| dc.description.abstract | There is very little information available on
the soft drinks industry in Kenya and this study is an
attempt to rectify the situation. It provides some
information on the soft drinks available on the Kenyan
market. From an economist point of view, the study
shows the oligopolistic nature of the industry and
discusses some of the problems which face small local
manufacturers of soft drinks in the country.
In this paper, the relationship between the
manufacturers of carbonated soft drinks is discussed.
~his is done by grouping the manufacturers into multinationals
and small local firms. One of the main
aspects considered is the differences existing in the
operation of these two groups of firms. The operation
of the ['irms is looked at from different sides covering
production, marketability and distribution of their
products.
The marketing tactics of the manufacturers of
internationally branded products have concentrated on
advertising. Thus in absence of price competition in
the soft drinks industry, this has become an important
means of acquiring market shares. In this respect,
the s~a:l lo-c.a..•l firms have been handicapped. Apart from
advertising, the study considered other aspects of
oligopoly such as collusion, existence of cartels and
price leadership in the industry.
(iii)
In addition, this paper _ discusses some of
the problems which face small scale industrialists in
developing countries in general and the soft drinks
industry in particular. These firms face problems
such as lack of capital, markets, managerial resources
and technological know-how.
Carbonated soft drinks are then compared with
non-carbonated ones to reveal the existence of any
competition between them.
From this study, the conclusion is that producers
of internationally branded prodllcts have an influence
on the performance of small-local firms. | en |
