Adoption of green marketing strategies by fast moving consumer goods manufacturers in Nairobi city county

Abstract

The study examined the extent of adoption of green marketing strategies by fast moving consumer goods manufacturers (FMCG) in Nairobi City County. The study sought to achieve three specific objectives. Determine awareness, extent of adoption and establish the challenges faced by FMCG manufacturers in Nairobi City County, in adopting green marketing strategies. A descriptive cross sectional survey design was used for the study. The target population was a list of fast moving goods manufacturer firms from the food and beverage segment in Nairobi City County. A sample of 83 firms was used. The data was collected using semi structured questionnaire consisting of both open and closed ended questions. Data was analyzed using descriptive statistics, cross tabulation and chi-square tests. Results of Cronbach’s alpha test confirmed reliability of all the measurement scales used in the study. The results obtained indicated that majority of the firms to a large extent are aware of green marketing strategies. The study also established that different green marketing mix strategies are adopted in piecemeal. Strategies adapted to a large extent in order of preference by majority of FMCG manufacturing firms are green process strategy, green product strategy and green place strategy. Green marketing strategies adapted to a moderate extent are promotion and people strategy. The least used strategies at the firms are price and physical evidence. Major perceived drivers for the firms in adopting green marketing strategies in the FMCG sector in order of preference were competitive pressures, to enhance brand image, to comply with Government regulations, to gain market advantage, environmental conservation and finally to comply with firm level environmental policies. Perceived impediments to adopting green marketing strategies were high implementation costs, lack of specialized personnel to deal with environmental matters, inadequate resources like finances, lack of specialized technology which requires huge investment in Research and Development and finally lack of green marketing exposure and education. The study also sought to test relationship between firm ownership and the extent of adoption of green marketing strategies. A significant relationship was established for firms with large foreign shareholding showing high adoption levels. This indicates that parent companies have a high influence on the firms’ green marketing adoption extent locally. Finally, relationship between lengths of time a firm has been in existence and extent of adoption of green marketing strategies was tested. The results showed there was no significant relationship. The longer the firm has been in existence does not guarantee that the adoption levels of green marketing are significant. The study recommends that the management in FMCG manufacturing firms should allocate more financial resources towards the green marketing concept, invest in training staff on green marketing strategies to enable them support and practice it, focus on greening their factories (changing systems and processes to favour green manufacturing), and finally hire, train and empower specialized personnel in environmental matters to take charge and drive the agenda in their firms.