Distribution strategies pursued by food processing firms in Nairobi

Abstract

The purpose of this study was to determine the distribution strategies pursued by food manufacturing companies with particular focus in Nairobi. The objectives of the study were to establish the distribution strategies pursued by food manufacturing companies in Nairobi and to determine the factors influencing the choice of distribution strategies pursued by food processing firms in Nairobi. A descriptive research design was adopted in this study. The population of interest was all food processing firms in Nairobi. A census study was carried out because of the relatively small population of 45 firms. Primary data was collected using semi-structures questionnaires. The questionnaires were addressed and then posted to the marketing managers or those in equivalent positions. A self addressed and stamped envelope was enclosed for the respondent. Follow up was made by calls and personal visits by the researcher. A total of 30 out of 45 firms responded giving a response rate of 67 per cent. The primary data was analysed using descriptive statistics which included frequencies, percentages, mean scores and standard deviations. Food processing firms pursue different distribution strategies which include distribution intensity, distribute scope, multi-channel and franchising. 93 per cent of the firms directly distribute their products to retailers and 94 per cent of the firms distribute to wholesalers. Factors which influence the choice of distribution strategy to a very large extent are company objectives, followed by companies past experience with distributors, then ability of the distributors to pay for product, and lastly size of the area covered by the distributor. Factors which influenced the choice of distribution strategy to a small extent were political temperature of the area served, environmental regulation in the area served and product volume or weight. It is recommended that food manufacturing companies should redefine their distribution strategies to enhance their competitiveness. The major limitation of the study was difficulty in getting all the sent out questionnaires. It was suggested that the study be replicated in other sectors of the economy and other countries