The contribution of market analysis on the level of financial performance of agri-businesses in Uganda: a case study of Readysprout Uganda Limited
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The research is about the contribution of market analysis on the level of financial performance of agri-businesses in Uganda, a case of Readysprout Uganda Limited. The study has been conducted to examine the marketing capabilities at Readysprout Uganda Limited, to find out the various indicators of financial performance used at Readysprout Uganda Limited and to establish the marketing challenges faced by Readysprout Uganda limited. The study used both qualitative and quantitative approaches to capture insightful, clear and understandable information to form explanation and in-depth justifications statistically. It used a descriptive, correlational and cross sectional research design. The study employed a total of 60 respondents, who were selected purposively basing on their understanding of the subject matter, on the recommendation of the managing director and heads of department. The study identified the indicators to financial performance to be the revenue earnings potential of the business, the cost of customer analysis and the level of customer segmentation. The study findings reveal that marketing capabilities are affected by the cost of administering to customers. Respondents mentioned that for the company to attract loyalty from its customers, there needs to be an investment made, both in monetary and non-monetary terms. The respondents mentioned that strategies such as market segmentation are developed in this regard towards strengthening market capabilities of the organization. The study found that a company which carries out segmentation of customers is able to treat them differently to the point of their satisfaction. The findings indicate that customer segmentation can only be achieved if a company understands the nature and tastes of their customers. Focusing on a particular niche helps the company to save costs through employing limited resources and reaping high sales which improves profitability and financial success. The study revealed some of the marketing challenges faced by businesses to include high level competition in the market place due to big players, who make keeping track of consumer needs quite costly hence affecting profitability in the long run. It was therefore concluded that marketing capabilities are a critical factor in enhancing financial performance of an organization. Understanding the customers and building a brand loyalty commands high sales volumes in return, which is significant in determining the level of cash flows, profitability and sales volumes of business enterprises in Uganda. Therefore, regularly market analysis should be done to determining changing needs of customers and develop products and services that meet the market requirements.