Marketing Capabilities and Inclusion of Bakery Suppliers in Supermarkets: a Case of Nairobi Metropolitan
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Date
2018Author
Nyumba, Rosebella A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Past studies have recognized that as the number of supermarkets in Africa is growing,
supplier access to supermarket is becoming difficult as the suppliers are required to meet
certain specific standards in order to access supermarkets. Therefore supermarkets have
certain specified criteria which the suppliers are required to meet in order to supply their
goods to supermarkets. This study investigated marketing capabilities which enable
suppliers’ to access supermarkets. The marketing capabilities the study sought to investigate
are: Customer Relationship Management, Packaging, and Market sensing and Networking. A
supplier’s capability determines his access to the market provided by supermarkets. This is as
a result of the standards set by supermarkets. Therefore it is easier for suppliers to access
other retailers rather than supermarkets. Owing to this, a competitive environment has been
created among suppliers. Therefore this study sought to examine the how marketing
capabilities influence suppliers access to supermarket.
Using a mixed methods approach the study examined the role of marketing capability on
access to supermarkets by suppliers’ in Nairobi metropolitan with a special focus on bakery
suppliers. The study has established that marketing capabilities play a critical role in a
supplier’s access to supermarkets, the more superior marketing capabilities of a supplier; the
easier it is for a supplier to access supermarkets. CRM as a marketing capability not only aids
suppliers to access supermarkets but also ensures that they continue supplying supermarkets,
the size of the shelf space allocated to suppliers depends on the speed at which their goods
move, the price margin of their goods and payment of the shelf space by the supplier.
The study shows that the most important criteria supermarkets use to select suppliers are
product quality, return policy, product reliability and legal certification. The study further
established variations in the way the supermarkets viewed reliability of the supplier and
product promotion as criteria for selection of cake suppliers. The big supermarkets did not
put so much emphasis on the reliability of the supplier as they assumed that in regards to
power relations, the suppliers need the supermarkets more than the supermarket need them
therefore they would definitely do whatever they could to ensure that they are reliable. On
the other hand the medium supermarket is so strict on reliability. In regards to product
promotion, two supermarkets, (one big, one medium) selected suppliers on the basis of
product promotion on the other hand for the other big supermarket product promotion was
not important.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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