EFFECT OF PLACE STRATEGY ON SALES PERFORMANCE AMONG PHARMACEUTICAL MANUFACTURING COMPANIES IN NAIROBI COUNTY, KENYA
Abstract
A major obstacle to the pharmaceutical manufacturing industry in Kenya is suboptimal sales performance, which significantly hampers the growth and competitiveness of the sector. Despite a growing demand for healthcare products, various factors, such as limited market penetration, inadequate distribution networks, regulatory challenges, and high operational costs, continue to impede sales effectiveness. The objective of the research was to assess the effect of place strategy on sales performance among pharmaceutical manufacturing companies in Nairobi County, Kenya. The study was anchored on the Depot theory of distribution. The study utilized a descriptive research design. The target population included 640 employees who work in 20 pharmaceutical manufacturers in Nairobi county, across different departments dealing with sales and marketing activities. Nassiuma formula was employed to get a sample size of 94 respondents who were selected using purposive and simple random sampling techniques. Semi structured questionnaires were employed for data collection and distributed physically with the assistance of research assistants and via mail for respondents who had busy schedules. Quantitative data was analyzed using SPSS version 26.0, while qualitative data analysis was facilitated by the use of the NVivo software. Descriptive statistics were used to describe data in the form of means and standard deviation and inferential statistics were used to draw inferences.The findings show that place strategy has a significant effect on sales performance among pharmaceutical manufacturers in Nairobi County, Kenya with coefficient of 0.493. Finally, efficient distribution and logistics showed the strongest relationship with sales performance, with a strong correlation coefficient of (r = 0.549, p < 0.01). The study concludes that efficient distribution and logistics strategies are critical for improving sales performance among pharmaceutical manufacturers in Nairobi County, Kenya. The study recommends that investments in logistics infrastructure are crucial for improving sales outcomes in the pharmaceutical manufacturing industry in Nairobi County, Kenya. Additionally, forming partnerships with reliable distributors is essential. The use of cutting-edge technologies for supply chain management is also highlighted as a key factor in enhancing sales performance.
Key Words: Place Strategy, Sales Performance, Pharmaceutical Manufacturing Industry, Marketing Mix
CITATION: Okhonjo S. O., Kinyanjui, W., & Mwihaki, B. W. (2024). Effect of place strategy on sales performance among pharmaceutical manufacturing companies in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 11 (4), 294 – 306. http://dx.doi.Org/10.61426/Sjbcm.v11i4.3081
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i4.3081
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