Characterizing market potential and developing business model for processed lake Victoria sardine products

Abstract

The study aimed at developing an inclusive business model to improve the marketing efficiency of Lake Victoria processed sardine products. The stakeholder theory was used to characterize actors’ roles while structure, conduct and performance framework scrutinized the marketing efficiency. The study identified and tested the consumers’ buying decision factors before developing the business model in collaboration with the stakeholders within the sardine value chain. Primary data from Lake Victoria Tanzania side were collected using structured and tested questionnaires from 546 randomly selected respondents in Mwanza, Mara and Kagera regions. Key informants and focus group discussions complemented the information gathered through questionnaires. Data were tested for validity, reliability and model fit by using SPSS program version 24. Data were analyzed using multiple regression models and descriptive statistics. Market analysis used price efficiency, descriptive and organizational structure. The exploitative resource sharing between crew members and boat owners led to inefficiency production and theft of fishing equipment. Sardine traders had not accessed the lucrative market outlets due to weak institutional support and lack of economies of scale. The market analysis showed high income and inequalities with Gini coefficient for traders and processors of 0.59 and 0.64, respectively. Lorenz curves showed 80% of monthly income was accounted by 50% of marketers. The higher income, market share inequalities, and market entry barriers implied that the market was imperfectly competitive and inefficient with greater likelihood of dominancy as economic and game theories suggests. The effect of product recognition and confidence on the buying intention was significant at p< 0.001, consumers’ confidence and buying intention was significant at p<0.001, consumers’ product recognition and buying intention was significant at p<0.001 and the effect consumers’ attitude and buying intention was significant at p<0.001. Based on explanatory powers of the determinants; consumers preferred sardines dried on racks, rocks, grass and net, deep fried and hot smoked. Marketing strategies should focus on improving product quality and increase consumers’ product confidence, attitudes and recognition. The business model for processed sardine products should focus on improving the delivery and captures through product handling, value addition and delivery practices that considers consumer needs.