next decade, the need for managers

of supplier firms on mine establishments to be proactive would be

more acute. In Kitwe, the contrary is the case, managers of

supplier firms on mine establishment’ lack of knowledge is being

sited as a draw back to acceptance of marketing and distribution

strategies. Therefore, before marketing and distribution

strategies can be effectively employed, managers need to be

educated in strategic issues. Furthermore, they will have to gain

strategy formulation skills that will enable them to participate

in carrying out their marketing and distribution functions that

are aligned with strategic plans of mining companies and be able

9

to access their capacity to carry out desired changes, Moyo

(2001).

Marketing and distribution strategies and the developed world

Application of strategy is not only restricted to developing

countries alone but also developed countries. Almost all

developed countries make use of marketing and distribution

strategies to survive in business.

“Knowledge, the new resource for economic performance, is not in

itself economic. It cannot be bought or sold. The acquisition of

knowledge has a cost, as has the acquisition of any thing. But

the acquisition of knowledge has no price. Economic interest can

therefore no longer integrate all other concerns and interest,”

Drunker (1994).

Drucker (1994) points out that entire industry transform and

emerge through adjustments to new economic, social and

technological environment. Out sourcing of support functions

focuses industries on their core business and creates new service

industries. The supply chain is compressed through information

exchanges.

Today firms compete with knowledge, Gandatte (1995). Those that

lag behind risk shrinking market share or extinction. To remain

competitive in a market, firms depend more on knowledge than on

flexible manufacturing, just-in-time production, total quality

control, and other industrial innovations. Marketing and

distribution strategies are essential for rapid response to

10

completion. Firms must reinvest themselves, some times

repeatedly, to cope with agile competitors from same industry and

from related industry, Drucker (1994).

It is with the above perception, and recognition of the key role

that marketing and distribution strategies play in any

organization. In today’s business, organizations can no longer

expect to base their development on their comparative labor

advantage- that is on cheap labor. The comparative advantage that

now counts is in the use and application of marketing and

distribution strategies, Drucker (1994).

Browsing through various journals on marketing and distribution

strategies for organization success, we can safely state that the

world has seen the rise of marketing and distribution strategies

as a new social economic force in organizations. Consequently,

for economic survival in the 21st century, organizations need to

map out marketing and distribution strategies that will enable

them to harness the full potential of doing business. All

indicators in developed countries show that marketing and

distribution strategies are major driving force for business

success and that those not yet making use of these strategies

should prepare to do so otherwise they will not reap the benefits

of their businesses, William, (2001).

William (2001) in his research identified major obstacles to

action oriented marketing and distribution strategies as:

1. Marketing and distribution ignorance amount to

management, hence apathy and resistance to change

11

sometimes resulting in marketing and distribution

strategies being formulated for wrong reasons or taking a

wrong approach. This indicates a need for strategy

formulation training at executive level and;

2. Resistance to change in the way business is traditionally

being done. This also cause for training.

William (2001), further explains that in order for organizations

to make correct decisions, they need to review the options and

have an integrated approach to strategy formulation. He further

urges that development of marketing and distribution strategies

is increasingly becoming important par of doing business and

calls for business men to develop initiatives to acquire

technical know-how in strategy formulation.

Marketing and distribution strategies in selected Southern

African Countries

The following section will briefly discuss the findings of

related studies to marketing and distribution strategies used by

supplier firms on mine establishments in some of countries within

Southern Africa. South Africa has been chosen specifically

because it is in the same league with developed countries in

terms of technology advancements. Botswana and The Democratic

Republic of the Congo have same conditions and can be compared to

Zambia’s Kitwe mine supplier firms.

South Africa

12

Eggett (1999) carried out a research on major companies operating

in South Africa as suppliers on mine establishments.

Questionnaires were distributed to those companies dealing in

supply business on mine establishments.

It was found that without effective marketing and distribution

strategies to assist managers in deciding on an investment path,

it is difficult to realize some profits. Therefore, use of

marketing and distribution strategies provide and effective

decision criteria to devised between competing projects. Hence

the study attempted to highlight the criteria that South African

supplier firms on mine establishments use in their marketing and

distribution strategies. Marketing and distribution are being

regarded as being more important to success of mine supplier

business. The results reviewed that South African Suppliers on

mine establishments make use of marketing and distribution

strategies as support for business objective attainment.

Overall, the results from overseas survey group reported by Bacon

(2003), the emphasis, however, placed by South Africa mine

supplier firms differ from those placed by their counterparts in

Canada, USA and Australia.

Botswana

13

The Chartered institute of marketing in Botswana funded a

research project in 2002 into the impact of marketing and

distribution strategies employed by suppliers on mine

establishments. The research was reported by Nathan (2003).

The principal finding was that supplier firms on mine

establishments in Botswana do not use marketing and distribution

strategies. It was reviewed that while some managers of these

supplier firms attended marketing and distribution short courses,

a large proportion of them had never attended a course. It was

found that some of those that attended marketing and distribution

short courses did not find them satisfactory and felt that they

were more oriented to money making at the expense of providing a

satisfactory service. Many of the supplier firms on mine

establishments responding to the survey were unable to specify

what marketing and distribution courses they might need.

