Trade liberalization and its effect on locally manufactured goods: The case of PZ Cussons Ghana Limited
The trade liberalization policy was introduced in 1986 as part of Ghana‟s economic recovery program. Trade liberalization is a policy that seeks to remove all trade practices that impede the free flow of goods and services from one country to another. Practices that deter trade include tariffs, duties and other non-tariff barriers. This thesis discusses the impact that the policy of trade liberalization has had on the marketing of locally manufactures goods in Ghana using PZ Cussons Ghana Limited as a case study. Specifically, a comparative study of the marketing strategies and profits of PZ before and after liberalization was executed. Results of the study suggests that in the pre liberalization era PZ Cussons concentrated solely on sales management where efforts were mainly geared towards increasing sales output with little promotional effort. However, in the post liberalization period, PZ Cussons employed network marketing as its primary strategy to keep ahead of the competition. The introduction of trade liberalization created a competitive environment which positively influenced the marketing activities of PZ Cussons Ghana Limited. However, PZ‟s performance under the trade liberalization was under-mined by unfair competition from rival companies who evade taxes and engaged in bribery at the ports at the borders of Ghana. The research therefore highlights the importance of versatility in a company‟s strategy mix in order to thrive in the changing Ghanaian policy environment.
Thesis submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2010
trade liberalization, Ghana, marketing, PZ Cussons