Assessing the Performance of Orange Marketing in Lafia metropolis, Nasarawa State, Nigeria

Abstract

This study assessed the performance of orange marketing in Lafia Metropolis, Nasarawa State, Nigeria. Data were collected from eighty 80 respondents which were obtained using random sampling technique. Primary data were collected through a structured questionnaire and analyzed using descriptive statistics, gross margin analysis, marketing margin, Gini coefficient, efficiency model and multiple linear regressions. Results of the study revealed that majority (91.2%) of the respondents were male and in their youthful, active ages with a mean age of about 32 years. The costs and returns analysis of the wholesale and retail marketers revealed that the wholesalers and retailers’ total variable cost were ₦53.11/kg, and ₦76.28/kg, respectively. Purchase cost had the highest percentage of 69.33% and 55.57% for retailers and wholesalers. The study also revealed that there was high profit from orange marketing per week with total revenue (TR) of N120.50, gross margin (GM) of N44.22, and the net income of N24.22, respectively. The marketing margin of retailers was ₦30.39/kg, while that of the wholesalers was ₦23.23/kg, with a marketing margin of the wholesalers and the retailers estimated at ₦7.16/kg. The determinant of orange marketing in the study area revealed that the major determinants of orange marketing in the study area was the quantity of orange fruit marketed, Education Status, and years of marketing experience of the marketers. The R² value was 0.630. Furthermore, the quantity marketed and years of marketing experience were significant at 1% level degree of probability, while educational status was significant at 5% level of significance. It was observed that years of marketing experience, quantity marketed, and educational status were all positive. The efficiency of orange marketing for the wholesalers (98.0%) was higher than that of the retailers (63.6%). The result of the Gini coefficients of orange marketers was 0.5786. Based on this result, it was observed that orange marketers were faced with constraints of inadequate storage facilities which eventually affected their market performance. The study therefore, recommended that government should provide adequate storage facilities for the orange marketers, and as well sensitize marketers on various storage techniques to enhance marketing efficiency and performance.