Promotional Mix Tools and Performance of Supermarkets in Nairobi City County, Kenya

Abstract

The purpose of this study was to establish the effect of promotional mix tools on performance of Supermarkets in Nairobi City County. The following specific objectives guided the study: to establish effects of advertising, sales promotion, direct marketing, public relations, and organizational characteristics on performance of supermarkets in Nairobi City County area. Explanatory research design was used. The study population consisted of 102 supermarkets in Nairobi County as per the Kenya business directory listings, 2018.The study used purposive sampling technique to pick a branch manager and one sales and marketing representative from each of the 102 supermarkets who was conversant with the effects of promotional mix tools on the performance of the supermarkets in Nairobi totaling to 204 respondents. Primary data was collected using Questionnaires. The study used descriptive statistics. Multiple regression analysis was used in testing the hypotheses. Tables and figures were used to present data. The research findings indicate that promotional mix tools advertising, public relation and sales promotion significantly affected performance of supermarkets in Nairobi City County. However direct marketing insignificantly affected performance. The study also found that organizational characteristic had a moderating effect on how promotional mix tools affected performance of supermarkets. The study concluded that sales promotion, public relations, and advertising significantly affected performance of supermarket in Nairobi City County while direct marketing had insignificant effect on performance of supermarket in Nairobi City County. The study recommends supermarkets to use advertising to develop large markets and utilize outdoor adverts to boost their performance and make use of print adverts to promote purchase of products. The supermarkets should also invest in direct marketing through websites as they are useful in product brand identity. It is also recommended that Supermarkets should make use of Telemarketing to help in product communication as well as social media to increase market share and newsletter helps to improve publicity. The research findings were helpful to the government in formulating advertising policies for effective management and shaping of the industry. The study provided a useful reference document on promotional mix tools to policy makers and regulators Authority that was relevant in ensuring that the retail market industry is well regulated.