Retail marketing strategies adopted by bottling companies in Kenya

Abstract

Bottling companies playa key role in the Kenyan economy. They generate revenue to the government through taxes, create employment to the locals in the product manufacturing, packaging and distribution to the retail outlets. The bottling companies have significantly grown in Kenya. In 1963, when Kenya became an independent state, there were only two bottling plants, Coca-Cola Company and East African Breweries Limited. They are now over 30 bottling companies in Kenya. The effect of this has been a reduction in market share, declining profitability and stiff competition. The very existence of any company or firm that manufactures products is to find and get market for its commodities. Thus crafting and adopting retail marketing strategies is key for the bottling companies. This study thus was aimed at investigating the strategies adopted by the bottling companies in Kenya. The objectives of this study was to establish the retail marketing strategies adopted by the bottling companies in Kenya, determine the factors that influence the choice of retail marketing strategies and to determine whether these strategies have given some of the bottling companies a competitive advantage. Research design used was a descriptive approach design. The population of the study was all bottling companies in Kenya. According to a survey carried out by Research International, there are 30 bottling companies in Kenya (see appendix 3). Primary data was then collected using a semi-structured questionnaire. The questionnaires were personally delivered or emailed to marketing managers and or sales managers prior to making an initial contact through telephone. The filled questionnaires were then collected or emailed back to the researcher. The findings of the study revealed that, bottling companies surveyed to a large extent have a coherent retail marketing strategies i.e. market segmentation, product strategies, distribution strategies, pricing strategies, promotions strategies, and customer relationship management. These strategies have enabled these companies cope up with the dynamic changes taking place in the retail sector.