Sales Management Strategies and Performance of Cooking Oil Manufacturing Companies in Nairobi City County, Kenya
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Date
2023
Authors
Kayaki, Elizabeth Mueni
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The edible oil industry in Kenya has three market leaders who have been in constant
competition with each of them trying to increase their market shares. Given that this
industry is characterized by low margins, the companies operating in this industry must
use strategies which are focused on driving high volumes sales to compensate for the
lost margins. However, despite the critical nature of sales performance in a company,
very little is known about the effect of sales management on sales performance in the
edible oils sector. This study sought to investigate the effect of sales management
strategies on sales performance of cooking oil manufacturing companies in Nairobi
County Kenya. The study sought to; determine the effect of sales forecasting, sales
implementation, sales evaluation and sales control on the sales performance of cooking
oil manufacturers in Nairobi Kenya. The study was anchored on the experimental
learning theory and the Balanced score card. The study adopted descriptive research
design and the target population for the study was 5 cooking oil manufacturers in
Nairobi. Through random sampling technique 140 sales operations managers, customer
success managers, account managers and sales administrative managers of the 5
cooking oil manufacturers were purposively sampled. Self-administered questionnaires
were used to collect primary data. A pilot test was conducted to assess the instrument’s
face and content validity, and Cronbach’s Alpha was used to evaluate the research
instrument’s internal consistency. Descriptive statistics were computed to describe the
characteristics of the variables in the study while multiple regression analysis will be
used to establish the nature and magnitude of the relationships between the independent
and dependent variables. The findings of the study revealed that all four objectives of
the sales management process positively and significantly influenced the overall sales
performance of the cooking oil manufacturing companies in Nairobi. Although the
coefficients for sales control and sales implementation were lower than those for sales
evaluation and sales forecasting, they still had a positive and significant relationship
with overall sales performance. The study concluded that taking into account sales
forecasting, implementation, evaluation, and control strategies positively influenced the
sales performance of cooking oil manufacturing companies in Nairobi. In particular,
regular evaluation of sales performance had the strongest impact on overall sales
performance, followed by accurate forecasting of sales performance. These findings
suggest that all four objectives of the sales management process are important for
overall sales performance and should be given equal attention and resources.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Marketing Specialization) School of Business, Economics and Tourism, Kenyatta University, June 2023.
Keywords
Sales Management Strategies, Performance of Cooking Oil Manufacturing Companies, Nairobi City County, Kenya