MARKETING STRATEGIES AND FIRM PERFORMANCE OF KEROCHE BREWERIES, KENYA

Abstract

This study  evaluated the market strategies on the firm performance in Keroche Breweries Company. The study determined the influence of pricing strategy, product diversification strategy, distribution channel strategy and market penetration strategy on firm performance at Keroche Breweries. The study would benefit Keroche Breweries and other players in the Industry in how to enhance their marketing strategies in achieving the desired firm’s performance. The study employed a cross sectional survey design. The study targeted top and middle management staff from Keroche Breweries in Nakuru. Both stratified random method and simple random sampling techniques were used to apportion a sample of 58 respondents out of the 68 respondents from Keroche Breweries. The primary data was used in the study. The pilot data was collected through a five likert scale structured questionnaire. Descriptive analysis was used to analyze the collected data and was presented through descriptive and frequency tables. The study established that factoring competitors’ prices in pricing decisions improves sales volumes for both products and services. The study findings revealed that diversification of products affects the firm’s performance at Keroche Breweries and the company has implemented its diversification at the same time. The study established that different channels are employed by the firm in distribution of products and that there is information sharing between the distribution channels. The findings showed that the company product performance can be associated with the continue market penetration strategy. The study concludes that pricing strategy, product diversification strategy, market penetration strategy and distribution channel strategy has significant positive influence on firm performance of Keroche Breweries. The study recommends that the company should base its pricing decisions on close competitor’s prices as it was found to lead to increased sales volume which leads to improved firm performance. Consequently, the company should diversify to products which have minimal differential ration to existing product lines. The vertical diversification should be employed so as to innovate seamlessly from raw materials to placement. The company should streamline its distribution network with a view to improve efficiency and if necessary employ various distribution channels to enable product reach to all customers. The study recommends that the management of the company should be proactive in penetrating the new markets.

Key Words: Marketing Strategy, Market Development, Firm Performance

CITATION: Kimani, M. N., & Mutuku, B. (2023). Marketing strategies and firm performance of Keroche Breweries, Kenya. The Strategic Journal of Business & Change Management, 10 (2), 1043 – 1054.