ISSN: 2265-6294

Promotion Strategies and Performance of Fast Moving Consumer Goods Firms in Kenya

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Rwamba Pauline,Zippy Mukami,Kennedy Nyabuto Ocharo

Abstract

The purpose of the study was to establish the effect of promotion strategies on performance of firms manufacturing fast-moving consumer goods in Kenya. The promotion strategies considered were advertising, personal selling, sales promotion and publicity while performance indicators included sales and return on assets. The study analyzed panel data from firms manufacturing fast moving consumer goods in Kenya for the period 2016 to 2021. Regression analysis was employed to analyze data. The study established that promotion strategies had a significant effect on performance of firms manufacturing fast moving consumer goods in Kenya. The findings further indicated that promotion strategies explained up to 38.5% and 15.9% of the variations in the firm sales and return on assets respectively. The study found that advertising and sales promotion strategies had a positive and significant effect on both sales and return on assets. The study also found that personal selling had a positive effect on both sales and return on asset but only significant on sales while the effect of publicity was positive but insignificant on both sales and return. Given that advertising and sales promotion strategies were established to affect firm performance significantly, the study recommends that the management of fast-moving consumer goods firms should allocate more resources towards enhancing adoption of the two strategies.

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