Sales Promotion Practices and Sales Performance the Case of Fast Moving Consumer Goods Manufacturers in Nairobi

Abstract

FMCG manufacturers play a significant role in the Kenyan economy. They are major employers of the Kenyan population and therefore a subject of interest from various stakeholders. The changing global environment has led to more competition, increased product choice, increased customer demand, lower prices and product innovation. Due to changes in the market place, companies must cope with the dynamic environment in order to survive. The manufacturing sector is characterized by several players, increased competition, regulatory changes, changing consumer styles and expectations, availability of a wide variety of substitutes, shorter distribution channels as manufacturers gain direct access to most markets. According to International Marketing Research (2005), major multinationals dealing with fast moving consumer goods have established operations in Kenya. This research was aimed at gaining insights into what sales promotion practices these manufacturers have adopted in the face of stiff completion; and the relationship between these sales promotion practices and sales performance among the Fast Moving Consumer Goods Manufacturers in Nairobi, Kenya. The study was aimed at helping marketers in clarifying the concepts relating to marketing communication, promotion mix, sales promotion and strategies relating to sales promotion. The study revealed that the main Sales Promotion techniques include: Coupons, price-off deals, Bonus Packs, Premiums, price completion and sweepstakes in that order. These were the major contributors to the various sales performance results of the companies that were put under study. The study found that sales promotion practices positively affect the sales performance among FMCGs manufacturers in Nairobi, Kenya. There is need to invest in new sales promotion practices with emergence of new technologies so as to meet this expectation, as it was found that there was a positive relationship between sales promotion practice and sales performance among FMCGs manufacturers in Nairobi, Kenya. There is need for FMCGs manufacturers in Nairobi, Kenya to invest in market survey as this will help them in coming up with sales promotion practices that are acceptable, accessible, ethically sound, have a positive perceived impact, relevant, appropriate, innovative, efficient, sustainable and replicable.