The report concluded that there is a clear need to provide a

comprehensive education and training program in marketing and

distribution in Botswana. And that managers of these supplier

firms on mine establishments need to be trained to make use of

marketing and distribution strategies in order to improve

efficiency, effectiveness and productivity.

Democratic Republic of the Congo (DRC)

Julian (2003), undertook a study to address the crucial issue of

the implications of marketing and distribution strategies on

supplier companies on mine establishments in DRC. One of the

14

major issues discovered was the level of marketing and

distribution strategy knowledge by the companies and methods to

be adopted to remedy the perceived deficiencies.

Surveying mine suppliers and obtaining their opinion on the

knowledge levels of marketing and distribution strategies, the

results indicated that the perception, which owners of these

companies have , of their knowledge level is not shared. There

was simply a perception gap indicating a serious knowledge gap.

Implications for Zambia- Kitwe in particular

This section contains a brief socio-economic description of

Zambia in order to enable the reader to better understand the

environment in which suppliers on mine establishments operate as

well as draw implications on the Zambia regarding marketing and

distribution strategy developments within the nation, within the

region and within the world.

Zambia, a former British colony, attained its independence on 24

October 1964.. The life stories of the country’s first three

presidents (Kenneth Kaunda, 1964-1991, Frederick Chiluba, 1991-

2001and Levy Mwanawasa, 2002- ) illustrate the importance of

copper. Kaunda was a youth organizer and welfare officer at

Chingola Copper mines, Chiluba is the son of a mine and Mwanawasa

hails from Copperbelt- Ndola to be specific.

Supplier companies on the mine establishments are a major driving

force of socio-economic development. Kitwe mine suppliers must

15

participate in marketing and distribution strategies otherwise

the country or rather the organizations will not reap the benefit

of being par of the “global system”. Participation of mine

suppliers in formulating and applying marketing and distribution

strategies by the willingness of company managers to be trained

in this area.

At independence Zambia boasted of having one of the most vibrant

economies in the sub region. Gross Domestic Product (GDP0 at 1973

prices rose from K650 million in 1965 to K1352million in 1978, an

annual growth rate of 9.6 per cent. Meanwhile the annual increase

rate of per capita income was estimated at 6.5 per cent, over the

same period. This economic boom was however short lived as after

1974, Zambia’s economy took a downward turn. Over the period 1978

to 1983, GDP registered a negative growth rate ranging from 1.88

per cent in 1979 to -23.35 per cent in 1983 and ranging from -1

per cent in 1989to -6.6 per cent in 1994. (Monthly Digest of Statistics

Nos. 9-12 1986) Economic Report 1994.

Chiluba’s government embarked on measures to assist the economic

decline and infused new impetus in the economy in order to

stimulate growth and bring about economic recovery. Among

measures that the new government embarked on, through the

liberalization policy were public and parastatal sector reforms,

liberalization of foreign exchange and trade. These ushered in

privatization, which in turn has led to an influx of multi-

national companies formed by various investors both local and

foreign.

16

Most of the multinational companies in Zambia have not

decentralized their functions. Zambia is thus being used as a

sale outlet or trading center. This means that technology used

inn these companies is just imposed on the local people. The

“real managers” i.e. the decision makers are left at central

division/branch, which in most cases are already developed

countries, and these are the ones who are competent with the said

technology. The end result is that Zambian managers remain

illiterate. On the other hand, indigenous companies, because they

do not have or are not up to date with modern marketing and

distribution, they fall off due to global competition.

The concerns of organizations such as Common Market for Eastern

and Southern Africa (COMESA), THE Southern Africa Development

Community (SADC), etc is meant to contract such problems by

creating synergy within the region, i.e. member countries such as

South Africa as a member of SADC have got huge resources to

develop.

Zambian managers those in supplier business on the mines in Kitwe

need to be proactive in order to take advantage of the

integration. The COMESA headquarters is located in Lusaka –

Zambia. The question is; are Zambian managers of supplier firms

on mine establishments taking full advantage of this?

Supplies on mine establishments would take full advantage of the

COMESA location if they attain competitive advantage over others.

The concept of protectionism is over, this is the “information

17

age” Every one with the technical know how can access the market

information by making use of sound marketing information systems.

The solution to this problem of lack of competitiveness,

therefore, lies squarely on supplier firms themselves. Hence it

is imperative that supplier firms on mine establishments in Kitwe

be trained and continuously so in marketing and distribution

strategy formulation and implementation.

CHAPTER THREE

3.1 RESEARCH METHODOLOGY

This research used both qualitative and quantitative approaches.

3.1.1. Research design

There shall never be research without research design and

according to Churchill (1987), a research design is simply the

frame work for a study used as a guide in collecting and

analyzing data. It is a blue print that is critically followed in

completing a study.

The purpose of this study being the establishment of how supplier

companies on mine establishments in Kitwe employ their marketing

And distribution strategies, an exploratory research design was

used. This type of design was found suitable because the field of

18

study had a concentration of independent variables that6 could

not be manipulated.

