Abstract:
Debre Berhan Blanket Factory, one of the major producers of Blanket, Kuta, Polysters Bed
Cover, Mattress and Pillow, is among the oldest textile industry in Ethiopia which use imported
and locally produced inputs. The main purpose of this study is to examine the practice and
challenges of the marketing strategy of the factory by using descriptive data analysis method by
applying the instrument such us frequency and percentage using Statistical Package for Social
Science (SPSS). Research data were collected using questionnaire and interview using purposive
sampling techniques. The finding shows that the factory marketing mix strategy is mainly based
on its product. Developing new product and product identification are relatively well recognized product mix strategies practiced. The qualities of the products are high that meet the customer’s
requirement. In terms of pricing method ,which is set based on cost of production and competitors’ pricing , the Factory’s product price is relatively not expensive for its customers.
Despite the fact that the factory didn't set enough promotional budgets it use participating on trade fare. In terms of product distribution the factory’s product are distributed through own
office , other textile factory, whole seller and individual customer. The factory's segmentation is
based on economic and geographic locations. The Factory reach target markets through its sales
agents where the potential sales area is identified and need assessment is done for product
distribution. The finding further shows that there are major problems such as shortage of raw
material , local and imported competition, human capital turnover, lack of enough promotional
budget and oldness machineries are some of the major challenges of the factory which cause
underutilization of the existing potential and as result the factory could not able to generate
sufficient out put there by increasing its sales revenue which require immediate solution to
increase production thereby increasing market share. Based on the finding the writer would like
to recommend that in order to increase the current level of production, the factory should
increase its product level of quality to export standard so that it will have access to foreign
currency to import raw material and it will increase its level of production thereby fulfilling the
local demand as well. This will enable the factory to retain its senior employees as it will have
capacity to pay more and to develop incentive system to improve labor productivity.