dc.description.abstract | The purpose of this study was to determine the distribution strategies pursued by food
manufacturing companies with particular focus in Nairobi. The objectives of the study
were to establish the distribution strategies pursued by food manufacturing companies in
Nairobi and to determine the factors influencing the choice of distribution strategies
pursued by food processing firms in Nairobi.
A descriptive research design was adopted in this study. The population of interest was
all food processing firms in Nairobi. A census study was carried out because of the
relatively small population of 45 firms. Primary data was collected using semi-structures
questionnaires. The questionnaires were addressed and then posted to the marketing
managers or those in equivalent positions. A self addressed and stamped envelope was
enclosed for the respondent. Follow up was made by calls and personal visits by the
researcher.
A total of 30 out of 45 firms responded giving a response rate of 67 per cent. The primary
data was analysed using descriptive statistics which included frequencies, percentages,
mean scores and standard deviations. Food processing firms pursue different distribution
strategies which include distribution intensity, distribute scope, multi-channel and
franchising. 93 per cent of the firms directly distribute their products to retailers and 94
per cent of the firms distribute to wholesalers.
Factors which influence the choice of distribution strategy to a very large extent are
company objectives, followed by companies past experience with distributors, then
ability of the distributors to pay for product, and lastly size of the area covered by the
distributor. Factors which influenced the choice of distribution strategy to a small extent
were political temperature of the area served, environmental regulation in the area served
and product volume or weight. It is recommended that food manufacturing companies
should redefine their distribution strategies to enhance their competitiveness. The major
limitation of the study was difficulty in getting all the sent out questionnaires. It was
suggested that the study be replicated in other sectors of the economy and other countries | en |