3.1.2. Sources of data

In an attempt to come up with a thorough study, both primary and

secondary data were collected.

(i) Primary data

According to Churchill (1987), primary data is originated by the

researcher for purposes of the investigation at hand. This was

mainly obtained by using questionnaires, focus group discussions

and observations by the researcher. Besides, information was also

sought through interviews with industry participants. The

questionnaires were pre-tested to test their simplicity and

whether they would capture the desired information.

(ii) Secondary data

This was mainly collected from the published and unpublished

literature within the mining industry and from various journals

and research papers particularly available on the internet. Bulk

of the information was sourced from the Central Statistics Office

(CSO) and the British Council Library.

3.1.3. Target population

19

The target population for this study was business communities

involved in supplier business on mine establishments in Kitwe.

Business communities are those companies that are registered with

Kitwe Chamber of Commerce and Industry , including those that

appear in the Telephone Directory and also registered with Zambia

Registrar of Companies.

It should be noted that this study covered Kitwe only because

Kitwe is a “hub of the Copperbelt” hence ensuring that it is

representative of the study.

3.1.4. Sample size

The precision of any study rests heavily on the sample size. This

is usually based on pre- specified level of accuracy in order to

accomplish the research objectives. In this research, this was

somewhat modified so that time and other resource hindrances are

taken into account. The study used a sample of 20 business

companies involved in supplier business on mine establishments in

Kitwe.

3.1.5. Sampling methodology

Here a non-probabilistic method of sampling was used because mine

supplier firms are sensitive to researchers and if probabilistic

method of sampling was used, you would find that the sampled firm

refuses to respond to your questionnaire. Considering that a

small number of sample size was used, this has been done in this

20

order because increasing the number would demand more time than

this study can afford.

3.1.6. Research Instrument

In order to collect primary data, questionnaires were used. The

questionnaires consisted of both open-ended and close-ended

questions. Most of the questions had alternative responses from

which the respondent had to make a choice. In certain cases, the

respondents had to rate their responses.

Some questions where disguised. This means that the type of

questions posed did not make the purpose obvious to respondents.

This was done in this way so that biased answers are avoided and

reducing suspicion between the researcher and respondents.

3.1.7. Data analysis

The data has been analyzed by using descriptive statistics, which

deal with ways of describing large masses of information unlike

inferential statistics, which deal with application of

probability to the data collected. The measures used in

descriptive statistics include the mean and the mode, which were

determined by the use of tabulations and frequency distributions

of the findings. It should also be noted that non-probabilistic

methods have been used to analyze the data because the data

sought is in some instances qualitative in nature. Apart from

21

analysis described above, judgmental methods of analysis has also

been used by the help of experts who have experience in this

respect and computer packages such as SSP and Microsoft Excel

were used in some cases.

3.1.8. Limitations of the study

Although this research has been confined to mine supplier firms

and mine companies alone, it should be noted that application of

marketing and distribution strategies affect every business

sector in an economy.

The government has not been questioned as to how prepared

themselves are to helping these mine supplier companies to

enhance their capabilities through government policy.

The research has been restricted to Kitwe only; it could have

been imperative if the research was done on all Copperbelt

province towns. Anyhow, the time for research was limited.

However, these limitations must be appreciated as it could not be

practically possible to cover a large sample size before the end

of the academic year. It should be noted that the research of

this magnitude required a lot more resource and time to be fully

comprehensive.

It took a lot of persuasion to elicit the co-operation from busy

managers of these supplier firms on mine establishments whom if

found in their offices were busy attending to meetings or their

phone calls, prompting for a number of postponements to the

22

appointments before the questionnaires were finally attended to

and returned.

The findings of the research have been subjected to the use of

out dated data such as the studies done in Botswana and the

Democratic Republic of Congo was done almost two years ago.

However, the results of this research, considering the stated

limitations have satisfied the intended objectives.

CHAPTER 4

DATA PRESENTATION AND INTERPRETATION

23

4.00 Introduction

This chapter contains the presentation and interpretation of the

research findings. The data is presented in tables, bar charts

and pie charts with a little interpretation under each.

4.10 Types of goods or services supplied to the mines

Various types of goods are supplied by mine supplier companies

and Table 4.1 summarizes major goods/ services that are supplied

by these companies to mine establishments.

Table 4.1 Types of goods supplied by mine suppliers

Type of

goods/services

Frequenc

y

Percentage

(%)Fabrication 2 6.7Steel 2 6.7Trucks 2 6.7Mining

equipment

7 22.3

Labour 3 10Electrical

appliances

3 10

Mechanical

appliances

5 16.7

Chemicals 2 6.7

24

Construction

tools

4 13.3

Totals 30 100From the findings above, it is pretty sure that majority (22.3%)

of goods supplied to mines are mining equipment, Mechanical

appliances (16.7%) Construction tools (13.3%), Electrical and

labour force (10%) whereas Steel, Trucks, fabrication and

chemicals account for 6.7 each. Fig 4.1 below indicates these

finding in pictorial format.

