Influence of Distribution Strategies on the Competitive Advantage of Alcoholic Beverage Companies in Nairobi County, Kenya

Abstract

In the 21st century where the world is becoming more and more competitive companies, will need to come up with strategies on how to meet the customers‟ needs and wants, penetrate the new emerging markets and stay head of their competitors. Population growth in Kenya has resulted into increase in middle class hence high consumption of alcohol. The objective of the study was to determine the distribution strategies that ensure competitive advantage in Alcoholic beverage companies Nairobi County. The study was anchored on three theories namely; Resource based theory, Bargaining theory and Agency theory. The objectives of the study was to establish the distribution strategies adopted and influence of these strategies on competitive advantage by alcoholic beverage companies in Nairobi County. The study adopted descriptive, cross-sectional design. The population of the study was 22 alcoholic beverage companies in Nairobi county Kenya. Data was collected from managers in sales and marketing department of the alcoholic beverage companies. Analysis was done using simple regression and correlation analysis. It was established that the main strategies used were retailers, wholesalers, agents and brokers and firms also prefer selling directly to consumers. The study also found that combination of channels is an important strategy most alcoholic beverages companies use. Franchising is however used to small extent and there is more opportunities for companies to focus on this strategy. The study confirmed that there is significant influence of distribution strategies on competitive advantage of alcoholic beverage companies in Nairobi. The study therefore recommended that there is need to increase the capacity of wholesalers and distributors to handle their products and at same time encourage consumers to purchase their products from them so as to effectively manage their distribution strategies.