Marketing Mix Strategies and Firm Performance of Selected Dairy Firms in Nairobi City and Kiambu Counties, Kenya

Abstract

Customers are very important to an organization as they influence its success in the market space. Competition in the dairy sector in Kenya has gradually increased over time. This study aimed to address declining firm performance and examined impact of marketing mix strategies of selected dairy firms in Kenyan counties of the City of Nairobi and Kiambu. Marketing and adequate resource allocations were the main drivers of performance in firms. In Kenya, competition has increased in the dairy industry. Specifically, the research focused on distribution, price, promotion, and product strategies and their effects on firm performance. The study drew upon theories such as goal setting theory, marketing mix theories, and innovation diffusion theory to support its findings. Data was collected from 104 individuals within twenty-six dairy firms including Heads of Finance, Logistics Managers, Heads of Production, and Heads of Marketing. The gathered information was analyzed using inductive and statistical methods, and findings put forward in forms of tables, pie charts, graphs and bar charts. The research study employed multivariate regression technique to review the correlations among variables. Kenyatta University, NACOSTI and management of the chosen dairy companies were consulted over the study's approval. The research was conducted in 2024. The study found that, among 26 dairy enterprises in the Kenyan counties of Kiambu and Nairobi City, product, price, promotion, and distribution strategies all significantly and favorably impacted the company's profitability. The study concluded a well-defined product strategy helps companies differentiate themselves in a competitive market, cater to consumer preferences, and respond to market trends. Product strategy encompassed planning and development of products to meet market demands and achieve business objectives. Companies that implemented value-based pricing charged higher prices for premium products, such as organic milk or specialty cheeses, leading to increased profit margins. Promotional strategies such as advertising, social media campaigns, and community engagement help dairy companies build brand recognition. Effective distribution strategies enable dairy companies to reach a wider audience, including urban and rural consumers. The study recommends that the firm should regularly gather data on consumer preferences, trends, and emerging market demands. The firm should gather data on consumer preferences, purchasing behavior, and price sensitivity.