Fig. 4.1

Type of goods/ services supplied to m ines

0510152025

Fabrication

Steel

Trucks

M ining equipm ent

Labour

Electrical appliances

M echanical appliances

Chemicals

Construction tools

Nam e of goods/services

Respon

se in percentage

4.2 Ownership of mine supplier companies

The ownership of mine supplier firms is both by local and

foreigners. Foreigners account for 43% while 57% is wholly owned

25

by local business men and women. Table 4.2 below from research

findings justifies this. Figure 4.2 gives a similar understanding

of firm ownership.

Table 4.2 ownership of mine supplier companies

Fig. 4.2 Ownership of mine supplier

companies

Supplier com panies ow nership

ForeignLocal

26

Ownership

type

Frequency Percentag

e (%)Foreign 13 43Local 17 57Totals 30 100

4.3 Period of time in mine supplier business

To gauge the use of marketing and distribution strategies that

supplier firms employ on mine establishments, it is important to

look at the number of years a firm has been in business of

supplying goods to the mines. From our findings it can be

observed (Fig 4.3) that majority of mine supplier firms have been

in this kind of business for more than 20 years (26.7%), seconded

by 15 to 20 years and 5 to 10 years (23.3%). Others have been in

business for less than 5 years (16.7%) while only 10% have been

in this type of business between 5 and 10 years.

Table 4.3 Period of time in years in mine

supplier business

Period of

time in

years

Frequenc

y

Percentage

(%)

>5 5 16.75<10 7 23.310<15 3 1015<20 7 23.320< 8 26.7Totals 30 100

27

Fig 4.3 shows range in years of supplier business among firms and

their varying percentages.

Fig. 4.3 Period of time in mine supplier

business

Tim e in years in m ine supplier business

051015202530

>5 5<10 10<15 15<20 20<Range in years

Respon

se in

Percentage

4.4 Existence of Marketing and Distribution Department in mine

supplier companies

Firms in mine supplier business were asked to indicate if they

have marketing and distribution department in their firms. The

results are presented in Table 4.4. 66.7% said NO while only

33.3% said YES. This entails that majority of supplier firms on

mine establishments do not have marketing and distribution

department. Table

28

Table 4.4 Existence of Marketing and Distribution Department in

mine supplier companies

Response Frequenc

y

Percentage (%)

Yes 10 33.3No 20 66.7Totals 30 100

Fig 4.4 presents these finding.

Fig. 4.4 Existence of Marketing and Distribution Department in

mine supplier companies

Existence of M arketing and Distribution Departm ent in m ining supplier com panies

YesNo

4.5 Level of Marketing and Distribution Strategy application by

mine supplier companies

29

Success in business nowadays is dependent on use of marketing and

distribution strategies. Therefore firms were asked as to what

extent they use marketing and distribution strategies in there

business operations. The results indicate that 46.7% claim to

have these strategies at medium level, 20% believe that their

marketing and distribution strategy application is high whereas

33.3% allude to the fact that their level of marketing and

distribution strategy application is low. Table 4.5 and Fig 4.5

clearly show these findings.

Table 4.5 Level of marketing and distribution strategy

application

Level of

M&D

strategy

application

Frequenc

y

Percentag

e (%)

High 6 20Medium 14 46.7Low 10 33.3Total 30 100

30

Fig 4.5 Level of marketing and distribution strategy application

by mine supplier companies

Level of M arketing and Distribution Strategy application by m ine supplier com panies

HighMediumLow

4.6 Short courses attended by mine supplier company managers in

the last 2 years

It is important to know what type of courses mine supplier

managers have attended in order for them to have extensive

knowledge on their businesses. Mine supplier firms were asked to

state what type of short courses they have attended in the last 2

years. There responses are represented in Table 4.6 and Fig. 4.6

below. 31

Table 4.6 Short courses attended by mine supplier company

managers

Type of short

course

Frequenc

y

Percentage

(%)Project

management

2 6.7

Stock management 2 6.7Purchasing and

supply

2 6.7

Ethics in

procurement

3 10

Marketing

principles

3 10

Distribution

channels

1 3.3

Sales management 4 13.3Customer 2 6.7

32

relationsRecords and

stocking

4 13.3

Public relations 3 10Safety, Health

and Environment

1 3.3

Other 3 10Totals 30 100

Fig. 4.6 Types of short courses attended by mine supplier company

managers

33

Short cources attended by m ine supplier m anagers

02468101214

Project managem

ent

Stock m anagem

ent

Purchasing and supply

Ethics in procurem ent

M arketing principles

Distribution channels

Sales m anagem

ent

Custom er relations

Records and stocking

Public relations

Safety, Health and Environment

Other

Nam es of short courses

Respon

se in

percentage

Of the short courses that have been attended by mine supplier

managers in the last 2 years, 13.3%have been sales management and

records and stocking. 10% have been marketing, public relations

and ethics in procurement while 6.7 has been short courses in

project management, stock management and purchasing and supply.

Safety, health and environmental risk accounts for only 3.3%.

