Small and Medium Enterprise Competitiveness Facility (SCF) is set to launch a Point of Sale (POS) database which aims at assisting Small and Medium Enterprises (SMEs) to boost their sales to both domestic and international markets.
The product which targets small and medium entrepreneurs who process and sell food products will be launched tomorrow (Tuesday 12, June This year) in Dar es Salaam.
The database equipped with market information for Dar es Salaam and Zanzibar markets will help entrepreneurs to increase their sales through identification of appropriate distribution channels based on market segments
Speaking to press in his office in Dar es Salaam at the weekend, SCF Project Director Casmir Makoye said his office decided to develop POS database after it realized that many entrepreneurs were applying to be assisted to carry out market research which at times turns to be costly to the entrepreneurs.
“In carrying out our duties as SCF, we realized that many entrepreneurs do seek to carry out market research. We have been assisting them in that line, but we later realized that not all market research that one does gives a positive result, despites the expense one has incurred in the process. These are some reasons that pushed us to come up with this POS database, that will greatly assists SMEs,” he said.
According to Mr. Makoye POS database is a system that has taken all necessary food products outlets in Dar es Salaam and Zanzibar.
He said in coming up with the POS database, they managed to survey 13,000 market outlets in Dar es Salaam and Zanzibar, touching on 19 major food categories.
“Given that vast market survey we have in the database, a food processor will find out where a particular product has a higher demand,” Mr. Makoye said.
Mentioning some benefits consumers of this product will have, the Project Director said the processor will be able to decide on the market he/she wants to take a food product depending on the level of his/her production.
“The database will show a producer where there are few distributors of a similar product but the market demand for his/her product is high.
“Third, it helps a processor to design his distribution channels. This means that he will be able to decide which market to take his products.
“Fourth, using the results of this POS database will help the processor or distributor to know what kind of food products that are not in the market but have higher demand. This can even allow a processor to do product deviation after seeing an opportunity.
“This database has contact details of the distributors, the name of the agents and variety of products he/she sells and even the size of his shop (floor steps) of which will help the producer or the processors to know the sales capacity of the said agent or distributor,” explained Mr. Makoye.
The Project Director was confident that if SMEs embrace POS database, they will increase their sales and intern increase their profit, thereby contributing to the national economic growth.