Design of Speciality Milk and Competitive Advantage of Dairy Processing Firms in Nairobi County

Abstract

The milk industry in Kenya is a source of income and food and a major contributor to the national GDP. However, the processing firms in the industry face product design problems which affect their competitiveness. The purpose of the study was to establish how the design of specialty milk influence competiveness of the processing firms. The targeted population was 11 milk processing firms in Nairobi county and 40 consumers of specialty milk selected randomly to confirm the responses given by firms. The mixed method was selected for acquiring and analyzing the results of the research. Quantitative data was collected from 40 respondents via questionnaire and analyzed via SPSS. Qualitative data was collected through interviews on 7 firms among all the 11 processing firms and content analysis was conducted. The result of the study showed that product design of specialty milk is a major contributor to gaining competitive edge. By examining the consumer perception towards the brands they consume, it was found that design elements like packaging, colour, graphics and information influence the decision making and attracts consumer attention but more importantly consumers are concerned with health factors, taste and smell of the milk they consume. Based on the findings, processing firms could gain competitive edge by working on their product design to be unique and cooperating with consumer’s requirements. Further research could investigate on other competitive product/service design requirements in different industries.