Influence of the Nature of Product on Performance of Soft Drinks Manufacturing Firms in Kenya

Abstract

Growth of a business sometimes complicates the process of moving products from manufacturers to customers. Business organizations must confront the issue of how to effectively optimize distribution logistics to meet customer demands. Most companies are recognizing that distribution strategy must be robust enough to handle current demand, while remaining flexible enough to react to changing market conditions and minimize business risk. The purpose of this study was to determine the influence of the nature of product on performance of soft drinks manufacturing firms in Kenya. The study was informed by Theory of Performance and systems theory. The study adopted descriptive survey design to examine the relationship between the independent and dependent variables. Target population was 2345 people who include distribution department, whole sellers as well as retailers in the company. The study used stratified sampling technique to select groups of its subjects. Simple random sampling method was then used to select a sample size of 341 respondents. A pilot test was conducted to ensure validity and reliability of the data collection instrument. Data analysis was done using descriptive as well as inferential statistics. This was done via Statistical Package for Social Sciences (SPSS). The findings revealed that nature of product had a positive and significant influence on the performance of Nairobi Bottlers in Kenya (β =.382, p=.000<.05). The study concluded that nature of product has a significance influence on performance of Nairobi Bottlers Company Limited, evidently implying that taking care of nature of product enhances performance of the company. Considering the fastness the world is moving in terms of production of soft drinks, it is essential that firms embrace the various aspects of nature of product which include form shape perishability as well as range of such products which enhances the ability for firms to perform. The study thus recommended that soft drinks manufacturing firms should always strive and ensure that the products they produce take into account the various aspects associated products to enhance their competitiveness and this will in turn assist firms to perform. Keywords: Nature of product, Soft drinks manufacturing firms Performance, Nairobi bottlers, Kenya