From these finding , conclusions can be drawn that there is great

need to intensify short courses to the mine supplier company

managers knowing well that most of these mangers have gone into

supply business after losing their jobs and find it as a source

34

of survival. These people have different backgrounds in terms of

their specialization. There is need to hold seminars where

business ideas can be shared to these managers.

In a competitive environment, business only makes profit when

people with necessary expertise are managing its affairs in terms

of crafting marketing and distribution strategies that fit the

business situation.

4.7 Methods of updating on developments in mine supplier

business

Due to low level of strategy application among Zambian mine

supplier companies noted during desk review, mine supplier

managers were asked regarding how they get themselves abreast

with new developments in supplier business on mine

establishments. Their responses were as depicted in Table 4.7 and

Fig 4.7 below

Table 4.7 Mine supplier updating on developments in supplier

business

Method of

updating

Frequenc

y

Percentage

(%)Consulting

local

experts

11 36.7

35

Friends 7 23.3Mine

companies

themselves

4 13.3

Other 8 26.7Totals 30 100

Majority of mine supplier firms (36%) consult local experts while

23.3% consult friends who have been in business longer than them

with vast experience. There is also a tendancy of getting

information from mine companies (13.3%). 26 .7% of respondents

get up dated on mine supplier business information from other

sources.

Fig. 4.7 Methods of updating developments in mine supplier

business

M ethod of updating on developm ents on m ine supplier business

010203040

Consultinglocal experts

Friends Minecompaniesthemselves

Other

Com m on m ethods in use

Respon

se in

percentage

36

This entails that there is lack of marketing intelligence system

in most of these mine supplier companies which is being

substituted by unconventional means.

4.8 Changes brought about in mine supplier business by new

owners

The privatization of the Copper mines has seen the coming of new

mine owners who have brought several changes to the way mine

supplier business is transacted. The most obvious changes brought

about are:-

(i) speed of getting orders;

(ii) accuracy of ordering the required good or services;

(iii) easy of access to buyers; and

(iv) consistency of business operation

4.8.1 Speed of getting orders

When new mine owners took over the mines, it was assumed that a

lot more things will change in terms of business transactions as

such mine supplier firms were asked regarding changes on speed of

getting orders from these mine owners. The responses are shown in

Table 4.8.1 and Fig 4.8.1.

Table 4.8.1 Improvement on getting orders from new mine owners

Response Frequenc Percentage

37

y (%)Yes 10 33.3No 20 66.7Total 30 100

Results show that 33.3% said YES there has been improvement in

getting orders from mine owners where as 66.7% said NO.

These results entails that nothing significant has improved in

terms of speed of getting orders. Reasons to this are attributed

to poor marketing and distribution strategy application among

other things on part of Zambian suppliers owing to the fact that

most of those that said NO are local mine supplier companies

The benefit to improved business is being enjoyed by foreign

owned supplier companies who have vast marketing and distribution

expertise rather that Zambians who would not use marketing and

distribution strategy to enhance there business operations and of

course profitability goes to those that deserve it through

survival means.

Fig.4.8.1 Improvement on getting orders form new mine owners

38

Im rovem ent on geting orders from new m ine ow ners

YesNo

4.8.2 Accuracy of ordering the required goods or services.

Mine supplier firms on mine establishments were asked if there

has been improvement in accuracy they have become in ordering

the required goods or services that are required by new mine

owners. The responses where 50-50. Table 4.8.2 and Fig 4.8.2

indicates these findings. This entails that there is still need

to improve on ordering the right goods or services once an order

has been placed.

Table 4.8.2 Accuracy of ordering the required goods or services

39

Response Frequenc

y

Percentage

(%)Yes 15 50No 15 50Totals 30 100

Fig. 4.8.2 Accuracy of ordering the required goods or services

Accurace of ordering the required goods or services

YesNo

4.8.3 Easy of access to buyers

Supplier firms were asked if there has been an improvement in

accessing buyers in the new mine error. 63.3% said YES while 36.7

said NO. Conclusions drawn from these responses are that there

is easy of access to buyers with the coming of new mine owners.

Table 4.8.3 and Fig 4.8.3 show these findings. It is therefore

true to say that with good marketing and distribution strategies,

buyers are easily accessible to mine suppliers on mine

establishments.

Table 4.8.3: Easy of access to buyers

Response Frequenc

y

Percentage

(%)

40

Yes 11 63.3No 19 36.7Total 30 100

Fig 4.8.3 Easy of access to buyers

Easy of access to buyers

YesNo

4.8.4 Consistency of business operation

Mine suppliers were asked if there has been consistency in there

business operations. There responses are represented in Table

4.8.4 and Fig. 4.8.4 below. 6o% of respondents said there has

been no business consistency with the coming of these new mine

owners.

