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FACTORS INFLUENCING THE DISTRIBUTION CHANNEL PERFORMANCE OF KENYA WINE AGENCIES LIMITED PRODUCTS WITHIN SUPERMARKETS

ABSTRACT

 

The wine industry in the world market has been experiencing a period of a substantial growth and change. Marketing channels of wines are develop and operate in complex environment that is continually changing as they are influenced by macro environmental forces or variables such as consumer buying behavior, economic, political and legal factors, technological changes, international macro influences and channel member preferences. These changes have posed a competitive threat to KWAL in Kenya and contributed to loss in its market share to competitors. This study therefore aimed at surveying factors influencing the distribution channel performance of KWAL with a view to building the distributor/customer relationship and attaining the competitive advantage. The study was guided by two objectives those are; to assess the distribution channel performance in the wine industry and to determine the factors influencing the distribution channels performance in the wine industry, among the supermarket outlets inKenya. It was designed to capture data on the performance of KWAL distribution channels. The survey research was found appropriate as it required the collection of quantifiable information from the sample. Since it was a survey research, both the structured and self administered questionnaires were used to collect the data. The responses from the questionnaires were checked for the completeness and the Statistical Package for social sciences was used to analyze the results of the questionnaire. The study also concludes that factors significantly affecting KWAL distribution channels are economic, poor public awareness and competition. Others were like Managerial challenges, legal, technological and social–cultural issues. From the findings and recommendations, the study recommends that factors that greatly affect performance of distribution channels of KWAL products in supermarket outlet were economic factors and poor public awareness. The study also recommends that KWAL Company should segment its market to easily influence the performance of its distribution channel in supermarkets in Kenya. The study also recommends allocation of more resources and improving publicawareness.


Dr. Angela Mwikali Nyalita (Phd)

University of Nairobi,

School of Business, Department of Entrepreneurship

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