An Empirical Investigation on Aspects of Culture and Their Influence on Marketing Strategies in the Beverage Industry in Kenya
Abstract
The study sought to investigate how marketing strategies of the beverage industry in
Kenya are moderated by some selected aspects of culture and also how firms view the
cultural issues in the light of increasing globalization.
The population of interest included the firms engaged in Total Commercial Beverage
(TCB). The industry has several competing brands in its stable ranging from carbonated
soft drinks, beer, tea, coffee, water, juices, squashes, dairy products and so forth. Due to
constraints of resources firms accessed were mainly in Nairobi, Mombasa, Thika, Nyeri
and Molo.
The primary data used in this study was collected using structured questionnaire and open
end questions. The questionnaire was administered on a "drop and picked later" basis.
22 firms out of 32 targeted responded favorably giving a response rate of 69%. Of the
firms that responded, 41% are locally owned, 36% jointly owned between locals and
foreigners and 23% are foreign owned.
Analysis of data revealed that aspects of culture investigated drew mixed reception.
Invariably, some aspects were deemed more important in certain areas to the extent that
they influence strategies. For instance, Language of communication was regarded as
being the most important factor in promotion strategies. This is because Advertising,
which predominantly must use language understood by the target audience, was also
found to be the most popular way to promotion in this industry.
Consumer values and attitudes were also important in product design strategies and
promotion activities.
Economic environment was rated as being the most important factor in pricing strategies
whereas accessibility of location was very significant in distribution strategies.
With rapidly increasing importance of globalization one would expect marketers to invest
much time and efforts in trying to understand customers and markets. On the contrary the
findings in this study indicate that cultural factors are not very significant in the
perspective of globalization. This agrees with other authors who are pro-globalization
arguing that products and brands can be marketed worldwide utilizing the same
marketing mix in all nations irrespective of cultural differences.
Religion was negatively predisposed in almost all cases implying it is not important in
marketing strategies of the beverage industry. Such factors like material culture,
education and aesthetics were regarded as marginally important. This is probably because
they form an integral part of the wider norms of a culture within a society.
Finally the significance of this study lies in realizing that culture by its very nature is
wide, complex and rarely understood. Thus the findings of this study should be
interpreted with due consideration to its limitations and technicality of terminologies.
However the findings suggest that most managers are aware of the cultural undertones
even they seem dormant.
Citation
Masters of Business Administration, University of Nairobi (2001)Publisher
University of Nairobi, School of Business