Table 4.8.4 Consistency of Business operation

41

Fig 4.8.4 Consistency of Business operation

Consistency of business operation

YesNo

4.9. Impact on Quality, Quantity and Profitability on mine

suppliers brought about by new mine owners

New mine owners have exerted significant impact on mine supplier

business. The most important variable affected include:-

(i) Quality of goods or services being supplied

(ii) Profitability and

42

Response Frequenc

y

Percentage

(%)Yes 12 40No 18 60Totals 30 100

(iii) Quantity of goods being supplied

Table 4.9.1 Impact on quality of goods or services being supplied

Response Frequenc

y

Percentage

(%)Improved 9 30Constant 8 26.7Worsened 13 43.3Total 30 100

Supplier firms were asked to give their views on the impact

brought about by new mine owners in terms of quantity of good

they supply. The responses are represented in Table 4.9.1 and Fig

4.9.1. Majority (43.3%) of respondents said there has been a

reduction in terms of quantity goods or services that they

supply to the mines . 30% said there has been an improvement in

quantity of goods or services that they supply to the mines and

26.7 said things have not changed at all. This entails that with

the coming of new mine owners, quantity of good s that mine

suppliers supply to these mines has not improved mainly due to

poor marketing and distribution strategies. Those that have seen

a positive impact in terms of quantity of goods or services

supplied are mainly non local companies.

Fig.4.9.1 Impact on quality

43

01020304050

Percentage (% )

Improved Constant W orsenedIm pact variables

Im pact on quality og goods or services being supplied

4.9.2 Impact on profitability

People engage in business in order to make a profit. Mine

supplier companies were asked to comment in terms impact on

profit brought about by new mine owners. The responses are

represented in Table 4.9.2 and Fig 4.9.2. The results are

shocking, 60%claim that their profitability has worsened, 23.3%

believe that there has been an improvement in profitability and

16.7% believe there has never been any significant change in

profitability on their business brought about by new mine owners.

Table 4.9.2: Impact on

profitability

44

Response Frequenc

y

Percentage

(%)Improved 7 23.3Constant 5 16.7Worsened 18 60Totals 30 100

Fig 4.9.2: Impact on profitability

0102030405060

Percentage (% )

Improved Constant W orsenedResponse variables

Im pact in profitability

Series1

4.9.3 Impact on quality of goods or services supplied

Supplier companies were asked to comment on the impact the new

mine owners have brought in terms of quality of goods and

services that they supply.

The results are represented in Table 4.9.3 and Fig 4.9.3 below.

66.7 said there has been an improvement on quality of goods

supplied to mine companies, 30% said quality has been constant

while only 3.3% said quality has worsened. It is therefore

45

crystal clear from these finding s that new mine owners have

emphasized on quality of goods and services.

Table 4.9.3: Impact on quality of goods or services supplied

Response Frequenc

y

Percentage

(%)Improved 20 66.7Constant 9 30Worsened 1 3.3Totals 30 100

Fig 4.9.3 Impact on quality of goods or services supplied

46

020406080

Percentage (% )

Improved Constant W orsenedIm pact variables

Im pact on quality of goods or services

CHAPTER FIVE

DISCUSSION OF FINDINGS AND ANALYSIS

5.0 Introduction

In this chapter we outline the findings of the study and go on

to analyse them. The findings of the survey questionnaires

administered to supplier companies on mine establishments in

47

Kitwe are complimented with the findings of personal interviews

and discussions with other stakeholders in this type of business.

5.1 Findings

The findings are discussed under a number of headings

corresponding to research design.

5.1.1 Supplier firms Profile

1. The majority of the supplier firms on mine establishments

range from small to medium enterprises.

2. The majority of the supplier firms on mine establishments in

Kitwe have been in business for less than 10 years.

3. Virtually all the respondents had information on marketing

and distribution strategies at a small scale.

4.

5.1.2 Self assessment of knowledge of marketing and distribution

strategies

1. The majority of the respondents considered their knowledge

of marketing and distribution strategies as either low or

non existence.

2. Of the two categories of supplier firms on mine

establishments (i.e. locally owned and foreign firms)

foreign firms make use of marketing and distribution

strategies more than local firms.

5.1.3 Principal source of assistance available to supplier firms

48

The principal source of assistance available to supplier firms on

mine establishments in Kitwe are the local experts who have done

business of supplying mine establishments for many years. This

could be attributed to the fact that local experts are available

when needed. It is only natural that when faced with a problem,

people tend to seek advice from whoever happens to be around. In

this regard, most experts are those that do not pose as

competitors to firms in question.

5.1.4 Methods of updating in developments in mine supplier

business

1. The principal methods used to keep abreast of the

developments in marketing and distribution strategies on

mine supplier business are getting information by word of

mouth form miners. This is attributed to the fact that in a

bid to look for best bargain, mine supplier firms are

forever pursuing miners and are enticing their clients with

latest developments in their merchandise through constant

contact with miners.

2. A minority of respondents attended marketing and

distribution short courses in the past two years.

3. A majority of respondents acknowledged that they were aware

of a number of short courses in marketing and distribution

49

currently being offered in Kitwe but that these courses did

not cater for their specific needs.

5.1.5 Supplier firms attitude to marketing and distribution

strategies expressed by them

1. Most of them regarded marketing and distribution strategies

as beneficial.

