Market Penetration Strategy and Performance of Bakeries in Nairobi City County
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Date
2024-11
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The Strategic Journal of Business & Change Management
Abstract
Demand for bakery products has realized a consistent growth over the recent years due to innovation in bakery products, rising need for healthy products and convenience of baked goods as key components of breakfast meals. This has prompted emergence of many bakeries in the country and more so, in Nairobi City County. As a result of the increased level of competition, there is need to explore growth strategies that bakeries may utilize to succeed in the market. The study objective was to examine how market penetration strategy influences bakeries’ performance in Nairobi City County. This study engaged descriptive and explanatory research designs and targeted 271 employees at different levels within the organizations being 30% of 904 employees sampled from eight selected bakeries in Nairobi City County. A questionnaire having both closed & open-ended questions was developed and administered via a method of drop and pick later. Questionnaire was first piloted to determine its validity by establishing whether the questions measured the expected theorized variables through construct, face and content measurements. In addition, reliability was determined using Cronbach Alpha statistical test giving a greater value than 0.7 indicating that the questionnaire used to collect data was reliable. Collected data was quantitative as well as qualitative. Under qualitative data, content analysis was used and presented using themes and narratives; whereas quantitative data presented in tables and charts was analysed by inferential and descriptive statistics. Findings of the study showed a strong and significant positive relationship between market penetration strategy and performance of bakeries in Nairobi City County at 95% confidence level, and at P-value =0.000b . In conclusion, it’s recommended that Bakery management should consider sending sales team to look for more market, adjusting prices to sell more, introducing loyalty programs to retain customers and placing attractive displays to generate more sales revenue and total output turnover. A suggestion that further studies be conducted in the country and even regional level for the Government of Kenya and bakery shareholders to understand more on how to sustain the bakery sector for a greater economic impact and sustainability. In addition, it is hoped this study will be significant to bakeries’ management, new entrants in the baking industry, health and consumer policy makers, academicians, and researchers.
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Mbogo, D. & Waithaka, P. (2024) Market penetration strategy and performance of bakeries in Nairobi City County. The Strategic Journal of Business & Change Management, 11 (4), 1279 – 1295. http://dx.doi.org/10.61426/sjbcm.v11i4.3156