Factors affecting choice of milk store brands by consumers in Nairobi

Abstract

This study sought to investigate the effects of the emergence of store brands in Kenya's retailing industry. This was by specifically looking at the factors affecting choice of milk store brands by consumers in Nairobi. It was carried out between November 2004 and January 2005. The sampling frame comprised of milk consumers from various estates within Nairobi. Kenya has recently experienced the emergence of large supermarket chains. These supermarkets have used sale of store brands as a strategy for ensuring differentiation, customer loyalty, and increased profitability. Research has been carried out (Kyalo, 2002) on use of store brands as a competitive strategy by retailers, but not on their effects on consumer choice. This research has endeavoured to do so. In order to investigate this, the research had the following objectives: 1. To determine the factors affecting choice of milk store brands by consumers in Nairobi. 2. To determine the consumer awareness of milk store brands in Nairobi. Primary data was collected using questionnaires that were divided into three parts. The data was analyzed using descriptive statistics for parts one and three. Frequencies and percentages were used. Tables were'"'t:!sedto show relationships between the attributes and aspects of the biodata. The study came up with the following conclusions. Consumers did not find any major difference between milk store brands and processors milk brands and would therefore purchase any they considered to be of good quality. Most consumers are aware of only one milk store brand. The consumers mostly became aware of milk store brands through shopping since many consumers had not seen milk store brands advertised. From the results and conclusions of this study, the researcher had some recommendations. One is that in light of the strong competition in the packaged milk industry that has strong brands such as Brookeside and Tuzo, a lot more needs to be invested in advertising of milk store brands. Retailers should develop their milk store brands as strong brands should use advertising. Retailers should position their brands on good and consistent quality, as this is one of the main attributes consumers look for