2. Marketing and distribution strategies were viewed as

instruments of control which would improve the

organization’s performance. With the integration of

marketing and distribution strategies into corporations, it

is being realized that with strategy, you do not need

“seven” layers of management. These supplier firms downsize,

out source, right size or what ever jargon one need to

apply. The message is clear, supplier firms on mine

establishments in Kitwe must go marketing. Supplier firms on

mine establishments would become smaller with flatter

structures. Knowledge management is a philosophy,

underpinned with strategies. It supports the “thinker” in an

50

organization, empowering them to maker decisions and take

actions by using marketing and distribution strategies to

collect, collate and refine the type of action to take.

3. Economic constraints allowed for a majority of respondents

to have a hands on training/ experience of formulation

marketing and distribution strategies.

5.1.6 Supplier firms attitude towards marketing and distribution

strategies

expressed by mine companies

“Cyber phobia” is still rife in some of the supplier firms. They

have negative attitude towards marketing and distribution

strategies, believing that marketing and distribution are

complicated and also that marketing and distribution strategies

application would prove them inefficient.

1. Most of supplier firms on mine establishments do not feel

that lack of adequate knowledge of marketing and

distribution strategies pose a serious problem to their

ability to compete in a competitive market economy.

2. Because supplier firms on mine establishments do not keep

themselves abreast with the on going developments in the

environment, they lack knowledge of the capabilities

available to them.

51

5.1.7 Comparative analysis with the studies in Democratic

Republic of Congo and Botswana

There are no significant differences in temporal geographical and

cultural characteristics of the three places of research. The

only differences are:

1. The period the three studies were done, 2001 for DRC. 2002

for Botswana and 2005 for Zambia (Kitwe).

2. The Botswana economy is stronger than for both DRC and

Zambia.

All studies reviewed a constant set of attitudes to marketing and

distribution strategies which are listed in 5.1.5 and 5.1.6

above.

52

CHAPTER SIX

6.0 CONCLUSIONS AND RECOMMENDATIONS

6.1 CONCLUSIONS

The following conclusions can be drawn from the findings of the

empirical research undertaken:

1. Through findings 1 in 5.1.2 suggest that supplier firms on

mime establishments in Kitwe consider their knowledge of

marketing and distribution strategies to be low. There is a

perception gap in self assessment of knowledge. This is

based on the fact that marketing and distribution strategies

that are constantly in liaison with them do not do their own

assessment. Even the methods these firms use to update them

selves in developments in mine supplier business do not

suggest an effective way of keeping oneself informed. For

though they were aware of many short courses offered in

Kitwe in marketing and distribution, they do not seem to

want to utilize them.

2. Supplier firms rely heavily on word of mouth for advice on

marketing and distribution form miners which can lead to a

lack of objectivity in evaluating proposals.

53

3. There is insufficient awareness of the need to update one’s

knowledge in marketing and distribution.

4. It is considered that the present marketing and distribution

courses in Kitwe do not take supplier firms on mine

establishment’s specific needs into consideration. Thus,

there is an urgent need to develop an appropriate training

programme for these firms.

5. In the final analysis it is submitted that there are more

supplier firms that are not using marketing and distribution

strategies on their business success. This has a negative

impact on an open economy and subsequently loss of

opportunity for the economy.

5.3.0 RECOMMENDATIONS

In the context of the research findings the following

recommendations are advanced to close the present training gap in

marketing and distribution for supplier firms on mine

establishments and also to improve the level of marketing and

distribution strategy use. The recommendations are directed at

the following appropriate bodies:

1. The Government of the Republic of Zambia

2. Supplier firms on mine establishments in Kitwe

3. Institutions of learning

5.3.1. To the Government

54

(1) Appointment of accredited institutions to provide Marketing

and distribution training to mine supplier firms and also to

regulate standard. This is necessary if we are to utilize the

existing market posed by mine companies.

(2) Establish bodied to address political, social and economic

issues in marketing and distribution. For instance, Zambia

Institute of Marketing may play this role. There should be

constant dialogue with policy makers in government to ensure that

results of their activities are used as background information in

the development of related policies.

5.3.2. Supplier firms on mine establishments in Kitwe

They should play a more active role in spear-heading use of

strategy and should remain focused. Consider retraining in

business oriented courses and be proactive in your businesses.

5.3.3 To institutions of learning

(1) Institutions of learning should have the necessary expertise

to design and deliver short courses in business management. This

should be reflective of specific industry needs.

55

(2) These programmes should be offered on distance learning

combined with optional courses in marketing and distribution.

(3)The institutional methodology should be action oriented and

grounded in the work of experience of participants, to give it a

high level of reality and relevance.

BIBLIOGRAPHY

56

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Business Strategy 1, No. 1, 1980.

2. Hofer, Charles W’ and Dan Schendel. “Strategy formulation:

Analytical 3. Concepts St Pan, Miami West Publishing 2001.

3. Drunker, Peter F: Management: Tasks, Responsibilities and

Practices. New York Harper &Row, 1994.

4. Ansoff, H. Ignor. Corporate Strategy New York: Mc GrawHill,

1965.

5. Kelly, C.Aaron. “The three Planning Questions: A Fable.”

Business Horizons 26 March- April 2001.

