Epsilon Archive for Student Projects

Abstract

This report is a literature review that aims to describe marketing contexts for mango production in Kenya. The institutional conditions in the country are not well developed for marketing purposes, which causes many difficulties and problems for the society. In Kenya most mango producers are poor small-scale farmers with limited resources. Mango is a perishable commodity and to keep its value and quality it is essential to have the opportunity to sell the mangos in the right time. Inefficient and undeveloped infrastructure and marketing systems hinders the mangos to reach the market in time though, which causes large losses of produce.

The Kenyan mango production has increased during the last decade but due to market losses for the producer, the small-scale farmers‟ profits have not improved. The farmers' margins are low and losses of profit and produce strikes them hard. An important factor in the mango farmer's context is corruption. Kenya is one of the most corrupt countries in the world and the corruption highly affects the situation for the small-scale farmer negatively. There is great potential to reduce poverty in Kenya by for example improving the mango production and sales of mango. One possibility to keep the mango's quality is to process the fruit and by that add value. Examples of processed mango products are chutney, dried fruits, and juice.

Marketing strategies always need to be adapted to the specific situation and context. A possible marketing strategy suitable for the Kenyan context is perceived in the opportunity for small-scale farmers organizing into cooperatives. In such cooperatives financial resources and knowledge are gathered, which improves the opportunities, power and influence for the farmers'. By using a Base of the Pyramid (BOP) perspective in marketing, where the basis for all business activities is to develop among the poorest of the poor, new opportunities and solutions are shaped for their reality. Cooperatives and BOP have a united aim to strengthen the weak and increase their wealth. The weak infrastructure emphasizes the needs for new solutions. Like cell phone services, which is an example of new solutions adjusted for the poor that works as a BOP strategy. Increased and improved education and knowledge for the farmers are essential factors for rural development. Educated farmers that have more knowledge about their production will gain power towards the middlemen.