Effect of shopper marketing practices on sales performance of medium and large supermarkets, in Nairobi county, Kenya

Abstract

In the present day business environment that is characterized by increased competition among local and international companies, the emergence of more demanding customers and great technological advances has resulted in a complex market in the retail business. In this complex market environment, the marketing strategy of the company could be a competitive advantage versus other companies provided that they deliver services and values that not only meet the customer demands, but surpass them. Shopper marketing has emerged in recent years as a breakthrough concept in the evolution of consumer communication, as product manufacturers and retailers alike have identified a growing need to influence the shopping experience. The objective of the study was to establish the effect of shopper marketing practices on sales performance of medium and large supermarkets in Nairobi County. The research design adopted by the study was descriptive cross sectional survey design. The population of this study comprised of all medium and large supermarkets in Nairobi County. According to Nairobi county records 2015, there are 24 medium and large supermarkets in Nairobi. The study used primary data which was collected using self-administered questionnaires. The data collected was analyzed using descriptive measures and presented in tables and charts. The study found out that the supermarkets have adopted shopper marketing practices that include the use of free-standing product display racks, end-aisle display, navigational signs (aisle directories, product markers), free-standing advertisements, shelf advertisements, display bins, store staff, floor advertisements, shopper cart advertisements and in-store flyers as the shopper marketing practices. The shopper marketing practices were found to have an effect on sales performance as they increased sales volume, stock turnover rate, average customer spend, number of sales units and efficiency in service delivery.