The Influence of Distribution Service Performance on Market Share in the Cement Industry in Kenya

Abstract

This study sought to establish the influence of Distribution Service Performance on Market Share in the cement industry in Kenya. Distribution service performance in this context refers to the degree of efficiency achieved by cement companies in making their products available to consumers punctually, adequately and at affordable prices. Market representation and ordering procedures are two factors that affect the efficiency in availing product to consumers hence influencing market share. This study therefore adopted representation and ordering as the two factors of study affecting distribution service performance in the cement industry in Kenya. The study was a descriptive cross sectional survey. The research was carried out among cement manufacturing companies in Kenya, which are six in number. It was thus a census since the number of the target population being six companies was conveniently accessible and allowed for a census study. Both primary and secondary data collection techniques were adopted. The study adopted both quantitative and qualitative methods of data analysis. The quantitative analysis focused on using descriptive and inferential statistics with results being presented in tables. Content analysis was also used in addressing the qualitative information acquired from the respondents. The study revealed that cement manufacturing companies provide adequate representation in the market. The study also established that competition leads to greater representation. The findings of this study also show that cement manufacturing companies are enhancing technology for representation and that effective communication improves ordering in cement manufacturing companies. The study established that ordering could lead to low cost and high responsiveness for cement manufacturing companies in Kenya. It further established that representation as denoted by effective visits by a sales representative and ordering characterized by accessibility, accuracy, processing and assistance are important to cement manufacturing companies. Cement manufacturers rated their performance as very good in representation and distribution while performance on ordering was rated as average. This study recommends that cement manufacturing companies in Kenya should embrace representation in the market in order to improve their distribution service performance. The study also recommends that cement manufacturing companies in Kenya should improve communication for effective ordering. This is because ordering positively contributes to distribution service performance for cement manufacturing companies. Finally, the study recommends that further research should be done to compare influence of representation and ordering in other sub-sectors of manufacturing. Future scholars should develop a framework for balancing optimal conditions to improve distribution performance for manufacturing companies in Kenya.