Marketing Strategies and Growth of Small Scale Restaurants in Kakamega County, Kenya

Abstract

The role of small scale restaurants in Kenya‟s hotel industry cannot be taken for granted. Their growth can contribute to the nation‟s development and economic growth. For instance job through creation, rural development, entrepreneurship growth; and generation of big hotels. However, growth of small scale restaurants can only take place if it is supported by cost-effective marketing strategies. These strategies ought to be context-based and informed by scientific evidence. Marketing strategies utilized in small scale restaurants in Kakamega County and their growth trends are unknown due to lack of current empirical evidence. Given this situation, this study was designed and conducted in small scale restaurants in Kakamega County, Kenya. It involved 98 managers practicing in these establishments. The main objective of the study was to determine the influence of marketing strategies on growth of small scale restaurants. Data were gathered through a survey and was analysed using simple descriptive and inferential statistics and results presented in tables and figures. The findings obtained revealed that most preferred price strategy was basing price strategy on market survey and customer feedbacks, the most preferred promotion strategy was personal selling and sales promotion, most adopted people strategy was using customer satisfaction score cards to check the level of customer satisfaction and on product strategy the most preferred strategy was the restaurants constantly improving the quality of product offered to achieve marketing. On the relationship that existed between the study variables this study found that people and product marketing strategies were influencing factors in the growth of small scale restaurants in Kakamega County. No significant relationships were found between pricing, promotion strategies and growth of restaurants. Pearson correlation obtained a positive coefficient of correlation implying that people and product strategies had a positive effect on growth of small scale restaurants. Participants felt that location of restaurants, qualifications of managers and courses/skills undertaken, sources of finances and preferred dishes played an influencing role in growth of restaurants. This study recommends that both out dated and non-traditional marketing strategies must be practiced together to achieve the anticipated results. Door-to-door of mouth, decrease sales, signs, proprietary equipment, use of social media and radio announcement are influential marketing tools for eateries in Kakamega.