Effect Of Distribution Strategies On Sales Performance Of Tea Packers In Kenya: A Case Of Kenya Tea Packers Limited -Kenya

Abstract

Distribution strategy is a vital ingredient for the tea factories sales performance, since it is the most affordable way of Kenya tea packers (KETEPA) products and services reach the potential consumers. Sales performance in KETEPA has been nosediving graphically in the preceding years of 2016 to 2020 where tea sales fell in billion kshs from 83.97 to 79.02, and secondly, the average percentage return to farmers was 75 in 2016 and 66 in 2020. The main objective of the study was to assess the effect of distribution strategy on sales performance of tea packers in Kenya, A case of Kenya Tea Packers Company limited. The specific objectives were to establish the relationship between intensive distribution strategies on sales performance, assess the role of selective distribution strategy on sales performance and to determine the effect of exclusive distribution strategy on sales performance on KETEPA Company Ltd. The study was underpinned by the theories of marketing mix and market segmentation, Population of the study was from the departments of Sales, marketing, transport and logistics with a target population of 159 respondents. Descriptive research design was applied hence stratified random sampling was used to arrive a sample size of 114 respondents. To carter for non-response the researcher increased the sample size by dividing 114 by 0.80 to get a total sample size of 143. Questionnaire was used as a data collection tool. Content and construct validity was used to validate the questionnaire. Reliability of the questionnaire was tested using Cronbach's alpha coefficient which was 0.9. The data collected was analyzed using inferential and descriptive statistics which included correlation analysis and regression analysis. Data presentation was done using means, standard deviation, skewness and kurtosis. The relationship between distribution strategies and sales performance was done using regression analysis. The results indicated that intensive and exclusive strategies had positive and significant effects on sales performance but selective had no significant. The finding further revealed that distribution strategies accounted for a good percentage of variance in sales performance. The study further concluded that distribution strategies affected sales performance of tea packers companies in Kenya. The research recommended that tea packaging companies need to ensure that there is an effective plan that intensive strategy is planned and organized well to increase efficiency and effective of tea industry also the researcher recommends that the study be replicated in other tea packers industries in other regions to enable the generalization of the findings. In addition, the study recommends that future researches examine other distribution strategies, this will go a long way in augmenting the results of this study.