MAJOR MARKETING CHALLENGES FACED BY MSME SECTORS

presented by pradeep kumar pandey

11/24/2012

major marketing challenges faced by MSME sector

INTRODUCTION In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, the Micro, Small and Medium Enterprises (MSME) are classified in two Classes: (a) Manufacturing Enterprises (b) Service enterprises The limit for investment in plant and machinery / equipment for manufacturing / service enterprises

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major marketing challenges faced by MSME sector

Manufacturing sectors

Micro enterprises: does not exceed 25 lacks rupees Small enterprises : more then 25 lacks but does not exceed 5 crore rupees Medium enterprises : more then 5 crore but not exceed 10 crore rupees Service enterprises
Micro enterprises : does not exceed 10 lack rupees Small enterprises : more then 10 lack but not exceed 2 crore rupees Small enterprises : more then 2 crore but not exceed 5 crore rupees
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OBJECTIVE OF THE STUDY

To know about marketing challenges faced my MSME sectors

To enhance marketing capabilities & competitiveness of the MSME sectors To enrich the marketing skill of MSME sectors

To update MSMEs about the prevalent marketing scenario and its impacts on their activities

11/24/2012

major marketing challenges faced by MSME sector

Scope of the study The scope of this study was limited to a particular city i.e Rourkela . To measure the performance of the project. To enhance the competitiveness of the MSME sectors Limitations of the study The research was carried out in a short period. The sample size and the parameters were selected accordingly so as to finish the work within the given time frame. Some of the respondents could not answer the questions due to lack of knowledge

11/24/2012

major marketing challenges faced by MSME sector

 The information given by the respondents might be biased as some of them might not be interested to give correct information. Some of the respondents of the survey were unwilling to share information.
Research methodology Conduct Focus group interviews Use open ended and close ended both type of questionnaire

11/24/2012

major marketing challenges faced by MSME sector

DATA ANALYSIS AND FINDINGS OF THE STUDY

MARKETING PROBLEMS FACED Sl.no 1 2 3 4 5 6 7 Marketing problems Low Quality Competitors Price Fixation High Cost of Marketing Personnel Sales promotion Distribution Channels Non Availability of Packing Material Percentage 71.05 89.47 60.53 55.26 60.53 76.38 65.79

(Source: Primary Data)

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major marketing challenges faced by MSME sector

100 90 80 71.5 70 60.54 60 50 marketing peoblems 40 percentage 30 20 10 0 1 2 3 4 5 6 7 8 55.26 60.53 65.69 89.47

76.38

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major marketing challenges faced by MSME sector

FINDING OF THE STUDY

Big players outplay the small players in this sector as they lack proper marketing channels and showing the products in the domestic and international market. Obsolete technology used in manufacturing the products result in the formation of poor quality products.
No standard methodologies adopted for pricing of the product.

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major marketing challenges faced by MSME sector

 Pricing is a major constraint as the price in manufacturing the product often exceeds the final product cost thus making these enterprises suffer loss. The availability of raw materials in the premises of the establishment results in costly procurement of the raw materials. Promotional strategies are weak and lack of awareness among entrepreneurs results in the weak promotion of the products
Lack of government support and ample funding in the industry as a whole is not advanced and industries are becoming sick in the frame of time.

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major marketing challenges faced by MSME sector

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CONCLUSION MSME contribute to economic development in various way such as creating employment opportunity, providing's goods & services. MSME contribute nearly 45% share of manufacturing output accounting for 40% in overall export of country and providing employment in about 32 million people.

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major marketing challenges faced by MSME sector

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major marketing challenges faced by MSME sector

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