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10. A. Thompson, Jr & AJ Strickland III “Strategic management

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Approach. USA, 1990.

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Journal of Business Strategy 1, No 2, 2002.

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Business Strategy5. No.4, 2002.

15. Hall,William. K “Survival Strategies in a Hostile

Environment.” Business Review 58 No. 7, 2001.

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Harvard Business Review 1994.

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Weakness” Managerial Planning, 1980.

18. Kotler, Armstrong, Saunders, Wang. Principles of Marketing,

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20. Ohmae.D “The mind of the strategist” New York: Penguin

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59

APPENDICES

APPENDIX 1: QUESTIONNAIRE

Dear Respondent,

I am a student at the COPPERBELT UNIVERSITY pursuing a BACHELOR

OF BUSINESS ADMINISTRATION. In partial fulfillment of the

requirements for the award of a BACHELOR OF BUSINESS

ADMINISTRATION, I am conducting a research entitled, MARKETING

AND DISTRIBUTION STRATEGIES OF SUPPLIERS IN THE MINING INDUSTRY IN

ZAMBIA. The study is purely for academic purposes.

Could you kindly spare a few minutes of your busy schedule to

complete this questionnaire?60

Lastly, I assure you that the information that you provide will

remain strictly confidential.

I thank you in advance for your cooperation.

Yours truly,

PETER MUMBA

QUESTIONNAIRE FOR MINE SUPPLIER COMPANIES

1. Name of your organization: …………………………………………………………

2. Sex : Female ( ) Male ( )

3. Age range : 18 to 25 ( )

26 to 35 ( )61

36 to 45 ( )

46 to 55 ( )

56 and above ( )

4. Educational qualification:

a) Primary ( )

b) Secondary ( )

d) College ( )

e) University ( )

5. Marital status:

a) Single ( )

b) Married ( )

c) Divorced ( )

6. How long have you been in mine supplier business in Zambia? Tick

your appropriate response)

(a) Less than 5 years

(b) Between 5 and 10 years

(C) Between 11ans 15 years

(d) Between 16 and 20 years

(e) Over 20 years.

7. Do you think competition among competitors in this kind of

business work to your

advantage? [YES] [NO] (Tick your appropriate response)

62

8. Of the two type of mine supplier businesses,( i.e. local and

foreign ) which ones do you feel satisfied with their business?

(Tick your appropriate response)

Local [ ]

Foreign [ ]

9. Of the local mine supplier businesses that you do business with,

mention the most efficient ones.

(Use the space provided below)

…………………………………………………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………………

10. How long does it take to respond to customer queries about your

goods/services?

(Tick your appropriate response)

(a) Within minutes

(b) Within hours

(c) Within days

(d) Within weeks

(e) Within a month

11. Please give the names of cooperate firms that you do business

with in the space provided below and also indicate the number of

years that you have done business with them.

…………………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………………

……………………………………

63

12. What do you think should be done in order to improve efficiency

for this kind of business on your establishment? (In your own words

briefly explain by using the space provided below)

…………………………………………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………………………………………………

……………………………………………………………………

13. Do you hold round table discussions with your customers? (Tick

your appropriate response)

Yes [ ]

No [ ]

14. If the answer to question 9 is yes, in your own words, briefly

give inadequacies that you feel need to be addressed. (Use the

space provided below)

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………

………………………………

15. What are the major hindrances to your continued support to

this kind of business? (Briefly explain in the spaces

provided)

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………

64

16. How do you view your relationship with others doing similar

business like yours in the next two to three years in terms of the

following? (Use IMPROVE, CONSTANT and WORSEN depending on your

situation.)

(a) speed of getting business with suppliers

(b) accuracy of ordering the required goods or services

(c) easy of delivery of goods

(d) consistency of business operation

17. Other than what has been covered in this questionnaire, give

any other views you think are important to the enhancement of

marketing and distribution strategies for your business.

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………………………

………………………………………………………………

Thank you for your cooperation.

65

Appendix 2:

TIME FRAME

66

2010

No

.

Activity Aug Sep

t

Oc

t

Nov Dec

1 Identification of

research topic,

literature review and

identification of

theories. Reading

about research topic.

2 Development of

Research Proposal and

data collection

Instruments.

3 Data collection,

Analysis and Report

writing.

4 Submission of first

draft Research Report.

5 Submission of Final

Research Report

Appendix 3: RESEARCH BUDGET

BUDGET CATEGORY UNIT COST

(ZMK)

MULTIPLYING

FACTOR

TOTAL COST

(ZMK)

67

1. Transport

Transport (Local)

Outside Lusaka

(Public)

2. Subsistence Allowance

(Boarding and Meals

on field

trips)

Researcher (1)

300,000

12

Sub-Total

K2,000,000

K12,000,000

3,600,000

17,000,000

68

3. Stationary ( Pens,

paper,

folders,

Writing

pads and

toner)

4. Administrative cost

(6 %) of

K22,000,000

Sub-Total

Sub-Total

GRAND TOTAL

5,000,000

22,000,000

1,320, 000

23,320,000

69

70